California Company Fined For Illegal ‘Deemed Exports’
The Bureau of Industry and Security (BIS) fined Intevac, Inc. the amount of $115,000 for violations of the Export Administration Regulations (EAR), that includes “deemed exports,” releases of controlled technology made to a foreign national located in the U.S.
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.
Are you familiar with ‘deemed exports’? If you would like to learn more: Deemed Exports
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