Taiwan and California Companies Settle Allegations of Unlawful Exports to the PRC

WASHINGTON, D.C. - The Commerce Department’s Bureau of Industry and Security (BIS) announced today that Foxsemicon Integrated Technologies, Inc. (FITI) of Taiwan has agreed to a $250,000 civil penalty to settle allegations that it committed thirty-one violations of the Export Administration Regulations (EAR) related to the unlicensed export of pressure transducers from the United States to the People’s Republic of
China (PRC).  

In a related matter, Foxsemicon LLC, of a San Jose, Calif., a wholly-owned affiliate of FITI, agreed to a $160,000 civil penalty to settle allegations that it aided and abetted FITI’s violations.  FITI designs and manufactures components and systems used in the manufacture of semiconductor wafers and flat panel screens.  

“Exporters must heed the advice of their suppliers when told that products require an export license. Companies involved in systems integration bear the burden of ensuring that license requirements regarding parts and components are met before exporting to foreign customers,” said Kevin Delli-Colli, the acting assistant secretary of Commerce for Export Enforcement.

BIS alleged that between August 2005 and May 2006, FITI made fifteen unlicensed exports of pressure transducers to the PRC, aided and abetted by Foxsemicon LLC.  The transducers are used as spare parts to larger manufacturing systems controlled for nuclear non-proliferations reason to the PRC.  BIS alleged that at the time the unauthorized exports were made, FITI knew licenses were required for the parts, yet the company made no attempt to apply for licenses to authorize the shipments.  FITI is also alleged to have made false statements on export documentation, aided and abetted by Foxsemicon LLC, by incorrectly stating that no license was required for the exports.  

The companies voluntarily disclosed the violations, and cooperated fully with the investigation.  BIS has agreed to suspend $160,000 of FITI’s fine provided that no additional violations occur in the next year.

Acting Assistant Secretary Delli-Colli praised the BIS San Jose Field Office for its outstanding work on this case.

BIS controls the export and re-export of dual-use commodities, technology, and software for reasons of national security, foreign policy, nuclear nonproliferation, chemical and biological weapons nonproliferation, regional stability, and short supply.  Criminal penalties and administrative sanctions can be imposed for violations of the EAR.  For more information, please visit http://bis.doc.gov.

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