A Mere Two Years After Adding Huawei to Entity List, BIS Announces First Enforcement Case
On Monday, November 8, 2021, the Bureau of Industry and Security (BIS) of the US Department of Commerce announced its first enforcement case against a company, Pennsylvania-based SP Industries, Inc. (SP Industries or SP Scientific), for unauthorized exports to Huawei and two of its subsidiaries of EAR99 items in contravention of the Export Administration Regulations (EAR). SP Industries reached an administrative settlement with BIS, resolving the allegations against it by agreeing to pay an $80,000 penalty and submit to audit requirements. Huawei and the two subsidiaries (among other affiliates) had been added to the Entity List in May 2019. Accordingly, exports, reexports, and transfers to Huawei and its listed affiliates (collectively, Huawei) of any items subject to the EAR (including EAR99 items) without a license are restricted.
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