The Commerce Department fined NCR Corp. $381,000 yesterday for alleged compliance by nine of its subsidiaries with an Arab boycott of Israel.
The department said the penalty was the largest in the 10-year history of the anti-boycott law, which is part of the Export Administration Act.
A department statement said that NCR, based in Dayton, Ohio, agreed to the negotiated settlement and had voluntarily disclosed the 266 alleged violations, said to have occurred between 1982 and 1985.
The department said the nine foreign subsidiaries allegedly provided 256 items of prohibited information to Arab League countries about the subsidiaries' business relations with boycotted countries and blacklisted people. The Arab League countries included Kuwait, Bahrain, Oman, Saudi Arabia and Libya.
Additionally, the NCR subsidiaries agreed on 10 occasions to comply with the regulations of the Arab boycott of Israel, the department said. "These regulations requested the subsidiaries to refuse to do business with individuals and companies that may have business relations with Israel," the statement said.
The Arab League is an international organization formed in 1945 which represents Arab interests and coordinates military, economic and diplomatic efforts against Israel.
Some Arab League countries boycott goods and services from Israel, and maintain a blacklist of companies and people doing business with Israel. The aim of the boycott is to undermine the Israeli economy.
The announcement was the second in a month from the department. In late July, the department accused Safeway Stores Inc. of 449 violations of the act through its dealings with licensee stores in Kuwait and Saudi Arabia. Safeway, based in Oakland, Calif., denied the allegations.
Safeway faces fines that could go as high as $10,000 for each violation, or almost $4.5 million. Department officials noted, however, that most cases end in a settlement.
NCR neither admitted nor denied the alleged violations, the department said. NCR spokesman Robert Farkas, reached in Dayton after business hours, had no immediate information on the settlement.
NCR produces automatic teller machines, cash registers, personal computers and other electronic goods