The U.S. Department of Justice announced arrests for export dual use violations of Chong Sik Yu, and Yunseo Lee. These two individuals are executives of America Tecma Inc.. The charges involve exporting electronic components with military applications to Hong Kong and China. They are also charged with conspiracy to commit wire fraud, bank fraud, and money laundering.
Efforts to Evade U.S. Export Controls
The arrests for export dual use violations occurred August 6, 2020. Evidence including emails indicate that the defendants conspired with others to ship what they knew to be export-controlled items to Hong Kong and China. These items included electronics components which are export-controlled under the Commerce Control List (CCL). Yu and Lee allegedly sought to evade law enforcement by, transshipping packages through South Korea, and by using a separate company to send shipments to Hong Kong.
U.S Committed to Strict Enforcement of Export Law
Assistant Attorney General for National Security John C. Demers was quoted as saying “The Department’s fight against illegal technology transfer to China is no more critical than in areas like those involved in this case — controlled items used in missile and nuclear technology. We will do everything in our power to disrupt illegal exports like these that jeopardize our national security. Together with the Commerce Department and all of our law enforcement partners, we will continue to protect our national security by preventing dual-use technologies from being sent abroad without the required licenses.”
Dual Use and Export Administration Regulations
Export Administration Regulations (EAR) are administered by the Bureau of Industry and Security (BIS). Items deemed “dual use” (applicable for military and commercial end use), are classified with an Export Control Classification Number (ECCN). Because of this export of these items are controlled. As a result, authorization to export these items is based on the export control classification, where it is going, who the end users are, and what the end use of the item will be.
CVG Strategy Export Control Expertise
CVG Strategy export control experts can help your organization establish effective export compliance programs. We have assisted businesses with EAR and International Traffic in Arms (ITAR) for over a decade. We can assist with export control classifications. Our ITAR training provides interesting and engaging education that will keep your team up to date on the latest regulations.
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