The U.S. Department of Commerce's Bureau of Export Administration (BXA) today imposed a $30,000 civil penalty on Holland-based Dow Benelux N.V. (Dow Benelux N.V.), a wholly-owned subsidiary of Dow Chemical Company. BXA alleged that Dow Benelux N.V. reexported U.S.-origin triethanolamine to the Ivory Coast and Turkey without obtaining the required authorizations.
BXA maintains controls on exports and reexports of certain U.S.-origin chemicals as a member of the Australia group, a multilateral agreement with other chemical-producing countries. The chemicals subject to these controls have legitimate commercial uses but also have the potential to be used as precursors in chemical weapons.
Dow Benelux N.V. neither admitted nor denied the allegations, but agreed to pay a $30,000 civil penalty, $20,000 of which was suspended. Payment of the suspended amount will be waived at the end of one year, provided that Dow Benelux N.V. does not violate the Export Administration Act or Regulations during that period. Dow Benelux N.V. voluntarily disclosed the alleged violations.
Special Agents from the Commerce Department's Office of Export Enforcement Chicago Field Office investigated the case.
The Bureau of Export Administration controls and licenses exports and reexports of dual-use commodities, technology, and software for reasons of national security, foreign policy, nonproliferation, regional stability, and short supply. Criminal penalties, as well as administrative sanctions, can be imposed for violations of the Export Administration Act and Regulations.
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.