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ReasonsWhyYouShouldTrain YourEmployees
REGULATORYCOMPLIANCE
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Recently,theUSDepartmentofCommercefiledanindictmentagainstChengBo,aChinese national,forparticipatinginacriminalconspiracybetween2012to2015toviolate‘U.S.export lawsbyshippingU.S.poweramplifierstoChina.’ASingaporecompany,AvnetAsiaPte,Ltd.,a companythatglobalydistributeselectroniccomponents—andCheng’sformeremployer,paid apenaltyfeeof$3,229,000tosetlethecriminalactivitiesofitsformeremployees.
lawsuitisanotherexampleofcompanieswhofailtocomplywithtraderegulations.In AvnetAsiaPte,Ltdcase,theconspiracytoshipU.S.goodswithmilitarypropensity,violating theInternationalEmergencyEconomicPowersActsandExportAdministrationRegulations (EAR),byChengandanotherformeremployeeborderedontheAvnet.Formorethanfive years,theseemployeesfalsifieddocumentsandshippedunauthorizedgoodswithoutproper documentationandapproval,causinglegal
troublesfortheiremployers.
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‘Wewilnotabideindividualsorbusinesorganizationsthatwouldseektoharm ournational securitybyilegalyprovidingcovetedU.S.goodswithpotentialmilitaryapplicationstoIranor China.’ActingU.S.Atorney,MichaelSherwin,butresed.
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AsistantAtorneyGeneral,JohnC.DemersoftheNationalSecurityDivision,said‘Avnet’s employeesrepeatedlyfalsifieddocumentationinordertosendexport-controledgoodswith potentialmilitaryapplicationstoChina.’
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ertainindustriesrequestalemployee—oremployeesonactivecompanyoperationstobe trainedtounderstandandcomplywiththesafetymeasuresrequiredtoworkwithinthe industrythecompanyexists.Failuretopayforcompliancetrainingcanleadtohefty governmentfines—orevenjailtimeforthefoundersorexecutivesofthecompany.Oneof suchminimum requirementsis‘ReasonableCare.’ReasonableCareis“thedegreeofcaution andconcernforthesafetyoftheselfandothersanordinarilyprudentandrationalperson woulduseinthesamecircumstances.”
R Recently,theCourtofInternationalTrade,CIT,inaruling,orderedanimportertopay
$8,228.20inunpaidduties—plusprejudgmentinterestforentering‘threetypesoffreezable productsdesignedtokeepbeveragescoldbymeansofmisclasification.’
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