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Category Archives: International Trade & Investment
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EU expands its sanctions against Venezuela
On 29 June 2020, the Council of the European Union have included eleven officials in the list of natural and legal persons, entities and bodies subject to asset freezing measures and a travel ban. The listed individuals are deemed responsible for serious human rights violations and for the repression of civil society and democratic opposition
Department of Defense Lists Chinese Companies, with Chinese Military Ties, Operating in the United States
On 24 June 2020, the United States Department of Defense made public a list of Chinese companies operating in the U.S. that are associated with the Chinese military. The Department of Defense has been legally required to maintain such a list under Section 1237 of the 1999 National Defense Authorization Act. The Act requires the
Next steps towards tighter German Foreign Investment Control rules passed
For M&A transactions in Germany and beyond, Foreign Investment Control screenings have become an indispensable standard element to assess when structuring deals and planning for regulatory review. Similarly to merger control, acquirers and sellers need to consider the impact of the increasing number of jurisdictions that might want to review their proposed transaction. In the
China Entity List designations
On Friday, May 22, 2020, the US Department of Commerce, Bureau of Industry and Security (BIS) announced in two separate press releases that it would be adding a number of companies and governmental entities to the Entity List.
Two Key CFIUS Developments: CFIUS Publishes 2018 Annual Report and Proposed Regulations Revising Critical Technologies Mandatory Filing Program
The Committee on Foreign Investment in the United States (“CFIUS”), a U.S. government interagency committee that conducts national security reviews of foreign investments, recently released its 2018 annual report.
BIS Expands Foreign-Produced Direct Product Rule With Regard to Huawei
The Commerce Department’s Bureau of Industry and Security has announced an Interim Final Rule amending the Export Administration Regulation’s General Prohibition Three, the foreign-produced direct product rule. According to the accompanying press release, the rule change makes the following foreign-produced items subject to the EAR: Items, such as semiconductor designs, when produced by Huawei and
Bill Introduced to Block Chinese Acquisitions During COVID-19 Pandemic
Representative Jim Banks introduced a bill on 5 May 2020 to “place temporary restrictions on acquisitions [of U.S. companies] by the People’s Republic of China. . .” during the COVID-19 pandemic. The bill would mandate, with certain exceptions, that the Committee on Foreign Investment in the United States (CFIUS) review, and the President deny, certain
EU imposes sanctions on 6 Nicaraguan nationals
On 4 May 2020 the Council of the European Union have included six Nicaraguan officials in the list of natural and legal persons, entities and bodies subject to asset freezing measures and a travel ban. The listed individuals are deemed responsible for serious human rights violations and for the repression of civil society and democratic
Pay up: CFIUS imposes filing fees effective 1 May
The U.S. Department of the Treasury’s Interim Rule establishing filing fees for joint voluntary notices submitted to the Committee on Foreign Investment in the United States goes into effect 1 May 2020. Treasury has created the following tiered system of fee amounts: Value of the Transaction (range) Fee (USD) <$500,000 $0 $500,000 – <$5,000,000 $750
Update on UK export licencing processes amidst the COVID-19 outbreak
Amidst the global COVID-19 pandemic many things are uncertain. For businesses, this is further compounded by the rapidly changing and temporary measures that governments are launching to limit the financial fallout of the outbreak. To ensure businesses are not accidently caught out by these new measures, it is important for companies importing and exporting goods
BIS publishes rules regarding CIV and APR license exceptions and military end use and military end user controls for China, Russia and Venezuela
Three important regulatory developments were published yesterday in the Federal Register by the Commerce Department’s Bureau of Industry and Security: A Final Rule eliminating the Civil End Users (CIV) license exception. The Final Rule goes into effect 29 June 2020. A Final Rule expanding license requirements for exports, reexports and in-country transfer for military end
The European Commission extends export restrictions on Personal Protective Equipment
The EU has extended the export restrictions on certain items of Personal Protective Equipment (PPE) for a further period of 30 days. On 24 April, the European Commission (Commission) extended the export controls on PPE until 26 May 2020, through Commission Implementing Regulation (EU) 2020/568 (you may find the regulation here). According to the existing
President Trump Issues Executive Order Postponing Customs Payments for 90 Days
On 19 April, President Trump issued an Executive Order providing for a temporary 90‑day deferral, of estimated payments of duties, taxes, and fees to Customs and Border Protection (CBP) by importers “suffering significant financial hardship” due to the coronavirus pandemic. The deferral solely applies to most-favored nation (MFN) tariffs and duties and explicitly does not
EU suspends tariffs on medical equipment
Following requests from numerous Member States, on 3 April the European Commission (“Commission“) adopted Commission Decision (EU) 2020/491 (“the Decision“), which provides for relief from import duties and VAT for goods imported in the EU to combat the COVID-19 outbreak. Although the Decision does not include a specific list of covered products, it would likely
Customs Rescinds Proposal to Extend Payment of Duties in Response to COVID-19 Pandemic; Requires Payment of Deferred Duties Not Granted Extension
US Customs and Border Protection (“Customs”) rescinded its proposal to grant extensions on all customs duty payments for 90 days in response to the COVID-19 Pandemic. While Customs has conducted a limited case-by-case review of some requests for extensions of duty payments, Customs notified the trade community it was no longer accepting case-by-case requests for
Industrial policy strikes again: Germany announces further tightening of Foreign Investment Control rules
For M&A transactions in Germany and beyond, Foreign Investment Control screenings have become an indispensable standard element to assess when structuring deals and planning for regulatory review. Similarly to merger control, acquirers and sellers need to consider the impact of the increasing number of jurisdictions that might want to review their proposed transaction. In the
Federal Circuit Acetris Decision Changes Procurement Country of Origin Landscape
On Monday, in the much-anticipated decision in Acetris Health, LLC v. U.S. 18-2399, the Court of Appeals for the Federal Circuit (the “Federal Circuit”) ruled that U.S. manufacture of a drug is sufficient to confer U.S. origin under the Trade Agreements Act (“TAA”) – regardless of the origin of its main component, the Active Pharmaceutical
National Security Commission on AI issues interim report
The National Security Commission on Artificial Intelligence (the “Commission”), established by the John S. McCain National Defense Authorization Act for Fiscal Year 2019, issued an interim report providing the Commission’s preliminary assessment of foreign threats to U.S. national security in the current AI era; how AI can improve the government’s ability to defend the U.S.,
CFIUS Regulations Released for Public Inspection
The long-anticipated foreign investment review regulations were released for public inspection on 13 January, 2020. The regulations, scheduled to appear in the Federal Register on 17 January, 2020, are in two Federal Register notices: In connection with 31 CFR Parts 800 and 801, the Office of Investment Security at the Department of the Treasury issued
DDTC Publishes FAQs on U.S. Persons Working Abroad & ITAR Defense Services
On 6 January, 2020 DDTC announced guidance regarding U.S. persons providing defense services while abroad. The guidance is based on the ITAR and not the 2015 proposed rule, and is provided in a 14-part question-and-answer format.
Will FDA be forced to implement a drug importation program?
Over a year ago, HHS Secretary Alex Azar requested that FDA establish a working group to explore how drug importation “could help address price hikes and supply disruptions.” The FDA working group was not assigned the task of developing a broad drug importation program. Instead, the working group’s remit was specifically limited to considering potential
OFAC Issues Press Release for a Finding of Violation Against State Street Bank and Trust Co. Where No Penalty was Assessed
OFAC issues press release for a Finding of Violation