China Precision Machinery Import-Export Corp. (CPMIEC)

A Wall Street Journal review of the records and interviews with officials at some of the American companies indicate that the U.S. firms likely were unaware they were doing business with banned entities, and in many cases were tripped up by altered company names.

On June 30, 2019, New Jersey listed CPMIEC on its state list of entities determined, based on credible information, to be engaged in prohibited activities in Iran. (https://www.state.nj.us/treasury/purchase/pdf/Chapter25List.pdf)

As of October 14, 2020, CPMIEC remained on the Tennesse Department of General Services list of persons it determines engage in investment activities in Iran, as described in 12-12-105. (https://www.tn.gov/content/dam/tn/generalservices/documents/cpo/cpo-library/List_of_persons_pursuant_to_Tenn._Code_Ann._12-12-106_Iran_Divestment_Act_updated_with%20NY10.14.20.pdf)

As of April 15, 2020, CPMIEC is included on the Tennessee list of persons it determines engage in investment activities in Iran, as described in § 12-12-105.  (https://www.tn.gov/content/dam/tn/generalservices/documents/cpo/other/list-of-persons-pursuant-to-tenn-code-iran-divestment/List_of_persons_pursuant_to_Tenn._Code_Ann._12-12-106_Iran_Divestment_Act_updated_with NY04.15.20.pdf)

In 2018, the state of New Jersey, listed CPMIEC on its Iran scrutinized companies list rendering CPMIEC ineligible for investment and/or state contracting. (http://www.nj.gov/treasury/purchase/pdf/Chapter25List.pdf)

"Chinese companies banned from doing business in the U.S. for allegedly selling missile technology to Iran continue to do a brisk trade with American companies, according to an analysis of shipping records.

A unit of state-owned China Precision Machinery Import-Export Corp., for example, has made nearly 300 illegal shipments to U.S. firms since a ban was imposed on CPMIEC and its affiliates in mid-2006, according to an analysis of shipping records by the Wisconsin Project on Nuclear Arms Control, a nonprofit proliferation watchdog.

The CPMIEC shipments, worth millions of dollars, include everything from anchors and drilling equipment to automobile parts and toys. In many cases, CPMIEC acted as a shipping intermediary -- activity also banned under a 2006 presidential order.

The ability of CPMIEC and other foreign companies to continue doing business in the U.S. despite the sanctions comes as the Obama administration considers fresh economic sanctions against Iran. The illegal shipments suggest that U.S. sanctions have become so numerous and complex that they have become difficult to enforce... In June 2006, the U.S. banned CPMIEC and three other Chinese companies from conducting business in the U.S., citing their alleged sales of missile technology to Iran in defiance of previous sanctions. Two months later, a shipment of oil-drainage tanks from Shanghai landed at the port of Tacoma, Wash., bound for a New York City firm, American Forge & Foundry Inc. The shipper: a unit of CPMIEC, according to a shipping record known as a bill of lading...

John Iliff, general manager of American Forge & Foundry, says the single shipment of oil-drainage tanks it received in 2006 from the CPMIEC unit set off no alarms. 'Trading in illegal goods certainly never crossed our minds,' he says.

As of April 15, 2020, CPMIEC is included as an entity determined to be non-responsive bidders/offerers pursuant to The New York State Iran Divestment Act of 2012.   (https://ogs.ny.gov/system/files/documents/2020/04/iran_divestment_act_list_of_entities.pdf)

In January 2021, the State of New Jersey Department of the Treasury listed CPMIEC as a company engaged in prohibited activities in Iran pursuant to P.L. 2012, c. 25 ("Chapter 25").  (https://www.nj.gov/treasury/purchase/pdf/Chapter25List.pdf)

In 2018 and 2019 Tennessee used the New York list of “Entities determined to be non-responsive bidders/offerers pursuant to the New York State Iran Divestment Act of 2012.” CPMIEC was included on this list in 2018 and 2019. Tennessee states "Inclusion on this list would make a person ineligible to contract with the state of Tennessee, if a person ceases its engagement in investment activities in Iran, it may be removed from the list."

As of July 1, 2020, CPMIEC is listed as an entity “determined, based on credible information available to the public, to be engaged in prohibited activities in Iran pursuant to New Jersey P.L. 2012, c.25 (“Chapter 25”).   (https://www.nj.gov/treasury/purchase/pdf/Cas hapter25List.pdf)

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The shipment came from China JMM Import & Export Shanghai Pudong Corp., which didn't appear on any sanctions list until Thursday. Records indicate the company shares an address and phone number with a CPMIEC unit that was previously banned: CPMIEC Shanghai Pudong Corp. The Treasury determined that the two companies are affiliated." (The Wall Street Journal, "Chinese Evade U.S. Sanctions on Iran," 1/5/10) (http://online.wsj.com/article/SB126256626983914249.html)