Experienced Exporter Fined $80K for Failure to Screen

2019/02/20

By: Danielle Hatch

Multiwire Laboratories, Ltd. (Multiwire) of Ithaca, New York has entered into a settlement with the Bureau of Industry and Security (BIS) for two violations of the Export Administration Regulations (EAR). Between 2014 and 2015, on two occasions Multiwire exported Real-Time Back Reflection Laue Camera Detectors and Accessories (designated as EAR 99) to the University of Electronic Science and Technology of China (UESTC). At the time of both exports UESTC was listed on the Entity List, requiring a BIS license for the EAR99 items (valued at $177,156).

The charging statement from BIS says, “Although an experienced exporter, Multiwire did not have an export compliance program in place at any relevant time to screen foreign customers against the BIS Entity List (or other BIS or U.S. Government export controls lists) …”

Multiwire agreed to an $80,000 penalty on a payment schedule ($20,000 a quarter) and they will not lose their export privileges as long as their payments are on time.

This is yet another penalty for inadequate/poor screening by an exporter. Over the last few years several companies have received fines for violations that would not have occurred had there been a better screening system in place within their compliance programs.

BIS Charging Letter: https://efoia.bis.doc.gov/index.php/documents/export-violations/export-violations-2019/1217-e-2584/file