Where Industry and Security Intersect
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WASHINGTON --The Commerce Department’s Bureau of Export Administration (BXA) today imposed a $10,000 civil penalty on Lafayette Instrument Company, Inc. of Lafayette, Indiana, to settle an allegation that Lafayette violated the terms of an export license when a shipment of its polygraph machines was reexported without authorization from Hong Kong to the People’s Republic of China.
"This settlement demonstrates the importance of knowing your customer and underlines the serious responsibility an exporter undertakes when it becomes the licensee on an export license. Since Hong Kong reverted to China in 1997, it is more important than ever to know your customer and be sure about the transaction before you proceed," said Commerce Assistant Secretary for Export Enforcement F. Amanda DeBusk who made the announcement.
BXA alleged that Lafayette was the licensee on a validated license dated September 25, 1993 which authorized the export of U.S.-origin Factfinder polygraph machines to Hong Kong, but which prohibited the resale, transfer, or reexport of the machines without prior Commerce authorization. As the licensee, Lafayette was responsible for all license terms and provisions. The polygraph machines were reexported from Hong Kong to the People’s Republic of China in violation of those terms. Crime control and detection instruments such as polygraph machines are controlled by the United States for foreign policy reasons.
Commerce, through its Bureau of Export Administration, administers and enforces export controls 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.
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.