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California-based company agrees to pay $3.3 million for unlicensed shipments of Common High Priority List items to Russia

Company sold $6.67 million worth of products to Russian end users without necessary BIS licenses

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December 18, 2024

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) today announced a civil penalty of $3.3 million against a radio frequency and microwave power solutions company for unlicensed shipments of transistors and related products to Russia. These items, designated as Common High Priority List (CHPL) items, are sought by Russia for its defense industrial base amid its invasion of Ukraine.

According to today’s BIS release, the California-based company sold approximately $6.67 million worth of these products to Russian end users between February 2023 and October 2023 without the necessary BIS licenses. The company voluntarily disclosed the violations, leading to a reduced penalty, with $1.5 million suspended due to financial constraints. The violations involved 94 instances of exporting CHPL items without authorization, despite the company's awareness of the shipments' destinations.

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

Andrew Siciliano
Partner, U.S. & Global Practice Leader

E: asiciliano@kpmg.com

Doug Zuvich
Partner

E: dzuvich@kpmg.com

Irina Vaysfeld
Principal

E: ivaysfeld@kpmg.com

John L. McLoughlin
Principal

E: jlmcloughlin@kpmg.com

Luis (Lou) Abad
Principal

E: labad@kpmg.com

George Zaharatos
Principal

E: gzaharatos@kpmg.com

Christopher Young
Principal

E: christopheryoung@kpmg.com

Amie Ahanchian
Principal

E: aahanchian@kpmg.com

Gisele Belotto
Principal

E: gbelotto@kpmg.com

Steve Brotherton
Principal

E: sbrotherton@kpmg.com

Jessica Libby
Principal

E: jlibby@kpmg.com

Dawn Olesky
Principal

E: dolesky@pmg.com

Frances Xing
Principal

E: francesxing@kpmg.com

 

 

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