August 10th, 2012

Commerce Department settles with GTSI

Design and testing technologies are among those covered by US export controls. Acccording to the government, GTSI of Ontario, CA was aware of those regulations when choosing to export high-requency analog to digital converter design and test technologies.

As a result of defying the law, GTSI must pay $50,000 now, and $250,000 in the event that its settlement is not obeyed to the letter.

Quoting the agreement:

The 8-Bit ADC and 14-Bit ADC technologies were subject to the Regulations, classified under Export Control Classification Number (“ECCN”) 3EOQ1, and controlled for export to China for National Security reasons. These exports required licenses pursuant to Section 742.4 ofthe Regulations.

It’s that simple. Ignoring the law is the easiest way to have to pay a large settlement, and get close scrutiny going forward. The government goes to lengths to make sure the gamble just isn’t worth it.