The DeepCool company commented on the situation with the restrictions imposed by the United States due to cooperation with russian firms. It will be recalled that in June, Beijing Deepcool Industries came under secondary US sanctions, which forced it to stop selling its products in the country. However, in other regions, including Ukraine, DeepCool products such as cooling systems and power supplies are still available for purchase.

 

Company officials said that DeepCool stopped all contact with the russian companies immediately after they were added to the sanctions list in September 2023, even before the power supplies were recognized by the US authorities as “dual-use goods”. According to Beijing DeepCool Industries, their secondary sanctions were wrongful and the company is considering an appeal.

 

 

The full text of the company’s statement:

 

“DeepCool, as a company that has been engaged in international business for a long time, always adheres to the principle of legal activity and strictly adheres to the laws and regulations of the relevant countries or regions (including but not limited to the UN, China, the US, the EU, etc.) where it operates.

 

The company was included in the sub-sanctioned lists on June 12, 2024 for participating in the supply of goods worth more than 1 million dollars to companies on the sub-sanctioned list Aktsionernoe Tovaristvo Taskom and LLC Novy IT Proekt, based in russia. These companies were placed on the sub-sanctioned list on September 14, 2023, US time, pursuant to Executive Order 14024. As of the time it became known, Beijing DeepCool Industries Co., Ltd. immediately stopped all transactions with this company.

 

From September 14, 2023 until today, the Exporter has not made any transactions with either of the two russian companies. On February 23, 2024, the U.S. Department of Commerce’s Bureau of Industry and Security added Power Supplies to the list of items that russia is trying to procure for its military programs (CHPL List). The CHPL includes power supplies that the company sold to Novyi Ai Ti Proekt LLC until September 14, 2023 (code HS 8504.40)

 

That is, Beijing DeepCool Industries Co., Ltd. was included in the sub-sanctioned list for the fact that the product was sold before the russian companies were sanctioned and before the power supply units became dual-purpose goods. The impact of the sanctions applies only to the exporting company Beijing DeepCool Industries Co., Ltd. The exporter does not rule out the possibility of filing an appeal or explanation to OFAC to remedy the negative consequences of the SDN listing incident for the exporting company.

 

The sanctions do not apply to the DeepCool brand or products. All processes of production, sales and after-sales support are carried out by the owners of the brand in full accordance with the laws of international law.