Houston Partner Berne Kluber authored an article examining the recent increase of boycott enforcement activities by the U.S. Department of Commerce Office of Antiboycott Compliance (OAC), specifically the cases that included charges related to requests for clauses in shipping certificates. Kluber inspects the language that triggers a violation from the OAC as well as the IRS Code and U.S. Department of Treasury regulations.
Kluber concluded: “With two different anti-boycott laws with differences in objectives and interpretations, one clause in a letter of credit or other transaction document can lead to different outcomes. For companies doing business with any of the boycotting countries identified by the Treasury Department, or members of the Arab League or the Organization of Islamic Cooperation, it may be time to revisit their compliance processes for dealing with requests for shipping certificates.”
To read the full article, click here (subscription may be required).
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