Three U.S. companies said they may have violated U.S. sanctions or export controls related to overseas sales and illegally processed payments, according to their most recent filings with the Securities and Exchange Commission. The potential violations include disclosures of dealings with sanctioned businesses, including sales to Iran.
The Bureau of Industry and Security did not impose penalties on a U.S. electronics company that had disclosed potential export violations (see 1911290004) for shipments involving Iran and Syria, Arrow Electronics said in an Oct. 29 Securities and Exchange Commission filing. Arrow, which disclosed that it helped ship $5,000 worth of products to resellers covered by U.S. sanctions, said BIS closed its investigation and issued the company a warning letter with no penalties. BIS declined to comment. Arrow said it is still being investigated by the Treasury Department’s Office of Foreign Assets Control for the sanctions violations, which “may result in the imposition of penalties.”
The Bureau of Industry and Security revoked export privileges for three people for illegal firearms exports, according to Oct. 30 orders.
Huawei is suing the Trump administration for not releasing documents more than a year after the Chinese technology company requested them. In the lawsuit, filed Oct. 30, Huawei said its Freedom of Information Act requests have been met with “a remarkable degree of stonewalling” and relate to the U.S. investigation into Huawei CFO Meng Wanzhou, “trade relations” between the U.S. and China and “competition over the development of 5G technology.” Huawei named a range of U.S. agencies in the complaint, including the Bureau of Industry and Security and the Office of Foreign Assets Control.
U.S. export controls on foundational technologies would impede U.S. innovation and do little to reduce national security concerns, the Computer and Communications Industry Association said in a letter to the Bureau of Industry and Security. The group urged BIS to construct a “narrowly tailored” export regime or risk stymieing U.S. leadership in a range of technologies.
The agency responsible for U.S. financial sanctions lost a record number of employees last year, a trend former officials and industry lawyers say has led to longer processing times and an influx of new officials.
The Bureau of Industry and Security revised its license review policy for items controlled for national security reasons and destined for China, Venezuela and Russia (see 2010230007), the agency said in a final rule released Oct. 28. The rule, which takes effect Oct. 29, said BIS and other “reviewing agencies” will determine whether those exports will make a “material contribution” to the weapons systems of the countries before approving the shipments.
The Bureau of Industry and Security revoked export privileges for two Orlando, Florida, residents after they illegally exported firearms and ammunition from the U.S. to Haiti, BIS said in Oct. 26 orders. BIS said Junior Joel Joseph was convicted April 12, 2019, of violating the Arms Export Control Act and the International Emergency Economic Powers Act when he conspired to export AR-15 rifles, Glock semi-automatic pistols, shotguns and ammunition to Haiti without the required licenses. He was sentenced to 16 months in prison, with three years of supervised release and a $500 fine. Jimy Joseph was convicted May 22, 2019, of conspiring to illegally export AR-15 rifles, Glock semi-automatic pistols and ammunition and was sentenced to 16 months in prison, three years of supervised release and a $200 fine. BIS revoked each man's export privileges for seven years from the date of his conviction.
The Office of Information and Regulatory Affairs completed a review Oct. 22 of a Bureau of Industry and Security final rule related to its “national security license application review policy” for China, Russia and Venezuela. OIRA received the rule Sept. 17 (see 2009180012).
The Bureau of Industry and Security is allowing exporters to request a six-month extension for their export licenses, due to the COVID-19 pandemic, BIS said in an Oct. 17 notice. Licenses are eligible for the extension if they expire on or before Dec. 31, BIS said, adding that extensions will be granted in “most cases.” Exporters can apply for the extension by emailing LicenseExtensionRequest@bis.doc.gov and can expect to hear back from BIS within two to three business days.