2011年9月18日日曜日

Export control violation of pump for chemical

According to several major news papers on Sept 13, a Japanese machine manufacturer exported pump for chemical plant illegally to China, without obtaining export license by METI.
The company name is Shin Toyo Kikai Kogyo Co., Ltd, medium size pump manufacturer, located in Saitama in Kanto region.  They allegedly exported pump for chemical use to a company in China.  The end-user is Japanese company's subsidiary, which is auto manufacturing and one of subsidiaries  of JFE Steel, steel manufacturing giant in Japan.

Not sure what category the chemical pump is classified.  My guess is Japanese Category 3 (2) (or US ECCN 2B350).  Because the end-use is auto-manufacturing site of Japanese subsidiary, it is not likely this case is violation of WMD catch-all control.  (The detail of the product is not disclosed, this is my guess.)

The president of Shin Toyo Kikai Kogyo admit they prioritized lead time and quick delivery, rather than applying export license to METI which they considered time loss.  The lead time of export licens by METI is typically about 1 week, but METI tend to require several supporting documents or end-use statement etc., case by case, the preparation of export license require significant time, energy and cost, especially to an exporter who is not familiar with export control system.

However, they will pay much more time loss (and also credibility loss & money loss!) by this violation.

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