The United States has taken an especially difficult stand on HUAWEI since 2019 when it virtually put a blanket ban at the corporate. Not most effective was once Huawei banned from promoting its merchandise in america, different corporations had been barred from doing any type of industry with the Chinese tech large. Now, the Department of Commerce’s Bureau of Industry and Security (BIS) has imposed a hefty $300 million civil penalty towards Seagate, In a observation, BIS mentioned that the penalty has been imposed “to resolve alleged violations of US export controls related to selling hard disk drives (HDDs) to Huawei Technologies Co.” Ltd. (Huawei) in violation of the overseas direct product (FDP) rule.”
What did Seagate do to be fined so heavily?
The BIS said that it had imposed restrictions on certain foreign-produced items related to Huawei. However, in September 2020, Seagate announced it would continue to do business with Huawei. “Seagate did so despite the fact that its only two competitors had stopped selling HDDs to Huawei, resulting in Seagate becoming Huawei’s sole source provider of HDDs,” said BIS in the statement.
Furthermore, the BIS has accused Seagate of signing a three-year agreement with Huawei to become “Huawei’s strategic provider” and granting the company “precedence foundation over different Huawei providers.”
What did Seagate do to be fined so heavily?
The BIS said that it had imposed restrictions on certain foreign-produced items related to Huawei. However, in September 2020, Seagate announced it would continue to do business with Huawei. “Seagate did so despite the fact that its only two competitors had stopped selling HDDs to Huawei, resulting in Seagate becoming Huawei’s sole source provider of HDDs,” said BIS in the statement.
Furthermore, the BIS has accused Seagate of signing a three-year agreement with Huawei to become “Huawei’s strategic provider” and granting the company “precedence foundation over different Huawei providers.”
- Seagate bought or exported with regards to 7.4 million exhausting drives to Huawei, in spite of US enforcing restrictions.
“Those who would violate our FDP rule restrictions are now on notice that these cases will be investigated and charged, as appropriate,” mentioned Director of the Office of Export Enforcement John Sonderman. “Any company exporting to an entity subject to the additional FDP rule restrictions needs to evaluate its entire manufacturing process to determine if specified US technologies or software were used in building the essential tools used in production. Companies that discover violations should submit voluntary self-disclosures to OEE.”
The effective imposed on Seagate is the heaviest administrative penalty ever through BIS.