Two companies weren’t penalized after disclosing potential export control and Foreign Corrupt Practices Act violations to U.S. agencies, according to recent Securities and Exchange Commission filings. A10 Networks Inc., a software and hardware manufacturing company, said in its April 30 filing it received a warning letter from the Bureau of Industry and Security “in lieu of fines and penalties” after voluntarily disclosing potential illegal exports of encryption products (see 2011040041). Pactiv Evergreen, a North American food and beverage packaging company, said in its May 6 filing it disclosed potential FCPA violations to the Justice Department (see 2103040065), but the agency “decided to close its file on this matter without any action against the Company.” Pactiv said it’s awaiting a potential penalty decision from the SEC and can’t predict whether it will be fined.
The Bureau of Industry and Security again extended the comment period on an information collection related to the North Atlantic Treaty Organization’s bidding process, a notice said. The information collection pertains to the process BIS must undergo to determine whether U.S. firms are eligible to participate in NATO’s bidding process and supply certain goods. BIS previously requested comments in January and extended the comment period in March (see 2103170024). The agency said it will extend the comment period by an additional 30 days. Comments are now due by June 9.
Commerce Secretary Gina Raimondo said she plans to heavily enforce Entity List restrictions and more aggressively tackle the agency's emerging and foundational technology export control mandate. And although the agency’s review of China policies is ongoing (see 2101250049), she again stressed that Commerce doesn’t plan to remove export restrictions from Huawei and is looking for more companies to add to the Entity List.
U.S. exporters and forwarders are still unsure how much due diligence is enough to comply with the Commerce’s Department’s recently expanded end-user and end-use restrictions, National Customs Brokers & Forwarders Association of America officials said. Although the Bureau of Industry and Security issued some guidance last year, the guidance didn't address all industry questions and was made more complicated by another set of restrictions that took effect this year, the officials said.
The top Republican on the House Foreign Affairs Committee urged Commerce Secretary Gina Raimondo to address the agency’s “incomplete” implementation of its emerging and foundational technology export control mandate when she testifies before the House this week. Raimondo -- who will testify May 6 before the House Appropriations Subcommittee on Commerce, Justice and Science -- should also address Commerce’s search for a Bureau of Industry and Security leader and outline the agency's export controls strategy to compete with China, said Rep. Michael McCaul, R-Texas.
The Bureau of Industry and Security fined a California metalworking machinery company $60,000 for illegally exporting an item to the United Arab Emirates, BIS said in an April 30 order. The company, MDA Precision LLC, knowingly violated the Export Administration Regulations when it sold a $34,000 “five-axis benchtop milling machine” to the UAE without a license. BIS said the UAE customer likely intended to transfer the machine to Iran.
The Bureau of Industry and Security revoked export privileges for two people for illegal exports to Mexico and one person for illegally providing financial services to Iran, BIS said in April 30 orders.
The Bureau of Industry and Security fined a U.S. thermal imaging camera producer more than $300,000 after it violated the Export Administration Regulations by providing false and incomplete statements in support of a commodity jurisdiction (CJ) request (see 2103040065). The company, FLIR Systems, sought a determination that one of its newly developed products was subject to the EAR rather than the State Department’s International Traffic in Arms Regulations and withheld information in order to support that determination, BIS said. Along with the fine, FLIR agreed to conduct two BIS-monitored internal audits and won’t be granted export licenses until the audits are completed and the fine is paid, BIS said in an April 29 notice.
The Bureau of Industry and Security will hold its annual conference virtually in September, the agency announced this week. The Sept. 2 meeting will be a “full day virtual experience” from 8:30 a.m. to 5:30 p.m. featuring keynote speakers, information sessions and live question-and-answer periods with BIS and other agency officials. The agenda will include sessions on changes to BIS military end-user and end-use restrictions, the expansion of the foreign direct product rule, and emerging and foundational technologies.
A German software company agreed to pay more than $8 million in fines after it admitted to violating U.S. export controls and sanctions against Iran, the Justice, Treasury and Commerce departments announced April 29. The company, SAP SE, came to settlement agreements with all three agencies after it voluntarily disclosed the violations, which included illegal exports and reexports of U.S.-origin software.