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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Iranian To Be Sentenced For Arms Export Control Violations
According to the Associated Press, an Iranian national plead guilty for plotting to ship sensitive U.S. military technology to Iran. He faces up to 140 years in prison for conspiracy, money laundering, smuggling and arms export control violations.
According to the court documents, Amir Hossein Ardebili worked as a procurement agent for the Iranian government. Federal authorities began their investigations after Ardebili contacted a man in Philadelphia about illegal arms trafficking. Ardebili stated in the court documents that he wanted the fire arms for Iran to be able to defend itself against the U.S.
“By his own admission, Ardebili was assisting Iran in preparing for war with the United States,” prosecutor David Hall wrote in a sentencing memorandum.
Sentencing is scheduled for Dec. 14.
To read more, click here.
Japanese Police Arrest Two People For Export Violation
On Tuesday, Japanese police arrested two people for the export of cosmetics, clothes and food into North Korea. This is a trade ban violation between Japan and North Korea, states the Strait Times, a Singapore publication.
Last year, Noriko Nakanishi, 62, an export executive, and her colleague Masaki Ikeyama, 73 shipped cosmetics via China into North Korea, and in August shipped clothing and food.
Since 2006, Japan has enforced the United Nations ruling of the ban of luxury goods, and in June, Japan declared a total trade ban to North Korea.
No information was given as to the next steps for the violators.
To read more, click here.
Watchdog Agency to Push for More FDA Authority
The Journal of Commerce reports that a watchdog agency, Government Accountability Office (GAO) believes food import regulation is lacking in the United States. Inspection and regulation is divided up between three agencies, Food and Drug Administration (FDA), Department of Agriculture (USDA) and Customs and Border Protection making it challenging to notify food shipment information across the board. Each agencies computer systems do not communicate with other agencies to determine potential health risks at the time of import.
A difference that USDA has compared to the FDA is that the USDA has the authority to refuse imports from specific countries if safety or regulations of the food is not healthy for the good of the American people. The GAO would like to see the FDA given that authority.
“Under current law, the FDA cannot prevent food from being shipped to this country,” said Michael Friedman, the FDA’s lead deputy commissioner. “The agency must attempt to identify all unsafe food at the port of entry, an extremely difficult task given the enormous volume of imports.”
Food safety inspection passed in the House of Representatives last summer – actions are still pending on whether the Senate will accept GAO’s recommendations for the FDA.
“A high and growing portion of the American food supply is imported, so it is essential that those foods meet U.S. safety standards,” said Caroline Smith DeWaal, food safety director for the Center for Science in the Public Interest.
To continue reading, click here.
Samsung and Sharp Battle Over Infringed Patent
The U.S. International Trade Commission (ITC) has recommended that the liquid crystal in television monitor and computer screens be banned in the U.S. from maker, Samsung. The ITC ruled that Samsung infringed a patent against Sharp, says the Finanical Times.
Samsung said it plans to ask an appeal court to put the decision on hold.
“We have already developed various ways round [the Sharp patents] so there will be no problems in our business,” it said.
Sharp hopes to strengthens its hold on the U.S. market in LCD displays as Samsung holds almost 20 percent of the market compared to Sharp’s 5 percent.
The ban is unlikely to take effect until after the new year. President Obama has 60 days to reverse the decision if he finds it against the public’s best interest.
To learn more about global trade bans and compliance news, download a Management Dynamics’ GTM Newsletter.
To read the full article, click here
Director of Aviation Sentenced for Export Violation
According to the Bureau of Industry and Security, Laura Wang-Woodford, director of Monarch Aviation, was sentenced to 46 months in prison for conspiring to violate an export embargo by exporting controlled aviation parts to Iran. She is also ordered to pay the United States Treasury $500,000.
“We are committed to protect the American public from the national security threat posed by those who would personally profit from the illegal export of U.S. military technology,” said United States Attorney Campbell. Mr. Campbell thanked the Department of Commerce Bureau of Industry and Security (BIS) and the Department of Homeland Security, U.S. Immigration and Customs Enforcement (ICE), the agencies responsible for conducting the government’s investigation.
Wanna stay compliant? Management Dynamics offers Export On-Demand solution, a complete trade automation solution that helps mid-sized exporters establish an Export Management System. It is a framework that describes both administrative and screening responsibilities to help exporters comply with regulations and maintain export privileges.
Find out more about Management Dynamics’ Export On-Demand
To read the full case, click here.
Proposal to Save the Polar Bears
According to the Associated Press, the United States Interior Department filed a proposal, the week of the 12th, to the Convention on International Trade in Endangered Species (CITIES) requesting an international ban on the commerical sale polar bear fur and other parts.
Global warming has weaken the Arctic, making it difficult for Polar bears to find food. The Interior Department seeks a higher level of protection against the endangered species, in hopes, it will reduce the number of trophy killings.
“Picking off animals in the most important population one by one is dangerous. It’s time to end the hunt and trade there,” said Andrew Wetzler, director for wildlife conservation at the Natural Resources Defense Council.
The U.S. has already proposed a pretty lengthy list this year to CITIES. It has requested the ban of six species of sharks, 30 species of coral and Monaco is backing the ban of the Atlantic Bluefin Tuna. Decisions are to be made beginning next year.
To read more…click here.
Illegal Logging in China
According to an U.K environmental watch dog organization called Global Witness, the U.S. and several European countries may have imported several billion dollars worth of illegal timber from China, that is most likely smuggling logs across its border from Myanmar.
The group states that illegal logging was still causing rapid destruction of Myanmar’s northeastern forests, with 270,000 cubic metres (9.5 million cubic ft) of logs and 170,000 cubic metres of sawn timber, most of which was illegal, smuggled into China’s Kunming province last year.
Government interventations have helped reduce the impact of the illegal timber.
To find out more information, please click here.
*all information in blog is sited from Reuters
European Union Announces Anti-Dumping Duties for Several Countries
On Thursday, the European Union (EU) announced it has issued anti-dumping duties on China, Brazil and Armenia for selling aluminum foil, seemless steel pipes and tubes below cost. According to the Journal of Commerce, there is an up to 30 percent duty placed on aluminum foil for the next five years for all three countries.
Furthermore, the EU has placed a nearly 40 percent duty on steel pipe imports from China. Both cases were due to compliants from European producers who sell such products.
To read more, click here.
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.