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| FOR IMMEDIATE RELEASE | BUREAU OF INDUSTRY AND SECURITY |
| Tuesday, July 17, 2007 |
Office of Public Affairs |
| www.bis.doc.gov | 202-482-2721 |
DEPT. OF COMMERCE PUBLISHES ANTIBOYCOTT PENALTY GUIDELINES
WASHINGTON --- The United States Department of Commerce’s Bureau of Industry and Security (BIS) today published new antiboycott penalty guidelines. In a Federal Register notice BIS outlines penalty guidelines for exporters and explains how cases concerning voluntary self-disclosures of violations of the antiboycott provisions of the Export Administration Regulations (EAR) will be handled. The guidelines also address how BIS determines the appropriate penalty for the settlement of such cases and represents a codification of BIS’s long standing penalty determination practice in antiboycott cases.
"The Department of Commerce policy of opposing restrictive trade practices or unsanctioned boycotts, including against Israel, is clear-cut,” said Mario Mancuso, under secretary of Commerce for Industry and Security. “Publishing the penalty and voluntary self-disclosure guidelines provides additional clarity and is a valuable part of our continuing efforts to educate U.S. businesses about their responsibilities."
During Fiscal Year 2006, nine companies agreed to pay civil penalties totaling $95,950 to settle allegations they violated the antiboycott provisions of the EAR. Most of the settlements reached during the Fiscal Year involved alleged violations of the prohibition against furnishing information about business relationships with or in Israel, or with companies on boycotting countries’ blacklists. Other settlements involved failure to report receipt of requests to engage in restrictive trade practices or boycotts.
The antiboycott provisions of the EAR prohibit U.S. persons from complying with certain requirements of unsanctioned foreign boycotts, including furnishing information about a business relationship with another person who is known or believed to be restricted from having a business relationship with or in a boycotting country. In addition, the EAR requires that persons report their receipt of certain boycott requests to the Department of Commerce.
BIS will continue to ensure that each segment of the exporting community is aware of the antiboycott provisions of the EAR. BIS educates U.S. businesses on how to avoid violating these provisions, particularly their application to the Arab League boycott of Israel. To this end, BIS focuses its outreach and education efforts on industries that are most likely to be adversely impacted by this unsanctioned foreign boycott. BIS will continue to collaborate with other governmental agencies that are seeking to remove this impediment to U.S. trade. In addition, BIS will maintain its increased focus on intentional violations of the antiboycott provisions of the EAR by businesses seeking an unfair competitive advantage.
The Federal Register Notice can be viewed at: www.bis.doc.gov.