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RESIDENTIAL VENTILATION / TECHNOLOGY SOLUTIONS / DISPLAY MOUNT SOLUTIONS / RESIDENTIAL HEATING & COOLING / COMMERCIAL AIR SOLUTIONS
Anti-Boycott Compliance
A review of our compliance responsibilities with BIS’s Anti-Boycott laws
A boycott is an act of voluntarily abstaining from using,
buying, or dealing with a person, organization, or
country as an expression of protest, usually for social or
political reasons.
This can be enacted on a consumer or country-wide
level.
For consumers, it can be used to voice a protest against
a certain type of product or company for political or
personal reasons.
For countries, it can be used to make a political, non-
militant, stand against a country who’s practices,
religion, or politics differ from their own.
Notable boycotts
1767; Colonists of the new British colonies began to
boycott British merchandise in protest of high taxes
1790’s; supporters of abolition of the slave trade in
Britain advocated boycotting slave-produced sugar
1930’s; Anti-Semitic boycott of Jewish-owned businesses
in Nazi Germany
1955; The Montgomery Bus Boycott took place in the era
of the U.S. civil rights movement against the racial
segregation on the public transit system
(Most notable today) Arab League Boycott of Israel
American Colonies boycott against British
Goods
Nazi Boycott against Jewish businesses
Montgomery Bus Boycott
Arab League Boycott against Israel
Office of Antiboycott
Compliance (OAC)
Understanding OAC and what
it means to you
OAC is part of the “Bureau of Industry and Security”
(BIS)
OAC governs the laws which prohibit U.S. companies
from taking part of other country boycotts which is
against U.S. Foreign Policy
Objective (From the BIS site): “The antiboycott laws
were adopted to encourage, and in specified cases,
require U.S. firms to refuse to participate in foreign
boycotts that the United States does not sanction.
They have the effect of preventing U.S. firms from
being used to implement foreign policies of other
nations which run counter to U.S. policy.”
What do Antiboycott laws
prohibit?
Agreements to refuse or actual refusal to do business
with or in Israel or with blacklisted companies.
Agreements to discriminate or actual discrimination
against other persons based on race, religion, sex,
national origin or nationality.
Agreements to furnish or actual furnishing of
information about business relationships with or in
Israel or with blacklisted companies.
How does this apply to your
job?
We must be on the look out for “Antiboycott” language
that may be listed on emails, purchase orders,
requisition forms, etc. we receive from our customers
who support boycotts the U.S. does not sanction.
The primary example of this is any member of the Arab
League who is requesting or asking us to prohibit the
sale of any Israeli made goods or services.
Even if we do not produce goods in Israel (or any other
country subject to a boycott the U.S. does not
sanction), we must report any antiboycott language we
receive as it is unlawful to accept official documents
with such language.
Examples of Antiboycott
language The following examples are taken directly from the BIS
site as antiboycott language:
"In the case of overseas suppliers, this order is placed
subject to the suppliers being not on the Israel boycott list
published by the central Arab League.“
"Goods of Israeli origin not acceptable.“
"Israeli Clause: The Seller shall not supply goods or
materials which have been manufactured or processed in
Israel nor shall the services of any Israeli organization be
used in handling or transporting the goods or materials.“
"Supplies of our purchase order should never be consigned
or shipped by steamers included on Israel Boycott list.“
"The bill of lading shall bear a note that the vessel
delivering the cargo is not on the "Black List" and does not
call at Israeli ports."
BIS Warning letter to a company who failed to
report antiboycott language on a letter of credit
What areas should you look
out for?Most antiboycott language you will see
comes from the countries of the Arab
League
Algeria*
Bahrain
Comoros
Djibouti
Egypt*
Iraq
Jordan*
Kuwait*
Sudan
Syria
Tunisia
Lebanon*
Libya
Mauritania
Morocco*
Oman*
State of Palestine
Qatar*
Saudi Arabia*
Somalia
United Arab Emirates*
Yemen
*Denotes countries we do business in
What to do if you see
antiboycott language
Most importantly, it must be reported to your immediate supervisor
Your supervisor will report it to your companies compliance manager who will in turn report it to the group’s compliance manager and send a copy of the document in question.
Your supervisor will draft a letter to the customer explaining why we cannot accept their purchase order and ask them to revise their PO to remove the antiboycott language
Only after we have received a revised PO can we accept the order
Your group’s compliance manger will report the customer to the BIS as instructed by law for each instance of antiboycott language found
Quarterly, your group’s compliance manager will send a report to Nortek of all antiboycott reports filed with the BIS.
We must offer a voluntary self-disclosure with BIS on previous PO’s we did not report
What if we fail to report the
antiboycott language?
For each violation of the Export Administration
Regulations (EAR) any or all of the following may be
imposed:
General denial of export privileges
The imposition of fines of up to $11,000 per violation
And/or; exclusion from practice
Conclusion
Who’s responsibility is it to look out for this language?
Everyone's! From sales, customer service, buyers, planner, engineers, CEO’s, etc. Everyone in your company is responsible for looking out for this language on any received document and reporting it accordingly
Make sure you turn in your training completion form after this seminar to Andy D’Amato. Any questions my contact info is below: