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Industry News: U.S. Companies Settle Antiboycott Charges

2012-02-22T08:02:00.000-08:00

The United States Department of Commerce (DOC), Bureau of Industry and Security announced that three U.S. companies have agreed to pay $35,200 USD in penalties stemming from violations of current Export Administration Regulations.

1.) Weiss-Rohlig (Cranford, NJ) has decided to pay a fine of $8,000 USD to settle 2 accusations that it violated antiboycott provisions of the Export Administration Regulations (EAR). The Bureau of Industry and Security (BIS) alleges that in 2006 in Weiss-Rohlig furnished illegal information regarding the blacklisted status of a cargo vessel. In addition, the company failed to disclose to the DOC a request to engage with a debarred trade practice or boycott.

2.) JAS Forwarding, Inc. (Los Angeles, CA) has paid a fine of $19,200 USD to settle 3 allegations regarding EAR violations. The BIS alleges in 2006 JAS Forwarding furnished illegal information in statements claiming that certain goods were not of Israeli origin nor comprised of any Israeli materials.

3.) Rexnord Industries (Milwaukee, WI) has arranged payment of an $ 8,000 USD fine stemming from 5 allegations regarding EAR violations. During the years 2007 through 2009, according to the BIS, Rexnord provided prohibited information in a declaration certifying that items were not of Israeli origin nor contained Israeli materials. On 4 separate occasions Rexnord failed to report to the Department of Commerce (DOC) the receipt of a request to engage in prohibited trade practice. Rexnord voluntarily disclosed the transactions to BIS.

Mr. Rudolf Cheung Pleads Guilty: Conspiring to Export Department of State Controlled Military Antennae

2012-01-26T07:38:00.000-08:00

Mr. Rudolf Cheung pled guilty this week to violating the U.S. Department of State, Arms Export Control Act (AECA). Mr. Cheung, a Massachusetts resident, was found conspiring to illegally export 55 antennae with military application, from the U.S. to Hong Kong and Singapore.

Serving as the head of the R&D at a private antennae manufacturing firm for over 17 years, Cheung has planned and overseen the advancement of antennae made by the firm. The firm manufactures multiple antennae for military use, subject to DOS regulations. Allegedly in June of 2006, a company located in Singapore asked for a quotation for 2 types of antennae from the firm. Both antennas fall under the jurisdiction of the U.S. Department of State and may not be exported without authorization. The firm flagged the order as needing a license and was immediately stopped.

Upon learning that the antennae export was halted, Mr. Cheung admittedly discussed with a co-conspirator a method to export the devices without proper authorization to Singapore. The co-conspirator, who operates in the United States, purchased the antennas from Cheung’s firm. The goods were then later exported illegally to a firm, Corezing in Singapore with Cheung’s knowledge. From July 2006 to September 2007, the conspirator purchased a total of 55 military antennae which were then exported to Corezing in Singapore and Hong Kong.

Mr. Rudolf Cheung faces a max sentence of 5 years in prison as well as a fine of $250,000 USD with a conditional 3 years supervised release. Both parties will be added to the U.S. Denied Party List and Debarred Party List. Until rescinded from the watch list, the denied and debarred parties are prohibited from receiving any EAR controlled goods.

For the most current list of denied parties and debarred parties, please contact OCR Services!

Fed/Ex Settlement of $370,000 for Export Administration Regulation Violations

2012-01-10T12:51:00.000-08:00

Last week Federal Express has settled for an amount of $370,000 USD resulting from civil charges that the company violated United States' Department of Commerce (DOC) Export Administration Regulations. The Bureau of Industry and Security charged FedEx with 3 sets of allegations:

1.) 06/2006 - Exportation of EAR controlled goods (electronic components) from the U.S. to ‘Mayrow’, located in the U.A.E., Dubai. ‘Mayrow’ is on the U.S. Restricted and Debarred Party / Denied Party list.

2.) 12/2005 - Exportation of aeronautic simulation software to Beihang University (Beijing, People’s Republic of China). The Beijing University of Aeronautics and Astronautics is listed as an identified denied trade party (restricted party) by the U.S. Department of Commerce.

3.) 2004 - Exporting controlled printer components to parties in Syria on 3 separate occasions in 2004. This is in violation of the current DOC Export Administration Regulations.

For the most current list of denied parties and debarred parties, please contact OCR Services!

2 New Entities Added to Department of Commerce (DOC), BIS Entity list; Internet Filtering Equipment sent to Syria

2011-12-16T07:45:00.000-08:00

The Bureau of Industry and Security (BIS) will be adding two new entities to the Department of Commerce (DOC), BIS Entity list for denied trade parties. Both parties are accused of buying internet filtering devices from the United States and sending the devices to Syria. According to evidence, Waseem Jawad ordered a number of internet filtering, proxy devices from an authorized distributer in the United Arab Emirates. Using his company, Infotec (Info Tech) in the U.A.E., he ordered the devices from the United States. Upon arrival, the proxy devices were transferred to the possession of Infotec. Approximately 3 days later, the filtering equipment was transported from the U.A.E. directly to Syria.

Due to the nature of internet filtering proxy servers being used as a tool to block the actions of pro-democracy activists by the Syrian Government, the Department of Commerce restricts and monitors exporting of these and related devices. They are classified as dual-use items by the BIS. Fines, sanctions, and criminal penalties can be forced on any entity found in violation.
Due to the evidence, both parties (Waseem Jawad and Infotec) are being added to the DOC, BIS Entity list (debarred party list). As new restricted trade parties, both are restricted from receiving any goods that are under U.S. sanction.

For more information regarding the latest Debarred Trade Parties, International Watch Lists, Denied Parties, please contact OCR Services

Director of PPG Paints Trading Company (Shanghai); Illegally Exporting Performance Coatings to Nuclear Reactor in Pakistan

2011-11-22T13:12:00.000-08:00

The former Managing Director, Xun Wang, of PPG Paints Trading Company, Ltd., located in Shanghai, pleaded guilty to illegally exporting high performance coatings to a nuclear reactor facility located in Pakistan. The company is a Chinese subsidiary of the U.S. based PPG Industries.

Xun Wang pled guilty for violating the International Emergency Economic Powers Act; facing a max sentence of 5 years in prison and a fine not to exceed $250,000 USD. Xun Wang did agree to cooperate with law enforcement as part of her admission of guilt. In addition, Xun will be added to the Department of Commerce (DOC) Debarred (Denied) Party List for a period of 5 years.

Wang is charged with conspiring to export and then re-export epoxy coatings to Chashma #2 Nuclear Power Plant (Pakistan). The nuclear facility is on the U.S. DOC Watch List. In Nov. 1998 the Pakistan Atomic Energy Commission was added to the debarred list of United States trade parties following Pakistan’s successful ignition of a nuclear device.

PPG Industries (Shanghai) had initially applied for an export license to ship the performance coatings to Chashma#2 in Pakistan. The U.S. Department of Commerce rejected the application. Upon rejection, Wang had the coatings shipped from the United States using a third party. Eventually the shipment was found to be delivered to Chashma#2. Wang had concealed information, stating the coating paint was for a power plant in China.

5 Individuals Indicted on Fraud Conspiracy: Exports to Iran, Parts Manufactured in U.S. Found in Bombs (IED'S) in Iraq

2011-11-16T07:10:00.000-08:00

5 individuals and their companies have been indicted as part of a conspiracy to defraud the United States that have been accused of causing thousands of radio frequency devices to be illegally exported from the U.S. to Iran. More than 15 were found in improvised explosive devices (IEDs) in Iraq. IED's have been responsible for killing thousands in the war and leaving many more injured. The conspirators are also charged in a fraud conspiracy involving exportation of military antennas to Asia, specifically in Singapore & Hong Kong.

Authorities in Singapore arrested Wong Yuh Lan, Lim Kow Seng, Lim Yong Nam, and Hia Soo Gan Benson in connection with the United States' request for extradition. The U.S. is seeking their trial in Washington D.C. The last defendant, Hossein Larijani, a citizen and resident of Iran, remains uncaptured and wanted for questioning. He is currently a denied trade party and restricted party.