PetroChina Fined By USA For Violating Export Law

PetroChina International America Inc. (PCIA) has entered into an agreement to pay a fine and monetary forfeiture totalling $14.5 million for violations of US export law. PCIA is a subsidiary of PetroChina International Co. Ltd., one of the largest oil and gas companies in the world. The penalties relate to incorrect information being declared at export to US Customs & Border Protection (CBP) agency in the Automated Export System (AES). Specifically, PCIA misclassified more than $32 million of ultra-low-sulphur diesel fuel as mineral oil mix for certain export transactions to Mexico that took place in 2019 and 2020. The investigation that led to fine and forfeiture began in December 2019 after Mexican authorities discovered discrepancies between importation documents for a Panamanian oil tanker after it made entry in Port Veracruz, Mexico. Mexican authorities contacted US trade officials for assistance in clarifying the discrepancies. The US Attorney’s Office reported that PCIA fully cooperated with the investigation and has enhanced its compliance program. It has agreed to provide the US Attorney’s Office with details of its efforts in a yearly report for the three-year-term.

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