For Immediate Release: March 14, 2005
Contact - BIS Public Affairs 202-482-2721
The U.S. Department of Commerce today announced that Rockwell Automation, Inc., of Milwaukee, Wis., has agreed to pay a $46,750 civil penalty to settle charges that the company violated the Export Administration Regulations (EAR), both in its own capacity and as successor to two companies, Entek IRD International ("Entek-US") and Entek IRD International Limited ("Entek-UK"), which it acquired in April 2000. Seven of the violations occurred after the acquisition.
The Commerce Department's Bureau of Industry and Security (BIS) charged that, between July 9, 1999 and April 18, 2001, Entek-US made five unauthorized exports of balancing machines to Malaysia, Mexico, and Venezuela without the required Department of Commerce export licenses. Balancing machines are dynamic, precision, soft bearing machines designed to balance small to medium weight rotors such as motor armatures, fans and turbines. They are controlled for nonproliferation and antiterrorism reasons. BIS also charged Entek-US of making false statements on corresponding export control documents.
BIS also charged that, between July 13, 1999 and March 30, 2001, Entek-US and Entek-UK exported and re-exported computer software, data collectors, monitors and related accessories to organizations in India that were on BIS’s Entity List without obtaining the required licenses. The transactions included one direct export by Entek-U.S. and five re-exports by Entek-UK. In addition, BIS charged that Entek-U.S. made false statements on the export control document that it submitted in connection with its export to India.
The Entity List is a compilation of end-users that have been determined to present an unacceptable risk of diversion to the development of weapons of mass destruction or their means of delivery. Exports to end-users appearing on the Entity List require licenses from the Department of Commerce.
Rockwell voluntarily self-disclosed the violations and cooperated fully in the investigation. BIS considers voluntary self-disclosures (VSDs) to be a significant mitigating factor when negotiating settlements of administrative cases. To encourage VSDs, fines and other administrative penalties may be significantly reduced in appropriate cases where BIS became aware of the violations as a result of a VSD.
Acting Assistant Secretary Wendy Wysong commended the Special Agents of the Chicago Field Office for their work on this investigation.