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Alberta company fined $90K for mailing tiny bits of rubber to Iran

Alberta company fined $90K for mailing tiny bits of rubber to Iran

An Alberta pipeline manufacturing company was fined $90,000 and could have caused an international incident after accidentally mailing an order of tiny rubber rings useful in nuclear device development to Iran.

And if the inclusion of words such as "nuclear" and "Iran" weren't enough, the company became the first to be charged under a special set of Canadian laws designed to punish troublesome foreign states.

All because of what can essentially be summarized as a clerical error.

The Canadian Press reported that Lee Specialties pleaded guilty to violating the Special Economic Measures Act and was ordered to pay a $90,000 fine. Two other charges, under the Customs Act and the United Nations Act, were withdrawn.

So exactly how did Lee Specialties, an unassuming manufacturing company in Red Deer, Alta., run afoul of international law?

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According to the Royal Canadian Mounted Police, border security officers at the Calgary International Airport intercepted a cargo shipment in 2011 that was destined for Iran. Contained in the shipment were 50 Viton o-rings, synthetic rubber gaskets capable of resisting high temperatures and contact with chemicals. The o-rings are commonly used in oilfield machinery, but are also valuable components for nuclear devices.

Said the RCMP, "A Viton o-rings and gaskets are specifically mention in Schedule 2 of the Special Economic Measures (Iran) Regulations under the Special Economic Measure Act as a prohibited item which, cannot be shipped or sold to any person or company in the Islamic Republic of Iran."

At a court appearance on Monday, Lee Specialties and Crown prosecutors submitted an mutual statement of facts that stated a mailing mix-up was responsible for the issue.

Via the Globe and Mail, the order was sent to Kan Dana Middle East LLC, which had an account address in Iran but a shipping address in the United Arab Emirates.

"The account and shipping addresses were changed five times as Lee Specialties went back and forth with Kan Dana over the details of the shipment and payment," wrote the Globe. "But the cargo, including the $15 worth of Viton o-rings, was instead sent to an address in Tehran via shipping company DHL."

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So, exactly how serious is this whole mess? According to the RCMP, this is the first time charges under the Special Economic Measures Act have ever been laid in Canada.

The Act essentially allows Canada to enact economic sanctions against foreign states, such as Iran. One section specific to Iran states a person could be charged if they "directly or indirectly facilitate, support, provide funding for, contribute to, or could contribute to, Iran’s proliferation-sensitive nuclear activities."

The o-rings in question cost about 30 cents each. Think about that. A barely-averted international incident caused by a few bits of rubber sent to the wrong address.

Would be almost funny, if not for that whole "nuclear Iran" bit.

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