EAR - Export Administration Regulations
Part 760: Restrictive trade practices or boycotts – EAR - Export Administration Regulations

EAR - Export Administration Regulations 760.2(f): 760.2(f) Letters of credit

No U.S. person may pay, honor, confirm or otherwise implement (issue, honor, pay, confirm, negotiate or otherwise act on) a letter of credit containing a condition or requirement compliance with which is prohibited by Part 760, and no one is obliged to do so; advising the beneficiary and ministerial acts to dispose of the credit are permitted, and compliance is an absolute defence to suits to compel payment. It applies where the transaction is in U.S. commerce and the beneficiary is a U.S. person, with presumptions based on a U.S. beneficiary address and U.S. shipment or origin documents for credits implemented in or outside the United States. The prohibition applies only to a U.S. person's activities in U.S. interstate or foreign commerce and only when taken with intent to comply with, further or support an unsanctioned foreign boycott (a boycott being at least one reason for the action).

Maintained by Gerard BlokdykVerified against the published standard Control text last updated

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