On January 4, 2012, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) announced that FedEx Express (FedEx) of Memphis, TN, has agreed to pay a $370,000 civil penalty to settle allegations that the company committed six violations of the Export Administration Regulations (EAR) relating to FedEx's provision of freight forwarding services to exporters.
Specifically, BIS alleged that on two occasions in 2006, FedEx facilitated the attempted unlicensed export of electronic components from the U.S. to Mayrow in Dubai, UAE. The exports to Mayrow were thwarted when delivery was halted at BIS's direction. On June 5, 2006, BIS had issued a General Order imposing a license requirement with a presumption of denial for the export or reexport of any item subject to the EAR to Mayrow General Trading and related entities. The General Order was issued based on information that Mayrow and the related entities were acquiring electronic components and devices that were being used in Improvised Explosive Devices deployed against Coalition forces in Iraq and Afghanistan.
BIS also alleged that in December 2005, FedEx facilitated acts prohibited by the regulations when it facilitated the unlicensed export of flight simulation software to Beijing University of Aeronautics and Astronautics, a/k/a/ Beihang University, an organization listed on the U.S. Department of Commerce's Entity List and located in the People's Republic of China.
BIS also alleged that in 2004, FedEx caused, aided, and abetted acts prohibited by the regulations when it facilitated the unlicensed export of printer components from the U.S. to end users in Syria, which was prohibited under General Order No. 2 as set forth in Supplement 1 to part 736 of the EAR.