Date: Sun, 05 May 2002 02:26:49 -0400
From: bobhunt@erols.com
Subject: [libs4peace] (fwd) [TheRevelation] Illegal For US Firms To Boycott Israel - Up To 10 Years Prison
To: Individual-Sovereignty@yahoogroups.com, American_Liberty@yahoogroups.com, libs4peace@yahoogroups.com ("Libertarians 4Peace")


On Sun, 5 May 2002 02:26:10 -0400, "Spiritual Piglet"
<cropolis@your-net.com> wrote:


http://www.rense.com/general24/illegalforUS.htm

Illegal For US Firms To Boycott Israel - Up To 10 Years Prison
5-4-2

Office of Antiboycott Compliance
Washington, DC
Antiboycott Laws:
During the mid-1970's the United States adopted two laws that seek
to counteract the participation of U.S. citizens in other nation's
economic boycotts or embargoes. These "antiboycott" laws are the
1977 amendments to the Export Administration Act (EAA) and the
Ribicoff Amendment to the 1976 Tax Reform Act (TRA).
Objectives:
The antiboycott laws were adopted to encourage, and in specified
cases, require U.S. firms to refuse to participate in foreign
boycotts that the United States does not sanction. They have the
effect of preventing U.S. firms >from being used to implement
foreign policies of other nations which run counter to U.S.
policy.
Primary Impact:
The Arab League boycott of Israel is the principal foreign
economic boycott that U.S. companies must be concerned with today.
The antiboycott laws, however, apply to all boycotts imposed by
foreign countries that are unsanctioned by the United States.
Who Is Covered by the Laws?
The antiboycott provisions of the Export Administration
Regulations (EAR) apply to all "U.S. persons," defined to include
individuals and companies located in the United States and their
foreign affiliates. These persons are subject to the law when
their activities relate to the sale, purchase, or transfer of
goods or services (including information) within the United States
or between the U.S. and a foreign country. This covers U.S.
exports and imports, financing, forwarding and shipping, and
certain other transactions that may take place wholly offshore.
Generally, the TRA applies to all U.S. taxpayers (and their
related companies). The TRA's reporting requirements apply to
taxpayers' "operations" in, with, or related to boycotting
countries or their nationals. Its penalties apply to those
taxpayers with foreign tax credit, foreign subsidiary deferral,
FSC (Foreign Sales Corporation), and IC-DISC (Interest
Charge-Domestic International Sales Corporation) benefits.
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 abot
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 "operation" 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:
EAR reports are filed quarterly on form BIS 621-P for single
requests or BIS 6051-P for multiple requests available from the
Department of Commerce,s Office of Antiboycott Compliance (OAC) in
Washington, D.C. To obtain these forms, telephone OAC,s Reports
Processing Unit at (202) 482-2448. TRA reports are filed with tax
returns on IRS Form 5713. This form is available from local IRS
offices.
Penalties:
The EAR prescribe the 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 continuedin 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.
Administrative:
For each violation of the EAR any or all of the following may be
imposed:
General denial of export privileges;
The imposition of fines of up to $12,000 per violation; and/or
Exclusion from practice.
Boycott agreements under the TRA involve the denial of all or part
of the foreign tax benefits discussed above.
The $10,000 maximum per violation specified in the EAA is adjusted
periodically pursuant to law for inflation.
The maximum civil penalty for any violation committed from October
23, 1996 through November 1, 2000 is $11,000 per violation.
The maximum civil penalty for any violation committed after
November 1, 2000 is $12,000 per violation.
Where to Get More Information:
U.S. Department of Commerce BIS/Office of Antiboycott Compliance,
Room 6098 Washington, D.C. 20230 (202) 482-2381 or by E-Mail
http://www.bxa.doc.gov/AntiboycottCompliance/OACRequirements.html