Objectives

U.S. anti-boycott laws require that U.S. firms refuse to participate in foreign boycotts that the United States does not sanction. In addition, the laws prevent U.S. firms from being used to implement foreign policies that are counter to U.S. policy.

Primary Impact

Although the anti-boycott laws apply to all non-U.S.-sanctioned boycotts imposed by foreign countries, the Arab League's boycott of Israel is the principal foreign economic boycott concerning U.S. firms.

Prohibitions

Anti-boycott law prohibitions include:

  • 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.
  • Agreements to furnish or actual furnishing of information about the race, religion, sex, or national origin of another person

Cisco Policy

Following is Cisco's policy regarding anti-boycott laws.

  1. Report communication referencing Israel and any of the following terms to Global Export Trade:
    1. Blacklist
    2. Boycott
    3. Content
    4. Origin
    5. Ownership
    6. Relationship
    7. Manufacture
    8. Vessels
  2. Do not proceed with the transaction until advised.
  3. Be prepared to supply the following information to Global Export Trade:
    1. Original and translated text of requires
    2. Date and mode received
    3. Transaction value
    4. Description and quantity of units/services

Examples of Anti-Boycott Language (cited by the Bureau of Industry and Security)

Following are some examples of prohibited and reportable anti-boycott language, cited by the U.S. Commerce Department's Bureau of Industry and Security. These examples are illustrative and not exhaustive.

Certificate of origin

"Invoices must be endorsed with a certificate of origin stating that goods are not of Israeli origin, do not contain any Israeli material, and are not shipped from any Israeli port."

Contracts

"The (tenders) committee may also exclude any bid that does not abide by the provisions of the commercial and economic laws and the provisions of the law of boycott of Israel applicable in the state."

"[A certificate required stating] that the items have not been manufactured in Israel and that any of the components thereof have not been manufactured in Israel."

"Vendor shall comply with the Israel boycott laws in performing their contractual obligations."

Instructions to bidders on a contract

"No produced commodity shall be eligible for financing if such commodity contains any component or components that were imported into the producing country from Israel and countries not eligible to trade with the People's Republic of Bangladesh. The equipment and materials must not be of Israeli origin. Suppliers/bidders that are not blacklisted by the Arab boycott of Israel will be allowed to participate in this bid."

Customs

"[The vessel entry document asks the ship’s captain to certify that] no goods, dry cargo, or personal effects listed on the document of Israeli origin or manufactured by a blacklisted firm or company are to be landed, as they will be subject to confiscation."

Purchase orders

"Goods of Israeli origin are not acceptable."

"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."

Letters of credit

"A signed statement from the shipping company, or its agent, stating the name, flag, and nationality of the carrying vessel and confirming...that it is permitted to enter Arab ports."

Power-of-attorney request

"[Whether the firm] had a plant in Israel, has sold to Israel, had offices in Israel, owned shares in an Israeli firm, had provided services for an Israeli firm, or had granted any trademarks, copyrights, or patent rights to Israeli persons or firms."

Tender

"The supplier must comply with the Israel boycott conditions."