Most freight forwarders and trade compliance professionals know about OFAC. They know about the Entity List. They know about sanctions screening.

But there is a lesser-known rule sitting quietly in U.S. law that can land you in serious trouble, not for what you ship, but for what you sign.

This is the U.S. Antiboycott Law.

The Background

Decades ago, Arab League countries decided they would not trade with Israel. That is the primary boycott. Then they went further and also refused to trade with any company that did business with Israel. That is the secondary boycott.

To enforce it, they started asking their foreign trading partners to prove their Israel credentials. Sign this declaration. Answer this questionnaire. Certify your goods have no Israeli content.

The U.S. noticed this happening and said: enough.

What the Law Says

Enacted under the Export Administration Regulations (EAR Part 760) and backed by the Anti-Boycott Act of 2018, the law has two clear requirements for U.S. persons.

You cannot participate in or support any unsanctioned foreign boycott.

You must report to BIS any time you receive a boycott-related request, even if you say no.

It is worth noting that while the Arab League boycott of Israel is the principal unsanctioned foreign boycott U.S. persons encounter today, the law applies to all unsanctioned foreign boycotts, not just this one.

What Does Boycott Language Actually Look Like?

This is where it gets practical. Boycott language does not always announce itself. It hides inside routine commercial documents. Here are real examples.

In a certificate of origin: “We certify that the goods are neither of Israeli origin nor do they contain any Israeli materials.”

In a contract: “The contractor shall comply with the requirements of the laws relating to the boycott of Israel.”

In a letter of credit: “Original invoice certified by the beneficiary that goods are not manufactured by a company blacklisted by the Arab boycott of Israel.”

In a purchase order: “Goods of Israeli origin not acceptable.”

In a questionnaire: “Does your company have or ever have had a branch, factory or assembly plant in Israel?”

The Example That Makes It Click

You are a U.S. freight forwarder. A buyer in Saudi Arabia sends you a purchase order. Buried at the bottom is one line:

“Please confirm in writing that you have no business ties with Israel.”

You think: I don’t deal with Israel anyway. Easy. You sign it.

That signature is a violation.

Here is why. The Saudi buyer is building a file of vendors who have passed their boycott screening. Your signature says: this company is clean. They do not work with Israel. Approved.

You just became a functioning part of their boycott enforcement system. It does not matter whether the statement is true. It does not matter that you meant no harm. The act of providing that confirmation for boycott purposes is what the law prohibits.

Two Buckets: Prohibited vs. Reportable

Not all boycott language triggers the same response.

Prohibited conditions are those you cannot agree to, sign, or implement under any circumstances. Agreeing to them is a direct violation.

Reportable conditions are those you must notify BIS about, even if you simply received them and said nothing. Receipt alone triggers the reporting obligation.

The distinction matters. A purchase order saying “goods of Israeli origin not acceptable” may be reportable but not necessarily prohibited depending on context. A contract asking you to certify you have no Israeli ties is prohibited outright.

Who Does This Apply To?

Wider than most people think. It covers all U.S. persons including individuals, companies, and U.S. citizens working abroad. Critically, it also covers foreign subsidiaries of U.S. companies if the U.S. parent controls their day-to-day operations.

For global freight forwarding groups, this means your overseas offices could be pulled in scope if the control test is met.

The Penalties

Under the Anti-Boycott Act of 2018, civil penalties can reach up to $300,000 per violation or twice the value of the transaction, whichever is greater.

Wilful criminal violations can attract up to $1 million per violation and imprisonment of up to 20 years.

These are not theoretical numbers. BIS actively investigates and prosecutes antiboycott violations.

The Practical Takeaway

Every time you review a contract, L/C, purchase order, tender document, or shipping instruction involving Arab League country counterparties, ask one question:

Is anyone asking me to confirm, certify, or declare anything related to Israel?

If yes, do not sign. Report to BIS. Push back on the clause.

The Boycott Requester List published by BIS tells you which parties have historically made such requests. It is not a trade restriction list. It is a red flag list. Use it as an early warning check before you review the documents in detail.

One Line to Remember

The U.S. Antiboycott Law does not just protect Israel. It protects the principle that U.S. companies cannot be conscripted into enforcing another country’s political agenda through commercial paperwork.

Know the language. Spot it early. Never sign it.