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Foreign Subsidiary
of Texas Company Settles Charges of Antiboycott Violations |
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May 14, 2004 |
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The U.S. Department of Commerce today announced that
Input/Output Exploration Products (UK), Inc., a foreign subsidiary of a
Texas-based U.S. manufacturer of seismic imaging technology, has agreed to pay
a $24,500 civil penalty to settle charges that it in1999 violated the
antiboycott provisions of the Export Administration Regulations (EAR).
The Commerce Departments Bureau of Industry and Security (BIS)
charged that in 1999 Input/Output Exploration Products (UK), Inc., violated the
EAR when it provided answers to questions from a customer about its business
with or in Israel and the business relationships of its parent company with or
in Israel. BIS also charged that in 1999 Input/Output Exploration Products
(UK), Inc. unlawfully agreed to refuse to do business with companies on lists
maintained by Arab League countries that boycott Israel, and failed to report
its receipt of boycott requests received in three transactions. The charges
involved transactions with Syria, which the company voluntarily self-disclosed
to BIS.
The antiboycott provisions of the EAR prohibit U.S. persons
from complying with certain requirements of unsanctioned foreign boycotts,
including providing information about business relationships with Israel and
refusing to do business with persons on boycott lists. In addition, the EAR
requires that persons report their receipt of certain boycott requests to the
Department of Commerce. Under the antiboycott provisions of the EAR, a
controlled-in-fact foreign subsidiary of a domestic U.S. company is considered
a U.S. person.
Assistant Secretary for Export Enforcement Julie L.
Myers commended Compliance Officer Perry Province of BISs Office of
Antiboycott Compliance for his work on this case. |
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