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For Immediate Release
May 15, 1998

Contact:
BIS Public Affairs
(202) 482-2721

Republic-Lagun Machine Tool Co.
Penalized $20,000 to Settle Charge
of an Illegal Export to the PRC

WASHINGTON -- The Commerce Department today imposed a $20,000 civil penalty on Republic-Lagun Machine Tool Co. of Carson, Calif., to settle allegations that it violated the Export Administration Act and Regulations in connection with its 1993 export of a vertical milling machine with a computer numerical controller (CNC) to the People's Republic of China (PRC), Commerce Assistant Secretary for Export Enforcement F. Amanda DeBusk announced today.

The Department's Bureau of Export Administration (BXA) alleged that Republic-Lagun exported the vertical milling machine to the PRC without obtaining the export license that it knew was required. Exports of CNC-equipped milling machines to the PRC are controlled for national security and nuclear nonproliferation reasons. BXA's Office of Export Enforcement Los Angeles Field Office conducted the investigation.

The Commerce Department, through its Bureau of Export Administration, controls and licenses exports and reexports of dual-use commodities, technology and software for reasons of national security, foreign policy, nonproliferation and short supply. Criminal penalties, as well as administrative sanctions, can be imposed for violations of the regulations.

Note:

In April of 2002 the Bureau of Export Administration (BXA) changed its name to the Bureau of Industry and Security(BIS). For historical purposes we have not changed the references to BXA in the legacy documents found in the Archived Press and Public Information.


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