California & Taiwan Companies Lose Export Privileges for 20 Years

On February 6, 2009, the Bureau of Industry and Security (BIS) announced that Well Being Enterprise Co., Ltd. ("Well Being") of Taiwan and Elecmat, Inc. of San Francisco, CA settled allegations and each agreed to 20 year denials of export privileges. Well Being also agreed to a civil penalty of $250,000 to settle allegations that it committed 25 violations of the Export Administration Regulations (EAR) related to the unlicensed export of chemicals and metals from the United States to Taiwan that are controlled for Nuclear Proliferation reasons. In addition, Hui-Fen Chen, a Well Being employee, has agreed to a twenty-year denial of export privileges for items on the Commerce Control List (CCL), and Theresa Chang, Elecmat's former manger, has agreed to a two-year denial of export privileges for items on the CCL.

The denial orders imposed against Well Being, Chen and Chang prohibit them from participating in, or benefiting from, any transaction involving the export of an item listed on the CCL.  The denial order imposed against Elecmat prohibits it from participating in, or benefiting from, any transaction involving the export of all items subject to the EAR. BIS has agreed to suspend $220,000 of Well Being's fine, provided that, in the next five years, no additional violations occur. 

Kevin Delli-Colli, Acting Assistant Secretary of Commerce for Export Enforcement stated that, "Individuals who devise schemes and willfully circumvent U.S. export controls warrant having their export privileges suspended. This case demonstrates that domestic sales of controlled items to persons with no technical understanding of the product should be considered a red-flag."