The Bureau of Industry and Security recently made available a new resource that a senior official said reflects the agency’s “enhanced enforcement of the anti-boycott regulations, including a focus on not just those receiving, but also those making, boycott requests.” Boycott-related actions could see an increase amid ongoing conflicts in the Middle East, and U.S. companies and their foreign affiliates can be hit with substantial criminal and civil penalties if they violate related U.S. laws and regulations.
According to BIS, 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. In addition, U.S. persons must report to BIS their receipt of certain boycott-related requests. 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.
To help companies, freight forwarders, and others identify boycott-related requests they may receive during the regular course of business, BIS published last week a list of entities that have been identified in reports received by BIS as having made a boycott-related request in connection with a transaction in U.S. interstate or foreign commerce. BIS is encouraging U.S. persons to diligently review transaction documents from all sources, but especially those involving the parties on this list (which will be updated regularly), to identify possible boycott-related language and determine whether they need to report it to BIS.
For more information on complying with anti-boycott requirements, please contact attorney Kristine Pirnia at (202) 730-4964 or via email.
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