Illinois-Based Firm Settles Charges of Deemed Export Violations

WASHINGTON, D.C. - The Commerce Department's Bureau of Industry and Security (BIS) announced today that Ingersoll Machine Tools (IMT) of Rockford, Illinois has agreed to pay a $126,000 civil penalty to settle allegations that it committed eight unlicensed deemed exports to Italian and Indian foreign nationals in violation of the Export Administration Regulations.

"Companies that employ foreign nationals must be mindful of the need to comply with the Export Administration Regulations as they relate to the release of technology or source code to foreign nationals," said Darryl W. Jackson, Assistant Secretary of Commerce for Export Enforcement. "An effective compliance program will prevent companies from releasing controlled technology to foreign visitors or employees without first having obtained authorization from the Bureau of Industry and Security."

Assistant Secretary Jackson also praised the BIS Office of Export Enforcement's Chicago Office for its outstanding work on this case.

The allegations involved deemed exports of production and development technology for vertical fiber placement machines and production technology for five axis milling machines to Indian and Italian nationals between November 2003 and January 2007. The technology was controlled for National Security and Missile Technology reasons to Italy and India. In addition, the technology was also controlled to India for Nuclear Non-Proliferation reasons.

BACKGROUND:
BIS controls exports and re-exports of dual-use commodities, technology, and software for reasons of national security, missile technology, nuclear non-proliferation, chemical and biological weapons non-proliferation, crime control, regional stability and foreign policy. BIS also controls deemed exports, which are 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 to protected individuals under the Immigration and Naturalization Act. Criminal penalties and administrative sanctions can be imposed for violations of the Export Administration Regulations.

BIS works closely with the academic, government and industry research communities to ensure compliance with the Export Administration Regulations and to implement effective deemed export policies. For more information, please visit www.bis.doc.gov.

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