50 U.S.C. § 4842 — Foreign boycotts

Page 1219 TITLE 50—WAR AND NATIONAL DEFENSE § 4842 Act [50 U.S.C. 1701 et seq.]) shall continue in effect as if the determination had been made under section 4813(c) of this title. (2) Reference Any reference in any other provision of law to a country the government of which the Sec- retary of State has determined, for purposes of section 6(j) of the Export Administration Act of 1979 (as in effect on the day before August 13, 2018, and as continued in effect pursuant to the International Emergency Economic Pow- ers Act [50 U.S.C. 1701 et seq.]), is a govern- ment that has repeatedly provided support for acts of international terrorism shall be deemed to refer to a country the government of which the Secretary of State has deter- mined, for purposes of section 4813(c) of this title, is a government that has repeatedly pro- vided support for acts of international ter- rorism. (Pub. L. 115–232, div. A, title XVII, § 1768, Aug. 13, 2018, 132 Stat. 2233.) Editorial Notes REFERENCES IN TEXT The Export Administration Act of 1979, referred to in text, is Pub. L. 96–72, Sept. 29, 1979, 93 Stat. 503, which was classified principally to chapter 56 (§ 4601 et seq.) of this title and was substantially repealed by Pub. L. 115–232, div. A, title XVII, § 1766(a), Aug. 13, 2018, 132 Stat. 2232. Section 6(j) of the Act was classified to sec- tion 4605(j) of this title prior to repeal. For complete classification of this Act to the Code, see Tables. The International Emergency Economic Powers Act, referred to in text, is title II of Pub. L. 95–223, Dec. 28, 1977, 91 Stat. 1626, which is classified generally to chap- ter 35 (§ 1701 et seq.) of this title. For complete classi- fication of this Act to the Code, see Short Title note set out under section 1701 of this title and Tables. This subchapter, referred to in subsecs. (a) and (b), was in the original ‘‘this part’’, meaning part I (§§ 1751–1768) of subtitle B of title XVII of div. A of Pub. L. 115–232, known as the Export Controls Act of 2018, which is classified principally to this subchapter. For complete classification of part I to the Code, see sec- tion 1751 of Pub. L. 115–232, set out as a Short Title note under section 4801 of this title and Tables. SUBCHAPTER II—ANTI-BOYCOTT ACT OF 2018 § 4841. Statement of policy Congress declares it is the policy of the United States— (1) to oppose restrictive trade practices or boycotts fostered or imposed by any foreign country against other countries friendly to the United States or against any United States person; (2) to encourage and, in specified cases, re- quire United States persons engaged in the ex- port of goods or technology or other informa- tion to refuse to take actions, including fur- nishing information or entering into or imple- menting agreements, which have the effect of furthering or supporting the restrictive trade practices or boycotts fostered or imposed by any foreign country against a country friendly to the United States or any United States per- son; and (3) to foster international cooperation and the development of international rules and in- stitutions to assure reasonable access to world supplies. (Pub. L. 115–232, div. A, title XVII, § 1772, Aug. 13, 2018, 132 Stat. 2234.) § 4842. Foreign boycotts (a) Prohibitions and exceptions (1) Prohibitions For the purpose of implementing the policies set forth in section 4841 of this title, the Presi- dent shall issue regulations prohibiting any United States person, with respect to that per- son’s activities in the interstate or foreign commerce of the United States, from taking or knowingly agreeing to take any of the fol- lowing actions with intent to comply with, further, or support any boycott fostered or im- posed by any foreign country, against a coun- try which is friendly to the United States and which is not itself the object of any form of boycott pursuant to United States law or reg- ulation: (A) Refusing, or requiring any other person to refuse, to do business with or in the boy- cotted country, with any business concern organized under the laws of the boycotted country, with any national or resident of the boycotted country, or with any other person, pursuant to an agreement with, a require- ment of, or a request from or on behalf of the boycotting country. The mere absence of a business relationship with or in the boy- cotted country with any business concern organized under the laws of the boycotted country, with any national or resident of the boycotted country, or with any other person, does not indicate the existence of the intent required to establish a violation of regula- tions issued to carry out this subparagraph. (B) Refusing, or requiring any other person to refuse, to employ or otherwise discrimi- nating against any United States person on the basis of race, religion, sex, or national origin of that person or of any owner, offi- cer, director, or employee of such person. (C) Furnishing information with respect to the race, religion, sex, or national origin of any United States person or of any owner, officer, director, or employee of such person. (D) Furnishing information about whether any person has, has had, or proposes to have any business relationship (including a rela- tionship by way of sale, purchase, legal or commercial representation, shipping or other transport, insurance, investment, or supply) with or in the boycotted country, with any business concern organized under the laws of the boycotted country, with any national or resident of the boycotted coun- try, or with any other person which is known or believed to be restricted from hav- ing any business relationship with or in the boycotting country. Nothing in this subpara- graph shall prohibit the furnishing of nor- mal business information in a commercial context as defined by the Secretary. (E) Furnishing information about whether any person is a member of, has made con- tributions to, or is otherwise associated with or involved in the activities of any chari- Page 1220 TITLE 50—WAR AND NATIONAL DEFENSE § 4842 table or fraternal organization which sup- ports the boycotted country. (F) Paying, honoring, confirming, or oth- erwise implementing a letter of credit which contains any condition or requirement com- pliance with which is prohibited by regula- tions issued pursuant to this paragraph, and no United States person shall, as a result of the application of this paragraph, be obli- gated to pay or otherwise honor or imple- ment such letter of credit. (2) Exceptions Regulations issued pursuant to paragraph (1) shall provide exceptions for— (A) complying or agreeing to comply with requirements— (i) prohibiting the import of goods or services from the boycotted country or goods produced or services provided by any business concern organized under the laws of the boycotted country or by nationals or residents of the boycotted country; or (ii) prohibiting the shipment of goods to the boycotting country on a carrier of the boycotted country, or by a route other than that prescribed by the boycotting country or the recipient of the shipment; (B) complying or agreeing to comply with import and shipping document requirements with respect to the country of origin, the name of the carrier and route of shipment, the name of the supplier of the shipment or the name of the provider of other services, except that no information knowingly fur- nished or conveyed in response to such re- quirements may be stated in negative, blacklisting, or similar exclusionary terms, other than with respect to carriers or route of shipment as may be permitted by such regulations in order to comply with pre- cautionary requirements protecting against war risks and confiscation; (C) complying or agreeing to comply in the normal course of business with the unilat- eral and specific selection by a boycotting country, or national or resident thereof, of carriers, insurers, suppliers of services to be performed within the boycotting country or specific goods which, in the normal course of business, are identifiable by source when im- ported into the boycotting country; (D) complying or agreeing to comply with export requirements of the boycotting coun- try relating to shipments or transshipments of exports to the boycotted country, to any business concern of or organized under the laws of the boycotted country, or to any na- tional or resident of the boycotted country; (E) compliance by an individual or agree- ment by an individual to comply with the immigration or passport requirements of any country with respect to such individual or any member of such individual’s family or with requests for information regarding re- quirements of employment of such indi- vidual within the boycotting country; and (F) compliance by a United States person resident in a foreign country or agreement by such person to comply with the laws of that country with respect to his activities exclusively therein, and such regulations may contain exceptions for such resident complying with the laws or regulations of that foreign country governing imports into such country of trademarked, trade named, or similarly specifically identifiable prod- ucts, or components of products for his own use, including the performance of contrac- tual services within that country, as may be defined by such regulations. (3) Special rules Regulations issued pursuant to paragraphs (2)(C) and (2)(F) shall not provide exceptions from paragraphs (1)(B) and (1)(C). (4) Rule of construction Nothing in this subsection may be construed to supersede or limit the operation of the anti- trust or civil rights laws of the United States. (5) Application This section shall apply to any transaction or activity undertaken, by or through a United States person or any other person, with intent to evade the provisions of this section as implemented by the regulations issued pur- suant to this subsection, and such regulations shall expressly provide that the exceptions set forth in paragraph (2) shall not permit activi- ties or agreements (expressed or implied by a course of conduct, including a pattern of re- sponses) otherwise prohibited, which are not within the intent of such exceptions. (b) Foreign policy controls (1) In general In addition to the regulations issued pursu- ant to subsection (a), regulations issued under subchapter I to carry out the policies set forth in section 4811(2)(D) of this title shall imple- ment the policies set forth in this section. (2) Requirements Such regulations shall require that any United States person receiving a request for the furnishing of information, the entering into or implementing of agreements, or the taking of any other action referred to in sub- section (a) shall report that fact to the Sec- retary, together with such other information concerning such request as the Secretary may require for such action as the Secretary con- siders appropriate for carrying out the policies of that section. Such person shall also report to the Secretary whether such person intends to comply and whether such person has com- plied with such request. Any report filed pur- suant to this paragraph shall be made avail- able promptly for public inspection and copy- ing, except that information regarding the quantity, description, and value of any goods or technology to which such report relates may be kept confidential if the Secretary de- termines that disclosure thereof would place the United States person involved at a com- petitive disadvantage. The Secretary shall pe- riodically transmit summaries of the informa- tion contained in such reports to the Sec- retary of State for such action as the Sec- retary of State, in consultation with the Sec- retary, considers appropriate for carrying out Page 1221 TITLE 50—WAR AND NATIONAL DEFENSE § 4851 the policies set forth in section 4841 of this title. (c) Preemption The provisions of this section and the regula- tions issued pursuant thereto shall preempt any law, rule, or regulation of any of the several States or the District of Columbia, or any of the territories or possessions of the United States, or of any governmental subdivision thereof, which law, rule, or regulation pertains to par- ticipation in, compliance with, implementation of, or the furnishing of information regarding restrictive trade practices or boycotts fostered or imposed by foreign countries against other countries friendly to the United States. (Pub. L. 115–232, div. A, title XVII, § 1773, Aug. 13, 2018, 132 Stat. 2234; Pub. L. 116–283, div. A, title X, § 1081(d)(10), Jan. 1, 2021, 134 Stat. 3874.) Editorial Notes REFERENCES IN TEXT Subchapter I, referred to in subsec. (b)(1), was in the original ‘‘part I’’, meaning part I (§§ 1751–1768) of sub- title B of title XVII of div. A of Pub. L. 115–232, known as the Export Controls Act of 2018, which is classified principally to subchapter I of this chapter. For com- plete classification of part I to the Code, see section 1751 of Pub. L. 115–232, set out as a Short Title note under section 4801 of this title and Tables. AMENDMENTS 2021—Subsec. (b)(1). Pub. L. 116–283 substituted ‘‘(2)(D)’’ for ‘‘(1)(D)’’ in reference to section 4811(2)(D) of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Pub. L. 116–283, div. A, title X, § 1081(d), Jan. 1, 2021, 134 Stat. 3873, provided that the amendment made by section 1081(d)(10) is effective as of Aug. 13, 2018, and as if included in Pub. L. 115–232. § 4843. Enforcement (a) Criminal penalty A person who willfully commits, willfully at- tempts to commit, or willfully conspires to com- mit, or aids or abets in the commission of, an unlawful act under section 4842 of this title— (1) shall, upon conviction, be fined not more than $1,000,000; or (2) if a natural person, may be imprisoned for not more than 20 years, or both. (b) Civil penalties The President may impose the following civil penalties on a person who violates section 4842 of this title or any regulation issued under this subchapter: (1) A fine of not more than $300,000 or an amount that is twice the value of the trans- action that is the basis of the violation with respect to which the penalty is imposed, whichever is greater. (2) Revocation of a license issued under sub- chapter I to the person. (3) A prohibition on the person’s ability to export, reexport, or in-country transfer any items controlled under subchapter I. (c) Procedures Any civil penalty or administrative sanction (including any suspension or revocation of au- thority to export) under this section may be im- posed only after notice and opportunity for an agency hearing on the record in accordance with sections 554 through 557 of title 5 and shall be subject to judicial review in accordance with chapter 7 of such title. (d) Standards for levels of civil penalty The President may by regulation provide standards for establishing levels of civil penalty under this section based upon factors such as the seriousness of the violation, the culpability of the violator, and the violator’s record of co- operation with the Government in disclosing the violation. (Pub. L. 115–232, div. A, title XVII, § 1774, Aug. 13, 2018, 132 Stat. 2237; Pub. L. 116–283, div. A, title X, § 1081(d)(11), Jan. 1, 2021, 134 Stat. 3874.) Editorial Notes REFERENCES IN TEXT Subchapter I, referred to in subsec. (b)(2), (3), was in the original ‘‘part I’’, meaning part I (§§ 1751–1768) of subtitle B of title XVII of div. A of Pub. L. 115–232, known as the Export Controls Act of 2018, which is clas- sified principally to subchapter I of this chapter. For complete classification of part I to the Code, see sec- tion 1751 of Pub. L. 115–232, set out as a Short Title note under section 4801 of this title and Tables. AMENDMENTS 2021—Subsec. (a). Pub. L. 116–283 inserted ‘‘under’’ be- fore ‘‘section 4842 of this title’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Pub. L. 116–283, div. A, title X, § 1081(d), Jan. 1, 2021, 134 Stat. 3873, provided that the amendment made by section 1081(d)(11) is effective as of Aug. 13, 2018, and as if included in Pub. L. 115–232. SUBCHAPTER III—ADMINISTRATIVE AUTHORITIES § 4851. Under Secretary of Commerce for Indus- try and Security (a) Under Secretary of Commerce for Industry and Security The President shall appoint, by and with the advice and consent of the Senate, an Under Sec- retary of Commerce for Industry and Security, who shall carry out— (1) all functions of the Secretary under this chapter; and (2) all functions delegated to the Under Sec- retary of Commerce for Export Administra- tion on the day before the date of the enact- ment of this Act. (b) Reference On and after August 13, 2018, any reference in any law or regulation to the Under Secretary of Commerce for Export Administration shall be deemed to be a reference to the Under Secretary of Commerce for Industry and Security. (c) Omitted (d) Continuation in office The individual serving as Under Secretary of Commerce for Export Administration on the day