Two Swiss firms caught exporting illegally to Iran
Two Swiss firms will pay a $55,000 civil penalty to settle allegations that they conspired to export industrial materials from the United States to Iran in violation of the Export Administration Regulations (EAR).
Switzerland’s Oerlikon Schweisstechnik will pay a $33,000 penalty and Reweld AG will pay a $22,000 fine. In addition, a one-year denial of export privileges also was imposed on Oerlikon, six months of which will be suspended, provided that Oerlikon does not commit any export control violations during the suspension period.
The US Commerce Department's Bureau of Industry and Security (BIS) alleged that, between June 1999 and March 2000, the Swiss firms conspired to purchase 30,000 pounds of Solka-Flok 200 cellulose valued at $21,000 for resale and transshipment to Iran. Solka-Flok 200 cellulose has a number of industrial uses including welding applications.
BIS alleged that Oerlikon solicited Reweld to export the cellulose to Switzerland, where Oerlikon intended to take possession of the materials and re-export them to Iran.
The United States maintains a comprehensive embargo on trade with Iran because of Iran's support for international terrorism. Under the terms of the embargo, most exports to Iran are prohibited unless they are authorized in advance by the Treasury Department's Office of Foreign Assets Control (OFAC).
The export to Iran of items subject to the EAR without OFAC approval is a violation of the Commerce Department regulations and can be subject to criminal penalties and administrative sanctions. — (menareport.com)
© 2002 Mena Report (www.menareport.com)