International Trade Law News

By Timothy H. Hubach

The Bureau of Industry and Security (BIS) assessed a civil penalty of $22,000 on Dolphin International, Ltd. of New Delhi, India (Dolphin) and a civil penalty of $19,800 on Orcas International, Inc. of Flanders, New Jersey (Orcas) for conspiracy to export toxins to North Korea. Both companies are also prohibited from participating in any transactions involving the export of goods subject to the Export Administration Regulations (EARs) for four years.

BIS alleged that Dolphin conspired with others to export toxins, including Aflatoxin (M1 , P 1, Q 1) and Staphyloccocal Enterotoxin (A and B), items subject to the Regulations and classified under export control classification number (“ECCN”) 1C351, from the United States to North Korea without the required Department of Commerce license. BIS further alleged that Dolphin solicited violations of the EARs by enlisting others to acquire the toxins. Specifically, BIS alleged that Dolphin asked a co-conspirator in the United States to acquire the toxins from the U.S. manufacturer and then ship the toxins to a co-conspirator in the Netherlands, who would forward the toxins to North Korea.

BIS alleged that Orcas also conspired with others to export toxins, including Aflatoxin and Staphyloccocal Enterotoxin from the United States to North Korea without the required Department of Commerce license. BIS further alleged that Orcas attempted to export toxins to North Korea without obtaining an export license from the Department of Commerce.

BIS also prohibited Vishwanath Kakade Rao and Graneshawar K. Rao, presidents of Dolphin and Orcas respectively, from participating in any transactions involving the export of goods that are subject to the EARs for a period of four years for their alleged role regarding the solicitation and conspiracy or attempt to export toxins to North Korea without the proper license.