U.S. order renewing temporary denial of export privileges of three North Carolina companies

BIS submitted evidence that the companies’ export compliance failures are broader in scope than the initial investigation revealed.

Temporary denial of export privileges of three North Carolina companies

The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce today released for publication in the Federal Register an order renewing the temporary denial of export privileges of three U.S. companies based in North Carolina.

BIS in June 2022 issued an order temporarily denying export privileges of the U.S. companies based upon facts indicating that the U.S. companies engaged in conduct prohibited by the Export Administration Regulations (EAR) by exporting, or causing the export from the United States, of controlled technology to China for 3D printing without the required U.S. government authorization. Read TradeNewsFlash

Today’s order renewing temporary denial of export privileges [PDF 249 KB] notes that BIS submitted evidence that the companies’ export compliance failures are broader in scope than the initial investigation revealed, along with new concerns raised by actions taken after the issuance of the June 2022 temporary denial order.

Specifically, BIS’s evidence and further investigation has identified:

  • Additional U.S. companies that engaged in business involving the unlicensed export of technical specifications to China related to firearm components and space-rated items,
  • Numerous additional suspected export control-related violations between 2017 and 2022.
  • The companies’ apparent attempts at compliance since the issuance of the June 2022 temporary denial order at best continue to fall short by providing inaccurate information to customers about the scope of items subject to the EAR.
  • Evidence that a China-based individual who is known to operate a company email address to facilitate its business operations may have violated the temporary denial order shortly after its issuance by providing customers information on how to complete and fulfill pending orders, despite the issuance of the temporary denial order  

The order is effective immediately and will remain in effect for 180 days. (Note that the notice was filed dated December 8, 2022, and scheduled to be published in the Federal Register on December 9, 2022).

For more information, contact a professional with KPMG’s Trade & Customs services:

Doug Zuvich
Partner and Global Practice Leader
T: 312-665-1022
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
T: 267-256-2614
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
T: 631-425-6057
E: asiciliano@kpmg.com

Steve Brotherton
Principal and Global Export and Sanctions Leader
T: 415-963-7861
E: sbrotherton@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
T: 212-954-3094
E: labad@kpmg.com

Irina Vaysfeld
T: 212-872-2973
E: ivaysfeld@kpmg.com

Amie Ahanchian
T: 202-533-3247
E: aahanchian@kpmg.com

Christopher Young
T: 312-665-3229
E: christopheryoung@kpmg.com

Gisele Belotto
Managing Director
T: 305-913-2779
E: gbelotto@kpmg.com

George Zaharatos
T: 404-222-3292
E: gzaharatos@kpmg.com

Andy Doornaert
Managing Director
T: 313-230-3080
E: adoornaert@kpmg.com

Jessica Libby
Managing Director
T: 612-305-5533
E: jlibby@kpmg.com

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