BIS Fines Lebanese Company for 20 EAR Violations
A Lebanese energy equipment company was fined $368,000 by the Bureau of Industry and Security after it illegally re-exported generators to Syria, according to a settlement agreement signed Nov. 27. Ghaddar Machinery allegedly committed 20 violations of the Export Administration Regulations from 2014 to 2016, totaling about $730,000 worth of exports, BIS said. Ghaddar agreed to pay the penalty in five installments through November 2021. Failure to make the payments could result in more penalties, according to the settlement agreement, including a two-year denial of export privileges.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
The company re-exported “generator sets” from Lebanon to Syria after receiving generator engines from a Britain-based supplier and directly from the U.S. The generators were assembled in Lebanon using the U.S.-origin engines, which were subject to the EAR because they contained more than 10 percent controlled U.S. content, the settlement agreement said. Ghaddar never sought a BIS license for the generators.
Ghaddar first began buying U.S.-origin engines from the U.S.-owned supplier in Britain before buying directly from the U.S. in 2015. In 2014, the British supplier “specifically warned” Ghaddar that its engines could not be re-exported to Syria without a license, BIS said. Ghaddar “certified” to the British supplier’s U.S. parent company that it understood U.S. sanctions and was in compliance with U.S. laws, despite continuing with the illegal re-exports, BIS said.