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ARTICLE · 15 SEPTEMBER 2006

"When Exporting, You Must "Know Your Customer"

Reed Smith
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On May 23, 2006, the Department of Commerce, Bureau of Industry and Security announced a settlement related to illegal exports made by Structural Dynamics Research Corporation. According to charging documents released by BIS, SDRC exported computer-aided drafting software classified under Export Control Classification Number 5D992 to China and India.

United StatesInternational Law
Jason Matechak
Jason Matechak
Keith Coleman
Keith Coleman
Benjamin Lindorf
Benjamin Lindorf
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The $60,000 Lesson

On May 23, 2006, the Department of Commerce, Bureau of Industry and Security ("BIS") announced a settlement related to illegal exports made by Structural Dynamics Research Corporation ("SDRC"). According to charging documents released by BIS, SDRC exported computer-aided drafting software classified under Export Control Classification Number ("ECCN") 5D992 to China and India. Exports to India and China of software classified under ECCN 5D992 do not normally require an export license under the Export Administration Regulations ("EAR"). However, in the 15 instances documented by BIS, SDRC sold these particular software products to individual customers in India and China which were included on the Department of Commerce Entity List and subject to specific export restrictions. In other words, although SDRC was generally permitted to sell these products to end-users in India and China without first obtaining an export license, certain end-users within these countries

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