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:
John L. McLoughlin
Luis (Lou) Abad
|Jenna Leigh Glass
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