Commerce Department Warns US Exporters and their Subsidiaries about Arab Boycott
January 2002
The Office of Antiboycott Compliance of the Department of Commerce posted a notice on the BXA web page (www.bxa.doc.gov) warning US companies and their foreign subsidiaries to be on the lookout for an increase in the number of boycott requests from Arab countries. This follows the October 2001 meeting of the Arab League Boycott Office which encouraged Arab League members to re-commit themselves to the Arab boycott of Israel.
The US antiboycott regulations prohibit “US persons” from cooperating with the Arab boycott of Israel. (Generally speaking, “US person” includes US companies, residents and citizens, and non-US entities owned or controlled by a US person.) If the Commerce Department expects Arab boycott requests to increase, it would be safe to assume that Commerce might step up its enforcement efforts. So, if you are a US person, you need to reinvigorate your companies program and procedures for compliance with US antiboycott regulations.
The Office of Antiboycott Compliance announced its statistics for illegal or reportable boycott requests during the year 2001. The most illegal boycott requests came from The United Arab Emirates, followed by (in descending order) Syria, Oman, Saudi Arabia, and Bahrain.
Exporters should also be on the lookout for Arab boycott issues when dealing the rest of the Arab world and Islamic countries such as Indonesia, Bangladesh, and Pakistan.
