The Bureau of Industry and Security has published its quarterly update to a list of entities identified as having made a boycott-related request in connection with a transaction in U.S. interstate or foreign commerce. This update reflects the addition of 30 parties and the removal of 18. BIS notes that over the past year more than 65 entities, most from countries that support the Arab League boycott of Israel, have agreed to stop including boycott-related terms in transactions with U.S. persons.
The anti-boycott provisions set forth in Part 760 of the Export Administration Regulations discourage, and in certain circumstances prohibit, U.S. persons from taking certain actions in furtherance or support of a boycott maintained by a foreign country against a country friendly to the U.S. The EAR also require U.S. persons to report to BIS their receipt of requests they have received to take certain actions to comply with, further, or support such an unsanctioned foreign boycott. Reports may be filed electronically or by mail on form BIS-621P for single transactions or on form BIS-6051P for multiple transactions involving boycott requests received in the same calendar quarter.
Maximum civil penalties under the EAR for anti-boycott violations are more than $300,000 per violation or twice the value of the transaction, whichever is greater. For criminal violations, penalties of up to $1 million and/or 20 years’ imprisonment may be imposed.
In 2024 BIS started publishing a list to help companies, freight forwarders, and others identify potential sources of boycott-related requests they may receive during the regular course of business. BIS has said that a party’s inclusion on this list does not mean that U.S. persons are restricted from dealing with it, only that it is more likely to make reportable boycott-related requests.
BIS therefore encourages U.S. persons to diligently review transaction documents from all sources, but especially those involving the parties on this list, to identify possible boycott-related language and determine whether they need to report it to BIS.
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