BIS Fines CA Company $115,000 for Deemed Export Violation

On February 24, 2014, the U.S. Department of Commerce's Bureau of Industry and Security's (BIS) Office of Export Enforcement (OEE) announced that it has reached a $115,000 civil settlement with Intevac Inc., of Santa Clara, CA. BIS fined the company for five violations of the Export Administration Regulations (EAR), including the unauthorized release of export controlled manufacturing technology to a Russian national at its U.S. facility. 

"Deemed export compliance is a top priority for the Bureau of Industry and Security," said David W. Mills, Assistant Secretary of Commerce for Export Enforcement. "Today’s settlement highlights the need for companies to be vigilant to prevent the unauthorized release of U.S. technology and data."

BIS further stated that:

Intevac voluntarily disclosed the unauthorized release of drawings and blueprints for parts and identification numbers for parts to the Russian national in question, who was employed as an engineer at the company’s Santa Clara headquarters. Under the EAR, such information constitutes technology that is controlled for national security reasons. Intevac applied for a deemed export license after discovering the initial releases but failed to prevent additional releases of technology while the license application was pending. BIS charged Intevac with knowledge of these additional releases and considered the company’s conduct to be an aggravating factor in the penalty assessment. The company was also charged with one violation related to the unauthorized transmission of technology to its subsidiary in China.