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The Commerce Department's Bureau of Export Administration (BXA) announced today that two affiliated crude oil trading companies – Koch Petroleum Group, L.P., a Wichita, Kansas limited partnership, and Koch Refining International Pte. Ltd., Koch Petroleum Group's wholly-owned subsidiary in Singapore – have agreed to pay a total of $37,000 to settle allegations that the companies committed 37 violations of the antiboycott provisions of the Export Administration Regulations. The companies voluntarily disclosed the transactions that led to the allegations and cooperated fully with the subsequent investigation. The antiboycott regulations prohibit U.S. persons, including foreign subsidiaries of U.S. companies, from complying with certain aspects of unsanctioned foreign boycotts. In addition, the antiboycott regulations require that U.S. persons report their receipt of certain boycott requests to BXA's Office of Antiboycott Compliance.
BXA alleged that, between 1996 and 1999, the companies failed to report within the time period prescribed by the regulations their receipt of boycott requests in 37 transactions. The boycott requests involved prohibitions on the sale of crude oil to Israel that Koch Petroleum Group and its affiliate purchased from Brunei, Gabon, Indonesia, Nigeria, Oman, and the United Arab Emirates. The antiboycott regulations permit compliance with such requests, but all U.S. persons must file a report upon their receipt of such requests.
Koch Petroleum Group, L.P. agreed to pay a $16,000 civil penalty to settle 16 alleged violations. Koch Refining International Pte. Ltd. agreed to pay a $21,000 civil penalty to settle 21 alleged violations.
Assistant Secretary of Commerce for Export Enforcement Michael J. Garcia commended the efforts of Senior Compliance Officer Shirley Rockenbaugh, who conducted the investigation for the Office of Antiboycott Compliance.