FedEx fined for security breaches

FEDEX has agreed to pay a US$370,000 penalty for breaching anti-terrorism laws.

The integrator blamed “rare errors” when exports or attempted exports of technology violated export administration regulations in the US.

“This was an inadvertent and very limited number of export shipments involving discrepancies with the export administration regulations,” FedEx spokesman Jim McCluskey commented. “These were limited shipping issues which involved only six packages from 2004 to 2006.”

The US Commerce Department’s Bureau of Industry and Security stopped FedEx-processed shipments of an Intel PC Dialogic Board and computer peripheral equipment from reaching Dubai (UAE) company Mayrow General Trading. Mayrow has been investigated for using US computer hardware to produce improvised explosive devices found in Afghanistan and Iraq.

“We do have a strong security process in place with regard to movement of our shipments,” McCluskey added. “It appears the checkpoint process with respect to these shipments worked.”

FedEx also handled paperwork and transportation for a shipment of flight simulation software to Beijing University of Aeronautics and Astronautics, also known as Beihang University, which is restricted from receiving certain security-sensitive US items.

The other three exports involved printer parts or components sent to Syria without required US licenses.

“When we became aware of this we fully cooperated with the government and put measures in place to prevent a reoccurrence of what was, for us, a rare shipping error. We adhere strongly to all regulations regarding export shipments,” McCluskey said.