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Foreign Subsidiary of Texas Company Settles Charges of Antiboycott Violations
May 14, 2004
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 Department’s 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 BIS’s Office of Antiboycott Compliance for his work on this case.
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