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Arab League Boycott: Anti-Boycott Case Histories

Panalpina, Inc.

On March 2, 2000, the Commerce Department imposed a $20,000 civil penalty on Panalpina, Inc., a Humble, Texas, freight forwarder, to settle allegations that Panalpina, on ten occasions in 1996, violated the antiboycott provisions of the Export Administration Regulations by furnishing, to persons in Saudi Arabia, information concerning other persons' business relationships with Israel. The Department alleged that Palpina stated: "We certify that the goods shipped are neither of Israeli origin nor do they contain any Israeli materials." The Department alleged that Panalpina issued these statements in connection with transactions involving supplies shipped from the United States to Japan, then assembled in Japan to be shipped to Saudi Arabia.

BDP International, Inc.

On March 22, 2000, the Commerce Department imposed a $4,000 civil penalty on BDP International Inc., a Philadelphia, Pennsylvania, freight forwarder, to settle allegations that, on one occasion in 1997, the company's Des Plaines, Illinois branch violated the antiboycott provisions of the Export Administration Regulations by furnishing, to persons in Saudi Arabia, information concerning other persons' business relationship with Israel. The Department alleged that BDP stated that the goods were not of Israeli origin, did not contain Israeli materials and were not being exported from Israel.

Kenclaire (West) Electrical Agencies, Inc.

On June 15, 2000, the Commerce Department imposed a $104,000 civil penalty on Kenclaire (West) Electrical Agencies, Inc., of Fresno, California, to settle allegations that the company, on 11 occasions between April 1992 and February 1993, had violated the antiboycott provisions of the Export Administration Regulations by agreeing not to do business with manu-facturers banned under the Arab boycott rules. On each occasion, the Department alleged, Kenclaire failed to delete, reject, amend, or otherwise take exception to the following language contained in 11 purchase orders from Saudi Arabia: "No items or components thereof made by the manu-facturer covered and banned under the Arab Boycott Rules shall be sold to the Buyer. Seller shall be fully responsible to replace all such items at no costs to Buyer. Seller shall be further responsible to pay for all penalties and expenses for defying the Arab Boycott laws."

The Department also alleged that Kenclaire, between February 1992 and April 1993, committed 19 additional violations when it failed to report to the Department its receipt of 19 requests to comply with boycott requests from Saudi Arabia.


Sources: Office of Antiboycott Compliance