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| FOR IMMEDIATE RELEASE | BUREAU OF INDUSTRY AND SECURITY |
| Thursday, August 23, 2007 | Office of Public Affairs |
| www.bis.doc.gov | 202-482-2721 |
BIS PREVENTS ILLEGAL EXPORTS TO DUBAI; COMPANY SETTLES ALLEGATIONS OF GENERAL ORDER VIOLATIONS
WASHINGTON - The Commerce Department’s Bureau of Industry and Security (BIS) today announced that Ace Systems Inc. (Ace) has agreed to pay a civil penalty to settle allegations that the company violated General Order No. 3 of the Export Administration Regulations (EAR) by attempting to export items to Mayrow General Trading in Dubai, UAE.
On June 5, 2006, BIS issued a General Order Concerning Mayrow General Trading and Related Entities. This Order imposes a license requirement for the export or reexport of any item subject to the EAR to Mayrow and other named entities. The Order, which does not permit the use of license exceptions, applies to any transaction involving Mayrow or any other named entity. The Order was amended in September 2006 and June 2007 to apply to additional persons.
BIS alleged that Ace, located in Gainesville, Ga., attempted to violate the General Order by acting to export dialogic voice cards to Mayrow in Dubai, UAE without the required license. Ace tendered ten cards to its freight forwarder with instructions to export them to Mayrow. The BIS special agents intervened and the cards never reached their destination.
“We have reason to believe that Mayrow General Trading and its affiliates have been acquiring U.S.-made components for use in improvised explosive devices (IED) in Iraq and Afghanistan,” said Mario Mancuso, under secretary of commerce for industry and security. “We will do everything in our power to protect our forces in the field by prosecuting those who illegally export sensitive U.S. technology.”
Assistant Secretary for Export Enforcement Darryl W. Jackson commended special agents in the Office of Export Enforcement’s Miami Field Office for their diligence, which prevented these components from falling into the wrong hands. He also noted Ace’s cooperation during the investigation.
BIS controls exports and re-exports under the EAR, and both criminal penalties and administrative sanctions can be imposed for violations. The maximum civil penalty in this case was $50,000 pursuant to the USA PATRIOT Act Improvement and Reauthorization Act of 2005.
For full text of the proposed charging letter, settlement agreement, and Order of the Assistant Secretary see: http://efoia.bis.doc.gov/ExportControlViolations/TOCExportViolations.htm