Airline entity agrees to pay $700,000 to settle EAR anti-boycott violations

February 14, 2020

The U.S. Commerce Department announced that an airline corporation agreed to pay $700,000 as part of a settlement agreement for anti-boycott violations of the Export Administration Regulations (EAR).

According to the settlement agreement document [PDF 3.64 MB], the airline corporation (the U.S. entity being based in New Jersey) committed 14 violations of the EAR when it complied with an “unsanctioned foreign boycott” by refusing to accept passengers holding certain passports.

Commerce said it would suspend $100,000 of the penalty if the airline does not commit another violation of the Export Control Reform Act or of the EAR within the next three years, if it timely pays the other part of the penalty, and if it complies with the terms of the settlement. The airline’s export privileges or export license may be revoked if the airline does not comply with the terms of the settlement agreement.


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Partner and National Practice Leader
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Steve Brotherton
Principal and Global Export and Sanctions Leader
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E: sbrotherton@kpmg.com

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Principal, Washington National Tax
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E: labad@kpmg.com

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Principal
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Principal
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