Parker Hannifin Corp. Settles Charges Pertaining To Illegal Exports To Taiwan And China

The U.S. Department of Commerce today announced that Parker Hannifin Corporation of Cleveland, Ohio, has agreed to pay $185,000 in civil penalties to settle charges pertaining to unlicensed exports of fluid control valves to Taiwan and China in violation of the Export Administration Regulations (EAR).

The Commerce Department’s Bureau of Industry and Security (BIS) charged that, between September 2000 and June 2002, Parker Hannifin committed 53 violations of the EAR. Specifically, BIS charged that Parker Hannifin committed 17 violations by exporting check valves to Taiwan without the required licenses, 17 violations by transferring the check valves to Taiwan with knowledge that violations of the EAR were occurring, one violation by exporting manual stop cock valves to China without the required licenses, and 18 violations by making false statements on Shipper’s Export Declarations filed with the U.S. Government.

Parker Hannifin voluntarily self-disclosed the violations, and cooperated fully in the investigation. Parties who may have been involved in violations of the EAR are encouraged to submit a Voluntary Self Disclosure (VSD) to BIS’ Office of Export Enforcement, as provided for in Part 764.5 of the EAR. VSDs are an important indicator of parties’ intent to bring themselves into compliance with the EAR, and may provide important BIS important information on illicit proliferation networks. A VSD is considered a ‘great weight’ mitigating factor in the settlement of BIS administrative cases.

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.

Assistant Secretary of Commerce for Export Enforcement Darryl Jackson commended the Office of Export Enforcement’s Washington Field Office for its work on this investigation.