Chemical company fined for nerve gas export

London, 27 July /PRNewswire-GNN/

REVENUE & CUSTOMS PROSECUTION OFFICE News Release (PN07/007) issued by The
Government News Network on 27 July 2007

Avocado Research Chemicals Ltd (ARC Ltd) were fined £600 and ordered to pay
£100 costs today after pleading guilty at Lancaster Magistrates' Court to
the unlawful exportation of a controlled chemical substance.

In July 2005, ARC Ltd exported 100g of 2-diisopropylaminoethyl chloride
hydrochloride (also known as DCH) and 10g of hafnium, with a total value
of around £60. DCH can be used as a pre-cursor to VX nerve gas. Hafnium
can be used in the production of nuclear control rods. Both chemicals were
exported without a necessary license to a broker in Egypt, a non-signatory
to the Chemical Weapons Convention (CWC)

In July 2006 ARC Ltd submitted its annual return of exports of chemicals
covered by the CWC to the Department of Trade and Industry (DTI), who noticed
that ARC did not have the relevant export license for DCH and Hafnium. ARC
Ltd subsequently made voluntary declarations to DTI in relation to both
chemicals. The case was referred to the Revenue and Customs Prosecutions
Office (RCPO), the authority responsible for prosecuting non-licensed exports.

A subsequent internal investigation at ARC Ltd concluded that the failure
to apply for an export license or stop the export was a result of human error.

David Green QC, Director of RCPO said:

"Today's successful result shows how important it is for firms to make sure
that correct exporting procedures are in place. ARC Ltd did the right thing
once they noticed their mistake and contacted the authorities. But other
companies should note that, even in a case where small quantities and genuine
human error are involved, some action must be taken. The unlicensed export
of potentially lethal substances is too serious to be ignored at any level."

Notes to Editors

1. The Chemical Weapons Convention (CWC) is an arms control agreement which
outlaws the production, stockpiling and use of chemical weapons. Its full
name is the Convention on the Prohibition of the Development, Production,
Stockpiling and Use of Chemical Weapons and on their Destruction.

2. The Revenue & Customs Prosecutions Office (RCPO) was created by Royal
Assent on 18 April 2005. An independent prosecuting authority, RCPO is
superintended by the Attorney General, and is responsible for prosecuting
some of the largest drug and fraud cases in the UK.

3. For further information, please contact Sara Gaines, RCPO Press Office
on 0870 785 8351. Out of hours inquiries: 020 7865 5666.