FOREIGN SUBSIDIARY SETTLES CHARGES OF ANTIBOYCOTT VIOLATIONS

WASHINGTON - The Commerce Department’s Bureau of Industry and Security announced today that Colorcon Limited of the United Kingdom, a wholly owned subsidiary of Colorcon, Inc. of West Point, Pennsylvania, has agreed to pay a $39,000 civil penalty to settle allegations that it committed 21 violations of the antiboycott provisions of the Export Administration Regulations (EAR).   

“Our Office of Antiboycott Compliance maintains an Advice Line that provides assistance to companies facing boycott issues,” Darryl W. Jackson, assistant secretary of commerce for export Enforcement, reminded U.S. companies.  “We will continue to aggressively enforce the Department of Commerce’s regulations prohibiting U.S. companies from taking any action in support of restrictive trade practices or unsanctioned boycotts.”

BIS alleged that during the period 2001 through 2005, Colorcon furnished to persons in Syria ten items of prohibited information about business relationships with boycotted countries or blacklisted persons.  BIS also alleged that during this time Colorcon, on four occasions, knowingly agreed to refuse to do business with another person pursuant to an agreement with, a requirement of, or a request from a boycotting country.  Lastly, BIS alleged that during the same time period Colorcon, on seven occasions, failed to report its receipt of a request to engage in a restrictive trade practice or boycott.  The company voluntarily disclosed the transactions and cooperated fully with the subsequent investigation.

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 boycotted countries and refusing to do business with persons on boycott lists. Additionally, the EAR requires that U.S. persons report their receipt of certain boycott requests to the Department of Commerce.

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