/>iOn June 27, 2024, the U.S. Department of Commerce, Bureau of Industry & Security (BIS) announced its first update to the boycott requester list. The list contains entities that have been reported by a U.S. person as having made a boycott-related request in connection with a transaction in the interstate or foreign commerce of the United States. The latest update adds 57 entities to the list and removes 127 entities. Some notable additions include entities from Japan and Germany.
Background
On March 28, 2024, BIS personnel announced the rollout of a boycott requester list. The announcement came at the 2024 BIS Update Conference. The list aims to assist U.S. persons in fulfilling the reporting requirements of the antiboycott regulations by raising awareness regarding certain sources of boycott-related requests.
However, we note that this comes on the heels of a memo issued in July 2023, discussing how to strengthen the enforcement of U.S. antiboycott laws. The BIS Office of Antiboycott Compliance (OAC) is responsible for administering those laws. Previously, OAC only required U.S. companies to report the country where they received a boycott-related request, but not the identity of the specific party who made the request. OAC amended the boycott reporting form to include the specific party. Because of the change in the boycott reporting form, OAC is now able to compile a specific list of entities requesting boycotts.
Further, in an October 2022 memo, BIS enhanced penalties for violations of antiboycott rules increasing penalty amounts and upgrading the scope of categories that could carry penalties. For example, certain violations from Category B were moved to Category A. And Category A violations are now subject to the maximum penalty and is the starting point in the penalty calculus. The memo also describes that OAC will require those who enter into settlement agreements for antiboycott violations to admit to a statements of facts outlining their conduct. OAC will also be renewing its focus on foreign subsidiaries of U.S. companies when they act in violation of antiboycott regulations.
Given the geopolitical tensions currently shaping international relations, it is imperative for businesses to remain abreast of antiboycott developments.
Key Takeaways
- Commerce has released a list of entities which have been reported as requesting boycotts. This list will be updated on a quarterly basis.
- Companies should review the boycott requester list to see if any entities are customers.
- If companies have customers that are on the boycott requester list, and companies have not reported boycott requests, we recommend that companies file a voluntary self-disclosure. We will be glad to assist in filing.
- We recommend companies to update and remind employees of antiboycott regulations.
- Entities are able to be removed from the boycott requester list. We will be glad to assist in that process.
