U. S. Department of Commerce
Bureau of Export Administration

December 20, 1996

Eugene Cottilli
Susan Hofer
(202) 482-2721

Texas Company Pleads Guilty to
Illegal Computer Shipments to China

(WASHINGTON) -- Computer exporter New World Transtechnology of Galveston, TX, today was fined $10,000 after pleading guilty in federal court to criminal charges of illegally exporting computers to the People's Republic of China in August 1992, Commerce Acting Assistant Secretary for Export Enforcement Frank Deliberti announced. The company also pleaded guilty to attempting another illegal computer export in October, 1992.

New World Transtechnology also admitted to falsifying a Shipper's Export Declaration by indicating that a validated license was not needed from the Department when one was required by law. The company did not apply for the license.

Charges were filed by Assistant U.S. Attorney Cedric La Rue Joubert as the result of an investigation by Commerce's Office of Export Enforcement field office in Dallas, TX. The computers were shipped to a nuclear equipment factory in the People's Republic of China. Commerce agents seized another computer before it could be shipped to China via Hong Kong.

The Commerce Department controls and licenses exports and reexports of dual-use commodities and technical data and enforces those controls. Under the authority of the Export Administration Act, the International Emergency Economic Powers Act and Export Administration Regulations, Commerce's Bureau of Export Administration maintains controls on these commodities and technologies for reasons of national security, foreign policy, nonproliferation and short supply.