BIS Publishes Report on Export Violations

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Jul. 8, 2024
By: Marvin E. McPherson

The Bureau of Industry and Security (BIS) has released a new edition of its publication “Don't Let This Happen to You!”. The reports serves as an important message from BIS to exporters, providing real-world examples of export control violations and their consequences.

The report focused on three main areas which include export compliance guidance; export violations destined to China, Russia, Iran and other countries; and anti-boycott violations.

The export compliance guidance emphasized the eight principals effective export compliance program which include

1. Strong and continuous management commitment
2. Conduct frequent risk assessments and corrective action
3. Written policies and procedures regarding jurisdiction, classification, licensing and screening
4. Recordkeeping  
5. Training  
6. Internal controls and audits
7. Written policies and procedures relating to contractive actions
8. Update controls and classifications

Provided that companies incorporate the eight principals within their compliance program, BIS is likely to find that as a mitigating factor in the event of a violation.

The export violation examples detailed various scenarios where companies and individuals have violated the EAR and outlined the consequences. To recap, the highlighted violations related to the below items and technology.

1. Biological research vials
2. Camera detectors and accessories, liquid nitrogen plant, and computer simulation software
3. Cesium atomic clocks
4. Classified national defense information
5. Coating services for military aircraft components
6. Combat rubber raiding craft (CCRC)
7. Computer simulation software
8. Counterfeit integrated circuits
9. Face respirators
10. FLIR thermal imaging camera
11.  Forensic hardware and software
12. Hard disk drives (HDDs)
13. Integrated circuits with military applications
14. Marine buoyancy technology
15. Metal alloy powder
16. Military helmet components
17. Multi-fuel engines
18. Oilfield equipment, including coiled tubing and pump sets
19. Photoresist chemicals
20. Power amplifiers
21. Radiation-hardened 16mB SRAM silicon wafers
22. Radiation-hardened integrated circuits (RHICs)
23. Riflescopes
24. Submarine rescue system technology
25. Telecommunications equipment
26. Telecommunications networking equipment
27. Trade secrets related to Surface Acoustic Wave (SAW), Bulk Acoustic Wave (BAW), and Film Bulk Acoustic Resonators (FBAR) technology
28. Trade secrets related to syntactic foam
29. Traveling wave tubes (TWTs) for satellite communications

The below ECCNs (Export Control Classification Numbers) are associated with the items involved in the violations.

Category 0
0A987
Category 1
1A004	1A613	1C002
1C210	1D002
Category 2
2B001
Category 3
3A001	3A002	3A611
3A992	3B992	3E991
Category 5
5D992
Category 6
6A003
Category 8
8A992	8E001
Category 9
9A515	9E515

The report demonstrates the depth and breadth of BIS’s jurisdiction over dual-use items controlled by the EAR. It also warns exporters to continuously review current and future transactions for changes in the law or controls.

While export violations are generally civil in nature, the report demonstrates that the EAR encompasses criminal statutes in which persons can be held criminally liable for conduct undergone in contrary to U.S laws. It’s important to remain up to date with U.S export laws as well as conducting regular reviews and audits of your compliance program.  If you suspect an export or sanctions violation, a violation has occurred, or you need help with compliance reviews, please contact any attorney at Barnes Richardson and Colburn.