The antiboycott provisions of the Export Administration Regulations EAR apply to the actions of U. S. individuals in the interstate or overseas commerce of the United States. The term “U. S.
person” includes all americans, organizations and unincorporated associations resident in america, including the permanent home associates of overseas concerns. U. S. individuals also include U. S.
residents abroad except after they reside abroad and are employed by non U. S. persons and the managed in fact associates of home issues. The test for “controlled in reality” is the means to establish the regular policies or to handle the daily operations of the overseas affiliate. After receipt of the appropriate narrative and supporting documentation, OAC will give the revealing party written notification of receipt of the disclosure.
Following thorough review and any necessary research by OAC, BIS will inform the party making the disclosure of any action it intends to take. The criteria BIS uses in choosing even if to pursue an enforcement action and what sanctions it may recommend are described in Supplement 2 of part 766. As indicated in Supplement 2, BIS encourages VSDs by giving the unveiling party “great weight” in the evaluation of consequences. This may provide gigantic discount in administrative penalties.