BIS reports that a global manufacturer and supplier of rail technology has agreed to pay a $153,175 civil penalty to resolve 43 violations of the anti-boycott provisions of the Export Administration Regulations. The agency notes that this company secured a significant reduction in its penalty by voluntarily disclosing the conduct to BIS, cooperating with the investigation by BIS’s Office of Antiboycott Compliance, and taking remedial measures after discovering the conduct.
According to BIS, between February 2018 and July 2022 and on 43 occasions the company received a request from a customer in Pakistan to refrain from importing Israeli-origin goods into Pakistan in fulfillment of its orders. The company failed to report to BIS the receipt of these requests, as required by Section 760.5 of the EAR, thereby giving rise to the 43 alleged violations.
The anti-boycott provisions of the EAR discourage, and in certain circumstances prohibit, U.S. persons from taking certain actions in furtherance or support of a boycott maintained by a foreign country against a country friendly to the U.S. In addition, U.S. persons must report their receipt of certain boycott-related requests, whether or not they intend to comply with them.
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