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| FOR IMMEDIATE RELEASE | BUREAU OF INDUSTRY AND SECURITY |
| Tuesday, July 17, 2007 |
Office of Public Affairs |
| www.bis.doc.gov | 202-482-2721 |
SILICON VALLEY COMPANY AGREES TO DENIAL OF EXPORT PRIVILEGES TO CHINA
WASHINGTON--- The Commerce Department’s Bureau of Industry and Security (BIS) announced today that Data Physics Corporation of San Jose, California, agreed to a five year denial of export privileges to the People's Republic of China and $55,000 in civil penalties.
The settlement was a result of charges that Data Physics knowingly exported vibration test equipment to end-users of proliferation concern in violation of the Export Administration Regulations. Data Physics' president Sri Welaratna, in his individual capacity, also settled charges pending against him by agreeing to pay $55,000 in civil penalties and to a five year suspended denial of export privileges to China.
"This case demonstrates that we must be ever vigilant of those who threaten our national security by exporting to known end-users of weapons of mass destruction concern. BIS will use all of its available tools to prevent violations to aggressively investigate and prosecute violators of our export laws,"said Darryl W. Jackson assistant secretary for Export Enforcement.
BIS, Data Physics and Welaratna settled charges dating back to 2001 and 2002 that they knowingly exported vibration testing equipment to two organizations in China on BIS's Entity List, the 33rd Institute, a.k.a. the Beijing Institute of Automatic Control Equipment or Beijing Automation Control Equipment Institute (BACEI), and the Chinese Academy of Launch Vehicle Technology (CALT), without the required licenses. The Entity List was established to inform the public of entities whose activities imposed a risk of diverting exported and reexported items into programs related to weapons of mass destruction. The parties also settled charges that Data Physics and Welaratna submitted false information by falsely citing no license required on the Shipper's Export Declaration to authorize the export of these items.
Data Physics and Welaratna had been subject to a BIS Temporary Denial Order since May 23, 2006, in connection with allegations that they knowingly exported to end-users of missile proliferation concern in China without the required licenses.
Assistant Secretary Jackson commended the Office of Export Enforcement's San Jose Field Office for its work on this investigation.
For the full text of the Settlement Agreement and the Denial Order and the Order of the Under Secretary visit: http://efoia.bis.doc.gov/ExportControlViolations/TOCExportViolations.htm.