U.S. Antiboycott Provisions of the Export Administration Act: The Exceptions

July 13, 2011, 2:28 PM

This post is the third iteration in a series regarding the Antiboycott Provisions of the Export Administration Regulations (EAR). An overview of the prohibitions included within the antiboycott provisions can be found here, and a detailed discussion of the reporting requirements of the antiboycott provisions can be found here. This post addresses the specific exceptions to the antiboycott provisions of the EAR. Once you have determined that the antiboycott provisions of the EAR apply to your company, then you should become familiar with the exceptions listed in 15 C.F.R. 760.3 of the EAR, which can be found here.

One exception provides that U.S. persons may comply with certain shipping requirements of the boycotting country. Pursuant to this exception, when shipping goods to a boycotting country, a U.S. person may comply with the requirements of the boycotting country regarding the specific route of the shipment or the specific carrier. The agreement may be stated in positive or negative terms. However, this exception does not permit an agreement to ship the goods only on vessels eligible to enter Arab waters or to refrain from using blacklisted vessels.

In addition, U.S. persons may comply with certain shipping document requirements. This exception allows a U.S. person to furnish the following information on shipping documents: a positive certificate stating the origin of the goods, a positive statement of the name of the supplier of the goods or the provider of the services, and a positive statement as to the route of the shipment or the name of the carrier of the goods.

Another exception permits a U.S. person to furnish positive certificates of origin of goods and certification regarding his/her own blacklist status. For example, you may state that you or your company is not on the blacklist. You may also certify that the goods are of a particular countrys origin. If you would like more information on the Antiboycott Provisions of the EAR, please feel free to contact me. --R. Ellen Coley