Yantai Jereh Oilfield Service Group Co. allegedly used third-party companies in China and the United Arab Emirates in an attempt to export to Iran oil field equipment containing U.S. components on at least 11 occasions. Two of the shipments were seized by U.S. Customs and Border Protection, the U.S. said.

Attempts to reach the company, which is based in Yantai, China, were unsuccessful.

Yantai Jereh allegedly knew its exports to Iran were unauthorized, according to U.S. settlement documents. The U.S. cited correspondence from an employee to make its case.

The employee, who identified himself as the Yantai Jereh sales manager for Iran at the time, told an Iranian company in an email that, although Yantai Jereh previously had exited the Iranian market because of U.S. sanctions risk, it would “build a new way” to access Iran, settlement documents show. That new way allegedly involved using a Chinese trading company and a Dubai-based distributor. The manager is no longer with the company, the U.S. said.

Yantai Jereh also made false statements to U.S. authorities during the course of the investigation, including by submitting letters denying the company had sold or shipped U.S. goods to Iran, or sold to any third parties knowing it would be resold there, the U.S. said.

Yantai Jereh reached concurrent settlements with the U.S. Treasury and Commerce Departments over the allegations. The company agreed to pay $2.8 million to the Treasury and $600,000 to the Commerce Department, along with a suspended five-year ban on buying U.S. components. If the company violates the probationary conditions, the Commerce Department can activate the ban, ending Yantai Jereh’s ability to buy U.S. components for its products.

U.S. authorities acknowledged the company’s remedial response and compliance-program enhancements. Measures taken include the termination of those responsible for the conduct; the establishment of an international compliance department and the hiring of full-time compliance personnel; and issuing of sanctions-compliance certifications to its suppliers.

“This enforcement action highlights the importance of the implementation of audits, reviews and control measures to ensure compliance with U.S. export controls and sanctions regulations,” the U.S. Treasury Department said in its enforcement notice.