Export Control Violations Prosecutions In Usa
What are Export Control Violations?
Export control violations occur when individuals or entities export, re-export, transfer, or attempt to transfer controlled goods, technologies, software, or information without proper authorization from the U.S. government. These controls are designed to protect national security, foreign policy, and economic interests.
Relevant Laws and Regulations
Export Administration Regulations (EAR), enforced by the Bureau of Industry and Security (BIS), U.S. Department of Commerce.
International Traffic in Arms Regulations (ITAR), enforced by the Directorate of Defense Trade Controls (DDTC), U.S. Department of State.
Trading with the Enemy Act (TWEA)
Arms Export Control Act (AECA)
18 U.S.C. § 793, 794 – Espionage-related export offenses.
Criminal penalties apply for willful violations, including fines and imprisonment.
Typical Violations
Exporting controlled technology or defense articles without a license.
Providing false or misleading information in export documentation.
Dealing with sanctioned countries or prohibited parties.
Unauthorized re-export or diversion of controlled goods.
Detailed Case Law
Case 1: United States v. John Chong (2008)
Facts:
John Chong, a businessman, exported controlled computer equipment and components to China without obtaining required licenses.
Charges:
Violation of EAR and conspiracy to export controlled goods without authorization.
Outcome:
Convicted; sentenced to prison and fined.
Significance:
Demonstrates strict enforcement against unlicensed exports to restricted countries, especially involving technology transfers.
Case 2: United States v. Rolls-Royce Corp. (2017)
Facts:
Rolls-Royce was found to have exported defense-related technology without proper ITAR licenses to countries including China and Russia.
Outcome:
Agreed to pay $34 million in penalties in a deferred prosecution agreement.
Significance:
Highlights corporate accountability and large penalties for willful export control violations.
Case 3: United States v. Ji Chaoqun (2020)
Facts:
Ji Chaoqun, a Chinese national and U.S. resident, was charged with conspiring to transmit sensitive aerospace technology to the Chinese government without authorization.
Charges:
Violations of export control laws and conspiracy to commit export violations.
Outcome:
Convicted; sentenced to 5 years in prison.
Significance:
Illustrates prosecution of espionage-related export violations and illegal technology transfers to foreign governments.
Case 4: United States v. Zhenli Ye Gon (2011)
Facts:
Ye Gon was accused of exporting controlled precursor chemicals used in drug manufacturing without proper licenses.
Charges:
Export control violations and drug trafficking.
Outcome:
Convicted in Mexico; case influenced U.S. investigations.
Significance:
Shows how export controls apply beyond traditional military goods, extending to controlled chemicals.
Case 5: United States v. Via Technology (2019)
Facts:
Via Technology was prosecuted for exporting advanced semiconductor technology to China without licenses.
Outcome:
Paid a substantial civil penalty and implemented compliance reforms.
Significance:
Reflects focus on emerging technologies and high-tech exports.
Case 6: United States v. Norsat International (2020)
Facts:
Norsat International shipped communication devices with encryption technology to China without export licenses.
Charges:
Violation of EAR.
Outcome:
Settled with Department of Commerce, paid millions in fines.
Significance:
Demonstrates consequences for exporting dual-use technology with military applications.
Summary of Legal Principles
Export control laws require prior authorization or licenses for exporting controlled items.
Violations are often willful but can include reckless disregard.
Penalties include criminal fines, imprisonment, and civil penalties.
Enforcement agencies include BIS, DDTC, FBI, and DOJ.
Cases often involve dual-use technologies, defense articles, or sensitive software.
Corporate entities and individuals can be prosecuted.
Conclusion
Export control violation prosecutions in the U.S. are a critical part of national security enforcement. Courts impose significant penalties on individuals and corporations that export controlled goods without authorization, especially when the exports involve countries of concern or military applications. These cases underscore the need for robust compliance programs in businesses engaged in international trade.
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