International

International Trade

International Trade Law Compass

http://internationaltrade.foxrothschild.com/

The laws and regulations governing international trade are especially complex and can be overwhelming for companies doing business across national borders. The rapidly expanding global marketplace, however, has made compliance more important than ever. Failure to heed these laws can have serious and lasting consequences as dire as criminal charges against the company and individual employees. This blog offers a steady stream of updates on a broad range of international trade issues, including customs/import compliance, export controls and sanctions, the Foreign Corrupt Practices Act (FCPA) and cross-border contracts.

Recent Blog Posts

  • CBP Confirms No Additional Chinese Tariffs on Goods from HK On August 12, CBP confirmed that the recent revocation of Hong Kong’s “special status” and updated China marking requirements would not render goods of Hong Kong origin subject to the additional Section 301 tariffs imposed on most goods of Chinese origin. CBP stated that “the change in marking requirements does not affect country of origin determinations for purposes of assessing ordinary duties under Chapters 1-97 of the HTSUS or temporary additional duties under Chapter 99 of the HTSUS. Therefore, goods... More
  • US Revokes Hong Kong’s “Special Status” – UPDATED 8/24 UPDATE: CBP has extended the compliance period for origin marking for an additional 45 days. In an effort to allow importers ample time to comply with EO requirements for goods produced in Hong Kong to be appropriately marked with the origin of “China”, CBP is extending the transition period through November 9, 2020.  Accoringly, effective November 9, Hong Kong goods entered or withdrawn from warehouse for consumption must be marked as products of China. As previoulsy noted, this change does... More
  • Canadian Aluminum to Again Face 10% Tariff On August 6 the Trump Administration announced that it would reimpose the 10% aluminum tariff on imports of Canadian “non-alloy unwrought aluminum” classified under HTS subheading 7601.10. The move has not garnered widespread support from industry or the US Chamber of Commerce, who called it “a step in the wrong direction.” The Administration’s proclamation claims an 87% increase in imports of Canadian non-alloyed unwrought aluminum between June 2019 and May 2020; however, the US Aluminum Association recently reported a 2.6%... More
  • USMCA Certificates of Origin – What you need to know. The fact that the US-Mexico-Canada Agreement (“USMCA”), which replaced NAFTA on July 1, does not require any particular form Certificate of Origin (“COO”) has left many importers and exporters confused on the proper manner of certifying goods as “originating” under USMCA. The new trade agreement dispensed with the formality of the Form 434 COO under NAFTA, but has left to the trade the determination of how to format and structure the certifying document. Though no particular format or structure is... More
  • Treasury’s Final FIRRMA Regulations: New Foreign Investment Restrictions in Tech, Infrastructure and Data Starting Feb. 13, 2020, U.S. companies in tech, infrastructure and data seeking minority or controlling foreign investment will require approval from the Committee on Foreign Investment in the United States (CFIUS) before closing certain transactions. The change stems from the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA), which was signed into law by President Donald Trump in 2018, expanding CFIUS’ jurisdiction to review certain foreign acquisitions of and investments in U.S. businesses on the grounds of national security. On... More
  • Apple’s Lesson: Screening Software Alone Won’t Prevent Export Violations Apple Inc.’s recent settlement with the Treasury Department’s Office of Foreign Assets Control (OFAC) has exposed a potentially costly wrinkle in complying with international trade regulations. While sanctions screening technologies may help a company catch and report errors, this software alone will not absolve faults and shortcomings in a company’s overall export compliance programs. The compliance woes at Apple serve as a signal to businesses of all sizes that rely on third-party sanction screening software. Ultimately, it’s not one technology but a... More
  • Certain Transactions with the Government of Venezuela are Authorized On November 5, 2019 the Office of Foreign Assets Control (OFAC) issued two General Licenses (GLs) authorizing specific transactions involving the Government of Venezuela and categories of persons blocked by Executive Order 13884 (E.O. 13884). E.O. 13884 was signed by President Donald Trump earlier this year on August 5, 2019. E.O 13884 was intended to increase pressure on the Nicolas Maduro regime by blocking property and property interests of the Government of Venezuela under U.S. jurisdictions and authorizing the U.S. Treasury... More
  • USMCA…maybe next year? Now that Canadian PM Justin Trudeau has dissolved Parliament and called for a general election (to be held October 21), chances of seeing the USMCA ratified by all three member states this year has become an increasingly remote possibility. However, the good news for USMCA supporters is that NAFTA’s replacement continues to enjoy support in Canada in both the Conservative and Liberal parties. In fact Andrew Scheer, leader of the Conservative party, has announced that he would support ratification of... More
  • New Foreign Investment Restrictions on the Horizon in Tech, Infrastructure and Data U.S. companies in tech, infrastructure and data seeking foreign investment will require approval from the Committee on Foreign Investment in the United States (CFIUS) before closing certain transactions. Last year, President Trump signed into law the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA), which outlined the expansion of CFIUS jurisdiction to review certain foreign acquisitions and investments in U.S. businesses on grounds of national security. FIRRMA left the specifics to regulations to be passed by the U.S. Department... More
  • US/China Trade War Escalates On Friday, August 23, the Trump Administration announced an increase in Section 301 tariffs following China’s announcement of retaliatory tariffs targeting $75 billion of US goods. The announcement, which came by way of tweet, provided that Section 301 tariffs on all List 1 through 3 goods would be elevated from 25% to 30% effective October 1. In addition, the administration announced that tariffs on List 4 goods-the first tranche of which goes into effect at 12:01 am EST on September... More