International Trade Law News

Published by Jacobson Burton Kelley PLLC

The U.S. Department of Commerce's Bureau of Industry and Security today announced the settlement of two enforcement cases involving unlicensed exports to Iran.

In the first case, GE Ultrasound and Primary Care Diagnostics, LLC (GE Ultrasound), of Waukeasha, WI, agreed to pay a $32,000 civil fine to settle charges that Lunar Europe N.V. (Lunar Europe), a company acquired by GE Ultrasound, exported bone densitometer equipment to Iran in violation of the Export Administration Regulations (EAR).

BIS alleged that between May 20, 1998, and March 22, 2000, Lunar Europe exported bone densitometer equipment without prior authorization from the Office of Foreign Asset Control (OFAC) as required by the EAR. All of the unlicensed exports were committed by Lunar Europe prior to its acquisition by GE Ultrasound in 2000. This case is another applicationi by BIS of the doctrine of successor liability, whereby corporations may be held liable for violations of export control laws committed by businesses that they acquire.

In the second case, the U.S. Department of Commerce today announced that 3-G Mermet Corporation (3-G Mermet) of Cincinnati, Ohio, has agreed to pay a $17,500 civil penalty and implement an export management system to settle charges that it violated the EAR in connection with an attempted export to Iran through France. Specifically, BIS charged that on January 13, 2003 3-G Mermet attempted to ship interior window shade fabric through its parent company, Mermet S.A. of France, to Iran without obtaining an export license. BIS also charged that 3-G Mermet sold the interior window shade fabric with knowledge that its ultimate destination was Iran and that the required U.S. government authorization would not be obtained.

The U.S. maintains a comprehensive embargo on trade. Under the terms of the embargo, most exports to Iran are prohibited unless they are authorized in advance by OFAC. Generally, OFAC will only approve the sale to Iran of U.S. origin humanitarian products, such as medicine, medical devices , food and agricultural products The export of items to Iran without OFAC approval is a violation of the EAR and is subject to criminal penalties and administrative sanctions.