Administrative Sanction (Export Ban) Pursuant to the Foreign Exchange and Foreign Trade Act

METI decided to execute the following administrative sanction against Taikyo Sangyo Co., Ltd. to ban its exporting operation.

Banned goods to be exported:

All goods

Banned regions for exporting:

All regions

Period of export ban:

From June 8, 2012, to August 7, 2012 (two months)

On September 18, 2008, Taikyo Sangyo Co., Ltd. received a notice from the METI Minister requiring the company to submit an application to METI for permission according to Article 48(1) of the Act for its attempted exporting of self-recording devices with direct current magnetization characteristics to the destination of the Republic of the Union of Myanmar. However, the company conspired with Toko Boeki Co. and Riken Denshi Co., Ltd. to export the devices to Myanmar without receiving permission from METI. On January 23, 2009, the company attempted to export the devices to the Republic of the Union of Myanmar without permission from the METI Minister through a false export declaration describing Malaysia as its destination under the name of Riken Denshi Co., Ltd. This plot was thwarted by the authorities with the support of related organizations.

Note 1:

In June, 2009, METI filed a criminal complaint against Taikyo Sangyo for the violation of the Act, and the company was convicted in court in February 2012.

Details of the decision:

Taikyo Sangyo Co., Ltd: 3 million yen penalty

Yasuhiko Muto:

Sentenced to 1 year imprisonment suspended for 3 years

Note 2:

Outline of Taikyo Sangyo Co., Ltd.

President:

Yasuhiko Muto

Head office:

Shibuya Ward, Tokyo

June 1, 2012

Security Export Inspection Office, Trade Control Department, Trade and Economic Cooperation Bureau