Boycott Watch
                 
October 4, 2004
 
St. Jude Medical Export GmbH Settles Charges of Antiboycott Violations
 
As posted by the Office of Antiboycott Compliance
US Department of Commerce

St. Jude Medical Export GmbH Settles Charges of Antiboycott Violations

   The U.S. Department of Commerce today announced that St. Jude Medical Export GmbH (St. Jude), an Austrian subsidiary of a Minnesota-based U.S. exporter of medical equipment, has agreed to pay a $30,000 civil penalty to settle charges that it violated the antiboycott provisions of the Export Administration Regulations (EAR).

   The Commerce Department’s Bureau of Industry and Security (BIS) charged that St. Jude violated the EAR when it failed to report in a timely manner its receipt of three requests from an Iraqi government agency to adhere to the rules of the Israeli boycott during the 2000-2001 reporting period. BIS also charged that, on four occasions, St. Jude violated the antiboycott provisions by agreeing to refuse to do business with blacklisted persons.

   The antiboycott provisions of the EAR prohibit U.S. persons from complying with certain requirements of unsanctioned foreign boycotts, including providing information about business relationships with another person who is known or believed to be restricted from having a business relationship with or in a boycotting country. In addition, the EAR requires that U.S. persons report their receipt of certain boycott requests to the Department of Commerce. Under the antiboycott provisions of the EAR, a controlled-in-fact foreign subsidiary of a domestic U.S. company is considered a U.S. person.

   St. Jude voluntarily disclosed the transactions and cooperated fully with the investigation.

   Assistant Secretary for Export Enforcement Julie L. Myers commended Compliance Officer Perry Province of BIS’s Office of Antiboycott Compliance, for his work on this case.
 
 
 
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