First Declination Of Prosecution Under DOJ Corporate Enforcement And Voluntary Self-Disclosure Policy

On June 17, 2026, the Department of Justice (DOJ) made a significant announcement by issuing its first declination of prosecution under the Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP). This decision pertains to Robert Bosch GmbH (Bosch), which the DOJ has chosen not to prosecute for violations of U.S. export control regulations. This resolution concludes the DOJ’s investigation into Bosch’s alleged scheme to export products and software — manufactured using equipment derived from U.S. technology — to an entity-listed company in the People’s Republic of China.

Between 2020 and 2024, two of Bosch’s non-U.S. subsidiaries exported over $70 million worth of controlled sensor products and software to Huawei Technology Co., Ltd. (Huawei) without obtaining the necessary licenses or authorization from the Bureau of Industry and Security (BIS) in violation of the Export Administration Regulations (EAR). These exports to Huawei violated the Foreign Direct Product Rule (FDPR), which mandates that non-U.S. companies obtain BIS authorization before exporting items made using specific U.S. technology, software, or equipment outlined in the regulations. Bosch profited by over $11 million from these exports.

Although Bosch faced a parallel civil fine exceeding $36 million from the Department of Commerce, the DOJ has decided not to pursue criminal charges against the company. This decision was a result of Bosch’s prompt voluntary self-disclosure detailing the violations to the DOJ’s National Security Division (NSD), its cooperation during NSD’s investigation, and its timely remediation of the misconduct (such as personnel changes, internal disciplinary measures, and updating internal trade compliance procedures). As a part of the resolution, Bosch has agreed to disgorge over $11 million in profits, which will be credited toward the civil fine imposed by BIS.

The CEP, issued in March 2026, aims to promote consistency, uniformity, and fairness in how the DOJ pursues white-collar cases. It offers incentives for companies to voluntarily disclose violations and misconduct, cooperate with agency investigations, and implement corrective measures. While the policy still provides for prosecution in certain circumstances, particularly where aggravating factors are present, it emphasizes the DOJ’s commitment to declining criminal charges when violations are promptly disclosed and appropriately addressed. The goal of the CEP is to prevent undue burden on American businesses, deter white-collar crime, and ensure accountability for culpable individuals. 

This marks the first instance where NSD has declined to prosecute a company under the CEP. Bosch’s swift and comprehensive remediation efforts aligned with the standard set by the policy, underscoring the DOJ’s dual mission: safeguarding U.S. technology and national security while encouraging voluntary compliance and disclosure.

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