Alleged violations of U.S. export controls and sanctions laws
The Department of Commerce’s Bureau of Industry and Security (BIS) and the Department of the Treasury’s Office of Foreign Assets Control (OFAC) today imposed approximately $2.5 million in combined civil penalties against a California-based manufacturer of machine tools and related parts for alleged violations of U.S. export controls and sanctions laws, including illegal shipments of computer numerical control (CNC) machine parts to Entity-Listed parties in Russia and China.
According to today’s BIS release, as part of the settlement, BIS issued an order imposing an administrative penalty of $1.5 million and required ongoing audits and reporting. The U.S. manufacturer also agreed to a $1,044,781 civil penalty to resolve apparent violations of OFAC’s sanctions regulations involving Russia and Ukraine. The manufacturer admitted to 41 violations of the Export Administration Regulations (EAR) involving sales to Entity-Listed parties in China and Russia without BIS authorization, and one additional violation for filing inaccurate Electronic Export Information (EEI) for certain shipments to Russia.
The violations occurred between April 2019 and March 2024, involving sales to defense sector parties on the BIS Entity List in China and Russia.
Read the OFAC enforcement release