U.S. antiboycott laws prohibit U.S. persons from participating in foreign boycotts that the United States does not support — primarily the Arab League boycott of Israel. They also require reporting of any request to participate in such a boycott, even when the request is refused.
Two parallel regimes apply:
- EAR Antiboycott Regulations — Administered by the Bureau of Industry and Security (BIS) under 15 CFR Part 760. Civil penalties; reporting obligation triggers on receipt of a boycott request.
- Ribicoff Amendment — Administered by the IRS under 26 U.S.C. § 999. Tax-based: U.S. persons participating in a boycott lose foreign tax credit, deferral, and FSC benefits.
Under 15 CFR Part 760, a U.S. person must report receipt of any boycott-related request to BIS on Form BIS-621P (single-transaction) or BIS-6051P (quarterly). Common boycott requests appear in:
- Letters of credit ("This L/C will not be paid on goods of Israeli origin")
- Commercial invoices and certificates of origin (negative origin certifications)
- Bills of lading (vessel-eligibility statements)
- Purchase orders (boycott blacklist references)
What's prohibited:
- Refusing to do business with or in Israel, or with blacklisted parties
- Furnishing information about business relationships with or in Israel
- Furnishing information about the race, religion, sex, or national origin of any U.S. person
- Implementing letters of credit containing prohibited boycott terms
- Paying, honoring, or otherwise implementing a boycott-related agreement
Reporting deadlines run on a calendar quarter, due the last day of the month following quarter-end. BIS publishes summary lists of reportable requests by country — a useful guide for compliance teams reviewing incoming commercial documents.
Penalties for non-compliance under the EAR can reach the greater of $356,579 (adjusted for inflation) or twice the value of the transaction per violation, plus loss of export privileges.