The Bureau of Industry and Security (BIS) and the Office of Foreign Assets Control (OFAC) alleged DHL executed over 300 barred shipments to Iran, Sudan, and Syria over the past five years. As part of a settlement agreement, DHL has agreed to pay a $9.4 million civil penalty and conduct an external audit of all transactions to Iran, Sudan and Syria between March 2007 and December 2009.
BIS alleged that on eight occasions the company caused or aided acts prohibited by Export Administration Regulations (EAR). BIS went further to charge DHL with failing to retain air waybills with regards to 90 exports which is also a violation of the EAR. OFAC charged DHL with making more than 300 illegal shipments to Iran and Sudan and failure to retain required records.
For a company that did not submit a voluntary self-disclosure, a $9.4 million fine for over 300 violations, some of which appear to be carried-out with knowledge and direct intent to violate the export regulations, is barely a slap on the wrist. The outstanding question is what penalties will be forth coming for the companies that actually owed the goods that DHL illegally exported. I would expect such fines will be levied just in time to make the 2009 Holiday Season very memorable for some.
