You are reading Bass, Berry, & Sims’ new enforcement roundup, where we bring notable enforcement actions, policy changes, interesting news articles, and a bit of our insight to your inbox every month.

To stay up to date, subscribe to our GovCon & Trade blog. If you have questions about any of the actions mentioned and how they relate to your business, contact our firm’s international trade team. We welcome your feedback and encourage sharing this newsletter with anyone interested.

Following an active October, enforcement actions and regulatory policy changes slowed in November. With that said, the actions taken in November involved some novel topics and provide several insights to glean.

Overview

  • November was another busy month for China-specific actions. Three Kentucky natives were indicted for exporting technical data without a license and violating the Defense Acquisition Regulations System (DFARS) specialty metal clause, and face significant jail time.  Additionally, in an unprecedented case, the Department of Justice (DOJ) convicted a Chinese economic spy for attempting to steal trade secrets from GE Aviation. Across the pond, the United Kingdom forced the sale of a Chinese company’s majority interest in the UK’s largest semiconductor manufacturing facility.
  • The Department of Commerce’s Bureau of Industry and Security (DOC/BIS) took separate actions against an American and an Iranian for illegally exporting controlled items into Iran. Both used the United Arab Emirates (UAE) as a transshipment point. Additionally, a Temporary Denial Order (TDO) was renewed against Mahan Airlines (of Iran) and a number of related parties.
  • The TDO covering Rossiya Airlines (Russia) was renewed for the airline’s continued operation in violation of the Export Administration Regulations (EAR). Otherwise, things were slower last month for Russia-related enforcement actions. That doesn’t mean U.S.-origin products aren’t making it onto the battlefield in Ukraine. According to a November 16, 2022, Wall Street Journal article, a downed Iranian Mohajer-6 drone revealed that parts produced by U.S. firms accounted for 50% of the drone’s total components. While enforcement actions usually lag BIS discoveries, expect more enforcement actions to come.
  • Another action taken against a well-known cryptocurrency company demonstrates the Treasury Department’s Office of Foreign Asset Control’s (OFAC) eagerness to bring the industry to heel. The company – Kraken – agreed to pay over $350,000 in penalties.

Click here to read the full newsletter.

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Mi-Yong Kim Mi-Yong Kim

Mi-Yong Kim has nearly 25 years of experience related to export controls and national security. Based on her extensive government service, she is uniquely well equipped to provide advice to help clients navigate the complex regulations related to export controls and national security…

Mi-Yong Kim has nearly 25 years of experience related to export controls and national security. Based on her extensive government service, she is uniquely well equipped to provide advice to help clients navigate the complex regulations related to export controls and national security, including matters related to compliance with the Export Administration Regulations (EAR); the International Traffic in Arms Regulations (ITAR); the Committee on Foreign Investment in the United States (CFIUS); and foreign ownership, control, or influence (FOCI) mitigation by the Defense Security Service. Mi-Yong is also an Adjunct Professor at the National Chengchi University (NCCU) in Taipei, Taiwan. She teaches a graduate-level class on export controls and related topics at the College of International Affairs of NCCU.

Photo of Thad McBride Thad McBride

Thad McBride advises public and private companies on the legal considerations essential to successful business operations in a global marketplace. He focuses his practice on counseling clients on compliance with U.S. export regulations (ITAR and EAR), economic sanctions and embargoes, import controls (CBP)…

Thad McBride advises public and private companies on the legal considerations essential to successful business operations in a global marketplace. He focuses his practice on counseling clients on compliance with U.S. export regulations (ITAR and EAR), economic sanctions and embargoes, import controls (CBP), and the Foreign Corrupt Practices Act (FCPA). He also advises clients on anti-boycott controls, and assists companies with matters involving the Committee on Foreign Investment in the United States (CFIUS). Thad supports international companies across a range of industries, including aviation, automotive, defense, energy, financial services, manufacturing, medical devices, oilfield services, professional services, research and development, retail, and technology. Beyond advising on day-to-day compliance matters, Thad regularly assists clients in investigations and enforcement actions brought by government agencies, including the U.S. Department of Justice (DOJ), the U.S. Treasury Department Office of Foreign Assets Control (OFAC), the U.S. State Department Directorate of Defense Trade Controls (DDTC), Customs and Border Protection (CBP), the U.S. Commerce Department Bureau of Industry & Security (BIS), and the Securities & Exchange Commission.

Photo of Sylvia Yi Sylvia Yi

Sylvia Yi represents businesses across a broad range of sectors as they move through the contracting process with federal, state and local governments, and when they engage in international transactions. Sylvia counsels public and private companies on day to day compliance challenges, and…

Sylvia Yi represents businesses across a broad range of sectors as they move through the contracting process with federal, state and local governments, and when they engage in international transactions. Sylvia counsels public and private companies on day to day compliance challenges, and supports clients in responding to criminal and government investigations. She is a regular contributor to the firm’s Government Contracts & International Trade Blog, where she provides insight on the demanding and ever-changing regulatory environment.