The Bureau charged that, on ten occasions between March 1998 and
June 1999, Neopoint Inc. exported 128-bit encryption software to
two firms in South Korea without the required export licenses. In
all but one of these shipments, the Bureau alleged that Neopoint
knew that an export license was required.
"This case demonstrates that the US Government can and will
enforce its export controls on encryption products," said Assistant
Secretary of Commerce for Export Enforcement Michael Garcia.
The Bureau administers and enforces export controls on dual-use
items and technology for reasons of national security, foreign
policy, non-proliferation, anti-terrorism, and short supply.
Criminal penalties and administrative sanctions can be imposed for
violations of the Export Administration Regulations.
