BIS Fines US Laser Company for Illegal Exports to China

The Bureau of Industry and Security fined a U.S. laser manufacturer $350,000 for illegally exporting laser systems to China, according to a May 28 order. The company, New York-based Photonics Industries International, exported more than 20 “RGH-1064-30 picosecond laser systems” to China in 2014 and failed to apply for the required licenses, which violated the Export Administration Regulations.

Although the lasers were controlled for national security and anti-terrorism reasons, Photonics “erroneously” indicated in its documents that the lasers were designated under EAR99 and therefore didn’t need a license, BIS said. The company also told a freight forwarder to file Electronic Export Information in the Automated Export System that listed Hong Kong as the ultimate destination and a Hong Kong freight forwarder as the ultimate consignee. BIS said the company “did so at the request of its customer” and knew the ultimate destination was mainland China.

The agency said some of the lasers were destined for Shenzhen, China, while others were destined for Sichuan University in Chengdu. In 2014, Photonics didn't have an export control compliance program that included screening customers against the BIS Entity List or other government export control lists, according to the order. Photonics didn’t immediately comment.

BIS said it will waive $300,000 of the $350,000 fine if the company complies with a two-year probationary period and the terms of its settlement agreement with BIS. The agency said it may revoke Photonics’ export privileges if it doesn’t pay its fine on time or comply with the agreement.