BIS Imposes $101,000 Penalty on Company for Exporting $7,402 Worth of Physical Therapy Equipment to Iran
In yet another case of successor liability for export control violations, the Bureau of Industry and Security (BIS) has imposed a $101,000 civil penalty on Encore Medical L.P., successor by merger to Chattanooga Group, Inc. (CGI) a Hixson, Tennessee manufacturer and distributor of medical, physical rehabilitation and chiropractic equipment. The settlement agreement and order indicates that in 2000 CGI made three unlicensed shipments of physical therapy equipment, classified as EAR 99 and worth $7,402, to Iran, via Australia. The settlement agreement and order indicates that the sales were made via Australia "to conceal the fact that the physical therapy equipment was destined for Iran." The charging letter, settlement agreement and order can be viewed at the following link: http://efoia.bis.doc.gov/ExportControlViolations/E903.pdf.
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