Flir discloses additional U.S restrictions on 9hz thermal sales in China
Flir Systems disclosed late Friday that in June, the United States Department of Commerce Bureau of Industry and Security informed the company of additional export licensing requirements that restrict the company's ability to sell 9hz thermal products without a license to customers in China not identified on a list maintained by the United States Department of Commerce. This action was precipitated by concerns of potential diversion of some of the company's products to prohibited end users and to countries subject to economic and other sanctions implemented by the United States, Flir added in its quarterly regulatory filing. If the company is found to have violated applicable rules and regulations with respect to customers and limitations on the end use of the company's products, Flir "could be subject to substantial fines and penalties, suspension of existing licenses or other authorizations and/or loss or suspension of export privileges," it added. Flir stated that it is "unable to reasonably estimate the time it may take to resolve these matters or the amount or range of potential loss, penalty or other government action, if any, that may be incurred in connection with these matters." However, it adde4d that an unfavorable outcome "could result in substantial fines and penalties or loss or suspension of export privileges or of particular authorizations that could be material" to the company's financial position.