Antiboycott Compliance
The United States has a policy of opposing restrictive trade practices or boycottsāÆfostered or imposed by foreign countries against other countries friendly to theāÆU.S. The antiboycott laws were adopted to encourage, and in specified cases, require U.S. firms to refuse to participate in foreign boycotts that the U.S. does not sanction. They have the effect of preventing U.S. firms from being used to implement foreign policies of other nations that run counter to U.S. policy.
This policy is implemented through the anti-boycott provisions of the ExportāÆAdministration Act of 1979 (EAA)āenforced by the U.S. Department of CommerceāāÆand through a 1977 amendment to the Tax Reform Act of 1976āenforced by the U.S.āÆDepartment of the Treasury.
Part 760 of the Export Administration Regulations (EAR) implements the EAAās anti-boycott provisions. U.S. persons areāÆprohibited from taking certain actions with the intent to comply with, further, orāÆsupport an unsolicited foreign boycott. Prohibitions include:
Refusing to do business with a boycotted or blacklisted entity.
Discriminating against, or agreeing to discriminate against, any U.S. person onāÆthe basis of race, religion, sex, or national origin.
Furnishing information about business relationships with a boycotted country orāÆa blacklisted entity.āÆIn addition, the EAR requires a U.S. person to notify the U.S. Department of CommerceāÆif he or she receives a request to comply with an unsanctioned foreign boycotted country or a blacklisted entity.
In addition, the EAR requires a US person to notify the U.S. Department of Commerce if he or she receives a request to comply with an unsanctioned foreign boycott. The Export Administration Act (EAA) specifies penalties for violations of the Antiboycott Regulations as well as export control violations. These can include:
Criminal: The penalties imposed for each āknowingā violation can be a fine of up to $50,000 or five times the value of the exports involved, whichever is greater, and imprisonment of up to five years. During periods when the EAR is continued in effect by an Executive Order issued pursuant to the International Emergency Economic Powers Act, the criminal penalties for each āwillfulā violation can be a fine of up to $50,000 and imprisonment for up to ten years.
Administrative: For each violation of the EAR any or all of the following may be imposed:
General denial of export privileges;
The imposition of fines of up to $11,000 per violation; and/or
Exclusion from practice.
For additional information, exporters should contact the Bureau of Industry and Securityās Office of Antiboycott Compliance.