State Department Imposes Export Penalties for Illegal Transfers Involving Iran, North Korea, Syria

The State Department announced penalties on foreign entities for illegal transfers under the Iran, North Korea and Syria Nonproliferation Act. The entities transferred items subject to multilateral control lists that contribute to weapons proliferation or missile production, the agency said in a notice released Nov. 24. The entities are: China-based Chengdu Best New Materials Co. Ltd. and Zibo Elim Trade Co.; and Russia-based Aviazapchast, Joint Stock Company Elecon and the Nilco Group. The companies and their subsidiaries are barred from purchasing items controlled on the U.S. Munitions List and by the Arms Export Control Act. The State Department will also suspend any current export licenses used by the companies and bar them from receiving new export licenses for any goods subject to the Export Administration Regulations. Government agencies are barred from entering into procurement contracts with them. The measures took effect Nov. 6.