OUR THOUGHTS ON:

Export Warning: U.S. manufacturers' parts found in Iraq IEDs

Manufacturing

By Richard McKenna

CBS News has reported that The U.S. Department of Justice is warning U.S. manufacturers to be on alert for foreign-based customers who may not be who they say they are.

The U.S. military recently discovered 16 unexploded improvised explosive devices (IEDs) in Iraq, and some of the component parts can be traced directly back to a U.S. manufacturer. IEDs account for over 60% of the casualties to U.S. forces in both Iraq and Afghanistan.

This discovery serves as a wake-up call to all manufacturers that ship product and materials overseas. In this case the electronic components were shipped to Singapore. The company in Singapore then sold the components to another company in Iran, which is against the law. The firm in Singapore is now under indictment in the U.S.

Manufacturers in the U.S. have a responsibility to fully understand the implications of selling overseas. This is particularly true if the products manufactured in the U.S. can be used in ways not intended by the manufacturer. Although the manufacturer in this case was unaware of the connection to Iran, manufacturers must work to ensure full compliance to import/export regulation.

Additional information can be found on the Customs and Border Protection website: www.cbp.gov.  

If you would like to talk to someone about this issue, please feel free to contact the Schneider Downs Manufacturing Industry Group.

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