The Bureau of Industry and Security (BIS) is both a licensing and an enforcement agency; violations of the Export Administration Regulations can result in criminal prosecutions in Federal Courts as well as administrative enforcement proceedings at the Department of Commerce. Administrative sanctions available to Commerce (BIS) include civil monetary fines and the denial of a person's export privileges, which prohibits the denied person from engaging in any activity subject to the Export Administration Regulations.
In addition, under the Export Administration Regulations, the Department of Commerce (BIS) may deny the export privileges of any person who is convicted of violating certain statues including the Export Administration Act, for up to ten years from the date of conviction. Under Commerce denial orders those who provide "dual use" U.S.-origin goods and services to denied persons may find themselves subject to both criminal and civil penalties, including being denied export privileges.
Exporters are encouraged to always check the parties to their export transactions against the list of Denied Persons. If you discover the name or address of one of the parties to your transaction matches one of those found on the list of Denied Persons you should stop the transaction and make inquiry with the Bureau of Industry and Security. If you are being asked to participate in what may be an illegal transaction you are encouraged to report this to our special agents by using our Confidential Web-based reporting form.
Here are some examples of some recent cases that involved the denial of export privileges.
[Khalid Khalil El-Awar]
On April 12, 1999, the Commerce Department denied Khalid Khalil El-Awar (Khaled El-Awar) of Houston, Texas, all export privileges until August 5, 2003, pursuant to Section 11(h) of the Export Administration Act. On August 5, 1995, Khaled El-Awar was convicted in the U.S. District Court for the Southern District of Texas of violating the International Emergency Economic Powers Act by exporting steel pipe and oil field accessories from the United States to Rotterdam, Holland, for transshipment to Libya.
On March 23, 1999, the Commerce Department denied Aldrich Ames export privileges until April 24, 2004, pursuant to Section 11(h) of the Export Administration Act, based upon his conviction under the Espionage Act. Ames is serving time in federal prison.
[Harold J. Nicholson]
Also on March 23, 1999, the Commerce Department denied Harold J. Nicholson, of Eugene, Oregon, export privileges until June 7, 2007, pursuant to Section 11(h) of the Export Administration Act, based upon his conviction under the Espionage Act for conspiring with officers of the intelligence services of the Russian Federation, to communicate, deliver and transmit to Russia photographic negatives and information relating to the U.S. national defense. Nicholson is serving time in federal prison.
[A.V.S. Armoured Vehicles' Systems, Inc.]
On March 23, 1999, the Commerce Department denied A.V.S. Armoured Vehicles' Systems, Inc., of Plainview, New York, export privileges until April 10, 2000, pursuant to Section 11(h) of the Export Administration Act, based upon its conviction under the Arms Export Control Act for false statements relating to the end-user of replacement parts for a "Hawk" anti-aircraft missile system.
On April 27, 1999, the Commerce Department denied the export privileges of American Protection Corporation until August 8, 2001. The Commerce Department determined that American Protection Corporation is related to William F. McNeil, whose export privileges were denied pursuant to Section 11(h) of the Export Administration Act, based on his criminal conviction for violating the International Emergency Economic Powers Act. The Commerce Department issued the "related person order" to prevent evasion of the order against McNeil.