Freight Forwarder Avoids BIS Fine After Illegal Exports to Iran

A New York freight forwarder agreed to complete export compliance training, but won’t face a fine, after admitting to the Bureau of Industry and Security that it illegally shipped enterprise servers and switches to Iran on behalf of an Iran-based exporter.

BIS said Cargosave helped send $17,048 worth of servers and switches to Iran in 2016 without the required license. The agency could have issued a maximum $356,579 civil penalty but said Cargosave disclosed the violations, cooperated with the BIS investigation -- which led to “two seizures” of the goods -- and later helped the agency in a separate investigation “of another potential export violation by a third party.”

As part of a settlement agreement with BIS, Cargosave will be subject to a two-year probation and must complete export compliance training within one year and certify to BIS that it attended that training course or program. It also admitted to violating the Export Administration Regulations. If the company doesn’t complete the training or violates the agreement with BIS, it could be made subject to a two-year temporary denial order.

BIS said the items Cargosave helped send to Iran were controlled under Export Control Classification Numbers 4A994.b, 5A002.a, 5A991.b, 5A992.c and EAR99. The agency also said the items were subject to the Iranian Transactions and Sanctions Regulations overseen by the Treasury Department’s Office of Foreign Assets Control. The agency didn't immediately release more information on the violations.

Cargosave didn’t respond to a request for comment.