Export Violations Lead to $3M in Fines for Chinese Company

Posted by Caroline Brown on Mon, Dec, 10 2012 @ 11:03 AM

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Last week the China Nuclear Industry Huaxing Construction Co., Ltd. (Huaxing), a corporation controlled by the People’s Republic of China, pled guilty to violating the International Emergency Economic Powers Act (IEEPA), the Export Administration Regulations (EAR) and other related charges.

This plea marks the end of the Bureau of Industry and Security’s long-term investigation of illegal exports of epoxy coatings from the United States to the Chasma II Nuclear Power Plant in Pakistan. According to the BIS report, Huaxing willfully exported, re-exported, and transshipped (and/or attempted to export, re-export and transship) multiple shipments of the high performance coatings without acquiring the proper licenses between June 2006 and March 2007.

Huaxing has agreed to pay $3 million in combined criminal and civil fines as part of the guilty plea in addition to five years of corporate probation. The terms of Huaxing’s probation also requires implementation of an export compliance and training program.

Read the full BIS Press Release for more information.

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Topics: Export Management, Export License Management, Export Compliance, Export Violations