- with readers working within the Environment & Waste Management industries
This month, the U.S. Department of the Treasury (Treasury) published a list of eight countries that Treasury determined may require participation in or cooperation with an international boycott within the meaning of section 999(b)(3) of the Internal Revenue Code.
The countries that Treasury listed based on “the best information currently available” are:
| Iraq | Qatar |
| Kuwait | Saudi Arabia |
| Lebanon | Syria |
| Libya | Yemen |
U.S. companies are generally prohibited from making agreements to refuse to do business with a boycotted country or with a blacklisted person for boycott-related reasons. Further, U.S. companies and individuals are required to report any boycott-related requests for information to verify compliance with an unsanctioned foreign boycott. The Office of Anti-Boycott Compliance (OAC) at the Bureau of Industry and Security (BIS) at the Department of Commerce (Commerce) maintains a “Requester List” that is provided to assist U.S. persons in fulfilling the reporting requirements by making accessible sources of boycott-related requests. The primary objective of these provisions of U.S. law is to ensure that U.S. persons are not advancing foreign policies of other nationals that do not align with U.S. policy.
In addition to refusing or agreeing to refuse to do business with a boycotted country, other activities that may run afoul of the antiboycott regulations include: (1) discrimination or agreements to discriminate against a U.S. person based on race, religion, sex, or national origin; (2) furnishing information or agreements to do so about business relationships with a boycotted country; (3) furnishing information or agreements to do so about the race, religion, sex, or national origin of a U.S. person; or (4) implementation of letters of credit containing prohibited boycott terms or conditions.
Reviewing business transaction documents to rule out any inclusion of boycott-related language and to determine whether a reporting obligation exists can be a complex review process.
Violations of the Anti-Boycott Act may subject U.S. persons to administrative or criminal penalties, including monetary fines, denial and/or revocation of export privileges, and imprisonment.
Buchanan’s team of National Security attorneys possesses extensive experience in advising on antiboycott compliance and is well-prepared to assist clients in navigating the complex issues surrounding its enforcement. Our eBook, Navigating the Law: U.S. Antiboycott Handbook, provides antiboycott basics, including both Commerce antiboycott provisions and Treasury antiboycott provisions. It also covers antiboycott information on jurisdiction, activities prohibited, exceptions, due diligence, reporting and penalties, among other important related matters.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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