BIS Settles Enforcement Action for Export to Party Included on Entity List
The Commerce Department's Bureau of Industry and Security (BIS) recently entered into a settlement agreement with Yarde Metals, Inc. (Yarde), a metal service center, regarding an unlicensed export to an organization included on BIS's entity list. BIS alleged that Yarde violated 15 C.F.R. 764.2(a) when it exported an aluminum plate from the U.S. to Vikram Sarabhai Space Center (VSSC) in India (an affiliate of the Indian Space Research Organization) without the required export license. A license was required for this export under Section 744.1 and Supplement No. 4 to Section 744 of the Export Administration Regulations (EAR) since VSSC was (and is) included on BIS's Entity List. Yarde agreed to settle this matter by paying a $10,000 civil penalty and BIS agreed that it would not initiate any further administrative proceedings against Yarde.
BIS's Entity List, which is found in Supplement No. 4 to Part 744 of the EAR, includes those foreign end-users that have been deemed to be involved in proliferation activities. The Entity List can be found at the following link: www.access.gpo.gov/bis/ear/txt/744spir.txt.