Anti-Boycott Case Histories
Panalpina, Inc.
On March 2, 2000, the Commerce Department imposed a
$20,000 civil penalty on Panalpina, Inc., a Humble,
Texas, freight forwarder, to settle allegations that
Panalpina, on ten occasions in 1996, violated the antiboycott provisions of the Export Administration Regulations
by furnishing, to persons in Saudi
Arabia, information concerning other persons' business
relationships with Israel. The Department alleged that
Palpina stated: "We certify that the goods shipped
are neither of Israeli origin nor do they contain any
Israeli materials." The Department alleged that
Panalpina issued these statements in connection with
transactions involving supplies shipped from the United
States to Japan, then assembled in Japan to be shipped
to Saudi Arabia.
BDP International, Inc.
On March 22, 2000, the Commerce Department imposed
a $4,000 civil penalty on BDP International Inc., a
Philadelphia, Pennsylvania, freight forwarder, to settle
allegations that, on one occasion in 1997, the company's
Des Plaines, Illinois branch violated the antiboycott
provisions of the Export Administration Regulations
by furnishing, to persons in Saudi Arabia, information
concerning other persons' business relationship with
Israel. The Department alleged that BDP stated that
the goods were not of Israeli origin, did not contain
Israeli materials and were not being exported from Israel.
Kenclaire (West) Electrical
Agencies, Inc.
On June 15, 2000, the Commerce Department imposed a
$104,000 civil penalty on Kenclaire (West) Electrical
Agencies, Inc., of Fresno, California, to settle allegations
that the company, on 11 occasions between April 1992
and February 1993, had violated the antiboycott provisions
of the Export Administration Regulations by agreeing
not to do business with manu-facturers banned under
the Arab boycott rules. On each occasion, the Department
alleged, Kenclaire failed to delete, reject, amend,
or otherwise take exception to the following language
contained in 11 purchase orders from Saudi Arabia: "No
items or components thereof made by the manu-facturer
covered and banned under the Arab Boycott Rules shall
be sold to the Buyer. Seller shall be fully responsible
to replace all such items at no costs to Buyer. Seller
shall be further responsible to pay for all penalties
and expenses for defying the Arab Boycott laws."
The Department also alleged that Kenclaire, between
February 1992 and April 1993, committed 19 additional
violations when it failed to report to the Department
its receipt of 19 requests to comply with boycott requests
from Saudi Arabia.
Sources: Office
of Antiboycott Compliance |