Taiwanese Company Pays for Causing Illegal Export from the US
September 2008
Johnson Trading & Engineering Company, Ltd. of Taiwan has agreed to pay BIS $90,000 to settle charges that it knowingly caused the unlicensed export of computer chips to the People’s Republic of China, and for evading the EAR. The computer chips are subject to the EAR and controlled for national security and anti-terrorism reasons.
Between February 2003 and December 2003, on seven different occasions, Johnson Trading ordered computer chips from a US exporter and provided the exporter with false documentation that the country of ultimate destination was Taiwan. When the chips reached Taiwan, Johnson Trading arranged for them to be shipped to the PRC via Hong Kong.
Johnson Trading has agreed to the fine and will be suspended for a five-year period encompassing the denial of export privileges and an audit of the company’s export compliance program. If Johnson Trading fully complies with all terms of the agreement (which has yet to be published), $30,000 of the $90,000 penalty will be suspended.
“BIS is taking a hard-line with license exceptions being used to evade licensing requirements,” explained Kevin Delli-Colli, Deputy Assistant Secretary for Export Enforcement at BIS.
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