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BIS Imposes $153,175 Penalty Against Wabtec Corporation to Resolve Alleged Violations of Antiboycott Regulations
WASHINGTON, D.C.-- Yesterday, the Department of Commerce’s Bureau of Industry and Security (BIS) imposed a civil penalty of $153,175 against Wabtec Corporation (Wabtec), a global manufacturer and supplier of rail technology headquartered in Pittsburgh, Pennsylvania, to resolve 43 violations of the antiboycott provisions of the Export Administration Regulations (EAR) (antiboycott regulations) alleged in BIS’s Proposed Charging Letter. Wabtec voluntarily disclosed the conduct to BIS, cooperated with the investigation by BIS’s Office of Antiboycott Compliance (OAC), and took remedial measures after discovering the conduct at issue, which resulted in a significant reduction in the penalty.
“This settlement involves failures to report Pakistan-origin boycott-related requests, underscoring the need for companies to be vigilant for boycott-related language regardless of the country of origin,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “It’s not enough just to decline boycott-related requests – our rules require companies to come tell us that certain requests were made.”
BIS Case Background:
As part of the BIS settlement, Wabtec admitted to the conduct set forth in a Proposed Charging Letter, which alleged 43 violations of Section 760.5 of the EAR (Failing to Report the Receipt of a Request to Engage in a Restrictive Trade Practice or Foreign Boycott Against a Country Friendly to the United States). Specifically, between February 2018 and July 2022, on forty-three occasions, Wabtec received a request from a customer in Pakistan to refrain from importing Israeli-origin goods into Pakistan in fulfillment of its orders. 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.
The Order, Settlement Agreement, and Proposed Charging Letter are available here.
These BIS actions were taken under the authority of the Anti-Boycott Act of 2018, a subpart of the Export Control Reform Act of 2018, and its implementing regulations, the EAR. The antiboycott provisions set forth in Part 760 of the EAR discourage, and in certain circumstances prohibit, U.S. persons from taking certain actions in furtherance or support of a boycott maintained by a foreign country against a country friendly to the United States (an unsanctioned foreign boycott).
In addition, U.S. persons must report to OAC their receipt of certain boycott-related requests. Reports may be filed electronically or by mail on form BIS 621-P for single transactions or on form BIS 6051P for multiple transactions involving boycott requests received in the same calendar quarter. U.S. persons located in the United States must postmark or electronically date stamp their reports by the last day of the month following the calendar quarter in which the underlying request was received. For U.S. persons located outside the United States, the postmark or date stamp deadline is the last day of the second month following the calendar quarter in which the request was received. Forms for both electronic transmission and mail submission may be accessed on the forms request page.
Pursuant to Section 764.8 of the EAR, a party may submit a voluntary self-disclosure if it believes that it may have violated Parts 760 or 762 of the EAR (recordkeeping requirements relating to Part 760).
For information regarding the application of the antiboycott regulations, please contact the OAC Advice Line at (202) 482-2381 or through the online portal.