An American forwarding company recently settled civil penalty charges with the Bureau of Industry and Security (BIS) after the attempted distribution of unlicensed export goods subject to Export Administration Regulation controls. The shipment was to be received by a company in Pakistan registered on the Entity List. The items for export included an ultrasonic mill cutting machine controlled for anti-terrorism reasons.
Bureau of Industry and Security stated that the company:
- Failed to flag the transaction of issue
- Name and address information of listed entity and importer closely matched
- Had not screened the entity:
- Against any other government issued prohibited party lists
- Several of the company’s internal filing programs flagged the entry
The settlement requires the American company to:
- pay a $175,000 penalty
- receive two external export control compliance audits
If BIS were to identify any violation of Export Administration Regulations, the company will have to provide waybills and other export control documentation. If the company complies with the requirements of the agreement and commits no additional export violations, the BIS will suspend and waive $75,000 of the penalty through March 2020.
For more information, contact Rex Sherman, Vice President, LAX Branch Manager, CHB, at [email protected].
