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Telecom Company Fined for Illegal Exports to Vietnam

The Commerce Department's Bureau of Industry and Security fined a U.S.-based telecom company $1.87 million for illegally exporting goods to Vietnam, BIS said in a Tuesday order. California-based VTA Telecom, a subsidiary of a Vietnamese state-owned telecom company, allegedly included…

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false statements in its export applications to conceal defense end uses for the exports, BIS said. It said it will suspend about $200,000 of the penalty if VTA completes a two-year probationary period outlined in a settlement agreement with BIS, or if it dissolves its business. VTA agreed to spend $25,000 to improve its “ongoing” export compliance efforts and hire a trade compliance director for two years. If VTA doesn’t pay the fine or violates the agreement, BIS may deny the company export privileges. VTA Telecom couldn’t be reached for comment.