HP Violating U.S. Law By Using 3rd Party To Sell to Iran?

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    NEWSLETTERS

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    Best Buy customers Andre Vaz (L) and Zoran Kostov test an HP laptop at a Best Buy store in San Francisco.

    The Boston Globe is reporting Hewlett-Packard could be breaking U.S. trade sanctions by using a third-party distributor to sell printers in Iran.

    The newspaper said today HP signed a distribution deal with a Dubai-based company called Redington Gulf in 1997, two years after the Clinton administration put sanctions on Iran.

    As a foreign company, Redington falls outside U.S. regulations. But the Globe reports there is evidence HP knew its equipment would end up circumventing U.S. law.

    The paper says in 1999, HP's Middle East manager was quoted as estimating that sales in Iran would grow 50 percent a year.

    A spokesman for Palo Alto-based HP would not say whether the company plans to stop sales of its printers in Iran.

    But David Shane says HP has a policy of complete compliance with U.S. export laws.