These regulations center around the Arab boycott of Israel. Do not get caught violating these regulations as the penalties are stiff and generally not subject to mitigation. Here is a list of various types of violations that may occur:
– refusing to do business with or in Israel or with blacklisted companies
– furnishing information about relationships with or in Israel or with blacklisted companies
– discriminating against others based on race, religion, sex, national origin or nationality
– furnishing information about the race, religion, sex or national origin of another person
– implementing letters of credit containing prohibited boycott terms or conditions
Here is the announcement of the countries that continue to participate in the Boycott program. You must examine the language in all documents and correspondence regarding real or potential transactions with parties located in these countries.
From the Federal Register March 31, 2015:
DEPARTMENT OF THE TREASURY
Office of the Secretary
List of Countries Requiring Cooperation With an International Boycott
In accordance with section 999(a)(3) of the Internal Revenue Code of 1986, the Department of the Treasury is publishing a current list of countries which require or may require participation in, or cooperation with, an international boycott (within the meaning of section 999(b)(3) of the Internal Revenue Code of 1986).
On the basis of the best information currently available to the Department of the Treasury, the following countries require or may require participation in, or cooperation with, an international boycott (within the meaning of section 999(b)(3) of the Internal Revenue Code of 1986).
United Arab Emirates
International Tax Counsel (Tax Policy)
If you do have any questions, please do not hesitate to contact Harvey Waite or Paul D’Eon of OCEANAIR at 781-286-2700 or via e-mail email@example.com or firstname.lastname@example.org.