October 13, 2005
A pre-charging letter and settlement agreement were made public on October 4, 2005, which disclose that Federal Express Corporation has agreed to pay a fine of $40,000 to settle charges brought by the U.S. Department of Commerce that on two separate occasions the company violated the U.S. Export Administration Regulations.
Both transactions involved exporting items on behalf of U.S. individuals that were denied export privileges. In addition, in the second transaction, Fed Ex was further alleged by BIS to have aided and abetted in an unlawful export to Syria of a controller for a used amusement park ride classified under ECCN 5A994.
According to the pre-charging letter and settlement agreement, Fed Ex aided and abetted in the unlawful export by transporting the item from the U.S. to Syria, and by filing or causing to be filed with the U.S. government an AES record that misrepresented the fact that the transaction did not require a license, in violation of § 742.9 of the EAR.
While neither admitting nor denying the allegations contained in the proposed charging letter, Federal Express Corporation agreed to settle the matter upon the payment of a civil fine of $40,000.
This matter serves as a reminder to the forwarding and carrier community that they too can be held liable for dealing with U.S. parties that are subject to a denial of export privileges, and for handling transactions and filing AES records that that contain misleading or incorrect information. The filing or causing to be filed with the U.S. government of an AES record on behalf of a customer that misrepresents the ECCN classification, license exemption, or licensable status of the goods constitutes a false or misleading representation, statement or certification, and may constitute a violation of 15 C.F.R. § 764.2(g).
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George R. Tuttle and George R. Tuttle, III are attorneys with the Law Offices of George R. Tuttle in San Francisco. The information in this article is general in nature, and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence, and may not be considered as such.
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