Pennsylvania company exported items to entities on the BIS Entity List without the necessary licenses
The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce today announced a $5.8 million civil penalty against a Pennsylvania company for exporting items to Chinese entities linked to hypersonics, unmanned aerial vehicles (UAVs), and military electronics programs. The violations, involving $1.74 million in items subject to the Export Administration Regulations (EAR), occurred between December 2015 and October 2019.
According to the BIS release, the investigation revealed that the company exported items such as wires and circuit-board connectors to entities on the BIS Entity List without the necessary licenses. These items were sent to organizations supporting China’s military modernization efforts, including hypersonic missile research and military electronics production. The investigation also uncovered that the company’s China-based business units used deceptive practices to disguise the end users, changing names and using misleading descriptions to evade detection.
The company voluntarily disclosed the conduct to BIS, cooperated with the investigation, and took remedial measures after discovering the conduct at issue.