The US government warned Seagate Technology Holdings that it may have violated export control laws by sending hard disc drives to a customer on a trade blacklist, according to a filing the company made on Wednesday.

The customer, according to a source with knowledge of the situation, is China's Huawei, which is prohibited from acquiring U.S. exports and some products made abroad without official approval because it is listed on the U.S. Commerce Department's list of entities. According to the Securities and Exchange Commission document, Seagate got a 'proposed charge letter' from the Commerce Department on August 29 that contained a warning.

The Department of Commerce and the Dublin-based Seagate Corporation, which also has facilities in California, announced that they were collaborating to find a solution.

The document states that the in issue products were acquired by the banned business and its affiliates between August 2020 and September 2021.T he source claims that the business stopped shipping to Huawei a year ago.

The terms and timing of any ultimate resolution, according to Seagate, are both unclear. Although it acknowledged that the firm could see a significant impact, it was unable to specify the range of loss or penalty. The source claims that the business stopped shipping to Huawei a year ago.

The terms and timing of any ultimate resolution, according to Seagate, are both unclear. Although it acknowledged that the firm could see a significant impact, it was unable to specify the range of loss or penalty. The corporation might face civil penalties for administrative charges of up to $300,000 per infraction, or twice the amount of the transaction, whichever is larger.

The company anticipates making its case in a meeting with the Commerce Department, the person added. It initially replied to the letter in late September and offered fresh information this week.