Latest updates
Status of Section 232 and Section 301 tariffs
Arent Fox LLP- USA
- June 22 2018
The secretary of the treasury recently stated that the United States was "putting the trade war on hold" pending negotiations with China to reduce the US trade deficit and address certain acts, policies and practices relating to IP rights. He subsequently clarified that his comments referred only to the proposed 25% tariff pursuant to Section 301 of the Trade Act 1974. These comments have raised questions regarding the status of the various safeguard tariffs announced by the Trump administration.
Trump issues Section 232 tariff exemptions, but companies must remain diligent
Arent Fox LLP- USA
- June 08 2018
Canadian business leaders greeted President Trump's announcement that the exemptions for Canada (and Mexico) from the double-digit Section 232 tariffs on certain steel and aluminium imports will be extended. What happens next is anyone's guess, and no company should feel comforted. Company executives will need to stay well apprised of their cross-border transactions and take all necessary steps to mitigate the risk of border delays, import audits or North American Free Trade Agreement verifications.
Section 232 adjustments on US steel and aluminium imports
Arent Fox LLP- USA
- June 01 2018
Following the presidential proclamations regarding the imposition of double-digit tariffs on certain steel and aluminium imports (ie, the Section 232 tariffs), the US Customs and Border Protection (CBP) has published further guidance detailing their implementation. Given the complexity of these tariffs and the scrutiny that the CBP will be applying to imports of steel and aluminium from all countries, importers should consider compliance with these trade actions to be a high-risk area.
Sanctions snapback: Trump announces withdrawal from Iran nuclear deal
Arent Fox LLP- USA
- May 18 2018
Before former President Obama left office in late 2016, the Department of the Treasury's Office of Foreign Assets Control (OFAC) published a list of FAQs to address the possibility of revoking the relaxed sanctions on Iran. Following President Trump's recent announcement that the United States is withdrawing from the Joint Comprehensive Plan of Action, OFAC has published new FAQs explaining how the re-imposition of sanctions will go into effect.
GSP refunds: duty savings opportunities for importers
Arent Fox LLP- USA
- May 11 2018
US Customs and Border Protection recently published guidance for claiming refunds on duty preference claims made under the Generalised System of Preferences (GSP) between the programme's expiration and the implementation date of its reauthorisation. The GSP programme promotes economic growth in developing countries by providing duty-free treatment of certain products imported from designated beneficiary countries.
Government ramps up enforcement of North Korean forced labour provisions
Arent Fox LLP- USA
- April 27 2018
Importers associated with industries where North Korean forced labour is known to be used must exert caution or be prepared to face the consequences. Failure to ensure that a company's supply chain is free from products resulting from North Korean forced labour will result in seizure and forfeiture of the prohibited merchandise, civil fines and possibly criminal prosecution.
First year of economic sanctions under Trump administration
Arent Fox LLP- USA
- April 20 2018
In its first year, the Trump administration has tackled sanctions issues involving Cuba, Iran, North Korea, Russia, Sudan and Venezuela, as well as individuals involved in human rights abuses and corruption. In some cases, the result has been forced by Congress; in others, the president has 'made good' on campaign promises. Most have involved the heightened rhetoric and threats characteristic of Trump's presidency, but the rhetoric has often outpaced the actual action.
President Trump announces tariffs on $50 billion of Chinese imports
Arent Fox LLP- USA
- April 06 2018
President Trump recently signed a memorandum that marks the start of a multi-faceted trade offensive against China. The memorandum is designed to respond to the administration's findings of misappropriation of US intellectual property and discriminatory technology licensing practices. In addition, the administration instructed the Treasury Department to propose restrictions on investment in the United States by Chinese-controlled entities and funds in certain industries or technologies.
USTR publishes list of products subject to Section 301 tariffs
Arent Fox LLP- USA
- April 06 2018
Following President Trump's recent memorandum, the Office of the United States Trade Representative has published a proposed list of Chinese products that could be subject to 25% ad valorem tariff pursuant to Section 301 of the Trade Act 1974. As expected, the list of affected tariff numbers is heavily geared towards the technology sector, including the aerospace, information and communication technology, robotics and machinery industries.
EU reaction to US national security measures
- European Union
- March 30 2018
The European Union has rejected the US claim that the recently issued Section 232 national security investigation reports on steel and aluminium measures are necessary or even intended to address a national security concern. The European Union has announced three actions in response to the measures, including a World Trade Organisation dispute settlement action.
Steel and aluminium Section 232 determinations: boardroom angst
Arent Fox LLP- USA
- March 23 2018
Now that President Trump has made his determination on the tariffs to be applied as a result of the Section 232 investigations of certain imports of steel and aluminium products, boardrooms around the globe are pondering the short and long-term implications for their corporate bottom lines. Section 232 investigations have been rare and thus little legal precedent is available for guidance. That said, there are 10 questions worth considering.
What are the risks of doing business with Russian Oligarchs List and Russian Defence and Intelligence List?
Arent Fox LLP- USA
- March 16 2018
At the end of January 2018, the Trump administration took two actions relating to the Russia and Ukraine sanctions programme under the Countering America's Adversaries Through Sanctions Act 2017, the law that President Trump signed on August 2 2017. While these acts did not result in the imposition of any actual sanctions, they do provide additional hints to businesses of where the Trump administration is heading in the months ahead, identifying risk areas that businesses can review and assess.
Commerce Department issues Section 232 national security investigation reports on steel and aluminium
Arent Fox LLP- USA
- March 02 2018
The Commerce Department recently released its redacted public version of the Section 232 reports on the effects of imports of steel and aluminium on national security. Both the steel and aluminium reports provide a range of options for the president to consider in restricting imports of aluminium and steel products. This news is expected to trigger swift and pronounced reactions from trading partners and affected US downstream industries.
Modification of trade defence rules regarding non-market economy costs and prices
- European Union
- February 23 2018
The European Union recently issued Regulation 2321/2017, amending the basic EU Anti-dumping Regulation (1036/2016). Among other things, Regulation 2321/2017 sets out new rules for the calculation of normal value in the case of significant distortions that affect cost and price and removes rules which previously allowed for normal value to be determined via an analogue country methodology for non-market economy World Trade Organisation members.
Important updates to ring in 2018
Arent Fox LLP- USA
- February 02 2018
The beginning of a new year often brings new regulations or changes to programmes. Customs programmes are no exception. Some key January 2018 changes for importers include fee increases, the expiration of the Generalised System of Preferences and changes to the tariff code.
Trump administration is enforcing global Magnitsky sanctions: impact on international business
Arent Fox LLP- USA
- January 26 2018
The Trump administration recently took significant steps towards using economic sanctions to tackle international human rights abuses and corruption. The administration's actions underline the ever-growing importance of know-your-customer and anti-corruption due diligence and compliance procedures for international business.
What could happen to imports if government shuts down: 2018 version
Arent Fox LLP- USA
- January 12 2018
Based on recent activity in Congress, the possibility of a shutdown of US federal government activities for at least a brief period is looming larger. Although it is unknown what the US Customs and Border Protection and other government agencies involved in import operations would likely do in the event of a shutdown, the 2013 federal government shutdown can be useful as a planning tool for importers.
Evolution of export law: what to do if a special agent comes knocking
- USA
- December 08 2017
The Department of Commerce, the State Department and Treasury each approach manufacturers, exporters and shippers as a way to gather information, understand a company or an industry and verify that the target understands the applicable export regulations. While these visits are often innocuous and as advertised, they may have an underlying purpose. How companies respond to these visits must be assessed on a case-by-case basis.
Recent developments in EU trade and investment policy
- European Union
- October 20 2017
The European Court of Justice recently handed down its opinion regarding the European Union's competence to conclude its proposed free trade agreement (FTA) with Singapore. FTA proposals incorporating provisions on the protection of non-direct foreign investments or investor-state dispute settlement mechanisms should be treated as mixed agreements, requiring ratification from not only the European Union, but also each member state.
EU-Japan 'agreement in principle' for economic and partnership agreement
- European Union
- August 25 2017
The European Union and Japan recently announced having reached an 'agreement in principle' on a future economic and partnership agreement. The final agreement is expected to boost EU-Japan trade by cutting red tape and scrapping duties. EU businesses importing from and exporting to Japan should prepare for the agreement's entry into force. This requires assessing the exact effect of the agreement on their operations and identifying potential opportunities and challenges.
