The Bureau of Industry and Security (BIS) has issued a final rule, effective June 8, that amends the Export Administration Regulations (EAR) to reflect the United Arab Emirates’ (UAE) formal termination of its participation in the Arab League Boycott of Israel.
Under this rule, certain “requests for information, action or agreement from the UAE” will not be “presumed to be boycott-related” and therefore not restricted or reportable under the EAR—if they were made before August 16, 2020. BIS also added an interpretation to the EAR’s Restrictive Trade Practices or Boycotts regulations, which provides their view that the prohibitions in the antiboycott provisions do not apply to “requests from the UAE made after” August 16, 2020.
BIS also reminds that requests that are “on their face boycott-related or that are for action obviously in furtherance or support of an unsanctioned foreign boycott” are still restricted regardless of the country of origin. The rule also includes examples of exporting activities involving the UAE that are no longer captured by the antiboycott provision.
If you have questions on how this new rule impacts your business, reach out to Mohawk Global Trade Advisors.