Miami-based Andes Chemical Corp., which exports a variety of chemicals to the Caribbean as well as to Central and South America, was earlier this year named “Exporter of the Year” in the “Materials” Category by Commercial News USA, the “official export promotion magazine of the U.S. Department of Commerce.” Not very long after that, Andes entered into a settlement agreement with the Department of Commerce’s Bureau of Industry and Security (“BIS”) pursuant to which Andes admitted that it had exported sodium bifluoride, a precursor of sarin gas, to Jamaica without a license. Andes further agreed to pay a $60,000 for the six unlicensed shipments which occurred between May 2003 and July 2007. The company voluntarily disclosed the violations to BIS.

Sodium bifluoride is used as a souring agent by commercial laundries, in various sanitation and cleaning applications, and for tin plating and zinc galvanizing. And it can be used as the source of the fluorine atom in sarin and all other G-type nerve agents except tabun.

The chemical is categorized as ECCN 1C350.d.16 and it is clearly listed in the index to the Commerce Control List. It doesn’t take any specialized knowledge in chemical engineering to parse the CCL and the ECCN involved. So the only explanation for the failure to procure a license is that the company never even bothered to determine the export status of sodium bifluoride before exporting it.

The press release announcing the award to Andes states:

Winners were chosen based on the total number of documented export deals completed in 2006, total percentage increase in sales in 2006 compared to 2005, exports as percentage of total sales, the company’s commitment to exporting, the company’s commitment to customer service, and the company’s innovation and originality in marketing products or services.

Oddly, among the many factors considered in making the award, compliance with export laws and regulations is not among them, which explains how the company could be exporting a nerve gas precursor without a license and still be “Exporter of the Year.” Perhaps export compliance should be a factor considered by the Commerce Department when it makes the awards for 2009.

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