Taiwanese shipper pays $90,000 to settle U.S. export violations
The U.S. Commerce Department’s Bureau of Industry and Security said Johnson Trading and Engineering Co. of Taiwan has agreed to a $90,000 civil penalty to settle charges that it knowingly exported unlicensed U.S.-made computer chips to China.
BIS also charged that Johnson Trading took action to evade the Export Administration Regulations (EAR).
“BIS is taking a hard line with license exceptions being used to evade licensing requirements,” said Kevin Delli-Colli, the Commerce Department’s deputy assistant secretary for export enforcement, in an Aug. 22 statement.
“The conditions and restrictions on all EAR license exceptions should be strictly adhered to by both exporters and consignees,” he said.
BIS charged that between February and December 2003, Johnson Trading took action to evade the EAR and knowingly caused unlicensed exports of computer chips from the United States via Taiwan and Hong Kong to China.
On seven occasions, Johnson Trading ordered the computer chips from a U.S. exporter and falsely represented to that exporter that the country of ultimate destination was Taiwan, BIS said.
“Following the shipment of the computer chips to Taiwan, Johnson Trading arranged and facilitated for the items’ subsequent shipment to the PRC via Hong King,” the agency said. “The computer chips in questions were subject to the EAR and controlled for national security and antiterrorism reasons.”
Johnson Trading also agreed to a suspended five-year denial of exports privileges and to an audit of the company’s export compliance program. “If the company complies with other terms of the agreement, $30,000 of the $90,000 penalty will be suspended,” BIS said.