WASHINGTON (Dec. 19)
The U.S. Commerce Department has charged another American company, Stair Cargo Services, with violating U.S. anti-boycott laws.
The company allegedly committed two violations of the Export Administration Act relating to the Arab economic boycott of Israel.
Stair Cargo Services is a Miami-based subsidiary of Intertrans Corp., a freight forwarder based in Dallas.
In 1988, in response to a request from Kuwait, the company is alleged to have provided Kuwait with the name of a supplier of goods, and is further alleged to have not reported its receipt of the boycott-related request to the U.S. government, as required by law.
As the Middle East peace process continues and Israel enters economic relationships with Jordan and the Palestinians, the U.S. government has grown more impatient with the Arab League’s continuation of the boycott, which has been in place since before the founding of Israel in 1948.
The boycott affects both Israel and U.S. companies doing business with Israel.
An administrative law judge will decide whether Stair Cargo violated the boycott provisions, and the company could be fined up to $20,000 if found guilty.
Earlier this month, the Commerce Department’s Office of Antiboycott Compliance said it had imposed a total of $6,805,450 in penalties in fiscal year 1993.