Firm Receives One of the Largest Fine in U.S. Export Violation History
American Shipper Magazine reports that Balli Aviation Ltd. was sentenced to five years probation and is to pay $2 million for exporting B747 planes to Iran. Balli Aviation plead guilty to issuing three planes to be shipped to Iran without properly obtaining an export license from BIS or receiving authorization from the Treasury Department’s Office of Foreign Assets Control. Furthermore, they continued negotations with Iran even after BIS issued a Temporary Denial Order.
The $2 million fine combined with the $15 million civil settlement is one of the largest fines a company has received in U.S. export violation history.
There couldn’t be a more better example of how important it is to remain compliant then reading about Balli Aviation. Simply using a broker or adding software can help eliminate these huge fines and help keep companies out of court.
Management Dynamics offers an export trade solution that ensures compliance with export requirements of all major trading countries around the world allowing businesses to move goods across borders legally and efficiently.
To read more about the export violator, click here.
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Dutch Aviation Company Violated Export Laws
The U.S. Bureau of Industry and Security reports a Dutch Aviation company, Aviation Services International, B.V. (ASI), plead guilty to U.S. federal charges of conspiracy to illegally exporting aircraft parts from the U.S. to Iran via the Netherlands, the UAE and Cyprus.
The director Robert Kraaipoel and sales manager Robert Neils Kraaipoel, both citizens of the Netherlands, are charged with conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions Regulations by exporting aircraft components and other goods to Iran without obtaining licenses from the Treasury Department’s Office of Foreign Assets Control (OFAC). The two defendants, each face a potential sentence of five years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss. ASI has agreed to pay a $100,000 fine and corporate probation for five years.
U.S. Customs officials became suspicious of ASI when its shipment of aircraft parts were detained and Mr. Kraaipoel denined the shipment will be re-routed to Iran from the Netherlands. Later that year, a similar shipment on it’s way to Iran was detained in Dutch Customs. The investigation began.
”This investigation demonstrates in clear terms the threat we face from the illegal foreign acquisition of U.S. technology. Keeping America’s critical technology from falling into the hands of state sponsors of terror has never been more important,” said David Kris, Assistant Attorney General for National Security.
To read the full press release from BIS, click here.
Foxsemicon Integrated Technologies, Inc. of Taiwan Agreed to Pay Fine For Export Violation
The U.S. Bureau of Industry and Security (BIS) issued a statement on Tuesday that Foxsemicon Intergrated Technologies (FITI) agreed to pay its penalty of $250,000 for 31 export violations. They are charged with exporting a product from the U.S. to China without a proper export license.
“Exporters must heed the advice of their suppliers when told that products require an export license. Companies involved in systems integration bear the burden of ensuring that license requirements regarding parts and components are met before exporting to foreign customers,” said Kevin Delli-Colli, the acting assistant secretary of Commerce for Export Enforcement.
Furthermore, BIS alleged that FITI knew that licenses were required, but failed to apply for them. BIS agreed to suspend $160,000 worth of FITI fines because they corporated throughout the investegation and agreed to not violate the export law for at least one year.
Knowing which license to apply for can be challenging. Management Dynamics offers a solution that can help. Export On-Demand is a complete trade automation solution the helps U.S. exporters establish an export management system. It is available as a flexible, on-demand solution that can determine if a license is required for a transaction, one of its many features.
To find out more about Export On-Demand, click here.
To read the full report from BIS, click here.
BIS Releases New Denied Party Rule
According to the BIS report, this new rule amends the Export Administration Regulations by adding 13 new persons to the Entity List. These persons were found by the U.S. governement to be acting contrary to the national security or foreign policy interests of the United States.
Furthermore, 3 persons were removed from the Entity list by determination of the States Government annual review. Two more people requested and received removal on the list.
How do you make sure you aren’t trading with a denied party?
Download this free whitepaper from Management Dynamics, RPS Whitepaper to learn how to stay compliant.
For further updates and or information on Global Trade, please download the BIS report by clicking here.