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Penalties Assessed for Anti-Boycott Violations

Monday, October 23, 2017
Sandler, Travis & Rosenberg Trade Report

The Bureau of Industry and Security has issued an order imposing a $72,450 civil penalty on the foreign subsidiary of a U.S. company to settle charges that it committed 21 violations of the anti-boycott provisions of the Export Administration Regulations. BIS alleged that in connection with shipments to Lebanon, Yemen, and Qatar this company knowingly agreed to refuse to do business with another person at the request of a boycotting country, furnished information on its business relationships with or in a boycotted country, and failed to report its receipt of requests to engage in a restrictive trade practice or foreign boycott.

BIS is also imposing a $9,000 penalty on the parent U.S. company to settle charges that it committed three violations of the anti-boycott provisions by furnishing information concerning another person’s business relationships with another person who is known or believed to be restricted from having any business relationship with or in a boycotting country.

If either of these companies fails to pay the penalty in a timely manner, BIS may suspend all of its export privileges for one year.

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