Acting Assistant Secretary of Commerce for Export Enforcement Lisa Prager announced today that Jet Info Systems International (Jet) located in Dallas, Texas will pay a $40,000 civil penalty to settle allegations that it reexported computers from Germany to the Russian Federal Nuclear Center of the Russian Research Institute of Experimental Physics (Arzamas-16) in violation of U.S. export control requirements.
The Commerce Department's Bureau of Industry and Security (BIS) alleged that, on two occasions in 1996, Jet transshipped computers from Germany to Arzamas-16 through the Netherlands without the required BIS reexport authorization. Although the computers were manufactured abroad, they remained subject to U.S. export control regulations because they were produced with U.S.-origin technology. In a related case, BIS also alleged that Alexander Zisman, a Russian national, arranged for the transportation for one of the shipments from Germany to Arzamas-16 through the Netherlands without BIS authorization.
In addition to the civil penalty, a two-year denial of export privileges was imposed on Jet in connection with the settlement agreement. The denial of export privileges will be suspended provided that Jet does not commit any export control violations during the two-year suspension period. In the related case, Mr. Zisman will pay a $20,000 civil penalty and be denied export privileges for five years.
The Department of Commerce, through BIS, administers and enforces export controls for reasons of national security, foreign policy, anti-terrorism, nonproliferation, and short supply. Criminal penalties and administrative sanctions can be imposed for violations of the Export Administration Regulations.