KUWAITI IMPLEMENTATION OF ARAB LEAGUE BOYCOTT

UNCLAS KUWAIT 001671 SIPDIS SIPDIS STATE PASS TO USTR PBURKHEAD E.O. 12958: N/A TAGS: KBCT ABLD PHUM PIRF AL KU SUBJECT: KUWAITI IMPLEMENTATION OF ARAB LEAGUE BOYCOTT REF: STATE 66895 ¶1. This cable is in response to Reftel action request. ¶2. Kuwait's 1981 Commercial Law, Article 62, states that Kuwait will follow the lead of the Arab League Boycott Office with regards to implementation of the boycott. In 1994, in accordance with a GCC decision, Kuwait announced the elimination of the secondary and tertiary aspects of the Arab League Boycott (ALB) of the State of Israel, and has taken steps to eliminate all direct references to the ALB in its commercial documents. There are occasional reports that some tender requests contain boycott clauses reportable under U.S. anti-boycott laws, but these usually result from clerical errors or the use of outdated forms. Although Kuwaiti law does not include any specific language referring to or mandating a boycott of Israeli goods, Kuwait still applies a boycott on products "Made in Israel." There are no boycott compliance questionnaires or other GOK activity related to seeking information about business activities companies may have with Israel. Kuwait does not blacklist companies that conduct business with Israel. ¶3. With respect to Kuwait's Commercial Code, companies importing products "Made in Israel" will have those products confiscated. If a part or component of a finished product is produced in Israel, only that part or component will be confiscated with the remainder of the shipment cleared for importation. The GOK does not specifically request that U.S. firms comply with the ALB. Infractions of the primary boycott are not part of the criminal code, and U.S. companies have had very little customs clearance delay when a part or component was determined to be of Israeli origin. ¶4. Vendors with which Post does business are not known to individually comply with the ALB or other international boycotts. ¶5. Kuwait maintains an open boycott office in its Customs department and regularly attends ALB meetings. The boycott office is not particularly aggressive, and only denies entry to Israeli-made items or components. ¶6. Because the GOK supports the primary aspect of the ALB, it does not take steps to correct enforcement by it's own boycott office, nor does it correct compliance requests by private entities. ******************************************** For more Embassy Kuwait reporting, see: http://www.state.sgov.gov/p/nea/kuwait/cables Or Visit Embassy Kuwait's Classified Website: http://www.state.sgov.gov/p/nea/kuwait/ ******************************************** LEBARON