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06 December 2002

Text: Fines Assessed for Illegal Transshipment of Computers to Russia

(U.S. firm, Russian national assessed fines; some export privileges
denied) (360)
A Texas company will pay a $40,000 civil penalty for re-exporting
computers from Germany to the Russian Federal Nuclear Center of the
Russian Research Institute of Experimental Physics (Arzamas-16) in
1996 in violation of U.S. export control requirements.
The Commerce Department's Bureau of Industry and Security (BIS) also
said that Alexander Zisman, a Russian national, will pay a $20,000
penalty for arranging for the transportation for one of the shipments
from Germany to Arzamas-16 through the Netherlands without BIS
authorization.
Although the computers were manufactured abroad, they were subject to
U.S. export control regulations because they were produced with
U.S.-origin technology.
Following is the text of the BIS press release:
(begin text)
Department of Commerce
Bureau of Industry and Security (BIS) 
December 4, 2002
TEXAS COMPANY FINED FOR ILLEGAL TRANSSHIPMENT OF COMPUTERS TO RUSSIA
Acting Assistant Secretary of Commerce for Export Enforcement Lisa
Prager announced today that Jet Info Systems International (Jet)
located in Dallas, Texas will pay a $40,000 civil penalty to settle
allegations that it reexported computers from Germany to the Russian
Federal Nuclear Center of the Russian Research Institute of
Experimental Physics (Arzamas-16) in violation of U.S. export control
requirements.
The Commerce Department's Bureau of Industry and Security (BIS)
alleged that, on two occasions in 1996, Jet transshipped computers
from Germany to Arzamas-16 through the Netherlands without the
required BIS reexport authorization. Although the computers were
manufactured abroad, they remained subject to U.S. export control
regulations because they were produced with U.S.-origin technology. In
a related case, BIS also alleged that Alexander Zisman, a Russian
national, arranged for the transportation for one of the shipments
from Germany to Arzamas-16 through the Netherlands without BIS
authorization.
In addition to the civil penalty, a two-year denial of export
privileges was imposed on Jet in connection with the settlement
agreement. The denial of export privileges will be suspended provided
that Jet does not commit any export control violations during the
two-year suspension period. In the related case, Mr. Zisman will pay a
$20,000 civil penalty and be denied export privileges for five years.
The Department of Commerce, through BIS, administers and enforces
export controls for reasons of national security, foreign policy,
anti-terrorism, nonproliferation, and short supply. Criminal penalties
and administrative sanctions can be imposed for violations of the EAR.
(end text)
(Distributed by the Office of International Information Programs, U.S.
Department of State. Web site: http://usinfo.state.gov)