U.S. Company Settles Anti-Boycott Violation

Jun. 5, 2024
By: Marvin E. McPherson

If BIS’s warning against participating in boycotts not sanctioned by the United States didn’t catch your attention, per chance Airbus DS Government Solutions Inc.’s voluntary self-disclosure settlement with BIS for $44,750 will.

U.S. anti-boycotting regulations prohibit U.S persons from complying with, furthering, or supporting unsanctioned foreign boycotts. However, the proposed charging letter alleges that in connection with sales and services from the United States to Kuwait, Airbus DS Government Solutions committed three violations by its intent to further information, comply with a request, and fail to report unsanctioned foreign boycotting.

Specifically, Airbus DS Government Solutions furnished information certifying that “no labor, capital, parts or materials of Israeli origin have been used in printing, publishing or manufacturing of these goods” and “… none are part or parent companies of firms included on the Israeli boycott blacklist.” Additionally, Airbus DS Government Solutions received a request from the Kuwait company to certify that “no labor, capital, parts or materials of Israeli origin have been used in printing, publishing or manufacturing of these goods,” and did not report this request to the Office of Antiboycott Compliance within BIS.

The settlement takes into account mitigating factors such as Airbus DS Government Solutions’ filing of a voluntary disclosure and cooperating with the BIS investigation. This is far from the potential maximum civil penalties under the EAR for anti-boycott violations which could cost more than $300,000 per violation or twice the value of the transaction, whichever is greater. For criminal violations, penalties of up to $1 million and/or 20 years’ imprisonment may be imposed.

If you have any questions surrounding boycott provisions, please contact any attorney at Barnes Richardson and Colburn.