{"id":71197,"date":"2025-02-06T09:25:07","date_gmt":"2025-02-06T09:25:07","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/legal\/exportlawblog-entity-list-screening-headaches-can-be-costly-the-abbreviated-version\/"},"modified":"2025-02-06T09:25:07","modified_gmt":"2025-02-06T09:25:07","slug":"exportlawblog-entity-list-screening-headaches-can-be-costly-the-abbreviated-version","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=71197","title":{"rendered":"ExportLawBlog \u00bb Entity List Screening Headaches Can Be Costly: The Abbreviated Version"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p><span style=\"float: right; margin: 0px 0px 0px 20px;\"><img decoding=\"async\" title=\"VNIEFF via http:\/\/www.vniief.ru\/en\/resources\/2d252b804af3374599869d5b6de8bab2\/12.jpg [Fair Use]\" src=\"https:\/\/www.exportlawblog.com\/images\/vniief.jpg\" alt=\"VNIEFF via http:\/\/www.vniief.ru\/en\/resources\/2d252b804af3374599869d5b6de8bab2\/12.jpg [Fair Use]\" width=\"170px\" \/><\/span>BIS recently announced a settlement with Mohawk Global Logistics Corporation for $155,000 ($20,000 of which was suspended if Mohawk behaved itself during a probationary period).\u00c2\u00a0 \u00c2\u00a0The penalty arose out of Mohawk\u2019s export of items to institutions on the Entity List without the required license.\u00c2\u00a0 In both instances, Mohawk screened against the list, but things went wrong.<\/p>\n<p>One of the exports went to the University of Electronic Science and Technology of China (\u201cUESTC\u201d).\u00c2\u00a0 Rather than screen against the full name of the university, Mohawk just screened the university\u2019s commonly-used acronym \u2014 UESTC.\u00c2\u00a0 \u00c2\u00a0As a result, it failed to flag the transaction.\u00c2\u00a0 BIS, in the charging documents, noted that the address it had for UESTC was a \u201cnear-match\u201d (whatever that means) to the address shown for UESTC on the Entity List.\u00c2\u00a0 The take-away here, of course, is that exporters should screen entire names and addresses.<\/p>\n<p>One of the\u00c2\u00a0other exports was to the All-Russian Scientific Research Institute of Experimental Physics otherwise known as VNIIEF (because the name in Russian \u2013\u00c2\u00a0\u00d0\u2019\u00d1\u0081\u00d0\u00b5\u00d1\u20ac\u00d0\u00be\u00d1\u0081\u00d1\u0081\u00d0\u00b8\u00d0\u00b9\u00d1\u0081\u00d0\u00ba\u00d0\u00b8\u00d0\u00b9\u00c2\u00a0\u00d0\u009d\u00d0\u00b0\u00d1\u0192\u00d1\u2021\u00d0\u00bd\u00d0\u00be-\u00d0\u02dc\u00d1\u0081\u00d1\u0081\u00d0\u00bb\u00d0\u00b5\u00d0\u00b4\u00d0\u00be\u00d0\u00b2\u00d0\u00b0\u00d1\u201a\u00d0\u00b5\u00d0\u00bb\u00d1\u0152\u00d1\u0081\u00d0\u00ba\u00d0\u00b8\u00d0\u00b9 \u00d0\u02dc\u00d0\u00bd\u00d1\u0081\u00d1\u201a\u00d0\u00b8\u00d1\u201a\u00d1\u0192\u00d1\u201a \u00d0\u2022\u00d0\u00ba\u00d1\u0081\u00d0\u00bf\u00d0\u00b5\u00d1\u20ac\u00d0\u00b8\u00d0\u00bc\u00d0\u00b5\u00d0\u00bd\u00d1\u201a\u00d0\u00b0\u00d0\u00bb\u00d1\u0152\u00d0\u00bd\u00d0\u00be\u00d0\u00b9 \u00d0\u00a4\u00d0\u00b8\u00d0\u00b7\u00d0\u00b8\u00d0\u00ba\u00d0\u00b8 [Vserossiyskiy\u00c2\u00a0Nauchno-Issledovatelckiy\u00c2\u00a0Eksperimentalnoy Fiziki] \u2014 is abbreviated as\u00c2\u00a0\u00d0\u2019\u00d0\u009d\u00d0\u02dc\u00d0\u02dc\u00d0\u2022\u00d0\u00a4 or VNIIEF when transliterated to the Roman alphabet \u2014 got that?).\u00c2\u00a0 Now for this export the transliterated Roman abbreviation resulted in a hit, which, for some unexplained reason, the Mohawk export supervisor simply ignored.<\/p>\n<p>A footnote dropped by BIS on VNIIEF reveals the perils of foreign language names and the Entity List.\u00c2\u00a0 \u00c2\u00a0The initial listing was for the \u201cAll-Union\u201d Scientific Research Institute of Experimental Physics.\u00c2\u00a0 When this was updated to the correct \u201cAll-Russian\u201d Scientific Research Institute of Experimental Physics in 2011, the common acronym VNIIEF (but not ARSIEP, which is, clearly, a better acronym) was added.\u00c2\u00a0 But searches of VNIIEF, the common name of that entity, prior to 2011 would not have turned up anything.\u00c2\u00a0 \u00c2\u00a0The moral of this story:\u00c2\u00a0 don\u2019t search abbreviations or acronyms.<\/p>\n<p>The fine here seems high.\u00c2\u00a0 \u00c2\u00a0The goods involved were EAR99 items and worth, in total, about $200,000.\u00c2\u00a0 A license probably would have been granted if requested so there\u2019s no palpable harm to national security here.\u00c2\u00a0 And Mohawk tried to screen but just did not do a very good job of it.\u00c2\u00a0 However,\u00c2\u00a0it\u2019s not like they, like many exporters, did not even try to screen the recipients.\u00c2\u00a0 \u00c2\u00a0Granted the inexplicable activity of the Mohawk supervisor in overriding the hit for VNIIEF would permit some aggravation of the penalty.\u00c2\u00a0 And perhaps the failure to screen addresses when they had a \u201cnear match\u201d of the correct address further annoyed BIS.\u00c2\u00a0 But it seems to me here that BIS is fining incompetence rather than malice.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>https:\/\/efoia.bis.doc.gov\/index.php\/documents\/export-violations\/export-violations-2018\/1193-e2561\/file<\/p>\n<p>\t\t\t\t<span style=\"font-size:0.8em;\"><plusone size=\"small\" count=\"false\" href=\"https:\/\/www.exportlawblog.com\/archives\/9276\"><\/plusone> <img decoding=\"async\" src=\"https:\/\/www.exportlawblog.com\/images\/permalink.gif\" alt=\"\" \/><a href=\"https:\/\/www.exportlawblog.com\/archives\/9276\" rel=\"bookmark\">Permalink<\/a>  <\/span><\/p>\n<div><a class=\"addthis_button\" href=\"http:\/\/www.addthis.com\/bookmark.php?v=250&amp;username=clifburns\" addthis:url=\"https%3A%2F%2Fwww.exportlawblog.com%2Farchives%2F9276\" 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All Rights Reserved. <br \/>\n<i>(No republication, syndication or use permitted without my consent.)<\/i>\n\t\t\t<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>BIS recently announced a settlement with Mohawk Global Logistics Corporation for $155,000 ($20,000 of which was suspended if Mohawk behaved itself during a probationary period).\u00c2\u00a0 \u00c2\u00a0The penalty arose out of Mohawk\u2019s export of items to institutions on the Entity List without the required license.\u00c2\u00a0 In both instances, Mohawk screened against the list, but things went [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":71198,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[97],"tags":[37325,11392,27610,25887,17382,4249,13174,9724],"dealstore":[],"offerexpiration":[],"class_list":["post-71197","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal","tag-abbreviated","tag-costly","tag-entity","tag-exportlawblog","tag-headaches","tag-list","tag-screening","tag-version"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - 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