On December 21, 1999, the Commerce Department 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. 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.
In a related matter, 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. 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.