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WASHINGTON - The Commerce Department’s Bureau of Export Administration today imposed a $174,000 civil penalty on Hua Ko Electronics Co. Ltd., a Hong Kong company which had previously been denied export privileges, for ordering and receiving U.S.-origin goods in violation of its denial order, Commerce Assistant Secretary for Export Enforcement F. Amanda DeBusk announced.
The allegations involve shipments that occurred between August 1994 and May 1997. Hua Ko was also denied export privileges for five years. The denial and $87,000 of its fine were both suspended.
The Department imposed a $38,500 civil penalty on Nanshing Color & Chemical Co., Ltd., also a Hong Kong company, for transferring U.S.-origin goods to Hua Ko Electronics Co. Ltd. The lesser civil penalty imposed was due in large part to Nanshing’s cooperation in the investigation. A third company, General Chemical Corporation of New Jersey, agreed to a $77,000 civil penalty to settle allegations that it exported U.S.-origin goods to Nanshing while knowing or having reason to know that the Nanshing would transfer the goods to Hua Ko Electronics Co. Ltd.
Export denials prohibit a person from exporting such goods or technical data to a denied party, whether directly or indirectly.
BXA’s Office of Export Enforcement Washington Field Office conducted the investigation. The Commerce Department 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.