Mar

11

Virginia Company Admits Illegal Exports to China


Posted by at 7:13 pm on March 11, 2008
Category: Criminal Penalties

Microwave Antenna TowerVirginia-based Wavelab pleaded guilty today to charges that it exported 2,400 microwave power amplifiers to China without the required licenses from the Bureau of Industry and Security (“BIS”). The company also agreed to forfeit the $85,000 it was paid for the amplifiers. Sentencing is scheduled for June 6, and the Court could impose additional fines.

The company’s website, which defaults to Chinese but is also available in English, lists 6 microwave amplifiers as its product line. Based on the spec sheets for these six products, it appears that they aren’t covered by ECCN 3A001.b.3 or 3A001.b.4, the two available classifications for microwave amplifiers. But the website also suggests that the company will custom produce microwave amplifiers for its customers, so it seems likely that such custom amplifiers were involved.

The company admitted in its plea agreement that it knew that the amplifier’s required licenses. Indeed, the ECCNs in question are relatively easy to apply and are based on the amplifier’s average output power, its frequencies of operation, its size and dimensions and its fractional bandwidth. (Fractional bandwidth is is the bandwidth of a device divided by its center frequency.) Although there are certainly ECCNs that pose difficulties in determining their applicability, these two are not among them.

An AP reporter that called the company for comment was told that everyone was “too busy” to talk and then hung up on.

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Copyright © 2008 Clif Burns. All Rights Reserved.
(No republication, syndication or use permitted without my consent.)


2 Comments:


Its interesting that there is no mention of the plea deal on its web-site, but the only news item is a report, unrelated to its business, that the German trade agency predicts that China will overcome Germany to become the “number 1” exporter in the world, leaving the US in third place. Normally, I would use a case like this as yet more proof that export controls are a major contributor to the trade deficit, the loss of manufacturing jobs, etc., and rant about the wee small fact that the EAA has expired; but, its hard to feel bad about bad things happening to a company that is so openly cheering the Dark Side.

Comment by Mike Deal on March 12th, 2008 @ 7:20 am

Hi Clif

Here’s another story:

http://www.twincities.com/ci_8538195

Ladyx

Comment by Ladyx on March 12th, 2008 @ 9:02 am