Four Companies Settle Antiboycott Charges

WASHINGTON – U.S. Department of Commerce Assistant Secretary for Export Enforcement, Bureau of Industry and Security, David W. Mills announced today that four companies agreed to pay a total of $ 72,000 in civil penalties to settle allegations that each violated the antiboycott provisions of the Export Administration Regulations (EAR). The companies are: ChemGuard Inc, Bank of New York Mellon (Shanghai Branch), World Kitchen LLC, and Tollgrade Communications Inc.

• ChemGuard Inc (CGI), located in Mansfield, TX, has agreed to pay a civil penalty of $22,000 to settle seven allegations that it violated the antiboycott provisions of the EAR. The Bureau of Industry and Security (BIS), through its Office of Antiboycott Compliance (OAC), alleged that during the period 2005 through 2007, CGI, in connection with transactions involving the sale and/or transfer of goods or services (including information) from the United States to United Arab Emirates, on two occasions, furnished prohibited information in a statement regarding the blacklist status of the carrying vessel, in violation of the antiboycott provisions of the EAR and, on five occasions, failed to report to the Department of Commerce the receipt of a request to engage in a restrictive trade practice or boycott, as required by the EAR. Further information is available at: http://efoia.bis.doc.gov/antiboycott/violations/tocantiboycott.html
• Bank of New York Mellon (Shanghai Branch) (BNYM) has agreed to pay a civil penalty of $30,000 to settle fifteen allegations that it violated the antiboycott provisions of the EAR. The Bureau of Industry and Security (BIS), through its Office of Antiboycott Compliance (OAC), alleged that during the year 2007, in connection with transactions involving the sale and/or transfer of goods or services (including information) from the United States to United Arab Emirates, BNYM (Shanghai Branch), on fifteen occasions, furnished prohibited information in a statement certifying that the goods were neither of Israeli origin nor contained Israeli materials. BNYM voluntarily disclosed the transactions to BIS. Further information is available at: http://efoia.bis.doc.gov/antiboycott/violations/tocantiboycott.html
• World Kitchen LLC (WK), located in Greencastle, PA, has agreed to pay a civil penalty of $10,000 to settle five allegations that it violated the antiboycott provisions of the EAR. The Bureau of Industry and Security (BIS), through its Office of Antiboycott Compliance (OAC), alleged that during the years 2006 through 2008, in connection with transactions involving the sale and/or transfer of goods or services (including information) from the United States to United Arab Emirates, WK, on five occasions, failed to report to the Department of Commerce the receipt of a request to engage in a restrictive trade practice or boycott, as required by the EAR. Further information is available at: http://efoia.bis.doc.gov/antiboycott/violations/tocantiboycott.html
• Tollgrade Communications, Inc (TCI), located in Cranberry Township, PA, has agreed to pay a civil penalty of $10,000 to settle four allegations that it violated the antiboycott provisions of the EAR. The Bureau of Industry and Security (BIS), through its Office of Antiboycott Compliance (OAC), alleged that during the period 2002 through 2004, TCI, in connection with transactions involving the sale and/or transfer of goods or services (including information) from the United States to Saudi Arabia, on three occasions, furnished prohibited information in a statement regarding TCI’s business activities with or in Israel, and, on one occasion, failed to report to the Department of Commerce the receipt of a request to engage in a restrictive trade practice or boycott, as required by the EAR. TCI voluntarily disclosed the transactions to BIS. Further information is available at: http://efoia.bis.doc.gov/antiboycott/violations/tocantiboycott.html

The antiboycott provisions of the EAR prohibit US persons from taking certain actions with intent to comply with, further or support unsanctioned foreign boycotts, including furnishing information about business relationships with or in a boycotted country or with blacklisted persons. In addition, the EAR requires that persons report their receipt of certain boycott requests to the Department of Commerce. For more information, please visit BIS’ Online Training Room at http://www.bis.doc.gov/seminarsandtraining/seminar-training.htm or contact the OAC Advice Line at (202) 482.2381.

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