Denied Party Digest

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Lack of Screening Contributes to $350,000 Civil Penalty

EAR99 Item Exported to University on Entity List

The U.S. Department of Commerce, Bureau of Industry and Security (BIS) recently announced a settlement with Photonics Industries International, Inc. of Ronkonkoma, New York.

Four of the charges underlying the $350,000 civil penalty are related to unlicensed exports where the items were misclassified as EAR99.  However, the fifth got our attention: the export of "a DCH-355-3 laser system... designated EAR99, to Sichuan University in Chengdu, China."  Sichuan University was, and remains, on the Commerce Department's Entity List with an entry requiring a BIS license for all items subject to the EAR.

Without an export compliance program with screening for foreign customers, it appears that Photonics was unaware of the Entity List entry and license requirement.  This serves as yet another reminder of the importance of screening international customers, whether for items typically requiring an export license or EAR99.