BIS Settles with GrafTech International for Its 12 EAR Violations - Export Compliance Training Institute

By: Brooke Driver

On October 25, BIS chose to settle with the Ohio company GrafTech International Holdings Inc. concerning its 12 violations of the EAR. Specifically, GrafTech was accused of illegally exporting large quantities of graphite (controlled for missile technology reasons) to the People’s Republic of China and India. The illicit shipments to China occurred on four separate occasions between July 27, 2007 and October 4, 2009, and held a total value of $276,000. Commerce discovered eight illegal shipments to India with a total value of about $248,000 that took place between November 13, 2007 and January 11, 2010. BIS chose to require that:

• GrafTech pay a fine of $300,000
• GrafTech hire an outside consultant to perform a thorough audit of its compliance program, as well as those of its French, Italian and South African subsidiaries