US Penalizes China for Pakistani Reactor Construction

US-China firm fined $3.75m for Pakistan nuclear exports

WASHINGTON: The US on Tuesday fined the Chinese subsidiary of a US firm $3.75 million for exporting coatings to a Pakistani nuclear site.

PPG Paints Trading in Shanghai, a wholly-owned subsidiary of PPG Industries, agreed to pay $3.75 million over the exports – from which it had earned just $32,319 – the US Justice Department said.

The fines “represent one of the largest monetary penalties for export violations in the history of the US Department of Commerce’s Bureau of Industry and Security” established in 1987, it said.

The company was accused of “illegal export, re-export and/or transshipment of high-performance coatings from the US to the Chashma 2 Nuclear Power Plant in Pakistan via a third-party distributor (in China)”, it said.

In addition to the maximum criminal penalty of $2 million, the two companies agreed to pay an additional $1.75 million in civil penalties and submit to a US audit.

US Attorney for the District of Columbia Ronald Machen said in a statement that the case should “serve as a warning to corporations that would violate US export laws”.

“It is not only unlawful, it is also bad business. In this case, the millions in fines to be paid by the corporate defendant are 100 times more than the gross proceeds generated by the unlawful export scheme,” he said. afp