On May 15, 2024, the Bureau of Industry and Security (BIS) issued a statement regarding the Turkish government’s declaration that it will suspend all imports and exports to and from Israel until the Israeli government allows for a sufficient and continuous stream of humanitarian aid into Gaza. In the statement, BIS reiterated that all individuals and entities who are “U.S. persons” under BIS’s antiboycott regulations (see section 760.1(b) of the Export Administration Regulations (EAR)), regardless of location, are prohibited from taking specific actions to advance or support an unsanctioned foreign boycott as it pertains to activities in U.S. commerce, and must report the receipt of such requests.
This statement shows that BIS likely expects U.S. person companies to report boycott-related requests involving Turkey (if the underlying transaction is within the interstate or foreign commerce of the United States) and to reject such requests as required under Part 760 of the EAR. Such requests may be written or verbal. This is the case even though Turkey has not historically been a country that implements the Arab League boycott of Israel and is not identified on the U.S. Department of Treasury’s list of countries which require or may require participation in, or cooperation with, an international boycott (currently Iraq, Kuwait, Lebanon, Libya, Qatar, Saudi Arabia, Syria, and Yemen).
Next steps
Companies should monitor any import or export activities involving Turkey, including careful review of business documents, to consider whether they have received any requests that might be prohibited or reportable under Part 760 of the EAR. Such requests may need to be reported to BIS (even if the company does not respond), and companies should evaluate such requests under Part 760 of the EAR to determine an appropriate response.
Hogan Lovells is well-positioned to assist with boycott-related compliance questions or concerns. For further information, please contact any of the Hogan Lovells lawyers listed below.
Authored by Zachary Alvarez, Andrea Fraser-Reid, Beth Peters, Feven Yohannes, Deborah Wei, Julia Diaz, and Ashley Roberts.
