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#Office of Antiboycott Compliance

What do the Laws Prohibit?

Conduct that may be penalized under the TRA and/or prohibited under the EAR includes:

• 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.

Implementing letters of credit containing prohibited boycott terms or conditions.

The TRA does not "prohibit" conduct, but denies tax benefits ("penalizes") for certain types of boycott-related agreements.

What Must Be Reported?

The EAR requires U.S. persons to report quarterly requests they have received to take certain actions to comply with, further, or support an unsanctioned foreign boycott.

The TRA requires taxpayers to report "operations" in, with, or related to a boycotting country or its nationals and requests received to participate in or cooperate with an international boycott. The Treasury Department publishes a quarterly list of "boycotting countries."

How To Report:

The EAR requires reports of receipts of boycott requests to be filed quarterly on form BIS 621-P for single transactions or BIS 6051P for multiple transactions received in the same calendar quarter.

The forms are available on-line in a fillable pdf format, or you may still obtain paper forms from the forms request page. To obtain paper copies by U.S. mail, call the Office of Antiboycott Compliance in Washington, DC at (202) 482-2448.

TRA reports are filed with tax returns on IRS Form 5713. This form is available on PDF from local IRS offices.

Penalties:

The Export Admnistration Act (EAA) specifies penalties for violations of the Antiboycott Regulations as well as export control violations. These can include:

Criminal:

The penalties imposed for each "knowing" violation can be a fine of up to $50,000 or five times the value of the exports involved, whichever is greater, and imprisonment of up to five years. During periods when the EAR are continued in effect by an Executive Order issued pursuant to the International Emergency Economic Powers Act, the criminal penalties for each "willful" violation can be a fine of up to $50,000 and imprisonment for up to ten years.