BIS charges UAE company with re-export violations
In early November, the US Bureau of Industry and Security (‘BIS’) charged a United Arab Emirates (‘UAE’)-based company, WEBS Electronics Trading Company LLC with a number of violations of the Export Administration Regulations.
BIS explained that WEBS ‘specializes in the purchase of U.S.-origin telecommunications equipment and related commodities…WEBS purchases the equipment directly from U.S. sellers, including from sellers via eBay.’
BIS said that its Office of Export Enforcement launched an investigation ‘after a BIS Export Control Officer (ECO) learned that WEBS and its owner, Mohammad Alhamra, were attempting to reexport U.S.-origin items from the United Arab Emirates to Syria and conducted end-use checks. The items include, but are not limited to, routers, services gateways, serial device servers, networkable door controllers, server racks, interface cards, and IP phones.
‘The investigation subsequently determined that Alhamra and WEBS attempted to reexport items from the UAE to Syria on two occasions and did reexport items from the UAE to Syria and Iran on 11 occasions without the required BIS licenses. Alhamra also provided false or misleading information about reexports to Syria to the ECO.’
BIS said, ‘The Charging Letter sets forth 14 violations by Alhamra and WEBS involving these activities. Under the Export Control Reform Act of 2018 (50 U.S.C. §§ 4801-4852), among possible administrative sanctions, administrative monetary penalties can reach up to $330,947 per violation or twice the value of the transaction, whichever is greater.’
