Treasury List of Boycott Countries Published | Tax Lawyer & Attorney

On January 8, 2018, the US Treasury Department published a list of boycott countries. Let’s analyze what is meant here by Boycott Countries.

Boycott Countries: The Meaning of Boycott Under IRC Section 999(b)(3)

IRC Section 999(a)(3) requires the Department of the Treasury to publish (at least on a quarterly basis) a current list of countries which require or may require participation in or cooperation with an international boycott. IRC Section 999(b)(3) defines “boycott participation and cooperation”.

Basically, the cooperation with an international boycott requires a person to agree:

“(i) to refrain from doing business with or in a country which is the object of the boycott or with the government, companies, or nationals of that country;
(ii) to refrain from doing business with any United States person engaged in trade in a country which is the object of the boycott or with the government, companies, or nationals of that country;
(iii) to refrain from doing business with any company whose ownership or management is made up, all or in part, of individuals of a particular nationality, race, or religion, or to remove (or refrain from selecting) corporate directors who are individuals of a particular nationality, race, or religion; or
(iv) to refrain from employing individuals of a particular nationality, race, or religion; or
(B) as a condition of the sale of a product to the government, a company, or a national of a country, to refrain from shipping or insuring that product on a carrier owned, leased, or operated by a person who does not participate in or cooperate with an international boycott (within the meaning of subparagraph (A)).” IRC Section 999(b)(3)

List of Boycott Countries

The following countries were placed on the boycott list by the Department of the Treasury as of January 2, 2018: Iraq, Kuwait, Lebanon, Libya, Qatar, Saudi Arabia, Syria, United Arab Emirates, Yemen