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:
John L. McLoughlin
Luis (Lou) Abad
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.