May 22, 2003
Contact: BIS Public Affairs
Acting Assistant Secretary for Export Enforcement Lisa A. Prager announced today that the U.S. Department of Commerce has imposed a $9,000 civil penalty on Rockwell Automation Inc, a Milwaukee, Wisconsin-based corporation and successor company to Reliance Electric Company, and two of Reliance’s foreign subsidiaries to settle allegations that the Reliance companies committed four violations of the antiboycott provisions of the Export Administration Regulations (EAR).
The Commerce Department’s Bureau of Industry and Security (BIS) alleged that Dodge International, a division of Reliance Electric Company, violated the EAR’s antiboycott provisions by failing to report a request from a Kuwaiti purchaser for a declaration from Dodge that the goods at issue did not originate in Israel and that Dodge was not affiliated with any Israeli boycotted or blacklisted company. BIS further alleged that Dodge failed to maintain records containing information relating to a reportable boycott request as required by the EAR’s antiboycott provisions.
In addition, BIS alleged that two foreign subsidiaries of Reliance, prior to their acquisition by Rockwell, each committed one violation of the EAR’s antiboycott provisions by furnishing prohibited information about their or another company’s business relationships. Specifically, BIS alleged that Reliance Electric GmbH furnished information regarding its business relationship with Israel in a transaction involving a sale to the United Arab Emirates, and that Reliance Electric AG furnished information regarding the blacklist status of the aircraft carrying the goods in a transaction involving a sale to Pakistan.
The companies involved voluntarily disclosed the transactions and cooperated
fully with the subsequent investigation.
Acting Assistant Secretary Prager commended Senior Compliance Officer Cathleen A. Ryan, who conducted the investigation of this case.