U.S. BIS reaches settlement with manufacturer for export control violations
California-based manufacturer faces a suspended $1.7 million penalty.
The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) today announced a settlement agreement with a California-based manufacturer for violations of the Export Administration Regulations (EAR), which includes a suspended civil penalty of $1.7 million.
According to the settlement agreement, between May 2021 and May 2024, the company committed 18 violations by selling and exporting approximately $400,088 worth of polyvinyl alcohol (PVA) brushes to two Chinese companies on the BIS Entity List. These transactions were conducted through third-party distributors and were made without the requisite export license. The manufacturer, which had no formal export compliance program, stated it was unaware of the licensing requirement and ceased the sales after being informed by BIS.
Under the terms of the order, the company admitted to the alleged conduct. The $1.7 million penalty is fully suspended for a one-year probationary period and will be waived if the company commits no further violations and completes certain remedial actions. These actions include export compliance training for relevant personnel within six months and an internal audit of its export controls program within nine months.