Commerce Again Issues Arab Boycott Warning to US Companies and Affiliates

On May 14, 2002, Commerce Department Under Secretary for Industry and Security warned US companies and their foreign affiliates that Commerce “will vigorously enforce its regulations prohibiting US persons from taking any action in support of foreign government boycotts against Israel.” “The Commerce Department is committed to using all of its resources to oppose economic boycotts against Israel and corporations that do business with Israel.”

It is difficult to tell if Commerce actually is stepping up its enforcement teeth to back up Juster’s harsh antiboycott language. In any event, now is not a good time for your company to be nailed for an antiboycott violation because Juster may want to prove what he is saying is true. Another reason today is not a good day for a violation is that media coverage might not focus on the technicalities of your violation and instead may paint an ugly picture of your company.