Taiwanese shipper settles U.S. export charges
The U.S. Commerce Department's Bureau of Industry and Security said Friday that Well Being Enterprises Co. of Taiwan has agreed to a 20-year denial of U.S. export privileges for items on the Commerce Control List and a $250,000 civil penalty to settle allegations that it committed 25 violations of the Export Administration Regulations.
The allegations involve unlicensed exports of various chemicals and metals, including nickel powder, hafnium, zirconium, and bismuth, which are controlled under the EAR for nuclear proliferation reasons. The violations occurred between 2003 and 2006.
In related cases, San Francisco-based Elecmat and Hui-Fen Chen, a Well Being employee agreed to 20-year denials of export privileges; and Theresa Chang, Elecmat's former manager, agreed to a two-year denial of export privileges for items on the Commerce Control List. Elecmat acquired the materials from various U.S. suppliers, but disguised the fact that they would be exported.
'Individuals who devise schemes and willfully circumvent U.S. export controls warrant having their export privileges suspended,' said Kevin Delli-Colli, acting assistance commerce secretary for export enforcement, in a statement. 'This case demonstrates that domestic sales of controlled items to persons with no technical understanding of the product should be considered a red-flag.'
BIS has agreed to suspend $220,000 of Well Being's fine, provided that in the next five years no additional violations occur. Also, prior to the settlement, Chang pleaded guilty to making a false statement to BIS's Office of Export Enforcement in connection with the investigation, and was sentenced to three years probation and a $5,000 criminal fine.