BIS Imposes $1.75M Penalty on Ericsson Panama for Transshipments to Cuba

Ericsson de Panama S.A. of Panama City, Panama, agreed to pay a civil penalty of $1.753 million to settle 262 violations of the Export Administration Regulations (EAR), said the Bureau of Industry and Security. According to BIS, Ericsson de Panama knowingly implemented a scheme between 2004 and 2007 to route items from Cuba through Panama, repackaged the items to conceal their Cuban markings, forwarded the items to the U.S. for repair and replacement and then returned the items to Cuba. Classified under Export Control Classification Numbers 5A002, 4A994, 5A991, 5B991 or designated EAR99, the items’ distribution to Cuba were controlled for national security, antiterrorism, encryption, and sanctions reasons.