TE Connectivity Corporation, a company based in Middletown, Pennsylvania, has been fined $5.8 million by the U.S. Department of Commerce’s Bureau of Industry and Security for shipping items to parties connected to Chinese military electronics programs. The penalty is part of a settlement agreement to resolve alleged violations of U.S. export controls.
The company was accused of sending $1.74 million worth of items subject to export regulations, including wires, printed circuit-board connectors, and pressure and temperature scanners. These "low-level items" were sent to companies tied to China's hypersonics, unmanned aerial vehicles, and military electronics programs.
According to ABC27, the violations occurred from December 2015 through October 2019. Company representatives in China reportedly used deception and concealment tactics to disguise end users on the Entity List or restricted end uses, including by changing end-user names or using misleading end-use descriptions.
The Bureau of Industry and Security stated that the mitigated penalty demonstrates the benefits that companies receive for voluntarily disclosing violations and cooperating with investigators. The case was investigated by the Office of Export Enforcement’s New York Field Office.