DOJ's National Security Division Issues First Declination Under New Corporate Enforcement Policy

Highlights

• The U.S. Department of Justice's (DOJ) National Security Division issued its first declination under a revised Corporate Enforcement Policy, citing a non-U.S. company's voluntary self-disclosure, full cooperation and extensive remediation efforts.
• In a parallel civil enforcement action, the Bureau of Industry and Security (BIS) imposed a $36 million penalty for violations involving exports from the non-U.S. company to a China-based party on the Entity List, underscoring the continued prioritization of export enforcement.
• The coordinated resolutions highlight the benefits of prompt self-disclosure and cooperation in certain circumstances and also serve as a reminder of the complex export compliance risks facing non-U.S. companies that manufacture or ship products subject to the Foreign Direct Product Rule.