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Rhode Island Firm Fined on Arab Boycott Charges

January 27, 1981
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— The ITT Grinnell Corporation of Providence, R.I., has agreed to pay a civil penalty of $50,500 for alleged violations of the reporting requirements of the U.S. anti-Arab boycott law, the Department of Commerce has disclosed.

The company “voluntarily advised” the Commerce Department of a total of 101 instances of late filing of boycott requests at three of its 185 facilities “after the matter came to the attention of company officials,” the Department said in a press statement.

ITT Grinnell, a manufacturer of pipes, valves, fitting and steel transmission structures, was accused in a Department letter that “all of the transactions in connections with which the 101 boycott requests were received involved the sale of goods between ITT

Grinnell field offices in the U.S. and the Arabian American Oil Company (Aramco) in Saudi Arabia. “The letter was addressed to Daniel Nugent, the company’s president.

The anti-Arab boycott laws, which help protect Americans and American and companies doing business with Israel from the Arab League’s boycott of Israel, require that a U.S. person or company that receives any request to boycott any country friendly to the U.S. to report that request to the Commerce Department. Between August 1978 and March 1980, Grinnell failed to report the 101 requests.

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