Symmetricom, Inc. Settles Charges of Unlicensed Exports

The U.S. Department of Commerce today announced that Symmetricom, Inc. (Symmetricom), of San Jose, California, agreed to pay a $35,500 civil penalty to settle charges that Datum, Inc. (Datum), a company acquired by Symmetricom in 2002, exported cesium frequency standard equipment and an ovenized quartz crystal oscillator in violation of the Export Administration Regulations (EAR).

The Commerce Department’s Bureau of Industry and Security (BIS) charged that, in April 1999, Datum exported cesium frequency standard equipment to Malaysia without the required Department of Commerce license in violation of the EAR. Cesium frequency standard equipment is controlled by BIS for national security reasons and all exports of such items to Malaysia require Department of Commerce licenses. In connection with this export, BIS charged that Datum made a false statement on a Shipper’s Export Declaration (SED).

BIS also charged that, in May 1999, Datum exported an ovenized quartz crystal oscillator to an organization in India on BIS’s Entity List without the required Department of Commerce license. In addition, BIS charged that Datum forwarded the oscillator with knowledge that a violation of the EAR would occur and made a false statement on a SED. The Entity List is a compilation of end-users that have been determined to present an unacceptable risk of diversion to the development of weapons of mass destruction or their means of delivery. Exports to end-users appearing on the Entity List require licenses from the Department of Commerce. A link to the Entity List may be found on the BIS Web site (www.bis.doc.gov).

Assistant Secretary for Export Enforcement Julie L. Myers stated: "This settlement adds to the growing number of successfully resolved cases that involve exports to Entity List organizations. Cases such as this demonstrate the successor liability risks that corporations can face if due diligence reviews are not conducted or do not include assessments of potential export control violations."

Assistant Secretary Myers commended Special Agent Mike Imbrogna, of BIS’s Boston Field Office, for his efforts in this investigation.