The BIS Antiboycott framework prohibits U.S. persons from cooperating with foreign boycotts against U.S.-friendly countries (primarily Israel), requires them to report any such requests received, and publishes a list of parties known to have made such requests as a compliance alert tool.
The Core Problem It Addresses
Some countries (Arab League members) maintain a boycott against Israel meaning they refuse to trade with Israel and want their trading partners to do the same. They pressure foreign companies (including U.S. ones) to:
- Avoid Israeli goods/suppliers
- Confirm they have no business ties with Israel
- Exclude Israeli-origin cargo from shipments
The U.S. says: you cannot comply with this pressure.
What the Antiboycott Law Actually Does
It has two sides:
| Side | What it means |
|---|---|
| Prohibition | You cannot participate in or support the boycott |
| Reporting | You must report to BIS whenever you receive a boycott-related request, even if you reject it |
What is Prohibited (Plain Language)
- Refusing to deal with Israel or Israeli companies because a third country told you to
- Providing information like “we have no business ties with Israel” to satisfy a foreign buyer’s boycott requirement
- Disclosing someone’s religion, race, or nationality to satisfy a boycott-related demand
- Signing contracts or L/Cs that contain boycott conditions (e.g., “vessel must not have called at Israeli ports”)
- Trying to get around the rules indirectly
What is the “List” Then?
The Boycott Requester List (published by BIS) is simply a record of countries and entities that have previously made boycott-related requests to U.S. persons.
- It does not restrict you from trading with those parties
- It is a red flag reference — if a party is on it, scrutinise your contract/L/C terms very carefully before proceeding
Who Does This Apply To?
- Any U.S. person (individuals, companies, U.S. citizens abroad)
- Foreign subsidiaries of U.S. companies if the U.S. parent controls their day-to-day operations
- Covers activity in U.S. commerce (any transaction touching the U.S. goods, services, payments routed through the U.S.)
Practical Red Flags to Watch For
In shipping/freight forwarding, boycott language typically appears in:
- L/C terms — “cargo of Israeli origin not acceptable”
- Shipping instructions — “vessel must not call at Israeli ports”
- Contracts — “supplier must confirm no Israeli business ties”
- Buyer questionnaires — asking about your relationship with Israel
Any of these = mandatory report to BIS, and you cannot comply.
Leave a Reply