You’ve Been Asked to Boycott – What to Know Before You Self‑Disclose
Companies engaged in international trade occasionally encounter requests that raise red flags under the U.S. anti‑boycott regulations. Whether the request appears in a tender document, a purchase order, a letter of credit, or a casual email, the moment you spot boycott‑related language, the clock starts ticking. One of the most powerful tools available to companies is the Voluntary Self‑Disclosure (VSD) process under 15 C.F.R. § 764.8, administered by the Office of Antiboycott Compliance (OAC). Used correctly, a VSD can dramatically mitigate penalties and demonstrate a strong compliance posture.
Timing, content, and execution matter. Here’s what you need to know before you self‑disclose.
Timing
A VSD must be submitted before the government learns of the same potential violation through other channels:
- Before you file a mandatory report for the same boycott request.
- Before you ask OAC for advice about the same conduct.
- Important: Requests for advice are not VSDs and do not stop the clock.
If you’ve already triggered another form of disclosure or inquiry, you may lose eligibility for the benefits of a VSD.
A VSD will not be accepted if the individual making the disclosure did so without the full knowledge and authorization of the firm’s senior management or a […]