26 February 2002
Source:
http://usinfo.state.gov/cgi-bin/washfile/display.pl?p=/products/washfile/latest&f=02022502.elt&t=/products/washfile/newsitem.shtml
US Department of State
International Information Programs
Washington File
_________________________________
25 February 2002
(Neopoint, Inc. to pay $95,000 for selling software to Korea) (340) The Commerce Department's Bureau of Export Administration (BXA) has imposed a $95,000 civil penalty on a California firm to settle charges that the company exported encryption software to South Korea in violation of U.S. export control laws, according to a February 21 news release from the Department of Commerce. The case of Neopoint, Inc. of San Diego "demonstrates" that the government "can and will enforce its export controls on encryption products," according to Assistant Secretary of Commerce for Export Enforcement Michael J. Garcia. Following is the text of the news release: (begin text) For Immediate Release February 21, 2002 Penalty Imposed for Illegal Export of Encryption Software The Commerce Department's Bureau of Export Administration (BXA) has imposed a $95,000 civil penalty on Neopoint, Inc., of San Diego, California, to settle allegations that the company exported encryption software to South Korea in violation of U.S. export control laws. BXA charged that, on ten occasions between March 1998 and June 1999, Neopoint exported 128-bit encryption software to two firms in South Korea without the required export licenses. In all but one of these shipments, BXA alleged that Neopoint knew that an export license was required. Neopoint cooperated fully with BXA's investigation of the charges. "This case demonstrates that the U.S. Government can and will enforce its export controls on encryption products," said Assistant Secretary of Commerce for Export Enforcement Michael J. Garcia. BXA administers and enforces export controls on dual-use items and technology for reasons of national security, foreign policy, nonproliferation, anti-terrorism, and short supply. Criminal penalties and administrative sanctions can be imposed for violations of the Export Administration Regulations. Assistant Secretary Garcia commended Special Agent Lou VanZant, from BXA's Los Angeles Field Office, who investigated this case. (end text) (Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)