Today, the Bureau of Industry and Security (BIS) announced it has issued penalties amounting to $439,992 against Texas-based defense company First Call International, Inc. (First Call) for submitting a document it admittedly backdated to appear to be in compliance with the Export Administration Regulations (EAR). First Call made exports of dual-use military parts controlled for export under the EAR to Malaysian and South Korean end-users. BIS identified the false document after it requested to view a copy of the Prior Consignee Statement (PCS) necessary for use of the BIS License Exception Strategic Trade Authorization (STA). A PCS is required before making an export pursuant to the STA license exception, and instead of admitting its mistake to BIS, First Call backdated the document before submitting it to BIS investigators. Without License Exception STA, a license from BIS would have been required for these exports. This action highlights the importance of accurate understanding of export laws and regulations and application exceptions. License Exception STA allows exporters the ability to export to specified countries without a license so long as certain conditions are met.  One of such conditions is obtaining a PCS from your customer; however, the commodities exported must also be classified under certain Export Classification Control Numbers (ECCNs), and the ultimate destination of the export must be one of the enumerated countries in 15 CFR Section 740.20. Understanding US export laws and regulations and the applicable license exceptions is key for the defense industrial base to continue its mission and avoid fines and penalties from the US government. The full order from BIS can be found here: https://efoia.bis.doc.gov/index.php/documents/export-violations/export-violations-2024/1642-e2969-first-call-international-final-order-9-27-2024/file