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The Office of Antiboycott Compliance (OAC) is responsible for implementing the antiboycott provisions of the Export Administration Act (EAA) and the Export Administration Regulations (EAR). The Office performs three main functions: enforcing the antiboycott provisions of the EAR, assisting the public in complying with the antiboycott provisions of the EAR, and compiling and analyzing information regarding international boycotts. Compliance officers enforce the antiboycott provisions of the EAR through investigations and audits. The Compliance Policy Division provides advice and guidance to the public concerning application of the antiboycott provisions of the EAR and analyzes information about boycotts.
The investigators of the Enforcement Division implement the investigative and enforcement functions of the Office, which include conducting compliance reviews, investigating potential violations, issuing pre-charging letters for alleged violations, and negotiating settlements when violations have been alleged. The Enforcement Division also prepares settlement documents or charging letters to initiate administrative proceedings and prepares cases for civil litigation through the Office of the Chief Counsel for Export Administration or for criminal prosecution through the Department of Justice.
The Compliance Policy Division is responsible for developing and coordinating policies and initiatives to promote compliance with the antiboycott policies and requirements of the EAA. This includes preparing amendments, interpretations, and clarifications of the antiboycott provisions of the EAR; reviewing international boycott activity through communication with diplomatic posts; analyzing reports received by OAC; reviewing information from other sources; preparing reports on boycott activity for use by U.S. embassies and others in efforts to bring an end to the boycott; developing public education programs to assist U.S. companies in complying with the antiboycott provisions of the EAR; counseling parties on requirements of the law and how to comply with it; processing all boycott reports filed with the Department; and supervising the informal telephone advice provided by OAC professionals to members of the public.
During Fiscal Year 2005, five companies agreed to pay civil penalties totaling $57,500 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.
Of particular note in this Fiscal Year, MBL (mentioned as a WMD Proliferation case in Significant Dual-Use Investigations, above) was investigated jointly by OAC and the Office of Export Enforcement (OEE) for antiboycott and dual-use violations. In addition to the dual-use violations noted above, MBL pled guilty to three criminal violations of the antiboycott provisions of the EAR when it knowingly and willfully furnished prohibited business information and failed to report the receipt of a boycott-related request in connection with the sale of virus toxins to Syria.
In Fiscal Year 2005, BIS antiboycott investigations resulted in the completion of one criminal case which resulted in a penalty of $500,000.
See the BIS Annual Report for case information.