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U.S. sanctions six Chinese shipping firms over alleged commercial support for IRISL

21 Oct 2020

Michael R. Pompeo, Secretary of State at the U.S. Department of State on Monday (19 October) said the U.S. is sanctioning six entities and two individuals for conduct related to the Islamic Republic of Iran Shipping Lines (IRISL) and its subsidiary, Hafez Darya Arya Shipping Company (HDASCO), pursuant to the Iran Freedom and Counter-Proliferation Act Section 1244 (IFCA 1244).

Pompeo noted on June 8, 2020 it had designated IRISL and IRISL’s Shanghai-based subsidiary, E-Sail Shipping Company Ltd., pursuant to Executive Order 13382 for their proliferation-related conduct.

Pompeo added the State Department had warned any stakeholder who continued doing business with IRISL or E-Sail was at risk of sanctions.

Since the June 2020 sanctioning of IRISL and E-Sail, Reach Holding Group (Shanghai) Co. Ltd. and Reach Shipping Lines arranged for port berths for IRISL vessels at Chinese ports. 

Reach Shipping Lines knowingly sold, supplied, or transferred four large container vessels to IRISL’s subsidiary, HDASCO, said Pompeo.

It added that the other companies each knowingly sold, supplied, or transferred a large container vessel to Iran to be used in connection with the shipping sector of Iran.

As a result, the U.S. is sanctioning the following companies for having knowingly sold, supplied, or transferred to Iran significant goods or services used in connection with the shipping sector of Iran:

  •   Reach Holding Group (Shanghai) Company Ltd
  •   Reach Shipping Lines
  •   Delight Shipping Co., Ltd
  •   Gracious Shipping Co. Ltd
  •   Noble Shipping Co. Ltd
  •   Supreme Shipping Co. Ltd

The following persons are also being sanctioned as a part of this action:

  •   Eric Chen (Chen Guoping), Chief Executive Officer of Reach Holding Group (Shanghai) Company Ltd
  •   Daniel Y. He (He Yi), President of Reach Holding Group (Shanghai) Company Ltd

Pompeo added Reach Holding Group (Shanghai) Company Ltd have provided services to IRISL, E-Sail, and HDASCO to help these Iranian shipping entities evade the consequences of U.S. sanctions by shielding Chinese entities from U.S. sanctions.

Likewise, Reach Shipping Lines has been involved in activities, services, and the provision of goods to IRISL and its subsidiaries intended to conceal IRISL and its subsidiaries’ activities from Chinese government, industry, and maritime stakeholders. 

Additionally, Reach Holding Group (Shanghai) Company Ltd. has also worked on behalf of IRISL and its subsidiaries to conceal these Iranian entities activities in the PRC including by lying to Chinese companies about the roles of IRISL and its subsidiaries in shipments and by falsifying documents and engaging in other deceptive practices so that Chinese government, industry, and maritime stakeholders would not know about IRISL and its subsidiaries activities in the PRC.


Photo credit and Source:
U.S. Department of State
Published: 21 October, 2020

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