The Commerce Department again renewed a temporary export denial order for Mahan Airways because the airline continues to violate the order and the Export Administration Regulations, according to a May 21 notice. The Iranian airline has been on the banned list since 2008. The latest renewal is for 180 days.
GOWIN Semiconductor Corporation, a Chinese technology startup, is challenging its designation as a "Communist Chinese military company" (CCMC) in the U.S. District Court for the District of Columbia, according to a May 21 complaint. In the complaint, GOWIN attempts to prove it is not operated by the Chinese military by showing that its governing board of directors is "comprised of nine private-sector executives, two of whom are U.S. citizens (the CEO and the President)." GOWIN goes on to argue that DOD's lack of notice to the tech startup of the designation and lack of evidence in coming to a conclusion on the label violates its due process rights. The firm also says it will suffer irreparable harm from the CCMC label, and in fact, already has. "By losing U.S. and global support as a result of the CCMC designation, GOWIN has lost and will continue to lose market share to similarly situated [semiconductor] companies, many of which are more mature and firmly established than GOWIN," the complaint said.
The 22 states, along with Washington, D.C., that challenged the Trump administration's decision to transfer "ghost gun" blueprints from the U.S. Munitions List to the less-restrictive Commerce Control List will not seek a review of the U.S.Court of Appeals for the 9th Circuit's decision to greenlight the move. According to a May 18 consent motion, lawyers for the State Department and the Directorate of Defense Trade Controls requested that the court immediately issue the mandate in the case, claiming that they received the go-ahead from the plaintiffs. Brendan Selby, counsel for the plaintiff State of Washington, told the defense that the states consent to the "immediate issuance of the mandate."
Aerojet Rocketdyne, a rocket and missile propulsion manufacturer, settled a claim with the Department of Justice over whether the company did not allow a lawful permanent resident of the U.S. to apply for a position due to his immigration status. Aerojet violated the Immigration and Nationality Act's anti-discrimination provision when the company considered only U.S. citizens for 12 mechanic roles in Jupiter, Florida, without proper justification, DOJ said in a May 17 news release. Aerojet manufactures and sells advanced propulsion and energetics systems that are subject to federal regulations such as the International Traffic in Arms Regulations and Export Administration Regulations for its contracting work with the U.S. government and foreign companies.
European individuals and entities should not be allowed to cancel contracts with entities in Iran, or other countries sanctioned by third parties, solely on the basis of seeking to avoid third party sanctions on that nation, a legal adviser to the Court of Justice of the European Union said in a May 12 opinion. Advocate General Gerard Hogan said in the non-binding opinion that a German company's decision to cut ties with an Iranian bank could be met by a European blocking statute that was passed to counter U.S. sanctions and to ensure that the bloc does not recognize any court ruling that enforces American penalties.
Iranian national Mehrdad Ansari, a resident of the United Arab Emirates and Germany, was convicted by a federal jury for exporting sensitive military items to Iran in violation of the Iranian Trade Embargo, the Department of Justice said in a May 7 news release. Ansari transshipped dual-use civilian and military goods using his company, Gulf Gate Sea Cargo, located in the UAE, during 2007-2011. In this period, Ansari obtained or attempted to obtain more than 105,000 parts valued at $2.6 million, representiing more than 1,250 transactions, DOJ said. None received an export license from the Treasury's Office of Foreign Assets Control or the Commerce Department. The goods could be used in systems for nuclear weapons, missile guidance, secure tactical radio communications, offensive electronic warfare, military electronic countermeasures, and radar warning and surveillance, DOJ said.
The U.S. District Court for the District of Columbia granted a preliminary injunction for Chinese big data processing technology company Luokung Technology Corp., temporarily blocking the company's designation as a Chinese military company. Judge Rudolph Contreras issued the injunction in a May 5 ruling, finding it likely Luokung would prevail in its case against the designation. The publicly traded Chinese tech giant claims that the Communist Chinese Military Company (CCMC) designation issued by the Department of Defense was made in violation of the Administrative Procedure Act, was arbitrary and capricious, and that the evidence in hand was not substantial enough to support a finding of state control over the company.
The Bureau of Industry and Security fined a California metalworking machinery company $60,000 for illegally exporting an item to the United Arab Emirates, BIS said in an April 30 order. The company, MDA Precision LLC, knowingly violated the Export Administration Regulations when it sold a $34,000 “five-axis benchtop milling machine” to the UAE without a license. BIS said the UAE customer likely intended to transfer the machine to Iran.
San Diego-based tungsten products manufacturer Tungsten Heavy Powder settled a False Claims Act allegation for $5.6 million for false origin claim, the U.S. Attorney's Office for the Southern District of California said in an April 29 news release. The producer was accused of falsely certifying that it sourced materials from the U.S. for items made under contract with the government of Israel, funded by the U.S. Defense Security Cooperation Agreement Agency. The U.S. accused THP of falsely declaring that its Chinese-origin tungsten from China was from the U.S. The U.S. also alleged THP falsely certified that manufacturing occurred in the U.S., when it instead produced its products via a contract with a Mexican maquiladora factory.
The Bureau of Industry and Security revoked export privileges for two people for illegal exports to Mexico and one person for illegally providing financial services to Iran, BIS said in April 30 orders.