Danish Company and Subsidiaries Settle Charges for Illegal Exports and Reexports of Underwater Navigation Equipment

WASHINGTON, D.C. - The U.S. Department of Commerce's Bureau of Industry and Security (BIS) announced that Reson A/S (RAS) of Slangerup, Denmark, has agreed to pay a $119,250 civil penalty to settle allegations that it committed 29 violations of the Export Administration Regulations (EAR). In addition, separate civil penalties were settled with RAS's subsidiaries including Reson, Incorporated of Goleta, California ($83,000), Reson Offshore Limited of Aberdeen, United Kingdom ($9,900), and a former subsidiary of RAS, Underwater Surveys of Cape Town, South Africa ($29,700) for their respective roles in the violations. Reson Incorporated also settled allegations concerning two deemed export violations, involving foreign nationals from France and the United Kingdom.

"This case demonstrates the need for multi-national corporations to implement effective compliance programs and to integrate them throughout the entire organization," said Assistant Secretary of Commerce for Export Enforcement Darryl W. Jackson.

The allegations primarily involved unlicensed exports and reexports of underwater navigation equipment to destinations in South Africa, Singapore, the United Arab Emirates, Mozambique, Taiwan, Russia, and India between June 2002 and September 2006. These items are controlled for national security reasons. RAS voluntary self-disclosed the violations and cooperated fully in the investigation.

BACKGROUND:
BIS controls the export and re-export of dual-use commodities, technology, and software for reasons of national security, foreign policy, nuclear nonproliferation, chemical and biological weapons nonproliferation, regional stability, and short supply. A deemed export is defined as any release of technology or source code subject to the EAR to a foreign national in the United States. Such release is deemed to be an export to the home country or countries of the foreign national. This deemed export rule does not apply to persons lawfully admitted for permanent residence in the United States and does not apply to persons who are protected individuals [persons granted political asylum] under the Immigration and Naturalization Act. Criminal penalties and administrative sanctions can be imposed for violations of the EAR.

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