03.15.2012 Update on International Business Compliance
1. EXPORT CONTROLS
Another Employee Charged with ITAR Violations
A resident of Massachusetts pleaded guilty on January 20, 2012 to violations of ITAR in connection with the export of 55 antennae from the United States. The case is illustrative for export professionals on a number of levels as described further below.
According to the Department of Justice release, Rudolf Cheung (“Defendant”) was the head of research and development at a private company that manufactures antennae. In this capacity, he designed a library of antennae over recent years, some of which are used in the US space program and others for military applications.
According to the release, during 2006 his company received a request for the export of certain antennae to Singapore and Hong Kong. The company’s export compliance officer advised the customer that, to make the export, the company would be required to comply with ITAR licensing requirements. The customer refused to comply, and the compliance officer cancelled the order. After learning that the company had blocked the order, Defendant entered into discussions with a person outside the company (“Co-Conspirator C” according to the Justice Department release) to export the antenna without the knowledge of the company. Under the plan, Co-Conspirator C approached the company to purchase the antennae in a domestic transaction, and then exported the antennae and sold them to the purchaser in Singapore and Hong Kong without the requisite export licenses. During this period, Defendant was aware that the antennae were being exported to Singapore and Hong Kong without the license in violation of ITAR.
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