The Commerce Department announced today that Compaq Computer Corporation of Houston, Texas, has agreed to pay $39,000 in civil penalties to settle allegations that Digital Equipment Corporation, now merged with Compaq, and two of its overseas subsidiaries, violated U.S. export control laws in connection with the export of computers and computer equipment to various destinations in Asia, including the People's Republic of China (PRC).
The Commerce Department's Bureau of Industry and Security (BIS) alleged that Digital Equipment Corporation and its subsidiaries violated the Export Administration Regulations (EAR) on ten occasions by exporting or reexporting computers and computer equipment without the required authorizations from BIS. Exports of these commodities were destined for South Korea. Reexports of the U.S.-origin goods were made from Hong Kong to the PRC and from Singapore to India.
BIS administers and enforces export and reexport controls for reasons of national security, foreign policy, nonproliferation, antiterrorism, and short supply. Criminal penalties and administrative sanctions can be imposed for violations of the EAR.
Assistant Secretary for Export Enforcement Michael J. Garcia commended the efforts of Special Agent Dana Reynolds of the Office of Export Enforcement's field office in Washington, D.C. for her investigation of the case.