New Jersey Firm Fined $700,000 for Unlicensed Exports of Specialty Powders

WASHINGTON - The Commerce Department's Bureau of Industry and Security (BIS) announced today that Novamet Specialty Products Corporation has agreed to pay a $700,000 civil penalty to settle allegations that it exported nickel powders without a license.  Nickel powders are controlled for nuclear non-proliferation reasons.  Novamet also agreed to complete an internal export compliance audit and submit the results of that audit to BIS.

“The proliferation of nuclear-controlled items poses a threat to global security,” said Kevin Delli-Colli, Acting Assistant Secretary of Commerce for Export Enforcement.  “Preventing the illegal end-use of controlled items is a top priority of the BIS export enforcement program to help protect America’s national security.”

The New Jersey-based company, which produces and distributes specialty metal products, including metal powders, violated the Export Administration Regulations (EAR) 32 times over a five-year period. 

BIS alleged that on 28 occasions between April 2003 and January 2008, Novamet exported nickel powders without the required export licenses to the People’s Republic of China (PRC), Singapore, Taiwan, Thailand, India, Israel, the Dominican Republic, and Mexico.  BIS further alleged that on four occasions in 2005-2006, Novamet sold or transported nickel powders with knowledge that a violation of the EAR would occur.  Specifically, Novamet sold or transported nickel powders to India on one occasion and on another occasion to Israel, while license applications it had previously submitted to BIS regarding those exports were pending.  On two other occasions, Novamet failed to obtain the required licenses to export nickel powders to the PRC, notwithstanding the fact that it had previously applied for and obtained licenses for export to the PRC of similar powders with the same ECCN. 

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

BIS controls exports and re-exports of dual-use commodities, technology, and software for reasons of national security, missile technology, nuclear non-proliferation, chemical and biological weapons non-proliferation, crime control, regional stability and foreign policy. Criminal and administrative penalties can be imposed for violations of the EAR.  For more information, please visit www.bis.doc.gov.

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