Anti-Boycott Violations Result in $238,000 Civil Penalty

Anti-Boycott Violations Result in $238,000 Civil Penalty

The (BIS) Bureau of Industry and Security has assessed a $238,000 civil penalty against a foreign affiliate [Coty Middle East FZCO (UAE)] of a U.S. company [Coty, Inc] to settle charges that it committed 70 violations of the anti-boycott provisions of the Export Administration Regulations.

BIS charged that in connection with transactions involving the sale and/or transfer of goods or services to numerous Middle Eastern countries from 2009 through 2013 this affiliate furnished information concerning its business relationships with or in a boycotted country with the intent to comply with, further, or support an unsanctioned foreign boycott. BIS notes that the affiliate voluntarily disclosed information concerning certain of its transactions.

NOTE: If this penalty is not paid within 30 days BIS may deny all of the affiliate’s export privileges for one year.