For example, I've seen it used to describe blacks living in other countries who have never stepped foot in America.
Another example is the usage of "African American" to describe a trait, when it isn't established at all whether the person or item associated with that trait is American (an "African American hair was found at the crime scene" -- as if the hair has an American flag attached to it).
Another thing -- don't call someone an African-American unless you're sure they want to be called that. I know a lot of black immigrants from the West Indies who are offended by the term. Many will tell you with gusto that an African-American is someone who came from some African country and immigrated to the USA.
Caribbean folks have their own strong, distinct culture.