U.S. manufacturer of defense weapon systems and defense contractor agree to settle violations of antiboycott regulations

Alleged violations of the antiboycott provisions of the Export Administration Regulations (EAR) in connection with a 2019 trade show in Bahrain

Alleged violations of the antiboycott provisions of the Export Administration Regulations

The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce announced civil penalties against a manufacturer of defense weapon systems and a defense contractor to resolve alleged violations of the antiboycott provisions of the Export Administration Regulations (EAR) in connection with a 2019 trade show in Bahrain.

According to the BIS release (July 14, 2023):

  • The manufacturer of defense weapon systems located in Phoenix, Arizona, agreed to pay a civil penalty of $48,500 in resolution of four violations of the antiboycott regulations.
  • The defense contractor located in Redmond, Washington, agreed to pay a civil penalty of $44,750 in resolution of three violations of the antiboycott regulations.

Both companies voluntarily self-disclosed the conduct to BIS, cooperated with the investigation by BIS’s Office of Antiboycott Compliance (OAC), and took remedial action after discovering the conduct at issue, which resulted in a significant reduction in penalty.
 

For more information, contact a professional with KPMG’s Trade & Customs services:

Doug Zuvich
Partner and Global Practice Leader
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
E: asiciliano@kpmg.com

Steve Brotherton
Principal and Global Export and Sanctions Leader
E: sbrotherton@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
E: labad@kpmg.com

Irina Vaysfeld
Principal
E: ivaysfeld@kpmg.com

Amie Ahanchian
Principal
E: aahanchian@kpmg.com

Christopher Young
Principal
E: christopheryoung@kpmg.com

Gisele Belotto
Principal
E: gbelotto@kpmg.com

George Zaharatos
Principal
E: gzaharatos@kpmg.com

Andy Doornaert
Managing Director
E: adoornaert@kpmg.com

Jessica Libby
Principal
E: jlibby@kpmg.com
John Anderson
Managing Director
E: johneanderson@kpmg.com
Jenna Leigh Glass
Managing Director
E: jennaleighglass@kpmg.com

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