Software firm settles Iran export allegations
US-based plant design and engineering software developer gets $130,000 fine for violating trade regulations
A US-based vendor that develops plant design and engineering software for the process industries has been stung with a $130,000 fine for violating trade regulations by exporting to Iran.
Engineering Physics Software, which does business as COADE, agreed to pay the penalty to settle allegations that it sold certain software to Iran, as well as companies where a licence is required prior to export.
The allegations involved sixteen exports of software to Iran via the UAE, and six exports of software to Indian and Pakistani end-users listed on The Commerce Department’s Bureau of Industry and Security (BIS) Entity List.
The BIS Entity List maintains a listing of foreign end-users involved in proliferation activities that require a BIS Export License before shipment is permitted.
“This case demonstrates the need for appropriate training and compliance procedures to address exports and re-exports of US goods, technology and software,” stated Mario Mancuso, Under Secretary of Commerce for Industry and Security. “Implementing an effective compliance programme can stop violations such as these before they occur.”
The violations occurred between 2003 and 2006. According to the BIS, Engineering Physics Software voluntarily disclosed the breaches and co-operated fully with the investigation.
The company must pay $65,000 of the penalty within the first 60 days of the order — which was announced at the end of December — and the remaining $65,000 within 90 days.