On Monday, November 8, 2021, the Bureau of Industry and Security
(BIS) of the US Department of Commerce announced its first enforcement case against a
company, Pennsylvania-based SP Industries, Inc. (SP Industries or
SP Scientific), for unauthorized exports to Huawei and two of its
subsidiaries of EAR99 items in contravention of the Export
Administration Regulations (EAR). SP Industries reached an
administrative settlement with BIS, resolving the allegations
against it by agreeing to pay an $80,000 penalty and submit to
audit requirements. Huawei and the two subsidiaries (among other
affiliates) had been added to the Entity List in May 2019.
Accordingly, exports, reexports, and transfers to Huawei and its
listed affiliates (collectively, Huawei) of any items subject to
the EAR (including EAR99 items) without a license are
restricted.
