Archive for the ‘Malaysia’ Category

Export Coordinator Gets Prison Time for EAR Violations

Thursday, March 13th, 2014 by Brooke Driver

By: Brooke Driver

“Play nice” may have been a lesson you learned in preschool, but the rule still applies—as shown recently in the case of Amplified Research Corporation. The Pennsylvania company’s former export coordinator Timothy Gormley was sentenced to 42 months in prison and 10 years debarment this January for his illegal shipments of U.S.-controlled amplifiers to Hong Kong, the People’s Republic of China, Taiwan, Singapore, Thailand, Korea and Malaysia. Apparently, the total value of the amplifiers, which are controlled due to their potential military applications as radar jammers and weapons guidance systems, was nearly $3,000,000. Twenty-five of the fifty illegal exports were to the People’s Republic of China.

Gormley certainly paid the price for his crimes, but what about his company? Amplified Research itself seems to have gotten off nearly scot free, which is rather surprising considering the high number of violations and the value of the products involved in the case. Eric L. Hirschhorn, Undersecretary of Commerce for Industry and Security, took note of Amplified Research’s cooperation with BIS throughout its investigation, including the company’s submission of a voluntary self-disclosure describing Gormley’s action. As a result, BIS has decided to waive the $500,000 fine, assuming Amplified Research does not violate the regulations in the next two years, and only requires that the company perform an outside audit. Lesson learned? Cooperation will go a long way in lessening the consequences of a violation.

$450,000 Penalty ($400,000 Suspended) for Illegal Valve and Pump Exports

Friday, October 30th, 2009 by Danielle McClellan

FSI International, Inc. was charged with 66 violations of the EAR after the company voluntarily self disclosed the violations to BIS earlier this year. The charging letter stated that between 2003 and 2006 FSI exported fluoropolymer-coated valves and pumps from the US to China, Israel, Malaysia, Taiwan, and Singapore. The valves and pumps are classified 2B350 for chemical and biological weapons proliferation reasons. (more…)

DOD Announced New FedEx Shipping Policy

Tuesday, August 4th, 2009 by Danielle McClellan

DOD has released an update involving FedEx shipping activities for items shipped from Pacific locations to Europe, CENTCOM AOR and intra Pacific. On August 4, 2009 DOD released a statement advising that in addition to an earlier restriction to ship to Indonesia, Malaysia, Philippines, Thailand and Vietnam, FedEx can now no longer accept shipments containing ITAR controlled items for movement between the following regions: (more…)

Gonzales and Justice Department Raises Their Export Control Enforcement Profile

Saturday, June 30th, 2007 by Guest Author

The first-ever National Export Control Coordinator for the Department of Justice was appointed last June 20, 2007. Steven W. Pelak, a veteran prosecutor for 18 years, has been an Assistant U.S. Attorney and Senior Litigation Counsel in the National Security Section of the U.S. Attorney’s Office for the District of Columbia and, since September 2001, has served as the Anti- Terrorism Coordinator for the U.S. Attorney’s Office. Mr. Pelak is detailed to the Counter-espionage Section of the Justice Department’s National Security Division, wherein he will have some of the following responsibilities:

  • development of comprehensive training materials on export control investigations and prosecutions for federal prosecutors nationwide
  • solicit and receive regular progress reports from U.S. Attorneys’ offices on the development of export control cases
  • coordinate between the Justice Department and the many other U.S. law enforcement, licensing and intelligence agencies that play a role in export enforcement.

Attorney General Alberto Gonzales mentioned in his June 11 speech on nuclear terrorism that the Justice Department’s National Security Division where federal prosecutors were provided instruction and guidance on export control cases, with trainers from the Justice Department and the relevant investigative agents on hand providing comprehensive prosecutorial instruction.

(more…)

US Imposes Nonproliferation Sanctions against 14 Foreign Entities

Tuesday, April 17th, 2007 by John Black

Includes Chinese, Singaporean, Malaysian, and Mexican Entities

In the April 17, 2007, Federal Register the US State Department announced sanctions on 14 new entities due to actions that potentially make a material contribution to the development of Weapons of Mass Destruction in Iran and Syria. The sanctions prohibit export license approvals and US Government procurement from, assistance to, and exports to the listed entities. The sanctions have little impact on the newly listed entities in Syria and Iran because those countries are already subject to comprehensive US trade sanctions.

Bottom Line Issue:

These sanctions do not directly prohibit all transfers of items subject to US export/trade controls to the listed entities. As a practical matter, however, exporters and reexporters should add the listed entities to the prohibited parties list against which they screen their transactions because this notice creates a Red Flag that the listed entities may intend to transfer items to weapons programs in Iran and Syria. If you find a match, you should investigate the Red Flag to determine whether your items will be illegally diverted-if your investigation makes you comfortable that your items will not be diverted, document your investigation and proceed with the transaction. Alternatively, you might want to implement a simple policy of never doing business with the listed entities because they are members of this list, even though you could legally do business with them.

Specifically, the sanctions on the entities are:

  1. No department or agency of the U.S. Government may procure goods, technology or services from listed entities.
  2. No department of agency of the U.S. Government may provide assistance to listed entities.
  3. No department or agency of the U.S. Government may sell any item on the United States Munitions List to listed entities.
  4. No new licenses for transfer of items controlled under the EAR or the Export Administration Act of 1979 will be granted and all existing licenses will be suspended for transfer to listed entities.

The Listed Entities are:

  • China National Precision Machinery Import/Export Corporation (CPMIEC) (China) and any successor, sub-unit, or subsidiary thereof
  • Shanghai Non-Ferrous Metals Pudong Development Trade Co. Ltd. (China) and any successor, sub-unit, or subsidiary thereof
  • Zibo Chemet Equipment Company (China) and any successor, sub-unit, or subsidiary thereof
  • Challenger Corporation (Malaysia) and any successor, sub-unit, or subsidiary thereof
  • Target Airfreight (Malaysia) and any successor, sub-unit, or subsidiary thereof
  • Defense Industries Organization (DIO) (Iran) and any successor, sub-unit, or subsidiary thereof
  • Hizballah and any successor, sub-unit, or subsidiary thereof
  • Sokkia Singapore PTE Ltd. (Singapore) and any successor, sub-unit, or subsidiary thereof
  • Army Supply Bureau (Syria) and any successor, sub-unit, or subsidiary thereof
  • Syrian Air Force (Syria) and any successor, sub-unit, or subsidiary thereof
  • Syrian Navy (Syria) and any successor, sub-unit, or subsidiary thereof
  • Industrial Establishment of Defense (Syria) and any successor, sub-unit, or subsidiary thereof
  • Challenger Corporation (Malaysia) and any successor, sub-unit, or subsidiary thereof
  • Target Airfreight (Malaysia) and any successor, sub-unit, or subsidiary thereof
  • Aerospace Logistics Services (Mexico) and any successor, sub-unit, or subsidiary thereof
  • Arif Durrani (Pakistan)

The penalties will be in effect for 2 years unless the Secretary of State deems otherwise.

Source:

Ali Khan Be Fined $110,000

Friday, September 30th, 2005 by Scott Gearity

The Iran export violation hit parade continues with the settlement (pdf) between Ali Khan, CEO of Turboanalysis, Inc. and Turbo Technologies, LLC and BIS in the amount of $110,000. The settlement covers ten charges related to the alleged 2003 exports of aircraft parts classified 9A991 and worth over $1,000,000 to Iran via Malaysia and Singapore.

Now class, here’s your homework assignment. Compare and contrast the Iran-related settlements of Encore ($101,000 penalty for about $7,000 worth of EAR99 exports) and Khan ($110,000 penalty for over $1,000,000 of aircraft part exports subject to anti-terrorism controls). Explain how the BIS administrative penalty and mitigation guidelines apply to each case. Show your work.