WASHINGTON, D.C.-- The Commerce Department imposed a $9,000 civil penalty on a Minneapolis, Minn., agricultural products exporter for alleged violations of the antiboycott provisions of the Export Administration Act and Regulations, John Despres, assistant secretary for Export Enforcement, announced today.
The Department alleged that, in connection with a 1994 export transaction to Syria, Cargill, Inc. (Cargill) furnished one item of information about its proposed business relationships with companies and individuals known or believed to be restricted from doing business with Syria (blacklisted companies and individuals). The Department also alleged that Cargill knowingly agreed, on two occasions, to refuse to do business with blacklisted companies and individuals.
The Department further alleged that, on one occasion, Cargill failed to report to the Department its receipt of boycott-related requests from Syria as required by the regulations.
Cargill voluntarily disclosed the alleged violations and cooperated fully during the Department's investigation. While neither admitting nor denying the allegations, Cargill agreed to pay the civil penalty.
The antiboycott provisions of the Act and Regulations apply to foreign boycotts fostered or imposed against countries which are friendly to the United States and which are not themselves the object of any form of boycott pursuant to United States law or regulation.
The antiboycott provisions prohibit U.S. individuals and companies from furnishing information about any person's business relationships with or in a boycotted country, or with companies or individuals believed to be restricted from doing business with or in one or more countries that participate in the Arab boycott of Israel.
The antiboycott provisions also prohibit U.S. individuals and companies from refusing and agreeing to refuse to do business with or in a boycotted country,with any business concern organized under the laws of a boycotted country, with any national or resident of a boycotted country, or with any other person, pursuant to an agreement with, or a requirement or request from or on behalf of a boycotting country. U.S. individuals and companies are also required to report to the Department, in a timely manner, each boycott-related request they receive.
In April of 2002 the Bureau of Export Administration (BXA) changed its name to the Bureau of Industry and Security(BIS). For historical purposes we have not changed the references to BXA in the legacy documents found in the Archived Press and Public Information.