Four U.S. Companies Accused Under Arab Boycott Laws

The Department of Commerce has announced that two more American companies have been fined for alleged violation of the Export Administration Act’s anti-boycott provisions concerned with discrimination by Arab governments against Israel and Jewish-managed companies in the United States. The other companies have been charged with violations, the Department said.

The MEM company, manufacturer of men’s toiletries in Northvale, N. J., paid a civil penalty of $2,000 for two alleged violations. One was for $1,500 for allegedly furnishing information about its business relationships with Israel when it sought to re-register its English Leather trademark in Saudi Arabia. The company also paid $500 for allegedly failing to report receipt of a boycott request contained in a letter from an Arab customer involved in the Arab League boycott against Israel.

The Air Guide Corporation of Hialeah, Fla has agreed to pay a civil penalty of $6,000 for allegedly failing to report 12 boycott request received during the three years 1977-1979. Nine were from Kuwait and one each for Abu Dhabi, Dubai, and Qatar. The Department agreed to suspend half of the penalty and will waive payment of this amount at the end of one year provided that Air Guide neither violates the regulations nor fails to meet any of the conditions set by the Department in its compliance program. The Air Guide firm is a wholly owned subsidiary of Pioneer Metals Inc. doing business in Hialeah. The Deportment’s charging letter was addressed to Wayne Hegamyer, vice president of Air Guide

LoPine Scientific Company, Inc., of Chicago, has been accused of having failed on four separate occasions between Dec. 31, 1977, and Nov. 21, 1978, to report receipt of requests to engage in a restrictive practice. LoPine, according to the charging letter addressed to Robert LoPine, president of the company, entered into transactions with organizations located in Iraq and Kuwait and responded to an invitation to bid from the Universal Pharma Agencies Ltd., of Safat, Kuwait, which contained the condition “the manufacturer’s and supplier’s name must note appear on the list of companies banned under the (Arab) boycott of Israel Regulations.”

California Forms and Canners, Inc. of San Francisco, allegedly received eight letters of credit in connection with the sole, purchase or transfer of goods produced inside the U.S. from Saudi Arabian banks — Arab Bank Ltd., Riyad Bank Ltd., National Commercial Bank. The letters bore such “special instructions” as “in voice must show that goods are not bearing the Israeli flag or other symbol signifying Israel” and that it would use a “carrying steamer” that “is not blacklisted and will not call at Israeli ports on her voyage to Saudi Arabia.” The charges were addressed to Bishora Lawrence, president of the California company.