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ARTICLE · 31 JULY 2023

Commerce Continues Its Focus On Antiboycott Compliance

Kelley Drye & Warren LLP
Kelley Drye & Warren LLP
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Kelley Drye & Warren LLP

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On July 26, 2023, Matthew Axelrod, the Assistant Secretary for Export Enforcement, issued a memorandum on "Strengthening Antiboycott Reporting and Compliance."

United StatesGovernment, Public Sector
Carrie Schroll
Carrie Schroll

On July 26, 2023, Matthew Axelrod, the Assistant Secretary for Export Enforcement, issued a memorandum on "Strengthening Antiboycott Reporting and Compliance." The memorandum announced two new measures. First, the Commerce Department is amending the boycott reporting form to require U.S. persons to report the identity of the party that made a boycott request. Previously, the report only required the country from which the boycott request originated. The memorandum notes that Commerce will use the information to investigate and hold accountable parties that make boycott requests. For U.S. persons who receive a boycott request from a commercial counterparty, the requirement to report the requestor's identity could create tension in ongoing relationships. U.S. persons may want to get out in front of this risk by reiterating their commitment to antiboycott compliance with their commercial counterparties, particularly those located in higher risk jurisdictions.

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