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May 08, 2006 

BIS Imposes $203,400 Penalty on Utah Company for Prohibited Exports and "Deemed Export"

The Bureau of Industry and Security (BIS) recently imposed a $203,400 penalty on the Hexcel Corporation (Hexcel), of Salt Lake City, Utah to settle charges that the company engaged in the prohibited deemed export of controlled technology to a foreign national, exported controlled carbon fabric to various destinations without the required export licenses and made a false statement on a Shipper's Export Declaration. Hexcel voluntarily disclosed the violations to BIS.

The settlement agreement entered into between Hexcel and BIS states that Hexcel violated the "deemed export" provisions of the Export Administration Regulations (EAR) by granting a Taiwanese national access to technology to manufacture bismaleimide resin, an item classified under Export Control Classification Number (ECCN) 1EO01, without the required BIS license.

In addition, Hexcel engaged in conduct prohibited by EAR by exporting AS4, AS4C orT650 carbon fabric, items classified as ECCN 1C010.b, to various end-users in Brazil, Colombia, Israel, Mexico, the People's Republic of China, Singapore and Taiwan without obtaining the appropriate export licenses. BIS also alleged that Hexcel exported Nextel 312 carbon fiber, an item classified under ECCN 1C010.c, to Saudi Arabia without the required export license.

Finally, the settlement agreement states that Hexcel made a false or misleading representation to the U.S. Government by filing an SED that incorrectly stated the export of AS4C Carbon Fabric controlled under ECCN 1 CO 1O.b to Taiwan was authorized pursuant to “NLR’ (no
license required), when in fact a license was required from BIS.

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