BIS Imposes Penalty on Company for Violating "Deemed Export" Rule
The Bureau of Industry and Security (BIS) has imposed a $4,500 civil penalty on Nvidia Corporation, a Santa Clara, California-based company that creates programmable graphics technologies, for violating the "deemed export" rule for transferring controlled technology to an Iranian national in the U.S. Specifically, BIS charged that between March 18, 2002 and February 20, 2003 Nvidia engaged in conduct prohibited by the Export Administration Regulations (EAR) by transferring technology classified under Export Control Classification Number (ECCN) 4D994 to an Iranian national. The technology transfer was deemed by BIS to be an export under section 734.2 of the EAR and required a license pursuant to section 746.7 of the EAR. Nvidia voluntary disclosed the deemed export to BIS.
The "deemed export" rule provides that an export of technology or source code is "deemed" to take place when it is released to a foreign national within the U.S. See section 734.2(b)(2)(ii) of the EAR.
|posted by Douglas N. Jacobson| Permalink 
