PhibroChem to Pay $31,000 Penalty to Settle EAR Violation
PhibroChem will pay $31,000 to settle alleged violations of the Export Administration Regulations, according to an agreement with the Bureau of Industry and Security. In 2008, PhibroChem exported sodium fluoride to Mexico without a license, BIS said, but knew that it needed BIS authorization. As part of the settlement, PhibroChem neither admitted nor denied its guilt.
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In January 2008, PhibroChem sold sodium fluoride to an end-user in Mexico. Sodium fluoride was classified under ECCN 1C350 and controlled for reasons of chemical and biological weapons proliferation (CB2). The item required a BIS license for export to Mexico.
According to BIS, PhibroChem obtained no license for the item, even though it had knowledge that the export of sodium fluoride to Mexico required BIS authorization because it had previously received an export license from BIS to export sodium fluoride to the same end-user in Mexico. That license expired in December 2007. BIS charged the company with one violation of 15 CFR 764.2(c) (“Acting with Knowledge of a Violation).
The $31,000 civil penalty will be assessed in one payment. If PhibroChem doesn’t pay the penalty by its due date, BIS said it may charge interest and deny the company’s export privileges for one year.