US authorities on Wednesday imposed a $300 million penalty on Seagate Technology, to resolve alleged violations of export controls related to selling hard disk drives to Huawei Technologies, the Commerce Department said.
\nThe manufacturer was involved in the shipment of hard disk drives valued over $1.1 billion to Huawei entities despite US controls.
\nThe violations, according to the Commerce Department, took place between August 2020 and September 2021.
\nIn 2019, the US added Huawei and some of its affiliates to a trade blacklist that imposed licensing requirements on exports, re-exports and transfers of goods.
\nThe Bureau of Industry and Security (BIS) also introduced controls in 2020 over certain foreign-made items to \u201cbetter address the continuing threat\u201d by Huawei to US national security and foreign policy interests.
\n\u201cEven after Huawei was placed on the Entity List for conduct inimical to our national security, and its competitors had stopped selling to them due to our foreign direct product rule, Seagate continued sending hard disk drives to Huawei,\u201d said Assistant Secretary for export enforcement Matthew Axelrod in a statement.
\n\u201cToday\u2019s action is the consequence: \u202fthe largest stand-alone administrative resolution in our agency\u2019s history,\u201d he added, referring to the BIS.
\nDespite the controls in 2020 imposed by BIS, Seagate said it would continue doing business with Huawei, the Commerce Department noted.
\n\u201c\u202fSeagate did so despite the fact that its only two competitors had stopped selling HDDs (hard disk drives) to Huawei, resulting in Seagate becoming Huawei\u2019s sole source provider,\u201c the department added.
\nAccording to the bureau\u2019s investigation, Seagate was involved in the shipment of more than 7.4 million hard disk drives without authorization.<\/p>\n","protected":false},"excerpt":{"rendered":"
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