Tennessee Company Settles Charges of Unauthorized Exports to Iran

The U.S. Department of Commerce today announced that the Chattanooga Group Inc. (CGI), a division of Encore Medical Corporation based in Hixson, Tennessee, will pay a $101,000 civil penalty to settle administrative charges that it committed 13 violations of the Export Administration Regulations (EAR) in connection with unauthorized exports of physical therapy equipment from the United States to Iran via Australia without the required export licenses.

Under the International Emergency Economic Powers Act, the EAR and the Department of the Treasury’s Iranian Transaction Regulations, all exports to Iran of U.S.-origin commodities require an export license from the Department of the Treasury’s Office of Foreign Assets Control (OFAC). It is also unlawful to ship U.S.-origin products to a third country for shipment to Iran without the necessary authorization from OFAC.

Acting Assistant Secretary Wendy L. Wysong commended BIS’s Office of Export Enforcement, Washington Field Office, for its work in this investigation.

The Department of Commerce administers and enforces export controls for reasons of national security, foreign policy, nonproliferation, anti-terrorism, and short supply through the EAR. Criminal prosecution and administrative sanctions can be imposed for violations of those regulations.