BILLING CODE: 3510-DT-P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
In the Matter of: USGoBuy, LLC, 6804 NE 79th Ct., Building A, Portland, OR
97218, Respondent; Order Activating Suspended Portion of Civil Penalty and
Activating Suspended Denial of Export Privileges against USGoBuy, LLC
On June 17, 2021, then-Acting Assistant Secretary of Commerce for Export
Enforcement, Kevin J. Kurland signed an order (the “June 17, 2021 Order”) approving
the terms of a settlement agreement (the “Settlement Agreement”) between the Bureau of
Industry and Security, U.S. Department of Commerce (“BIS”), and USGoBuy, LLC
(“USGoBuy” or “the Company”). USGoBuy is a package forwarding company based in
Portland, Oregon that offers a service that allows non-U.S.-based customers to purchase
items online from U.S. retailers and have those items shipped to the Company’s
warehouse in Oregon. USGoBuy then consolidates various items ordered by its
customers and re-packages the items for export from the United States. USGoBuy also
offers a “BuyForMe” service in which it purchases U.S.-origin items on behalf of its
customers, and then exports the items to a foreign addressee and address provided by the
customer.
The Settlement Agreement and the June 17, 2021 Order relate to an enforcement
action brought by BIS against USGoBuy for exporting riflescopes, items classified under
Export Control Classification Number (“ECCN”) 0A987.a, controlled for Crime Control
reasons, to China and the United Arab Emirates, without seeking or obtaining the licenses
required for these exports, in violation of the Export Administration Regulations (the
“Regulations”).1

The Regulations are currently codified in the Code of Federal Regulations at 15 CFR parts 730774 (2024). The violations at issue in the Settlement Agreement occurred in 2015. The
Regulations governing those violations are found in the 2015 version of the Code of Federations
(15 CFR parts 730-774). The 2024 Regulations set forth the procedures that apply to this matter.
The Settlement Agreement and June 17, 2021 Order imposed on USGoBuy a civil
penalty of $20,000. USGoBuy was required to pay $5,000 of this amount to the
Department of Commerce by July 17, 2021. Payment of the remaining $15,000 was
suspended for a probationary period of three years from the date of the June 17, 2021
Order, after which it would be waived, provided that during this three-year probationary
period, USGoBuy paid the $5,000 non-suspended portion of the civil penalty, committed
no other violation of the Regulations, and completed an independent, external audit (the
“Export Compliance Audit” or “Audit”).
The June 17, 2021 Order required that the Export Compliance Audit cover the 12month period after the June 17, 2021 Order and be in substantial compliance with the
Export Compliance Program sample audit module published by BIS. To the extent
USGoBuy identified any violations of the Regulations through the Audit, the June 17,
2021 Order required USGoBuy to promptly provide supporting documentation related to
the violations and a detailed plan of corrective actions to be taken.
In addition, the June 17, 2021 Order also imposed a three-year denial of
USGoBuy’s export privileges under the Regulations. This denial order was suspended
pursuant to section 766.18(c) of the Regulations, subject to the same probationary
conditions described above. According to the June 17, 2021 Order, if USGoBuy failed to
make full and timely payment of the non-suspended penalty, did not complete the audit
and submit the results as required by the Settlement Agreement, or if USGoBuy
committed additional violations of the Regulations during the three-year probationary
period, BIS could modify or revoke the suspended denial order and activate against
USGoBuy a denial order including a denial period of up to three years.
BIS has brought to my attention that following the imposition of the June 17,
2021 Order, USGoBuy failed to implement corrective actions in response to the 2015
violations and committed additional violations of the Regulations during the probationary

period in violation of the June 17, 2021 Order.2 Moreover, even after identifying
violations that occurred during the probationary period, USGoBuy failed to implement
corrective actions to address those additional violations.
Specifically, through the Export Compliance Audit, the results of which
USGoBuy submitted over 18 months after the June 17, 2021 Order, USGoBuy identified
significant continued deficiencies in its export compliance program, including with
respect to identifying items for which export authorization may be required and related
recordkeeping requirements under the Regulations. The Company also identified through
the Audit 176 instances in which the Company failed to submit Electronic Export
Information as required by the Regulations and additional exports for which the
Company failed to maintain adequate records as required by the Regulations. Despite
identifying these continued deficiencies through the Audit, USGoBuy did not implement
corresponding corrective actions to address the findings of its Audit as required by the
June 17, 2021 Order. Most notably, the Company did not implement adequate
enhancements designed to appropriately identify items in the packages it exports that may
require export authorization from BIS and a corresponding process to either refrain from
exporting such items or to seek appropriate authorization.
Separately, in November 2022, Homeland Security Investigations (“HSI”)
intercepted a shipment of an item to USGoBuy on behalf of one of the Company’s
customers. The item required authorization for export from the United States to China.
After intercepting the shipment, HSI replaced the item with one that did not require
authorization, and added conspicuous markings to the outside of the package indicating
that authorization to export the package was required. HSI then allowed the package to
continue in transit to USGoBuy. Despite the conspicuous export control markings on the

USGoBuy also only paid the $5,000 non-suspended portion of its monetary penalty on October 19, 2021—
over 90 days after the date established in the June 17, 2021 Order.
package, USGoBuy exported the package to China on the same day it received it without
attempting to obtain authorization. This event illustrates that despite being subject to a
suspended three-year denial order, USGoBuy did not have in place appropriate export
clearance procedures to prevent an unauthorized export even where a package had
explicit export control markings notifying USGoBuy that export authorization was
required.
As a result of the conduct described above, USGoBuy has violated the
probationary conditions relating to the suspension of the denial of their export privileges.
In accordance with sections 766.17(c) and 766.18(c) of the Regulations, by letter dated
May 15, 2024 (the “Notice Letter”), I provided USGoBuy with notice of my preliminary
determination that the Company violated the probationary conditions of the June 17,
2021 Order and included a summary of the facts on which I based my preliminary
determination, which are also outlined above. The Notice Letter provided the Company
with an opportunity to respond and to show why I should not activate the $15,000
suspended penalty amount, issue an active three-year denial order against them, or take
both actions.
In response, USGoBuy submitted a written submission to me on May 30, 2024,
which I fully considered. In the response, USGoBuy did not dispute any of the facts
outlined above that form the basis of my determination that the Company violated the
probationary conditions related to the suspended penalties in this matter. In addition,
USGoBuy provided no explanation as to why it failed to implement adequate compliance
controls after the June 17, 2021 Order or after the findings from the Audit. USGoBuy did
outline in its response certain compliance enhancements that it implemented in May
2024, but these enhancements do not appear reasonably designed to address the
Company’s past violations or to identify and prevent future potential misconduct. As a

result, the Company’s response did not provide a sufficient showing as to why I should
not activate the suspended penalties in this matter.
Based on the totality of circumstances here, I have determined within my
discretion that it is appropriate to activate a denial order for a period of three years.
IT IS THEREFORE ORDERED:
FIRST, for a period of three years from the date of this Order, USGoBuy, LLC,
with a last known address of 6804 NE 79th Ct., Building A, Portland, OR 97218, and
when acting for or on its behalf, its successors, assigns, representatives, agents, or
employees (hereinafter collectively referred to as “Denied Persons”), may not, directly or
indirectly, participate in any way in any transaction involving any commodity, software
or technology (hereinafter collectively referred to as “item”) exported or to be exported
from the United States that is subject to the Regulations, or in any other activity subject
to the Regulations, including, but not limited to:
A.

Applying for, obtaining, or using any license, license exception, or export
control document;

B.

Carrying on negotiations concerning, or ordering, buying, receiving,
using, selling, delivering, storing, disposing of, forwarding, transporting,
financing, or otherwise servicing in any way, any transaction involving
any item exported or to be exported from the United States that is subject
to the Regulations, or engaging in any other activity subject to the
Regulations; or

C.

Benefitting in any way from any transaction involving any item exported
or to be exported from the United States that is subject to the Regulations,
or in any other activity subject to the Regulations.

SECOND, that no person may, directly or indirectly, do any of the following:
A.

Export or reexport to or on behalf of a Denied Person any item subject to
the Regulations;

B.

Take any action that facilitates the acquisition or attempted acquisition by
a Denied Person of the ownership, possession, or control of any item
subject to the Regulations that has been or will be exported from the
United States, including financing or other support activities related to a
transaction whereby a Denied Person acquires or attempts to acquire such
ownership, possession or control;

C.

Take any action to acquire from or to facilitate the acquisition or
attempted acquisition from a Denied Person of any item subject to the
Regulations that has been exported from the United States;

D.

Obtain from a Denied Person in the United States any item subject to the
Regulations with knowledge or reason to know that the item will be, or is
intended to be, exported from the United States; or

E.

Engage in any transaction to service any item subject to the Regulations
that has been or will be exported from the United States and which is
owned, possessed or controlled by a Denied Person, or service any item,
of whatever origin, that is owned, possessed or controlled by a Denied
Person if such service involves the use of any item subject to the
Regulations that has been or will be exported from the United States. For
purposes of this paragraph, servicing means installation, maintenance,
repair, modification or testing.

THIRD, after notice and opportunity for comment as provided in section 766.23
of the Regulations, any person, firm, corporation, or business organization related to a
Denied Person by ownership, control, position of responsibility, affiliation, or other
connection in the conduct of trade or business may also be made subject to the provisions
of this Order.
FOURTH, any license issued pursuant to the Act or Regulations in which
USGoBuy has an interest of the date of this Order is hereby revoked.

FIFTH, this Order shall be served on USGoBuy, and shall be published in the
Federal Register.
This Order is effective immediately.
Matthew S. Axelrod,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2024-13508 Filed: 6/20/2024 8:45 am; Publication Date: 6/21/2024]