Industry insights

Illegally Exporting Performance Coatings

May 23rd, 2016, Posted in News

The former Managing Director, Xun Wang, of PPG Paints Trading Company, Ltd., located in Shanghai, pleaded guilty to illegally exporting high performance coatings to a nuclear reactor facility located in Pakistan. The company is a Chinese subsidiary of the U.S. based PPG Industries.

Xun Wang pled guilty for violating the International Emergency Economic Powers Act; facing a max sentence of 5 years in prison and a fine not to exceed $250,000 USD. Xun Wang did agree to cooperate with law enforcement as part of her admission of guilt. In addition, Xun will be added to the Department of Commerce (DOC) Debarred (Denied) Party List for a period of 5 years.

Wang is charged with conspiring to export and then re-export epoxy coatings to Chashma #2 Nuclear Power Plant (Pakistan). The nuclear facility is on the U.S. DOC Watch List. In Nov. 1998 the Pakistan Atomic Energy Commission was added to the debarred list of United States trade parties following Pakistan’s successful ignition of a nuclear device.

PPG Industries (Shanghai) had initially applied for an export license to ship the performance coatings to Chashma#2 in Pakistan. The U.S. Department of Commerce rejected the application. Upon rejection, Wang had the coatings shipped from the United States using a third party. Eventually the shipment was found to be delivered to Chashma#2. Wang had concealed information, stating the coating paint was for a power plant in China