SEC WANTS TO KNOW WHY HP IS STILL SELLING PRODUCT IN IRAN ?

[Anonymous]

http://money.cnn.com/news/newsfeeds/articles/djf500/200908172007DOWJONESDJONLINE000311_FORTUNE5.htm
HP Queried By SEC On Exports To Iran, Syria
SAN
FRANCISCO — The U.S. Securities and Exchange Commission recently
queried Hewlett-Packard Co.  about sales of its products in Iran and
Syria, part of what appears to be a broader inquiry of companies doing
business in countries whose governments the U.S. deems to sponsor
terrorism.The SEC asked Hewlett-Packard to describe sales of its
products in the countries in a questionnaire sent the Palo Alto,
Calif., company dated Feb. 10, according to correspondence the agency
released Monday. The watchdog also asked about H-P’s business in Sudan.

In
a nine-page response dated March 12, H-P told regulators it conducted
its sales in Iran through a European subsidiary, and limited products
to those authorized for redistribution into Iran under U.S.
regulations. It also said it had received 14 U.S. Department of
Commerce licenses over the last five years to sell computers, software
and related equipment for use by Syrian telecommunications companies.

News
of the inquiry come as the SEC makes public documents sent to other
companies, in which it seeks information about their business in
countries that have troubled relationships with the U.S. Both Advanced
Micro Devices Inc. (AMD) and Intel Corp. (INTC) were queried about
their business ties with a range of countries. Both companies have said
their practices comply with U.S. trade law.

The U.S. considers
Iran, Syria, Sudan and Cuba to be state sponsors of terrorism,
according to the U.S. State Department Web site. As a result, the
nations are subject to various embargoes and restrictions, including a
ban on defense exports and U.S. foreign assistance.An H-P spokeswoman
termed the correspondence “routine.” In a statement, the company said,
“H-P believes that it has fully complied with the staff’s inquiry.”

An
SEC spokesperson declined to comment on the situation. However, release
of documents of this nature usually indicates an inquiry has been
completed.The inquiry included a request for information on sales of
printers and printer supplies in Iran. The sales were conducted by
H-P’s Dutch subsidiary Hewlett-Packard Europe, B.V., H-P said. The
company provided products to United Arab Emirates-based distributors
Redington Gulf FZE, Almasa IT Distribution FCZO and Emitac Distribution
LLC, according to H-P.

A branch of the Dutch subsidiary has
since “taken steps to terminate existing agreements” with Redington
Gulf, as well as some other distributors, “insofar as they may involve
redistribution of such printers and printer supplies into Iran, ” H-P
told the regulators.In the documents, the company didn’t say why the
business arrangement had ended. Total printer sales and supplies
revenue in Iran amounted to $120 million in fiscal 2008, less than a
percent of the company’s global printer and toner sales.H-P said it had
no agreements or contacts with the governments of Iran, Syria or the
Sudan.On a day of broad losses, H-P shares fell 2.2% to $43.11 Monday.

[Author]

August 19, 2009 at 11:17 AM