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Bureau of Industry & Security

Office of Congressional and Public Affairs

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FOR IMMEDIATE RELEASE | Tuesday, June 29, 2021 | Media Contact: [email protected]

BIS Imposes Administrative Penalty on Virginia Company for Exports to Russian Military End User


WASHINGTON – On June 28, 2021, Kevin J. Kurland, Acting Assistant Secretary for Export
Enforcement, Bureau of Industry and Security (BIS) of the U.S. Department of Commerce, announced an
administrative settlement of $200,000 with Patriot 3, Inc. of Fredericksburg, Virginia.
The BIS order resolved allegations that Patriot 3, Inc., on or about October 16, 2014, sold and/or
transferred maritime jet boots with underwater propulsion systems (“JetBoots”), items subject to the
Export Administration Regulations (EAR), for export to military end users in Russia with knowledge that
a violation of the EAR had occurred or was about or intended to occur in connection with the items. The
items are classified under Export Control Classification Number (“ECCN”) 8A992 and controlled in
connection with exports to military end users or for military end uses in Russia as set forth in Section
744.21 of the EAR. The boots were valued at approximately $329,760 and Patriot 3 sold and transferred
the items for export to Russia knowing that they were destined for the Russian Government’s Federal
Guard Service (also known by the acronym “FSO”) without the appropriate licenses required.
“Today’s administrative settlement demonstrates Export Enforcement’s commitment to combating
violations of export laws and regulations with all of our enforcement tools, especially when it involves
exports to military end users in Russia,” said Acting Assistant Secretary Kurland.
BIS’s mission is to advance U.S. national security and foreign policy objectives by ensuring an effective
export control and treaty compliance system and promoting continued U.S. strategic technology
leadership. Among its enforcement efforts, BIS is committed to preventing U.S.-origin items from
supporting Weapons of Mass Destruction (WMD) projects, facilitating terrorist activities, or destabilizing
military modernization programs. For more information, please visit www.bis.doc.gov.

 

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