BIS Fines Rail Technology Company for Violating Antiboycott Regs

The Bureau of Industry and Security reached a $153,175 settlement with Wabtec, a U.S. rail technology manufacturer and supplier, after the company violated BIS’ antiboycott regulations. The agency said Wabtec committed 43 violations when it failed to report to BIS that it received requests from a Pakistani customer to boycott goods from Israel.

BIS said it significantly lowered Wabtec’s penalty because the company submitted a voluntary disclosure, cooperated with the agency’s investigation and took “remedial measures” after discovering the issue. Wabtec must pay the fine within 30 days of Jan. 29 or have its export privileges revoked for one year, according to a settlement agreement released by BIS. The company also admitted to the violations, part of an effort announced by BIS in 2022 to eliminate its use of no-admit, no-deny clauses in settlements (see 2206300069).

Companies need to be “vigilant for boycott-related language regardless of the country of origin,” said Matthew Axelrod, the BIS assistant secretary for export administration. “It’s not enough just to decline boycott-related requests -- our rules require companies to come tell us that certain requests were made.”

BIS said Wabtec received 43 requests from a Pakistani customer between February 2018 and July 2022 to “refrain from importing” Israeli goods into Pakistan “in fulfillment of its orders.” The agency said Wabtec “failed to report to BIS the receipt of these requests.”

A Wabtec spokesperson didn’t respond to a request for comment.