A large grain exporter has agreed to pay $85,500 in civil penalties to the Commerce Department amid allegations that it complied with the Arab boycott of Israel.
Cargill, Inc., a Minneapolis-based exporter of grain and other agricultural commodities, and two of its subsidiaries in Antigua and Brazil were charged with 52 alleged violations of the antiboycott provisions of the Export Administration Act.
Cargill agreed to pay the fine but neither admitted nor denied the charges.
The charges included failing to report two requests, and failing to report in a timely manner 21 requests to engage in restrictive trade practices or boycotts against Israel. The requests were made by Bahrain, Iraq and Kuwait.
The Export Administration Act prohibits U.S. companies and individuals from agreeing to observe foreign boycotts, and from furnishing information to boycotting countries about their business relationships in boycotted countries.
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