For Immediate Release: December 15, 2003
Contact - BIS Public Affairs 202-482-2721
The U.S. Department of Commerce today announced that Sun Microsystems, Inc. of Santa Clara, California, and two of its subsidiaries will pay $291,000 in fines to settle charges involving illegal exports of computers to military end-users in China and Egypt, and for failing to comply with conditions on eight Bureau of Industry and Security (BIS) export licenses. A fourth company, Automated Systems Ltd. (ASL) of Hong Kong, involved in the export to the Chinese military end-user will pay a $22,000 civil penalty to settle allegations that it aided and abetted the export.
Assistant Secretary of Commerce for Export Enforcement Julie L. Myers stated that, “The Bureau of Industry and Security imposes conditions on a license to ensure that the export meets our national security concerns. Such conditions must be followed, and, as today’s settlements demonstrate, companies that do not adhere to license conditions will be held accountable."
Sun Microsystems will pay a $269,000 fine and have its export privileges
denied for one year, although the denial will be suspended. To settle charges
that they aided and abetted the illegal export to China, Sun Microsystems
China Ltd., and Sun Microsystems California, Ltd., both of Hong Kong, will
each pay a $11,000 fine and will not participate in transactions subject to
the Export Administration Regulations involving the Changsha Institute of
Science and Technology (CIST) in the People’s Republic of China, the
Chinese military end-user, for one year.
The settlement of the cases against Sun Microsystems was for 24 charges, including four charges for the two exports to military end-users, eight charges for breaching license conditions, and three charges for not fulfilling its duties as a licensee. BIS charged that, in February 1997, Sun Microsystems exported an Enterprise server to CIST without the required license. CIST offers courses specializing in missile and rocket research and development technology. In December 1997, Sun Microsystems exported two Enterprise servers to Egypt knowing that the Egyptian Army was the end-user. BIS also charged that Sun Microsystems did not fulfill its duties as a licensee on BIS export licenses, altered an end-user verification certificate and submitted the falsified certificate in response to a subpoena, and failed to file shipping documents as required by eight licenses.
Assistant Secretary Myers commended Special Agent-in-Charge Julie Salcido from BIS’s San Jose Field Office, who investigated the cases.