$16,000 in Goods, $75,000 in Fines
It Happened twice in 2010. Teledyne LeCroy of Chestnut Ridge, New York, exported oscilloscopes from the U.S. to Beihang University of Aeronautics and Astronautics, also known as Beihang University, in Beijing, China. The Oscilloscopes were classified under ECCN 3A292 and controlled for nuclear non-proliferation and anti-terrorism reasons. These transactions contained multiple failures but two of them radically stood out:
Teledyne LeCroy failed to properly screen the BIS Entity List
Beihang University of Aeronautics was on one of the many government Sanctions lists that limited their privileges to receive US goods and technology. By not properly screening the customer, Teledyne exposed themselves and the United States to additional risks.
A license is required for the shipments but none was obtained
This item requires a license because of the destination country and the level of control associated with the ECCN. By avoiding the licensing process, Teledyne incurred significant fines when BIS learned of the shipment.
See the full settlement agreement and BIS order HERE.
Denied Party Screening
is an extremely important part of the Export process. The United States Government publishes 13 lists with whom they maintain restrictions on certain exports, re-exports or transfers of items. This can include products, embargoes and country sanctions. These lists are then integrated in to the Consolidated Screening List (CSL) which can be used to help comply with 15 CFR 736.2.
Export License Determination
can help your business understand the proper ways to expand into International Markets and avoid costly fines. Understanding whether your item falls under the ITAR or EAR is a crucial first step in license determination and exporting from the United States. Understanding the commodity, destination and end use are also factors that help drive these important decisions.
for conducting an Export Screening always falls on the Exporter of record. The Exporter of record is responsible for screening entities such as: the principal of a company, the recipient of the order, ultimate consignee, end user and sales people. To ensure compliance with U.S. regulations, exporters should have procedures that require screenings be performed at least annually and as needed upon bringing in new business partners.
is an Industry expert and stands ready to help if you have questions regarding the screening process or other International Trade questions. For further information, please contact Nic Arters at 800-230-5554.