Foreign Affiliate Penalized for Anti-Boycott Violations
The Bureau of Industry and Security reports that a foreign affiliate of a U.S. company has agreed to a $26,250 penalty to settle allegations that it violated the anti-boycott regulations. If this penalty is not paid within 30 days BIS may suspend the affiliate’s export privileges for one year.
A BIS order states that on two occasions, in connection with the sale and/or transfer of goods or services to Oman and the United Arab Emirates, the affiliate knowingly failed to delete, amend, or otherwise take exception to a prohibited boycott-related condition in letters of credit from applicant-customers in Oman and the UAE. In addition, the affiliate failed to report its receipt of a request to take an action that would further or support a restrictive trade practice or unsanctioned foreign boycott.
For more information on anti-boycott requirements, please contact export attorney Kristine Pirnia.