Aug

14

Another Exporter Trips over the Entity List

Posted by at 6:10 pm on August 14, 2012
Category: BIS

Global Metcorp, LondonTwo weeks ago I reported on a settlement agreement between two shipping companies and the Bureau of Industry and Security (“BIS”) with respect to unlicensed exports of scrap steel to People Steel Mill, a company in Pakistan on BIS’s Entity List. I noted at that time that the identity of the exporter had not been revealed. Now it has: the exporter was the New Jersey office of London-based Global Metcorp.

The settlement documents for Global Metcorp list a July 2010 attempted export worth $212,613.10 that served as the basis for the previously mentioned settlement with the two shipping companies. In addition, it lists an unlicensed export of $77,718.55 worth of scrap steel in May 2010 which was presumably handled by other shipping companies, about whom we may hear further from BIS in future settlement papers.

Under the settlement agreement with Global Metcorp, the company agreed to pay $50,000 of which $40,000 was suspended, with the remaining $10,000 being paid in four equal monthly installments. And (surprise, surprise!) the company agreed that its president would go to drunk exporting school, er, would complete an export compliance training program within twelve months.

As with the related case against the shipping companies, this is a case of stupidity rather than malfeasance. Many exporters think that as long as they are exporting something innocuous like scrap steel or Kewpie dolls, they don’t need to worry about silly things like licenses and lists and all that. And frankly part of the problem here is that BIS spends more time fining exporters than educating them. Perhaps with all the money that BIS collects in these enforcement actions it might run a public service announcement on cable every now and then. Just a thought.

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Copyright © 2012 Clif Burns. All Rights Reserved.
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One Comment:

While I certainly agree that some public service announcements would be useful, and that more public education (especially directed toward the press and media which always, always confuses export control violations with espionage) is required, those of us who have lived and worked beyond the Beltway will tell you that Commerce in general does far, far more in public education than does State or Treasury. Its just that the public education program is usually conducted through the US Foreign Commercial Service on the ITA side of Commerce usually in conjunction with their network of District Export Councils. That’s not to say that BIS itself doesn’t conduct far more training than DDTC or OFAC, but the FCS/DEC programs tend to be more frequent, albeit relatively brief programs that at least enhance export control awareness. Its too bad that the snobs at DDTC don’t cooperate with FCS/DEC like BIS does.

There used to be an outreach program by OEE called Business Executives Enforcement Team (“BEET”), which started in the 90s shortly after Desert Storm and the EPCI but which – like all good things – was ended by the Bush II administration. BEET held forums and meetings in cooperation with Chambers of Commerce, local colleges and civic organizations, that sought to educate and to encourage businesses to cooperate with OEE. They should bring that back, although with a different name.

Comment by Hillbilly on August 15th, 2012 @ 2:05 pm