Houston Company Settles Charges of Antiboycott Violations

WASHINGTON, D.C. –The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced today that American Rice, Inc. of Houston, TX, has agreed to pay a $30,000 civil penalty to settle allegations that it violated the antiboycott provisions of the Export Administration Regulations (EAR).

“The Department of Commerce is committed to vigorous enforcement of the antiboycott regulations,” Darryl W. Jackson, Assistant Secretary of Commerce for Export Enforcement, reminded U.S. companies.  “To avoid enforcement actions, companies should establish effective compliance programs that include such core elements as management commitment, employee training and internal controls for reporting and responding to boycott issues.”

BIS’s Office of Antiboycott Compliance alleged that during the years 2002 through 2006, in connection with fifteen transactions involving the sale of U.S. origin goods to the U.A.E., American Rice, Inc.  failed to report in a timely manner its receipt of a request to engage in a restrictive trade practice or boycott.

BACKGROUND

The antiboycott provisions of the EAR prohibit U.S. persons from complying with certain requirements of unsanctioned foreign boycotts, including furnishing information about business relationships with or in a boycotted country. In addition, the EAR requires that persons report their receipt of certain boycott requests to the Department of Commerce.

###