Justice Announces Increase in Year’s Export Enforcement Cases – The Department of Justice and several partner agencies have announced the results over the past year of the National Export Enforcement Initiative. The initiative, a multi-agency task force instituted to combat illegal exports of restricted military and dual-use technology from the United States, stated that it leveled criminal charges against more than 145 defendants. Approximately 43% of those cases involved instances of munitions or other restricted technology bound for Iran or China. One of the most recent cases brought forward by the initiative included the indictment of three individuals accused of conspiring to illegally export to the People’s Republic of China controlled carbon fiber material. The initiative alleges that the material had applications in rockets, satellites, spacecrafts and uranium enrichment processes. The intended recipient was the China Academy of Space Technology. The initiative has also resulted in the creation of the Counter-Proliferation Task Force located in various judicial districts country-wide.
Freight Forwarder Pays $108,000 for Violation of Antiboycott Regulations – Rohde and Liesenfeld, Inc., a German-based freight forwarder with operations in Houston, TX, agreed to pay $108,000 to settle allegations that it violated the EAR’s antiboycott provisions. BIS’s Office of Antiboycott Compliance alleges that on 36 occasions in 2002 and 2003 the firm furnished prohibited information regarding business relationships with or in a boycotted country in connection with the sale and transfer of goods from the United States to Syria. Under the EAR’s antiboycott rules, no US entity may participate in a boycott against US allies, including the Arab League boycott of Israel.
Three Companies Receive Only Warning Letters for Antiboycott Violations – BIS has released three warning letters it sent in September and October of 2008. Two of the letters stated that certain language in an Agent Certification was reportable under antiboycott regulations where it pertained to certifying that a ship was eligible to enter a certain port. The third letter stated that the company had failed to report its receipt of a request for information regarding its or another person’s business relationships with or in a boycotted country.
Maxim Fined for Continuing to Make Deemed Exports While License Application Was Pending – Maxim Integrated Products, a designer and manufacturer of semiconductor circuits and other analog and digital electronics, agreed to a $192,000 settlement with BIS on 34 counts of alleged export violations. The majority of the alleged violations related to the export of technical data to various countries without the required license.
Electronics Company Settles Export Violations Allegations for $170,000 – The electronics wholesaler America II Electronics, Inc., based in St. Petersburg, Florida, paid $170,000 to settle allegations that if violated the EAR. BIS alleged that the company transferred analog-todigital converters from the United States to Russia without the proper authorization on four separate occasions. The settlement covers four separate violations, each of which could have cost the company up to $250,000 under the increased penalties instituted a year ago.
Physicist Charged with Arms Control Violations – The President of AMAC International, Shu Quan-Sheng, has been arrested and charged with violating the International Traffic in Arms Regulations (ITAR) and the Foreign Corrupt Practices Act (FCPA). AMAC is a research and development firm involved in superconducting technologies, magnetic levitation and cryogenics in space. The complaint alleges that Shu paid bribes and provided technical assistance and controlled space technology to Chinese government officials in connection with the development a Chinese space launch facility.
Cabela’s Fined $ 680,000 for Exporting Unlicensed Rifle Scopes – The Outdoor equipment and gun retailer Cabela’s, based in Sidney, Nebraska, has agreed to pay a $ 680,000 civil penalty to settle over 150 allegations that it violated the EAR. BIS alleges that the company exported 76 optical sighting devices for firearms to 14 countries without approved licenses and without filing required Shipper’s Export Declarations. As part of the settlement, Cabela’s must also conduct an audit of its internal compliance program within 12 months and submit a copy of the audit report to the Office of Export Enforcement.