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S E C R E T TAIPEI 000307 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EAP/TC AND ISN/MTR 
 
E.O. 12958: DECL: 02/08/2027 
TAGS: ETTC PARM KNNP NK TW
SUBJECT: MTAG: TAIWAN EXCON ENFORCEMENT 
 
REF: STATE 14411 
 
Classified By: AIT  Acting Econ Chief Tim Neely, 1.4 B/C 
 
¶1.  (S) Summary: AIT Econ delivered reftel recommendations to 
Bureau of Foreign Trade (BOFT) export control task force head 
Wally Su (Shi-hwa) on February 6.  During the meeting, Su 
mentioned that in the past six months, BOFT has sent 11 cases 
of possible export control violations to Justice officials 
for further investigation.  BOFT plans additional industry 
outreach events and a press release on companies penalized 
for export control violations.  End summary. 
 
¶2.  (S) In response to reftel export license recommendations, 
Su noted that the recommendation to deny a license on case 
WA070102171258018 was not surprising since the exporter was 
She Hong, the source of several suspected export control 
violations.  Su also noted that there has been no 
recommendation yet on case WA070102155314007, which BOFT 
submitted to AIT on January 3. 
 
¶3.  (S) During the meeting, BOFT's Su mentioned that over the 
past six months, Taiwan Customs had stopped 11 separate 
shipments of items on the Sensitive Commodities List (SCL) 
bound for Iran or North Korea because the shipments lacked an 
export license.  Su explained that BOFT had done a 
preliminary investigation of these 11 cases, and then 
forwarded them to the Ministry of Justice Investigation 
Bureau (MJIB) for further investigation and legal action.  Su 
said that some of the companies involved had complained that 
they were unaware of the need for export licenses for sales 
to Iran or North Korea, or they argued that no violation had 
been committed since the items had been stopped before they 
were exported. 
 
¶4.  (S) To address the claim that in spite of public 
announcements and outreach seminars some companies did not 
know of the expanded SCL list, Su had his staff send a letter 
on December 19 to all 599 Taiwan companies that have exported 
to either Iran or North Korea in the past three years to 
inform them of the new requirement for export licenses.  AIT 
discussed with Su at length various tactics for encouraging 
companies to strictly comply with export control regulations, 
what violations had taken place even when the item was not 
exported, and intent and cooperation as factors in assessing 
penalties.  Su agreed with AIT that tough action should to be 
taken against violators to set an example for other 
companies.  Su said that he was in the process of drafting a 
press release about the 11 cases to serve as a warning to 
other companies.  He also said that BOFT was planning to hold 
3 or 4 additional industry outreach events in the near future 
to reiterate the importance export control compliance. 
YOUNG