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Newsworthy Postings
Friday, December 12, 2003
related to boycott of Israel
by Dan Margolies,
Kansas City Star
June 25, 2003
Cook Composites and Polymers Co. has agreed to pay a $6,000 fine to settle
charges that it violated Commerce Department regulations aimed at countering
the Arab boycott of Israel.
The department's Bureau of Industry and Security had charged that, in
response to a request from a customer in Bahrain, Cook had furnished
information stating that the goods being shipped were not of Israeli origin and did not
contain Israeli materials.
The bureau also charged that Cook had failed to report its receipt of the
request.
Cook, of North Kansas City, neither admitted nor denied the allegations, but
agreed to pay the $6,000 civil penalty.
The anti-boycott provisions bar U.S. companies from providing information
about their business relationships with Israel. They also require that
receipt of boycott requests be reported to the Bureau of Industry and Security,
formerly known as the Bureau of Export Administration.
Cook's chief executive, Charles Bennett, was in Paris this week and
unavailable for comment. A spokeswoman for the company, Rita Durocher, said
the fine marked the first time Cook has had a run-in with a federal agency.
"If you go back and look at our record, we've been flawless with other
government agencies," she said.
Cook makes polyester gels and other coating resins. It operates plants
throughout North America.
The settlement with the Commerce Department came after the Bush
administration in November warned U.S. companies not to heed calls to
boycott Israeli goods and services. The warning followed a call by the 22-member
Arab League to reactivate its decades-long boycott of Israel.
In a statement released at the time by the department, Commerce
Undersecretary for Industry and Security Kenneth Juster reminded American
companies that the "U.S. government is strongly opposed to restrictive trade practices or boycotts targeted against Israel."
Knowing violators of the anti-boycott provisions face fines of up to
$50,000, or five times the value of the exports at issue, and possible imprisonment.
Offenders can also be denied export privileges.
The Bureau of Industry and Security says it has imposed more than $26
million in fines for violations of the provisions.
More than a decade ago, the Commerce Department sent compliance officers to
Kansas City to check out tips that Marion Merrell Dow Inc. and Marley
Cooling Tower Co. may have cooperated with the Arab boycott. Nothing came of the
investigation, and no penalties were imposed.
In Cook's case, the Bureau of Industry and Security charged that Cook failed to report a letter of credit it received on Dec. 1, 1997, from ABN AMRO Bank in Manama, Bahrain. The letter asked it to confirm that the goods being
shipped "are not of Israeli origin nor do they contain any Israeli" material.
The bureau also charged that on Jan. 20, 1998, Cook, through its freight
forwarder, provided a U.S. bank with a copy of a commercial invoice
confirming that the goods were not of Israeli origin and did not contain Israeli
material.
Cook, with 558 employees overall and 120 employees locally, is one of North
Kansas City's biggest employers. The company bills itself as the No. 1
producer of gel coats in the world and, together with affiliated companies, the No. 2
producer of resins.
Since 1990, Cook has had a joint venture relationship with the chemicals
division of TotalFinaElf, a multibillion-dollar petrochemicals giant based
in Paris.
Official website of the Department of Commerce, Bureau of Industry and Security
Comment:
Ain't bureaucracy wonderful?
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