Assistant Secretary of Commerce for Export Enforcement Michael J. Garcia announced that a $48,000 civil penalty and a three-year denial of export privileges have been imposed on A.X.O. Chemical Inc. of Miami, Florida. A.X.O. agreed to the penalty to settle charges that it illegally exported controlled chemicals to the Dominican Republic. The Commerce Department's Bureau of Export Administration controls the export of the chemicals at issue - triethanolamine and hydrofluoric acid - because of their potential use as precursors for the production of chemical weapons.
The Department alleged that, on 13 occasions between July 1997 and May 1999, A.X.O. Chemical Inc. exported hydrofluoric acid and triethanolamine to the Dominican Republic without the required export licenses. The Department also alleged that the company provided false statements on export documents filed with the government on 11 occasions. Due to the financial condition of the company, $45,000 of the civil penalty was suspended. The suspended portion of the penalty and the three-year denial of export privileges will be waived provided the company does not commit any violations during the three-year period.
The Department of Commerce, through its Bureau of Export Administration, administers and enforces export controls for reasons of national security, foreign policy, antiterrorism, nonproliferation, and short supply. Criminal penalties as well as administrative sanctions can be imposed for violations of the regulations.
The Bureau of Export Administration's Miami Field Office investigated this case.
In April of 2002 the Bureau of Export Administration (BXA) changed its name to the Bureau of Industry and Security(BIS). For historical purposes we have not changed the references to BXA in the legacy documents found in the Archived Press and Public Information.