“We spend a lot of time convincing other countries that we need tighter sanctions on Iran when we need to better enforce our own laws already on the books,” Gary Milhollin, director of the Wisconsin Project, told The Wall Street Journal.
The report said the Treasury Department’s Office of Foreign Assets Control (OFAC) put China Precision Machinery Import-Export Corporation (CPMIEC) and its subsidiaries on a blacklist because the company is labeled a “serial proliferator.” In 2002, CPMIEC was first sanctioned for missile-related sales to Iran; it continued to be sanctioned on a near-yearly basis.
Yet, the report said, the U.S. government never provided names or addresses of CPMIEC subsidiaries, so American buyers cannot be blamed if they do not comply with the law and do business with CPMIEC or its subsidiaries.
In fact, the report pointed out that CPMIEC and its subsidiaries have made over 303 shipments to and through the United States since 2006.
Another Chinese company, LIMMT Economic and Trade Company Ltd., has been slapped with both U.S. sanctions and a New York lawsuit for its continued proliferation in Iran. In February 2009, LIMMT was banned from importing anything into the United States; in April 2009, New York State charged LIMMT for falsifying business records and conspiracy. The indictment accused LIMMT of using multiple aliases and false names—such as Dalian Orient Pipe Components Co., Ltd.—to evade U.S. sanctions.
When LIMMT was first sanctioned in 2004, the State Department only provided its primary name; no aliases or name variations were reported. In 2006, when LIMMT was placed on the Treasury Department’s list, the Treasury identified four name variations. Twelve name variations for the company were reported in 2009.
The Wisconsin Project report says, “More attention has been given to announcing prohibitions than to enforcing them.” OFAC is responsible for managing and enforcing about 30 economic sanction programs, the report says, and these sanctions continue to grow. However, the report claims the U.S. government has not given OFAC the monetary or personnel resources necessary to effectively enforce all sanctions. In 2009, OFAC’s budget was $32 million.
Under U.S. law, any company or person who knowingly violates the import ban is subject to a civil fine of as much as $250,000. A criminal penalty of up to 20 years in prison could be given to any violator. The annex of the Wisconsin Project report shows American consignees have received 253 shipments: none of these companies has been penalized for sanctions violations.