anti-boycott 01 February 2024

BIS fines US manufacturer for violating anti-boycott provisions against Israel

The US Bureau of Industry and Security (‘BIS’) has imposed a $153,175 fine on a US manufacturer of rail technology for failure to report multiple requests by a customer in Pakistan to refrain from importing Israeli-origin goods into the country, in violation of the antiboycott provisions of the Export Administration Regulations (‘EAR’).

On 43 occasions between February 2018 and July 2022, Pittsburgh-based Wabtec Corporation ‘received a request from a customer in Pakistan to refrain from importing Israeli-origin goods into Pakistan in fulfillment of its orders,’ BIS said 30 January. ‘Wabtec failed to report to BIS the receipt of these requests, as required by Section 760.5 of the EAR, thereby giving rise to the 43 alleged violations.’

It said Wabtec voluntarily disclosed the conduct to BIS, cooperated with its investigation and took remedial measures after discovering the conduct, ‘which resulted in a significant reduction in the penalty.’

Assistant Secretary for Export Enforcement Matthew Axelrod said, ‘It’s not enough just to decline boycott-related requests – our rules require companies to come tell us that certain requests were made.’

https://beta.bis.gov/press-release/bis-imposes-153175-penalty-against-wabtec-corporation-resolvealleged-violations