Computerlinks FZCO fined $2,800,000 for Violating Syria Trade Embargo

2013/06/18

By: Brooke Driver

Recently, United Arab Emirates’ Computerlinks FZCO, a Middle East distributer working with Blue Coat Systems, Inc. of Sunnyvale, California, was charged with shipping without permission—or the manufacturer’s knowledge—to the embargoed country Syria. Although Computerlinks FZCO had agreed in its distribution agreement with Blue Coat to abide by US Department of Commerce regulations, the company falsified end user and final destination information it gave to Blue Coat on three occasions.

On or about October 29, 2010, December 31, 2010 and May 15, 2011, Computerlinks FCZO ordered devices from Blue Coat used to monitor and control web traffic along with related equipment and software, informing the manufacturer that the items were bound for the Iraq Ministry of Telecom or Liwalnet (an Internet service provider in Afghanistan), when in fact Computerlinks sent them to the Syrian Telecommunications Establishment. The total value of the three shipments is approximately $1,400,000

Because the value of the shipments was so high and because Computerlink intentionally evaded trade regulations, the BIS chose to:

  • Fine the company a whopping $2,800,000
  • Require three consecutive external audits—the first to analyze the company’s activity during the year prior to the charges, the second to observe the company’s activity the year directly after the charges and the last to analyze its activity two years after the charges

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