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For Immediate Release
September 30, 1999

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BIS Public Affairs
(202) 482-2721

Illinois Firm Fined in Connection with Shipment to Iran

WASHINGTON -- The U.S. Department of Commerce Department Bureau of Export Administration (BXA) today imposed a $10,000 civil penalty on Illinois-based Varlen Corporation for a false statement made by its former wholly-owned subsidiary, Precision Scientific, Inc. on an export control document in connection with a shipment to Iran, Commerce Assistant Secretary for Export Administration F. Amanda DeBusk announced.

The Department alleged that Precision Scientific shipped a U.S.-origin incubator to Iran through an independent distributor in The Netherlands. Precision Scientific identified The Netherlands as the country of ultimate destination on the Shipper’s Export Declaration, when in fact the intended destination was Iran. Varlen self-disclosed the violation and agreed to accept responsibility for the actions of Precision Scientific. BXA’s Chicago Office of Export Enforcement investigated the case.

The U.S. government maintains a comprehensive economic sanctions program against the government of Iran and prohibits virtually all commercial transactions involving U.S.-origin goods or U.S. persons, or both, with the government of Iran.

The Department of 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.

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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