PUBLISHED

UNITED STATES COURT OF APPEALS

FOR THE FOURTH CIRCUIT

UNITED STATES OF AMERICA, 

Plaintiff-Appellee,

v.  No. 01-4026

BING SUN; PATTE SUN; ALL PORTS,

INCORPORATED,

Defendants-Appellants. 

Appeal from the United States District Court

for the Eastern District of Virginia, at Norfolk.

Raymond A. Jackson, District Judge.

(CR-00-28)

Argued: September 28, 2001

Decided: January 10, 2002

Before MICHAEL and MOTZ, Circuit Judges, and

HAMILTON, Senior Circuit Judge.

Affirmed by published opinion. Senior Judge Hamilton wrote the

opinion, in which Judge Michael and Judge Motz joined. 

COUNSEL

ARGUED: Anthony Francis Troy, TROUTMAN, SANDERS,

MAYS & VALENTINE, L.L.P., Richmond, Virginia, for Appellants.

Alan Mark Salsbury, Assistant United States Attorney, Norfolk, Virginia, for Appellee. ON BRIEF: James C. Roberts, John S. West,

TROUTMAN, SANDERS, MAYS & VALENTINE, L.L.P., Rich-
mond, Virginia, for Appellants Bing Sun and All Ports; Lawrence G.

Cohen, David W. Lannetti, VANDEVENTER BLACK, L.L.P., Norfolk, Virginia, for Appellant Patte Sun. Kenneth E. Melson, United

States Attorney, Norfolk, Virginia, for Appellee. 

OPINION

HAMILTON, Senior Circuit Judge: 

Following a jury trial, Bing Sun and All Ports, Incorporated (All

Ports) were convicted of conspiracy to export defense articles on the

United States Munitions List (Munitions List) without a license and

conspiracy to commit money laundering in violation of 18 U.S.C.

§ 371, 18 U.S.C. § 1956(a)(2)(A), and 22 U.S.C. § 2778. The jury

also found Bing Sun, All Ports, and Patte Sun, Bing Sun’s wife, guilty

of two counts of attempting to export defense articles on the Munitions List without a license in violation of 22 U.S.C. § 2778. Bing Sun

was sentenced to sixty months’ imprisonment; Patte Sun to forty-one

months’ imprisonment; and All Ports to two years’ probation and a

$100,000 fine. The district court entered each defendant’s judgment

on December 28, 2000. Each defendant filed a timely appeal, and we

now affirm. 

I

A

The Arms Export Control Act (AECA), id., authorizes the President to control, inter alia, the export and import of defense articles.

Id. § 2778(a)(1). The Department of State, exercising this authority

for the President, has promulgated the International Traffic in Arms

Regulations (ITAR), 22 C.F.R. §§ 120.1-130.17. These regulations

include the Munitions List, which consists of categories of military

items that cannot be exported without a license issued by the Department of State’s Office of Defense Trade Controls. 22 C.F.R. §§ 121.1,

123.1, 127.1. Because the United States maintains an arms embargo

with the People’s Republic of China, no license to ship items on the

Munitions List to the People’s Republic of China can be acquired. A

2 UNITED STATES v. SUN
willful violation of the AECA or its implementing regulations subjects an offender to criminal sanctions. 22 U.S.C. § 2778(c). 

B

When a United States military unit determines that a piece of military property, including an item on the Munitions List, is "obsolete,"

in a condition that is "no longer repairable," or in "excess," (J.A. 273),

the military unit turns the property over to the Defense Reutilization

and Marketing Service (DRMS), an agency operated by the Department of Defense. Once the military property is turned over to the

DRMS, the DRMS offers it to other military units. If no other military

unit is interested, the military property is offered to federal agencies,

state agencies, and non-profit organizations. If there are no federal

agencies, state agencies, or non-profit organizations interested in the

military property, the military property is offered for sale, sometimes

labeled as "scrap," to the general public through a national sales program. (J.A. 273). Often, multiple pieces of military property are

offered for sale in "lots." (J.A. 276). 

Through its national sales program, the DRMS issues Invitations

for Bid to prospective purchasers. An Invitation for Bid contains a

description of the items for sale, the terms and conditions of sale, a

bid sheet, and an End Use Certificate.1 The Invitation for Bid also

indicates whether a particular lot contains items on the Munitions

List. Importantly, even if a particular lot designates the military property as "scrap," the Invitation for Bid will indicate whether the lot

contains items on the Munitions List. 

Prospective purchasers of military property are also furnished with

a Sale By Reference pamphlet, which states that items on the Munitions List which do not require demilitarization may be sold for "military or other use," (J.A. 1846), to those foreign countries to which the

United States Department of State will issue an export license under

the ITAR.2 The Sale By Reference pamphlet also states that the use,

1The End Use Certificate must accompany each bid submitted by a

prospective purchaser. The End Use Certificate indicates the purchaser’s

intended disposition of the property and the property’s intended end use.

2All property in the government’s military supply system is assigned

a demilitarization code (Demil Code). Demil Codes vary depending on

UNITED STATES v. SUN 3
disposition, export, and reexport of military property is subject to all

applicable United States laws and regulations, the AECA, and the

ITAR. 

C

Bing and Patte Sun were the primary owners of All Ports, a company headquartered in Fontana, California. The primary business of

All Ports was the sale of United States government military property

to the People’s Republic of China. All Ports maintained warehouse

facilities in Fontana, Norfolk, Virginia, and San Antonio, Texas. 

The duties of operating All Ports were split between Bing and Patte

Sun. Bing Sun inspected military property at various military facilities

around the country. He prepared bid packages for submission to the

DRMS. In addition, Bing Sun set up and oversaw the operation of All

Ports’ export facilities. Patte Sun, who was described as a knowledgeable businesswoman, administered the contracts that All Ports had

with the DRMS, each one of which, according to the written Invitations for Bid, contained Munitions List items. All contract documents

were delivered to All Ports’ office in Fontana, where she worked.

Patte Sun prepared the checks in payment of the contracts awarded to

All Ports; assisted in the management of All Ports’ warehouse in Fontana; and made shipping arrangements with overseas freight forwarders for the export of the military property.3

the nature of the item. For example, a chair has an A Demil Code, while

a fully operational rocket launcher has a D Demil Code. An item of military property with a Demil Code B or later is an item on the Munitions

List. The Demil Code determines how items are to be demilitarized. For

an item of military property with a Demil Code of A or B, demilitarization is not required. However, all other Demil Codes require some form

of demilitarization, which is performed, as a condition of the sale, by the

DRMS or the purchaser. 

3At trial, the government introduced evidence that Bing and Patte Sun,

as knowledgeable businesspeople, were familiar with the AECA and its

implementing regulations. The government also introduced evidence that

Patte Sun told the owner of one of the overseas freight forwarders used

by the defendants that All Ports does not "send any military scrap to foreign countries." (J.A. 495). 

4 UNITED STATES v. SUN
Between 1994 and 1999, All Ports shipped over 1,000 containers

of military property to the People’s Republic of China. During this

period, approximately sixty-four End Use Certificates were submitted

to the DRMS on behalf of All Ports as part of bid documents for lots

of military property. Patte Sun completed and signed two of those

End Use Certificates and the rest were completed and signed by Bing

Sun. With one exception, these End Use Certificates indicated that the

military property would be distributed in the "USA and other countries" and that the customers were "unknown at the present time."4

(J.A. 1864). However, beginning in 1997, these lots of military property were shipped by All Ports to but one customer which had become

All Ports’ sole purchaser in the People’s Republic of China.5

On May 7, 1999, without a license, the Suns and All Ports

attempted to export, from Norfolk to the People’s Republic of China,

four shipping containers of military "scrap" property purchased from

the DRMS.6 These containers were presented for export at the Norfolk International Terminal, where they were detained and subsequently seized by the United States Customs Service. The material in

three of these containers included items designated by the State

Department as defense articles on the Munitions List, including fourteen twenty-millimeter tail-gun pods for the MK-4, nine twentymillimeter nose pods for the MK-4, six underwater mines for the MK60, two missile fins for air launched guided missiles, eight fin assemblies for air launched guided missiles, and thirteen twenty-millimeter

gun pod center cylinders for the MK-4. 

On May 13, 1999, without a license, the Suns and All Ports

attempted to export, from Norfolk to the People’s Republic of China,

two shipping containers of military "scrap" property purchased from

the DRMS. These containers were presented for export at the Norfolk

International Terminal, where they were detained and subsequently

4Taiwan was identified on one End Use Certificate. 

5As of May 1999, All Ports had become the customer with the largest

number of active contracts with the DRMS, with a total value of its

national sales contracts exceeding six million dollars. 

6As noted earlier, even if an Invitation for Bid designates the military

property as "scrap," the Invitation for Bid indicates whether the lot contains items on the Munitions List. 

UNITED STATES v. SUN 5
seized by the United States Customs Service. Items in these containers included wing assemblies for guided bombs, fin assemblies for air

launched missiles, wing assemblies for air launched missiles, duct

assemblies for the B-1 bomber, and missile fins for air launched

guided missiles. 

D

On February 24, 2000, Bing Sun, Patte Sun, and All Ports were

charged in a forty-seven count indictment. Count One charged Bing

Sun, Patte Sun, and All Ports with conspiracy to export defense articles on the Munitions List without a license and conspiracy to commit

money laundering in violation of 18 U.S.C. § 371, 18 U.S.C.

§ 1956(a)(2)(A), and 22 U.S.C. § 2778. Counts Two through TwentyThree charged the defendants with exportation of defense articles on

the Munitions List without a license. 22 U.S.C. § 2778. Counts

Twenty-Four and Twenty-Five charged the defendants with attempting to export defense articles on the Munitions List without a license.7

Id. Counts Twenty-Six through Forty-Seven charged the defendants

with money laundering. 18 U.S.C. § 1956(a)(2)(A). 

Prior to trial, the government withdrew four counts of the indictment. Following a jury trial, with respect to Bing Sun and All Ports,

the jury returned guilty verdicts on Counts One, Twenty-Four, and

Twenty-Five. With respect to Patte Sun, the jury returned guilty verdicts on Counts Twenty-Four and Twenty-Five. The jury returned

verdicts of not guilty on the remaining counts. Bing Sun was sentenced to sixty months’ imprisonment; Patte Sun to forty-one months’

imprisonment; and All Ports to two years’ probation and a $100,000

fine. The district court entered each defendant’s judgment on December 28, 2000. Each defendant filed a timely appeal. 

II

The defendants contend that the AECA and its implementing regulations are constitutionally void for vagueness under the Due Process

7The defendants’ attempts to export defense articles on the Munitions

List without a license on May 7 and 13, 1999 formed the basis of Counts

Twenty-Four and Twenty-Five. 

6 UNITED STATES v. SUN
Clause of the Fifth Amendment to the United States Constitution. We

review a defendant’s challenge to the constitutionality of a statute de

novo. United States v. Bostic, 168 F.3d 718, 721 (4th Cir. 1999)

(reviewing constitutionality of 18 U.S.C. § 922(g)(8)). The constitutionality of a regulation is also reviewed de novo. United States v.

Lee, 183 F.3d 1029, 1031 (9th Cir. 1999) (reviewing constitutionality

of the AECA and its implementing regulations), cert. denied, 528

U.S. 990 (1999), and cert. denied, 528 U.S. 1128 (2000). 

"Due process requires that a criminal statute provide adequate

notice to a person of ordinary intelligence that his contemplated conduct is illegal, for ‘no man shall be held criminally responsible for

conduct which he could not reasonably understand to be proscribed.’"

Buckley v. Valeo, 424 U.S. 1, 77 (1976) (quoting United States v.

Harriss, 347 U.S. 612, 617 (1954)). Thus, "the void-for-vagueness

doctrine requires that a penal statute define the criminal offense with

sufficient definiteness that ordinary people can understand what conduct is prohibited and in a manner that does not encourage arbitrary

and discriminatory enforcement." Kolender v. Lawson, 461 U.S. 352,

357 (1983). 

The defendants’ challenge to the AECA and its implementing regulations is reviewed only as the AECA and the implementing regulations were applied to them. Schleifer v. City of Charlottesville, 159

F.3d 843, 853 (4th Cir. 1998). "[V]agueness challenges to statutes

which do not involve First Amendment freedoms must be examined

in the light of the facts of the case at hand." United States v. Mazurie,

419 U.S. 544, 550 (1975). The Supreme Court has noted "that the

approach to ‘vagueness’ governing a case like this is different from

that followed in cases arising under the First Amendment. There we

are concerned with the vagueness of the statute ‘on its face’ because

such vagueness may in itself deter constitutionally protected and

socially desirable conduct." United States v. Nat’l Dairy Prods.

Corp., 372 U.S. 29, 36 (1963). Moreover, "where, as here, a criminal

statute regulates economic activity, it generally ‘is subject to a less

strict vagueness test, because its subject matter is more often narrow

and because businesses can be expected to consult relevant legislation

in advance of action.’" United States v. Iverson, 162 F.3d 1015, 1021

(9th Cir. 1998) (quoting United States v. Doremus, 888 F.2d 630, 634

(9th Cir. 1989)). "[A] scienter requirement may mitigate a law’s

UNITED STATES v. SUN 7
vagueness, especially with respect to the adequacy of notice to the

complainant that his conduct is proscribed." Village of Hoffman

Estates v. Flipside Hoffman Estates, Inc., 455 U.S. 489, 499 (1982).

We cannot say that the AECA or its implementing regulations are

unconstitutionally vague as applied to the defendants. In fact, as

applied to the defendants in this case, the statute is rather specific as

to what conduct is prohibited: the export and/or the attempted export,

without a license, of items on the Munitions List. As such, a person

of ordinary intelligence, especially businesspeople as knowledgeable

as Bing and Patte Sun, would understand what conduct is illegal. Similarly, law enforcement is not vested with the unrestrained power to

arrest anyone exporting or attempting to export, without a license,

items listed on the Munitions List. Rather, under the circumstances of

this case, the police may only make an arrest under the AECA and

its implementing regulations if an individual exports or attempts to

export Munitions List items, without a license, with the requisite

criminal intent. Not surprisingly, other courts have upheld the constitutionality of the AECA and its implementing regulations against

vagueness challenges. See, e.g., Lee, 183 F.3d at 1032-33 (holding

that the AECA and its implementing regulations were aimed at a narrow group of persons which included the defendants and that in "the

sensitive business of exporting military items, the statute and its

implementing regulation more than suffice to put exporters on notice

to consult the applicable regulations and, if necessary, contact the

appropriate government agency to resolve any perceived ambiguity");

United States v. Gregg, 829 F.3d 1430, 1437 (8th Cir. 1987) (stating

that the AECA "is as simple a matter as forbidding a passenger to ride

on a train without a valid ticket" and rejecting the argument that the

statute, which requires a knowing and willful export of Munitions List

items, was unconstitutionally vague in violation of due process);

United States v. Swarovski, 592 F.2d 131, 133 (2d Cir. 1979) (predecessor statute prohibiting export of Munitions List items was not

unconstitutionally vague, as regulation was aimed at exporters and put

them on notice of licensing requirements). 

III

At trial, the main thrust of the Suns and All Ports’ defense was that

the material the defendants exported and/or attempted to export fell

8 UNITED STATES v. SUN
within the so-called "scrap exemption" contained in a Commerce

Department regulation, 15 C.F.R. § 770.2(g)(3). This regulation provides in relevant part as follows: 

(g) Interpretation 7: Scrap arms, ammunition, and implements of war. Arms, ammunition, and implements of

war, as defined in the U.S. Munitions List, and are

under the jurisdiction of the U.S. Department of State,

. . . except for the following, which are under the jurisdiction of the Department of Commerce . . . . 

(3) Other commodities that may have been on

the U.S. Munitions List are "scrap," and

therefore under the jurisdiction of the Department of Commerce, if they have been rendered useless beyond the possibility of

restoration to their original identity only by

means of mangling, crushing, or cutting.

When in doubt as to whether a commodity

covered by the Munitions List has been rendered useless, exporters should consult the

Office of Defense Trade Controls, . . . or the

Exporter Counseling Division, . . . before

reporting a shipment as metal scrap. 

Id. Under the language of this Department of Commerce regulation,

if an item which may have been on the Munitions List has been rendered useless beyond the possibility of restoration to its original identity by means of mangling, crushing, or cutting, the item is not subject

to the export licensing requirements of the AECA and its implementing regulations. 

Even though § 770.2(g)(3) is found nowhere in the AECA or its

implementing regulations, the district court allowed the defendants to

pursue their defense theory and instructed the jury as follows: 

Now, ladies and gentlemen, there has been some reference

to the Department of Commerce in this case and demilitarization in this case. Title 15, Part 770.2, Section (g)(3) of the

Federal Code of Regulations states, in part, that "commodiUNITED STATES v. SUN 9
ties that may have been on the United States munitions list

are scrap and, therefore, under the jurisdiction of the Department of Commerce, if they have been rendered useless

beyond the possibility of restoration to their original identity

only by means of mangling, crushing or cutting." 

This section means that if any item that may have been on

the munitions list has been rendered useless beyond the possibility of restoration to its original identity by means of

mangling, cutting, or crushing, it may be exported without

a license or written authorization from the Department of

State. If, on the other hand, that item that may have been on

the munitions list has not been rendered useless beyond the

possibility of restoration to its original identity by means of

mangling, crushing, or cutting, it may not be exported without a license or a written authorization from the State

Department. 

The defendants contend that items which they purchased

that may have been on the munitions list were rendered useless beyond the possibility of restoration to their original

identity by means of mangling, crushing or cutting and,

therefore, could be exported without a license or a written

authorization from the State Department . . . . 

If you find and accept as true the evidence in support of this

contention and theory and believe the defendants’ defense

theory, and this defense leaves you with a reasonable doubt

as to whether the government has proved beyond a reasonable doubt each and every element of the crimes charged . . .

then you must find the defendants not guilty. 

(J.A. 1490-91). 

The defendants raise two arguments concerning § 770.2(g)(3),

which regulation we will assume for the sake of argument applies in

an AECA prosecution.8 We shall address these arguments in turn.

8At oral argument, counsel for the government virtually conceded that

§ 770.2(g)(3) did not apply in a prosecution charging the exportation

10 UNITED STATES v. SUN
First, the defendants contend that § 770.2(g)(3) is unconstitutionally vague as applied to them. This argument has no merit. 

Like the AECA and its implementing regulations, § 770.2(g)(3) is

rather specific as to when it applies. The plain language of the regulation states that items must "have been rendered useless beyond the

possibility of restoration to their original identity only by means of

mangling, crushing, or cutting." 15 C.F.R. § 770.2(g)(3). As such, a

person of ordinary intelligence would understand what conduct is

necessary to fall within the regulation: the item must be rendered useless beyond the possibility of restoration by mangling, crushing, or

cutting the item.9 Also, the regulation itself provides a means for

exporters to verify their own compliance prior to shipping questionable items by consulting the State Department’s Office of Defense

Trade Controls or the Commerce Department’s Office of Exporter

Services. Lee, 183 F.3d at 1032 (noting that the AECA and its implementing regulations enable exporters to contact appropriate government agencies to resolve perceived ambiguities). Furthermore, as

noted earlier, law enforcement is not vested with the unrestrained

power to arrest anyone exporting or attempting to export without a

license Munitions List items. Rather, under the circumstances of this

case, the police may only make an arrest under the AECA and its

implementing regulations if an individual exports or attempts to

export Munitions List items with the requisite criminal intent and

without a license. 

Second, the defendants contend that the jury should have been

instructed that the "scrap exception" was an element of their AECA

and/or the attempted exportation, without a license, of defense articles on

the Munitions List. However, counsel for the government did acknowledge that the case was tried on the basis that § 770.2(g)(3) did apply in

this case. Accordingly, we will assume without deciding that

§ 770.2(g)(3) applies in a prosecution charging the exportation and/or the

attempted exportation, without a license, of defense articles on the Munitions List. 

9The government presented evidence at trial demonstrating that the

Munitions List items the defendants attempted to export were not rendered useless beyond the possibility of restoration by means of mangling,

crushing, or cutting. 

UNITED STATES v. SUN 11
offenses, rather than an affirmative defense. According to the defendants, the burden was on the government to prove the inapplicability

of § 770.2(g)(3). We disagree. 

The district court’s instruction is similar to the one upheld in

United States v. Durrani, 835 F.2d 410 (2d Cir. 1987). In that case,

the defendant was found guilty of exporting and attempting to export

Munitions List items without a license in violation of the AECA. Id.

at 413. In his defense, he relied on the official use and foreign assistance exceptions set forth in the AECA. Id. 419-22 (discussing 22

U.S.C. § 2778(b)(2)). The defendant claimed that these exceptions

constituted elements of his AECA offenses and were not affirmative

defenses. Id. at 417. After dismissing the foreign assistance exception

for lack of any supporting evidence at trial, the Durrani court held

that the official use exception was an affirmative defense. Id. at 420-

21. In reaching this conclusion, the court "considered the text of the

statute, its legislative history, the parties’ relative abilities to present

evidence on the issue and the structure of the statute generally." Id.

at 420. Furthermore, the court rejected the defendant’s argument that

the jury instruction on the defense theory impermissibly shifted the

burden of proof to the defendant. Id. at 423-24. The Durrani court

noted that the district court had adequately instructed the jury on the

burden of proof by charging that the government had the burden to

prove the defendant’s guilt by proof beyond a reasonable doubt and

that the burden of proof remained on the government and never

shifted to the defendant. Id.

Like Durrani, the "scrap exemption" theory advanced by the Suns

and All Ports is an affirmative defense, not an element of a charge

under the AECA. To be sure, if the official use exception, which is

part of the AECA, is an affirmative defense to a charge under the

AECA, then the "scrap exemption" must likewise be an affirmative

defense. Furthermore, in this case, the district court correctly

instructed the jury on the defendants’ affirmative defense and cautioned the jury that the government had the burden to prove the defendants’ guilt by proof beyond a reasonable doubt and that the

government’s burden of proof never shifted to the defendants. 

IV

Patte Sun challenges the sufficiency of the evidence supporting her

convictions for attempting to export defense articles on the Munitions

12 UNITED STATES v. SUN
List without a license, 22 U.S.C. § 2778. Convictions on these counts

required the government to prove that Patte Sun attempted to export

defense articles on the Munitions List without having first obtained

a license. United States v. Reyes, 270 F.3d 1158, 1169 (7th Cir. 2001).

A jury’s verdict must be upheld on appeal if there is substantial

evidence in the record to support it. Glasser v. United States, 315 U.S.

60, 80 (1942). In determining whether the evidence in the record is

substantial, we view the evidence in the light most favorable to the

government and inquire whether there is evidence that a reasonable

finder of fact could accept as adequate and sufficient to support a conclusion of a defendant’s guilt beyond a reasonable doubt. United

States v. Burgos, 94 F.3d 849, 862 (4th Cir. 1996) (en banc). In evaluating the sufficiency of the evidence, we do not review the credibility

of the witnesses and assume the jury resolved all contradictions in the

testimony in favor of the government. United States v. Romer, 148

F.3d 359, 364 (4th Cir. 1998). 

The evidence in the record is more than sufficient to support Patte

Sun’s convictions for attempting to export defense articles on the

Munitions List without a license. The evidence shows that Patte Sun

was one of the primary operators of All Ports, which became a DRMS

customer having the largest number of active contracts. She was

familiar with DRMS sales procedures, and the evidence also shows

that she was aware of export licensing requirements and falsely told

the owner of one of the overseas freight forwarders used by the defendants that All Ports does not "send any military scrap to foreign countries." (J.A. 495). Patte Sun also signed two of the End Use

Certificates which put exporters on notice of export licensing restrictions and listed the People’s Republic of China as a prohibited country. All Ports also received a Sale by Reference pamphlet which

spelled out the applicable federal laws governing the export of Munitions List items. Patte Sun also administered the contracts that All

Ports had with the DRMS, each one of which, according to the written

Invitations for Bid, contained Munitions List items. All contract documents were delivered to All Ports’ office in Fontana, where she

worked. In fact, she wrote the checks in payment for the DRMS contracts. Also, Patte Sun made most, if not all, of the shipping arrangements from the Norfolk International Terminal to the People’s

Republic of China. Finally, material in some of the containers which

UNITED STATES v. SUN 13
the defendants attempted to ship on May 7 and 13, 1999 contained

items on the Munitions List and there is no evidence to suggest that

the defendants had the necessary license to make such shipments. 

From the evidence described above, the jury was entitled to find

beyond a reasonable doubt that Patte Sun knowingly and willfully

attempted to export defense articles on the Munitions List without a

license, 22 U.S.C. § 2778. Accordingly, Patte Sun’s challenge to the

sufficiency of the evidence must be rejected.10

V

Bing Sun argues that the district court erred when it enhanced his

offense level by two levels for obstruction of justice. U.S. Sentencing

Guidelines Manual (USSG) § 3C1.1. We disagree. 

We review an application of the Sentencing Guidelines by the district court for clear error in factual matters; legal conclusions are

reviewed de novo. United States v. Wilson, 198 F.3d 467, 471 (4th

Cir. 1999), cert. denied, 529 U.S. 1076 (2000). 

Section 3C1.1 of the Sentencing Guidelines directs a sentencing

court to increase a defendant’s offense level by two levels if the

defendant "willfully obstructed or impeded . . . the administration of

justice during the course of the investigation, prosecution, or sentencing of the instant offense of conviction." USSG § 3C1.1. If the defendant commits or suborns perjury, the obstruction of justice

enhancement must be applied. Id. § 3C1.1, comment. (n.4(b)). For a

sentencing court to apply the obstruction of justice enhancement

based on perjury, the sentencing court, by a preponderance of the evidence, must find three elements: (1) the defendant gave false testimony, (2) concerning a material matter, (3) with the willful intent to

deceive (rather than as a result of confusion, mistake, or faulty memory). United States v. Smith, 62 F.3d 641, 646 (4th Cir. 1995). We

10Patte Sun argues that the district court gave an erroneous aiding and

abetting instruction to the jury. In addition, the defendants argue that the

district court did not properly instruct the jury on the AECA’s scienter

requirement. We have reviewed these arguments concerning the district

court’s jury instructions and find them to be without merit. 

14 UNITED STATES v. SUN
noted in Smith that the obstruction of justice enhancement does not

"automatically apply every time a defendant who testifies at trial is

convicted." Id. at 647. "It may be that the defendant’s specific statements on the stand were true, or were not intentionally false, or were

not material." Id.

At trial, Bing Sun testified that he believed a license was not

required because the military property being exported was merely

military scrap. He further claimed that he relied on the advice of an

attorney as well as an unidentified State Department official who purportedly told his daughter that an export license was not required for

his shipments. Bing Sun also denied that the reason he had failed to

list the People’s Republic of China in any of the numerous End Use

Certificates he completed was because he knew that, if he did so, All

Ports would not have been awarded the contracts it sought from the

DRMS. 

The district court found that Bing Sun made numerous materially

false statements with the willful intent to deceive the district court.

The district court found that Bing Sun lied when, among other

instances, he: (1) testified that he relied on the advice of counsel; (2)

testified that he relied on the advice a State Department official had

allegedly given his daughter; and (3) denied that the reason he had

failed to list the People’s Republic of China in any of the numerous

End Use Certificates he completed was because he knew that, if he

did so, All Ports would not have been awarded the contracts it sought

from the DRMS. In the district court’s view, "an attempt was made,

looking at the entire record, to deceive the court about what he knew,

when he knew it, and what his intent was with respect to these shipments." (J.A. 1563). 

We cannot conclude that the district court erred when it found that

Bing Sun committed perjury at trial. First, we cannot take issue with

the district court’s finding that Bing Sun testified falsely when he: (1)

testified that he relied on the advice of counsel; (2) testified that he

relied on the advice a State Department official had allegedly given

his daughter; and (3) denied that the reason he had failed to list the

People’s Republic of China in any of the numerous End Use Certificates he completed was because he knew that, if he did so, All Ports

would not have been awarded the contracts it sought from the DRMS.

UNITED STATES v. SUN 15
Second, the materiality of Bing Sun’s testimony is obvious. His testimony concerned the heart of the case, i.e., whether he acted with the

requisite criminal intent. Finally, we cannot take issue with the district

court’s finding that Bing Sun’s testimony was given with the willful

intent to deceive, as the district court was in the best position to judge

Bing Sun’s credibility. Accordingly, we reject Bing Sun’s challenge

to the district court’s decision to increase his offense level by two

levels for obstruction of justice. 

VI

For the reasons stated herein, the judgments of the district court are

affirmed. 

AFFIRMED

16 UNITED STATES v. SUN