Hewlett-Packard is tightening sales restrictions on a Middle East distributor based in Dubai to prevent it from selling printers to retailers in Iran, the San Jose Mercury News is reporting.

Under U.S. law enacted during the Clinton administration, U.S. companies are prevented either directly or indirectly from selling technology products to Iran, which is considered a sponsor-state of international terrorism.

The sale of printers first appeared in The Boston Globe last month, when the newspaper reported that Redington Gulf was selling HP printers to retailers in Iran. The Globe report described a warehouse in Tehran that had HP printers stacked from ceiling to floor.

In a statement to the Mercury News, HP said it “has a policy of complete compliance with all U.S. export law,” and that it is notifying foreign distributors of its policy “to explicitly prohibit the sale of HP products in Iran.”

HP has strenuously stated that it has no employees or facilities in Iran, and conducts no sales or support activity to the country.

In a response to the Boston Globe article, Redington Gulf, an Indian-owned company, stated on its Web site, “Redington Gulf is an authorized distributor and an authorized service provider in Middle East and Africa for HP brand, amongst other brands of global repute. We sell authorized products to HP authorized customers, in authorized territories, in line with HP’s policy guidelines.”

According to Redington Gulf’s Web site, the distributor’s other partners include Acer, IBM, Intel, Toshiba, Canon, Samsung, McAfee, Microsoft, Lenovo, SonicWall, Trend Micro and APC.

Redington Gulf received an HP best distributor of the year award in 2007 from HP, and several other HP awards dating back to 2002. It has also received other top distribution and channel awards from Acer, IBM, Intel, Toshiba, Canon and Samsung.