PetroChina Fined $14.5 Million for US Export Law Violation, DOJ Says

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PetroChina International America, a subsidiary of PetroChina, has entered into an agreement to pay a fine and forfeiture totaling $14.5 million for violations of US export law, according to the Department of Justice (DOJ).

PetroChina Fined $14.5 Million for US Export Law Violation, DOJ Says
PetroChina International America has agreed to pay a fine and forfeiture totaling $14.5 million for violations of US export law. JOHANNES EISELE/AFP via Getty Images

US DOJ Imposes Fine on PetroChina

The Justice Department said on Tuesday that PetroChina International America reached this agreement following an investigation that revealed they had provided false information in the Automated Export System (AES).

This electronic database is utilized by exporters to declare international exports from the US. The DOJ said that the company misclassified over $32 million worth of ultra-low-sulfur diesel fuel as mineral oil mix in export transactions to Mexico during 2019 and 2020.

The probe began in December 2019 when Mexican authorities detected discrepancies in import documents for a Panamanian oil tanker at Port Veracruz. US trade officials were alerted to assist in clarifying the irregularities.

Historical Analysis Provided by PetroChina International America

A historical analysis of the data provided by PetroChina International America revealed further misclassified and undervalued exports entered into the AES, according to the Justice Department.

Authorities, including Homeland Security Investigations and the Department of Commerce's Bureau of Industry and Security, noted that these actions not only facilitated illegal activities abroad but also harmed America's reputation in global trade. The imposed fine and forfeiture aim to level the competitive field and deter future unlawful conduct.

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Department of Justice, Justice Department

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