In a recent update from Lowenstein Sandler’s Global Trade & National Security newsletter, technology company Seagate Technology LLC was handed a hefty civil penalty. The U.S Department of Commerce’s Bureau of Industry and Security (BIS) imposed a $300 million penalty on the company, marking it the largest ever in the history of the BIS.
This penalty arose from Seagate’s possible infractions of U.S. export controls, more specifically its sales of hard disk drives to Chinese multinational technology company Huawei Technologies Co. Ltd. It is strongly suggested that these sales directly violated the foreign direct product (FDP) rule, hence causing the imposition of the unprecedented fine.
The enormity of the persisting trade tension between the U.S and China is underscored by this action. Technology firms and legal teams alike are reminded of the uncompromising stance the legal and regulatory bodies tend to take on violations of trade and national security laws.
With the ongoing trade war, the legal landscapes are in constant evolution, and staying informed has never been more critical. Lowenstein Sandler’s Global Trade & National Security newsletter continues to persevere in bringing these sensitive issues to light.
Trade matters, indeed.