| WASHINGTON, June 18
WASHINGTON, June 18 California-based Intersil
Corp has agreed to pay a civil penalty of $10 million
to settle 339 alleged violations of U.S. export control laws
that potentially harmed U.S. national security, the State
Department said on Wednesday.
The department said an extensive compliance review showed
that many of the alleged violations occurred because Intersil
did not properly control its radiation hardened and tolerant
circuits, which were on the U.S. munitions list.
The company acknowledged the settlement in a filing with the
U.S. Securities and Exchange Commission.
Certain circuit components used on satellites were exported,
re-exported or retransferred to entities on the government's
watch list, including some that were "known front companies" for
customers in countries such as China that are banned from
getting U.S. weapons exports, it said.
State Department officials said the company improperly
classified the components as regulated under the Department of
Commerce, when in fact they were subject to the State
Department's export controls.
They said the misclassified circuits were sent to
distributors in Belgium, France, Germany, Hong Kong, Japan,
Italy, the Netherlands, Russia, Singapore, Sweden, Spain and
Britain, with some parts later re-exported to other countries,
The State Department said it agreed to suspend $4 million of
the penalty if the company spends the money on remedial
compliance measures and other compliance costs.
It said the company also agreed to set up a special internal
compliance position to oversee the consent agreement, conduct
two audits, and provide additional training for employees.
It said the company disclosed the alleged export control and
arms control violations, acknowledged their serious nature, and
implemented extensive remedial measures.
As a result, it said it decided against barring the company
from additional export business.
(Reporting by Andrea Shalal; Editing by Lisa Shumaker)