FedEx to pay $370,000 to settle allegations - WMC Action News 5 - Memphis, Tennessee

FedEx to pay $370,000 to settle allegations

(WMC-TV) - FedEx is paying a more than $300,000 fine after the government said the company was shipping materials that could have been used in Iraqi bombs.

FedEx will pay a $370,000 civil penalty after the United States government pinpointed six packages that it believes may have been shipped to people in places averse to national security.

In a news release on the Bureau of Industry and Security website, Assistant Secretary for Export Enforcement David W. Mills said, "It is vital that every stakeholder in the U.S. exporting chain remain vigilant in its efforts to prevent prohibited transactions that may be detrimental to our national security, and each will be held accountable if it fails to do so."

In 2006, FedEx facilitated export of electronic components to Mayrow in Dubai.  The U.S. government presumed Mayrow was stockpiling components to make improvised explosive devices deployed against Coalition forces in Iraq and Afghanistan.

In 2005, flight simulation software was shipping to Beijing University of Aeronautics and Astronautics, which is on the commerce department's entity list of organizations that engaged in activities contrary to U.S. national security.

In 2004, printer components were shipped to Syria, which requires a specific license.

FedEx said the shipments include a total of six packages and that the problem was corrected to ensure regulatory compliance, adding, "When we became aware of this we fully cooperated with the government and put measures in place to prevent a reoccurrence of what for us was a rare shipping error."

The government did not allege any malicious intent.  FedEx described these actions as honest mistakes.

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