U.S. BIS imposes civil penalty on Texas company to resolve alleged violations of antiboycott regulations

Three violations of the antiboycott provisions of the Export Administration Regulations (EAR)

Three violations of the antiboycott provisions of the Export Administration Regulations

The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce has announced a $44,750 civil penalty on a Texas-based satellite communications and networking systems company. This penalty resolves three violations of the antiboycott provisions of the Export Administration Regulations (EAR).

According to the BIS release (June 3, 2024), the company voluntarily disclosed the violations to BIS, cooperated with the investigation by BIS’s Office of Antiboycott Compliance (OAC), and took corrective actions, which resulted in a significant reduction in penalty.

The violations involved the company providing information about its business relationships with boycotted countries or blacklisted persons and failing to report the receipt of a request to engage in a restrictive trade practice or foreign boycott against a country friendly to the United States. Specifically, the company participated in a trade show in Kuwait in 2019, where the company certified that the goods they were shipping were not of Israeli origin and not manufactured by a company on the “Israeli Boycott Blacklist.” Furnishing such information is prohibited by the EAR.  In addition, the company failed to report to BIS the receipt of the request to furnish this information, as required by the EAR.

For more information, contact a professional with KPMG 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
E: ivaysfeld@kpmg.com

Amie Ahanchian
E: aahanchian@kpmg.com

Christopher Young
E: christopheryoung@kpmg.com

Gisele Belotto
E: gbelotto@kpmg.com

George Zaharatos
E: gzaharatos@kpmg.com

Andy Doornaert
Managing Director
E: adoornaert@kpmg.com

Jessica Libby
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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