6/21/99 - Press Release: $30,000 Civil Penalty Imposed on Sun Microsystems of California, Ltd

Contacts:
Eugene Cottilli
Susan Hofer
(202) 482-2721
Email

Bureau of Export Administration
U. S. Department of Commerce

For Immediate Release
June 21, 1999

Hong Kong Firm Settles
Charges of Illegal Shipments

WASHINGTON -- The Commerce Department's Bureau of Export Administration (BXA) today imposed a $30,000 civil penalty on Sun Microsystems of California, Ltd., a Hong Kong company, to settle allegations that it arranged for shipments of computers to China, in violation of export licenses under the U.S. Export Administration Regulations, F. Amanda DeBusk, assistant secretary for Export Enforcement announced. While controlled at the time of the shipments, the computers in both cases were included in the December, 1993 decontrol of personal computers and low level workstations.

    BXA alleged that in September, 1993 Sun Microsystems of California arranged for a shipment of computers to the People's Republic of China. In addition, the company knew or had reason to know that such shipment was contrary to a condition on the validated license issued by BXA for the export. BXA also alleged that in October, 1993 Sun Microsystems of California arranged for a shipment of computers to the People's Republic of China falsely representing that such shipment was authorized under a BXA license. While neither admitting or denying the allegations, Sun Microsystems of California agreed to settle the allegations with the Commerce Department.

    "As part of LEAP, the License and Enforcement Action Program, we reminded exporters of the importance of license conditions," said Assistant Secretary DeBusk. "We are developing regulations that will require the exporters to notify all the parties involved in a transaction about relevant conditions."

    The Department of Commerce, through its Bureau of Export Administration, administers and enforces export controls for reasons of national security, foreign policy, nonproliferation and short supply. BXA's Office of Export Enforcement Washington Field Office investigated this case. Criminal penalties, as well as administrative sanctions, can be imposed for violations of the Regulations.