BIS - Pennsylvania company settles export violation charges  

January 17:  The Bureau of Industry and Security (BIS) of the U.S. Commerce Department today announced that it has reached a civil settlement with a Pennsylvania company in connection with the illegal export of U.S.-origin amplifiers controlled for national security reasons to Hong Kong, China, Singapore, Malaysia, Taiwan, Korea and Thailand. Many of the company's products have applications in military systems, which include radar jamming, weapons guidance systems, and require export licenses.

According to the BIS release (posted on its website), BIS has suspended the civil penalty of $500,000 because of the company’s substantial cooperation during the course of the investigation, including submission of a voluntary self-disclosure in 2011. However, if the company violates the regulations during the next two years, the entire penalty will come due.

It was further reported that the settlement:

  • Holds the company responsible for failure to exercise sufficient oversight of its former export coordinator (who was sentenced in January 2013 to 42 months in prison related to the exports)
  • Mandates that the company hire an expert outside of the company to audit its compliance with export control laws, including recordkeeping

For more information, contact a professional with KPMG’s Trade & Customs practice:

Douglas Zuvich

(312) 665-1022

Andrew Siciliano

(631) 425-6057

John L. McLoughlin

(267) 256-2614

Todd R. Smith

(949) 885-5617

Luis A. Abad

(212) 954-3094

Amie Ahanchian

(202) 533-3247

Or your local KPMG Trade & Customs professional.

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