International Trade Law News

Published by Jacobson Burton Kelley PLLC

The Commerce Department’s Bureau of Industry and Security (BIS) has recently imposed penalties on two companies and one individual for violating the U.S. Export Administration Regulations (EAR). The following is a summary of the alleged violations and penalties imposed:

Gebruder Weiss GmbH, based in Vienna, Austria, has agreed to pay a $6,000 civil penalty to settle charges that it aided and abetted the shipment of thyroglobulin testing kits from the United States to Iran through Austria in violation of the EAR. BIS had charged that in January 1999 Gebruder Weiss aided and abetted the export of thyroglobulin testing kits from the United States to Iran through Austria without prior authorization from the Office of Foreign Assets Control (OFAC)

In addition, BIS has indicated that Aura Limited of the United Kingdom has agreed to a denial of export privileges for a period of two years to settle charges that it aided and abetted the transshipment of certain medical equipment to Iran in violation of the Export Administration Regulations (EAR). BIS alleged that between June 2, 1999 and March 22, 2000, Aura aided and abetted the export of bone densitometer equipment to Iran without prior authorization from OFAC.

By way of background, under the terms of the U.S. embargo on Iran, all exports to Iran are prohibited unless they are authorized in advance by a specific license issued OFAC. The export of U.S.-origin products to Iran, including medical devices and other humanitarian products, without obtaining a license from OFAC prior to shipment is a violation of the EAR and OFAC's Iran Sanctions Regulations and may be subject to penalties imposed by both BIS and OFAC.

Finally, BIS has imposed a $20,000 civil penalty and a two-year denial of export privileges on Zlatko Brkic, of Elk Grove Village, Illinois. BIS had alleged that in 1999 Mr. Brkic, through his former company Bosnian Trade Center, Inc., attempted to export handcuffs from the United States to Ekohemija DJL, in Sarajevo, Bosnia and Herzegovina, without the required export licenses.