BIS Imposes Denial Orders and Civil Penalties in Cases Involving Unlicensed Exports From U.S. to Taiwan
In a series of four related cases involving the unlicensed exports of chemicals, metals and electronic components from the U.S. to Taiwan, the Bureau of Industry and Security has imposed civil penalties and denial orders on two companies and two individuals involved in the transactions.
The settlement agreements and related documents associated with these case were recently posted BIS's electronic reading room site and three of the four orders will be published in tomorrow's Federal Register.
The cases involved Taiwan-based, Well Being Enterprise Co. Ltd., Elecmat, Inc., Well Being's San Francisco-based affiliate, Theresa Chang, a U.S.-based employee of Elecmat and Hui-Fen Chen, a.ka., Angela Chen, an employee of Well Being Enterprise in Taiwan.
According to BIS, the two companies and two individuals participated in a scheme in which Well Being requested Elecmat to procure a number of controlled chemicals, metals and electronic components classified under Export Control Classification Numbers (ECCNs) 1C227, 1C299, 1C230, 1C231, 1C234, 1C240, 1C350 and 3A201. BIS alleged that Well Being instructed Elecmat not to tell the U.S. suppliers that Elecmat would export the items. Elecmat subsequently procured the items and exported them to Taiwan without the required export licenses.
BIS charged Well Being with 25 counts, Elecmat with 39 counts, Ms. Chen with one count and Ms. Chang with three of violating the EAR and settled the cases as follows:
- Well Being Enterprise Co., Ltd. was ordered to pay a $250,000 civil penalty, of which $220,000 will be suspended if the company commits no further violations for the next five years. BIS also imposed a 20 year denial order against Well Being that prohibits the company and its employees from involvement in transactions involving export from the U.S.
- Electmat Inc. received a 20 year denial order.
- Ms. Chen received a 20 year denial order.
- Ms. Chang received a two year denial order. In 2007, Ms. Chang pleaded guilty in a related criminal proceeding to one count of making false statements related to the export of nickel powder to Taiwan without an export license was sentenced to pay a $5,000 fine and three years of probation.