Latest updates
COVID-19 trade update: potential duty payment deferrals and border shutdowns
Arent Fox LLP- USA
- 27 March 2020
The coronavirus (COVID-19) is affecting all elements of society, including the import, trade and transport sectors. The Department of Homeland Security and US Customs and Border Protection (CBP) have recently announced that the US-Canada and US-Mexico borders have been closed to 'non-essential' traffic for 30 days and that duty payments may be deferred. CBP has also announced the impact of COVID-19 on operations. For now, cargo shipments remain unaffected.
OFAC sanctions reporting rules: a discussion
Arent Fox LLP- USA
- 06 March 2020
The Office of Foreign Assets Control recently issued two new FAQs clarifying that it was serious when it expanded the scope of the Reporting, Procedures and Penalties Regulations with regard to reporting blocked, unblocked or rejected transactions to include any US person (or person subject to US jurisdiction) instead of just financial institutions, as previously required. In this video, Marwa M Hassoun and Kay C Georgi discuss the ramifications of the change and suggest possible clarifications.
Trump administration cracks down on counterfeit and other goods imported contrary to law
Arent Fox LLP- USA
- 28 February 2020
The Trump administration recently took the first step to implement its plan to crack down on counterfeit goods online when it issued an executive order allocating more federal resources to the inspection and oversight of imports that are at risk for counterfeits and other illicit goods. The executive order was issued one week after the US Department of Homeland Security issued a plan setting out steps to combat counterfeit goods.
New strategy to combat forced labour in US imports announced
Arent Fox LLP- USA
- 28 February 2020
The US Department of Homeland Security recently released a department-wide strategy to combat human trafficking, child exploitation and forced labour in the supply chain. The strategy will build on current efforts to interdict imports of goods made with forced labour that US Customs and Border Protection has been enforcing since the passage of the Trade Facilitation and Trade Enforcement Act in 2016.
Maximum pressure squared: Trump turns up Iran sanctions amplifier
Arent Fox LLP- USA
- 21 February 2020
President Trump recently issued Executive Order 13902, which places additional large swaths of the Iranian economy – and those outside Iran which support it – in the crosshairs of US sanctions. Third-country companies doing business with Iran's construction, mining, manufacturing or textiles sectors are now at greater risk of being sanctioned.
Court sides with importer in not paying duties on royalties
Arent Fox LLP- USA
- 21 February 2020
An importer of Giorgio Armani apparel recently secured a victory in the Court of International Trade in its dispute with US Customs and Border Protection (CBP). The case considered whether the importer was required under US customs laws to pay duties on advertising fees and trademark royalty fees as part of the value of the goods declared to CBP.
First unilateral export control on AI software issued
Arent Fox LLP- USA
- 14 February 2020
After a more than one-year wait, the Department of Commerce Bureau of Industry and Security (BIS) has imposed controls on its first 'emerging technology' – software specially designed to automate the analysis of geospatial imagery. This software now requires a BIS authorisation to be exported or re-exported to any country other than Canada. Companies that develop or use AI to solve geospatial problems or in geospatial applications must review the new rules closely.
US-China trade war ceasefire: important tariff information
Arent Fox LLP- USA
- 07 February 2020
The United States and China recently signed a long-awaited trade agreement after nearly two years of a trade war that has resulted in crippling tariffs. This preliminary agreement requests China to purchase approximately $200 billion in certain US goods and services and provide better protection to US intellectual property and trade secrets. In exchange, President Trump has agreed to reduce the List 4A tariffs on $120 billion worth of goods and indefinitely suspend the imposition of a 15% tariff on List 4B products.
ITAR catches up: exporters can use encryption to protect defence technology on Cloud
Arent Fox LLP- USA
- 31 January 2020
The State Department has finally brought the International Traffic in Arms Regulations (ITAR) into the 21st century by releasing an interim final rule adopting the cloud computing encryption standards that the Commerce Department adopted in 2015. The good news is that, for the most part, the State Department resisted the temptation to do something different in the ITAR, so the joint Commerce-State solution works.
CFIUS 2.0: expansion of jurisdictional scope remains in limbo as tech minority investments emerge
Arent Fox LLP- USA
- 24 January 2020
In the Foreign Investment Risk Review Modernisation Act and the Export Control Reform Act, Congress essentially gave the Department of Commerce the authority to decide how narrowly or widely to set the jurisdiction for the Committee on Foreign Investment in the United States over non-passive minority investments involving emerging and foundational technologies. Yet, at times, the department has seemed almost paralysed by this question.
Section 301 tariff developments affect US importers
Arent Fox LLP- USA
- 17 January 2020
Section 301 of the Trade Act authorises the president to take retaliatory action if it is determined that a trade act, policy or practice of a foreign government is unreasonable or discriminatory and burdens or restricts US commerce. December 2019 saw significant end-of-year developments on the Section 301 tariff front. US importers should take stock of these as they plan for 2020.
USMCA takes giant step towards ratification
Arent Fox LLP- USA
- 03 January 2020
House Democrats and the Trump administration recently reached an agreement on the final text of the US-Mexico-Canada Agreement (USMCA). Once Canada and the United States have completed their ratification process, all three countries will move quickly to publish the critical uniform regulations. Company leaders must carefully follow these regulations, as they spell out new rules regarding USMCA compliance and preferential tariff treatment.
USTR opens new front in trade wars with proposed France duties
Arent Fox LLP- USA
- 20 December 2019
The US Trade Representative recently announced that it has determined that France's digital services tax is unreasonable or discriminatory and burdens or restricts US commerce, and that it is proposing additional ad valorem duties of up to 100% on products from France under Section 301 of the Trade Act 1974. Parties seeking changes to the proposed list of tariff subheadings or lower duties should take advantage of the comment period.
Administration tests waters for unprecedented government review of international technology transactions
Arent Fox LLP- USA
- 13 December 2019
Providers of telecoms, internet and digital services, as well as IT vendors and equipment manufacturers, will soon find doing deals with foreign entities a little more risky and complicated. A new review process soon to be underway at the Department of Commerce is designed to ferret out transactions that pose a threat to US national security, but provides parties whose deals are being evaluated little time to comment.
Transpacific Steel secures trade court win for security tariffs on steel from Turkey
Arent Fox LLP- USA
- 29 November 2019
The US Court of International Trade recently denied the Trump administration's motion to dismiss a lawsuit brought by an importer challenging the government's use of a Cold War-era trade law to double national security tariffs on steel imports from Turkey. Transpacific Steel LLC had filed the lawsuit before the trade court in January 2019, arguing that the increase in tariffs was unlawful under the statute and violated the due process and equal protection requirements under the Constitution.
Miscellaneous Tariff Bill process now underway: don't miss the chance to lower your duty payments
Arent Fox LLP- USA
- 08 November 2019
The US International Trade Commission (ITC) recently began accepting petitions as part of the 2019 Miscellaneous Tariff Bill process. Under this process, a member of the public may request that Congress temporarily eliminate or reduce duty on an imported article for three years. Petitions are due no later than 10 December 2019 at 5:15pm Eastern Standard Time via the ITC online portal.
BIS imposes further restrictions on Cuba and temporary sojourn licence exception
Arent Fox LLP- USA
- 01 November 2019
The Bureau of Industry and Security (BIS) announced another major policy change towards Cuba by further restricting the Cuban government's access to items subject to BIS's Export Administration Regulations. This new rule will have a significant impact on exporters and re-exporters currently using certain licence exceptions to export to Cuba that export non-US origin products with US-origin content to Cuba and lease commercial aircraft to Cuban state-owned airlines.
Treasury releases comprehensive rewrite of CFIUS regulations, flood of filings expected in 2020
Arent Fox LLP- USA
- 25 October 2019
The Treasury Department, on behalf of the full Committee on Foreign Investment in the United States (CFIUS), recently released the long-awaited comprehensive draft regulations to implement the Foreign Investment Risk Review Modernisation Act. The regulations will significantly expand CFIUS's jurisdiction to cover a wider range of transactions, likely resulting in a dramatic spike in CFIUS reviews in 2020 and beyond.
Amorphous human rights due diligence for US exporters of surveillance items
Arent Fox LLP- USA
- 18 October 2019
The US State Department recently solicited feedback on its draft US Government Guidance for the Export of Hardware, Software and Technology with Surveillance Capabilities and/or Parts/Know-How. The draft guidance aims to provide insight to exporters on the considerations to weigh prior to exporting items with intended and unintended surveillance capabilities and could foreshadow new export controls and a US State Department review.
CFIUS 2.0: real estate as a platform for foreign espionage against the government?
Arent Fox LLP- USA
- 11 October 2019
The Committee on Foreign Investment in the United States (CFIUS) is finalising its draft regulations to implement the Foreign Investment Risk Review Modernisation Act 2018 (FIRRMA). FIRRMA overhauled the operations and jurisdiction of CFIUS, but one aspect of the new law that has received little attention is the expansion of CFIUS's jurisdiction to cover a broader range of real estate transactions.
