Archive for the ‘Saudi Arabia’ Category

Treasury Publishes List of Countries Requiring Cooperation with an International Boycott

2018/02/08

Source: Federal Register

The Department of the Treasury has named the following countries as requiring or may requiring participation in, or cooperation with, an international boycott (within the meaning of section 999(b)(3) of the Internal Revenue Code of 1986).

  • Iraq
  • Kuwait
  • Lebanon
  • Libya
  • Qatar
  • Saudi Arabia
  • Syria
  • United Arab Emirates
  • Yemen

Federal Register: https://www.gpo.gov/fdsys/pkg/FR-2018-01-08/pdf/2018-00123.pdf


Treasury Announces Countries Enforcing Boycott on Israel

2009/10/30

By: John Black

The Department of Treasury released a list of countries that “may require participation in, or cooperation with, an international boycott (meaning of section 999(b)(3) of the Internal Revenue Code of 1986).” The following countries have been named on the list:

• Kuwait
• Lebanon
• Libya
• Qatar
• Saudi Arabia
• Syria
• United Arab Emirates
• Yemen, Republic of

Iraq is not included on this list but the Department of Treasury will continue to review its status and it may be added to a future list. This list is published for use by US companies as an advisory that it is quite possible that companies in the above mentioned countries may require participation in a boycott which would be a violation of the Regulations.

The Treasury Department announcement technically applies to the antiboycott provisions of the IRS tax code and not to the antiboycott provisions in the Export Administration Regulations *EAR).  But, as a practical matter, if you are trying to comply with the EAR antiboycott rules, these listed countries are a good place to focus your compliance resources—if you do a good job with these countries, then you may use your antiboycott compliance resources for other countries.

Federal Register: http://edocket.access.gpo.gov/2009/E9-27063.htm


Treasury Department Identifies Countries Enforcing Arab League Boycott of Israel

2008/12/31

2008/12/31

By: Danielle McClellan

The Department of Treasury has issued a list of countries that may or may not require participation in, or cooperation with, an international boycott. The following countries were identified:

  • Kuwait
  • Lebanon
  • Libya
  • Qatar
  • Saudi Arabia
  • Syria
  • United Arab Emirates
  • Yemen, Republic of

It is noted by the Department of Treasury that Iraq is not included on the list but its status for future lists is continually under review.
PRACTICAL IMPACT: Of course, the US Government will never say this is a list of the only countries that might enforce with the Arab boycott of Israel. As a practical matter, US persons should use this as the list of countries where there are most likely to be antiboycott compliance issues under the IRS rules and under the Export Administration Regulations.

More information:

Federal Register, December 31, 2008


International Boycott Country List Updated by State

2007/04/03

2007/04/03

By: John Black

In late March, 2007, the Department of Treasury released the most current list of countries which require, or may require, cooperation with an international boycott within the meaning of section 999(b)(3) of the Internal Revenue Code of 1986.

The list includes:

  • Kuwait
  • Lebanon
  • Libya
  • Qatar
  • Saudi Arabia
  • Syria
  • United Arab Emirates
  • Yemen

Republic of Iraq is not on this list but its status is currently under review by the Department of Treasury and it may be added in the future.

BOTTOM LINE:

The Treasury Department’s list is related to the antiboycott issues for companies who claim foreign tax credits when they file their tax returns, and does not legally have a direct link to the comprehensive antiboycott rules in the Export Administration Regulations. As a practical matter, however, for EAR compliance US persons (as defined the EAR antiboycott rules) should focus their antiboycott compliance resources on transactions and activities involving the above-listed countries who actively participate in the Arab League’s secondary and tertiary boycotts against Israel.

Source:

  • Federal Register – April 3, 2007 (Volume 72, Number 63, Page 15934)

US Seeking to Sell Arms to Allies in the Persian Gulf

2007/03/21

2007/03/21

By: Jill Kincaid

In an effort to send a signal to Iran, the State Department is seeking Congressional approval to sell arms to US allies in the Persian Gulf. Countries such as Saudi Arabia, Qatar, Kuwait, Bahrain, Oman and the United Arab Emirates could have their defenses bolstered through the purchase of sophisticated air and missile defense systems, advanced early warning radar aircraft and light coastal combat ships. It is also believed that Northrop Grumman’s E-2D Hawkeye 2000 early warning aircraft is under consideration for sale. The United Arab Emirates had tried to acquire this aircraft in 2003 but the deal fell through due to the US Navy’s hesitation to sell the necessary communication software.

US officials have been rather quiet about the proposed arms sales. This could be due to the concern that building up Iran’s neighbors could bring the US closer to an Iranian confrontation. Officials state the need for Congressional support and the need for a low level of publicity from the countries involved as the reason for being so tight-lipped. Several countries have been reticent about agreeing to sales because of the fear of sending a message of aggression to Iran.

Source:


Focus Your Antiboycott Compliance Resources Here

2006/09/26

2006/09/26

By: John Black

So, you got limited export compliance resources and your probably use only a small part of that pool for compliance with the antiboycott regulations. We can’t get you more resources such as time and money, but we can tell you to focus your antiboycott compliance resources on your business activities that involve these countries:

  • Kuwait
  • Lebanon
  • Libya
  • Qatar
  • Saudi Arabia
  • Syria
  • United Arab Emirates
  • Republic of Yemen

( Iraq is not on the list at this time but remains under review by the Department of the Treasury.)

On September 26, 2006 , the U.S. Department of the Treasury published a notice in the Federal Register announcing that the above countries may require cooperation with an international boycott according to the Internal Revenue Code of 1986, the Arab League boycott of Israel , the same unsanctioned boycott covered by the Export Administration Regulations antiboycott rules. The Commerce Department has not recently put in writing an acknowledgement that its antiboycott regulations focus only on the Arab boycott of Israel , but informally Commerce Antiboycott officials may be willing to admit that is the case. (Quite a few years ago Commerce published an article in its newsletter “The OEL Insider” that stated that it interprets the EAR antiboycott rules to apply only to the Arab boycott of Israel.)


Treasury Department: “Watch out for Antiboycott Issues for These Countries”

2003/10/15

2003/10/15

By: John Black

In the October 15, 2003 Federal Register the Treasury Department published a notice identifying 10 countries that may require cooperation with an international trade boycott not sanctioned by the United States. The ten countries are:

Bahrain, Kuwait, Lebanon, Libya, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates, Republic of Yemen.

Companies in these countries may require that you comply with the Arab League boycott of Israel. If you are a US company, a US citizen/resident, or a subsidiary of a US company, compliance with the secondary and tertiary levels of the Arab boycott of Israel may be a violation of US antiboycott rules found in the Export Administration Regulations and section 999(b)(3) of the Internal Revenue Code of 1986.

Generally speaking, the key provisions of the US antiboycott rules prohibit US persons from complying with the Arab boycott of Israel. Prohibited cooperation could include 1) refusing to do business with a company or country; and 2) supplying information about your business relationship with other companies or countries.

This list is useful in that it highlights the countries from which you are most likely to receive prohibited boycott requests or inquiries. You should focus your antiboycott compliance procedures on these countries. Please note, however, that EAR antiboycott issues may also arise when dealing with any country, but you also pay close attention to Indonesia, Bangladesh, Pakistan, Iran, India, Ethiopia, and Eritrea.