On February 26, 2026, the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) reached an administrative enforcement settlement with Teledyne FLIR LLC and its affiliates FLIR Optoelectronic Technology (Shanghai) Co. Ltd. and Teledyne FLIR Commercial Systems, Inc. d/b/a Teledyne FLIR OEM, (together, “Teledyne FLIR”), imposing a $1,000,000 civil penalty to resolve alleged violations of the Export Administration Regulations (“EAR”).

According to BIS, Teledyne FLIR voluntarily self-disclosed 19 alleged violations between 2017 and 2024 tied to exports, reexports, and related conduct involving thermal imaging cameras under export control classification numbers (“ECCN”) 6A003 and 6A993.a. The penalties broke into four types of violations:

  • Causation: BIS alleged that Teledyne FLIR caused nine exports from abroad of ECCN 6A003 thermal imaging cameras from a Swedish affiliate to China without required BIS authorization, based in part on incorrect calculations under the EAR’s de minimis rule in 15 C.F.R. Part 734.
  • Evasion: BIS alleged an evasion-related fact pattern involving a 2018 collaboration with a Chinese drone manufacturer concerning the Zenmuse XT2, a project involving the integration of a FLIR camera for use with civilian drones. This evasion scheme consisted of a pricing structure that BIS alleged was designed to keep U.S.-controlled content below the de minimis threshold and did not reflect the fair market value of the items.
  • Failure to Keep Records: BIS alleged failures to comply with license-condition recordkeeping requirements for certain demonstrations by the Shanghai affiliate.
  • Exports to Entity List Address: BIS alleged eight unlicensed exports of ECCN 6A993.a thermal cameras to company included on the Entity List for being an “address only” company (i.e., part of a shell company). Under EAR § 744.16, a license was required for exports of any items listed on the Commerce Control List.

This action is a useful reminder that conducting a “de minimis” analysis is not a box-checking exercise and can be more complicated that it seems. When you assess the valuation of the controlled U.S.-origin item, it should reflect the fair market value of that item when it was exported from the United States and account for items customarily included (and actually shipped) with the controlled U.S.-origin item. BIS can view any attempts to “engineer” pricing to fall below the applicable de minimis thresholds as an evasion violation.

The settlement also underscores that exporters should not rely solely on name-based denied-party screening; address-only Entity List entries require address-level controls and, often, manual review. Companies should be sure that their screening providers both screen for these address-only Entity List entries and that their algorithms and fuzzy logic appropriately capture those addresses.

Lastly, the settlement is a good reminder that companies should be mindful of all license requirements and have in place disciplined recordkeeping processes when authorizations are obtained. Without these controls, U.S. export violations can quickly multiply.

Crowell & Moring will continue to monitor developments related to export control enforcement actions and their potential impact to industry.

Tags: BIS, China, Export controls
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Photo of Scott Wise Scott Wise

Scott Wise is a partner in Crowell’s Denver office and a member of the firm’s International Trade Group. His practice focuses on export controls, economic sanctions, and outbound investment issues across industries, with an emphasis on emerging technologies and the technology industry.

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Scott Wise is a partner in Crowell’s Denver office and a member of the firm’s International Trade Group. His practice focuses on export controls, economic sanctions, and outbound investment issues across industries, with an emphasis on emerging technologies and the technology industry.

Working with established and start-up tech companies, Scott helps clients to develop unique compliance programs that are responsive to the full range of regulations governing the exports of goods and services. He also trains and counsels clients on compliance with relevant export control regulations such as the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR). In addition to technology companies, Scott advises companies in the aerospace and aviation, automotive, chemical, defense, electronics, energy, engineering, financial and insurance, manufacturing, professional services, security, and transportation industries, among others.

Prior to joining Crowell, Scott was the Assistant General Counsel for Global Trade at a multinational technology company where he led a consolidated team focusing on export controls, economic sanctions, and outbound investment. He was the lead export controls and economic sanctions attorney for key business groups ranging from emerging technologies, such as artificial intelligence and quantum computing, to aerospace and defense contracts, and to commercial software and gaming. In that role, Scott developed the company’s compliance approach to new regulations governing the export of various  new technologies, including AI, integrated circuits and chips, and quantum computing, which involved coordination between senior government officials and business leaders. Scott also has prior law firm experience in the international trade practice area.

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Photo of Jeremy Iloulian Jeremy Iloulian

Recognized as a “Rising Star” in International Trade by Super Lawyers, Jeremy Iloulian advises clients globally on complex cross-border regulatory, compliance, investigative, and transactional matters and policy developments that touch U.S. national security, international trade, and foreign investment, including those relating to

…

Recognized as a “Rising Star” in International Trade by Super Lawyers, Jeremy Iloulian advises clients globally on complex cross-border regulatory, compliance, investigative, and transactional matters and policy developments that touch U.S. national security, international trade, and foreign investment, including those relating to U.S. export controls (EAR and ITAR), economic sanctions, anti-boycott laws, the Committee on Foreign Investment in the United States (CFIUS), and various national security controls on fundamental research and supply chains.

Jeremy has extensive experience counseling U.S. and non-U.S. clients, including public and private companies, private equity sponsors, and nonprofits spanning a multitude of industries, including aerospace and defense, energy, entertainment, fashion, food and beverage, health care, infrastructure, technology, telecommunications, and transportation. He provides strategic guidance on managing risks for dealings in high-risk jurisdictions such as China, Russia, Venezuela, and the Middle East, among other countries and regions. He regularly advocates on behalf of such clients before the U.S. Bureau of Industry and Security (BIS), Directorate of Defense Trade Controls (DDTC), Office of Foreign Assets Control (OFAC), Bureau of Economic Affairs (BEA), Census Bureau, Department of Energy, and Nuclear Regulatory Commission (NRC).

Additionally, Jeremy has previously counseled on, presented on, and published research related to international environmental law, specifically the United Nations Convention on the Law of the Sea (UNCLOS) and Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).

Prior to and during law school, Jeremy interned at multiple government agencies, including the United Nations, the U.S. State Department, and the Iraqi Embassy in Washington, D.C.

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Photo of Chandler Leonard Chandler Leonard

Chandler S. Leonard is an associate in Crowell & Moring’s Washington, D.C. office and a member of the firm’s International Trade Group. Chandler’s practice focuses on export controls and economic sanctions issues, including voluntary disclosures and enforcement matters before the Departments of Commerce…

Chandler S. Leonard is an associate in Crowell & Moring’s Washington, D.C. office and a member of the firm’s International Trade Group. Chandler’s practice focuses on export controls and economic sanctions issues, including voluntary disclosures and enforcement matters before the Departments of Commerce, State, and Treasury. Chandler has experience analyzing and advising U.S. and non-U.S. companies with respect to proposed transfers of U.S. origin technology, software, hardware, and services. She has performed jurisdictional and classification analyses under the ITAR and EAR, including drafting Commodity Jurisdiction requests and CJ Reconsideration requests. She assists in developing and/or reviewing U.S. export and sanctions compliance programs, including risk assessments. Chandler also has experience training a wide variety of audiences, both U.S. and foreign, on compliance with U.S. export control and sanctions requirements.

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