BIS Fines Dubai Company for Misleading Statements on Export Application

The Bureau of Industry and Security fined a Dubai company $25,000 for violating the Export Administration Regulations when it exported “powder grade nickel” to the United Arab Emirates, according to a May 28 order. The company, Alsima Middle East General Trading, submitted false and misleading statements to BIS in its license application for the export, the agency said.

In 2015, Alsima certified to BIS that it would be the end-user for the nickel powder, which would be used to produce “self lubricating seal rings” for sale in the UAE. About six months after granting the license application, BIS conducted a “Post Shipment Verification” check on the goods and found that Alsima planned to export the rings to an Azerbaijani company or ship the nickel powder to India or South Africa. BIS said the company never applied for an authorization to resell, transfer or reexport the powder, and said the false statements on its license application violated the EAR.

Although BIS fined Alsima $25,000, the agency said it will waive half of the fine if the company complies with the terms of a two-year probationary period and its settlement agreement with BIS. If the company doesn’t comply with the agreement, BIS said, it may revoke Alsima’s export privileges.