By: John Black
Morton International and Its Foreign Affiliates Agree to Pay $647,000
What does the illegal export and reexport of some chemicals, including thiodiclycol, cost? Well, Morton International, Inc. of Chicago and its affiliates Morton International SAS in France and Rohm and Hass Japan agreed to pay a $647,000 civil penalty in response to Commerce Department charges of 3 illegal exports and 146 illegal reexports of chemicals to friendly countries. Morton International, Inc. voluntarily disclosed the violations and cooperated with the BIS investigation. For more information, go to www.bxa.doc.gov/News/2004/MortonIntl2_24.htm.
Emcore Agrees to Pay $400,000 for 71 Violations
The Commerce Department announced that Emcore Corporation agreed to pay a $400,000 civil penalty to settle charges that committed 71 violations of the Export Administration Regulations between 1998 and 2003. According to Commerce, Emcore exported Metal Organic Vapor Disposition (MOCVD) tools to Taiwan and the PRC with the required licenses, illegally serviced the tools after they were illegally exported, failed to file Shipper’s Export Declarations and failed to keep required records. Emcore voluntarily disclosed the violations and cooperated with the Commerce Department investigation. For more information go to www.bxa.doc.gov/News/2004/Emcore1_26.htm.
IMPORTANT LESSON: Once an item is illegally exported, it is a violation to service that item (without a license), even if the servicing activities themselves do not otherwise involve items or technical data that require a license.
OFAC Announces Civil Penalties
On February 6, the Office of Foreign Assets Controls has updated the list of civil penalties it has imposed for violations of its embargoes on Cuba, Iran, Iraq, Libya, Yugoslavia, and Sudan, its sanctions against narcotics kingpins. The penalties range from a fine of $750 for the Salvation Army’s illegal travel expenditures in Cuba to $61,526 fine against Hakan Agro Trading for attempted illegal exports to Iraq. These fines fall short of the higher fines announced by the Commerce Department.
While you might find it disturbing that the US Government penalized the Salvation Army, you would have to admit that the $750 fine is, well, charitable.
For more information go to www.treas.gov/offices/eotffc/ofac/civpen/penalties/index.html