Tag Archives: TORRES TRADE LAW

ILN Today Post

CFIUS AND EXPORT CONTROLS: A DETAILED ANALYSIS OF THE PROPOSED MANDATORY FILING CHANGES

Pursuant to the Foreign Investment Risk Review Modernization Act of 2018 (“FIRRMA”), the Committee on Foreign Investment in the United States (“CFIUS”) is authorized to review and take action to address national security concerns arising from certain investments and real estate transactions involving foreign persons. On May 21, 2020, the U.S. Department of the Treasury (“Treasury”) published a Proposed Rule that includes two important changes impacting mandatory filings.

In October 2018, Treasury published the “Pilot Program Interim Rule,” an interim rule that implemented—on a temporary basis—a pilot program which imposed a mandatory filing requirement for certain foreign investment transactions involving a U.S. business across the five types of critical technologies as defined by FIRRMA; and with a nexus to specified industries identified in the North American Industry Classification System (“NAICS”). For more details about the critical technologies pilot program, please see our previous article.

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DDTC Provides Updated COVID-19 Measures

Yesterday the Directorate of Defense Trade Controls published an update to its operations as follows:

Compliance/Registration

  • Effective March 13, 2020, a temporary suspension of the requirement in ITAR Parts 122 and 129 to renew registration as a manufacturer, exporter, and/or broker and pay a fee on an annual basis by extending ITAR registrations expiring on February 29, March 31, April 30, May 31, and June 30, 2020 for two months from the original date of expiration.
  • DDTC Compliance is now granting an additional 30 days for responses to its request-for-information letters related to voluntary and directed disclosure matters.  DDTC Compliance is also considering extensions for the submission of full voluntary disclosures on a case-by-case basis.  Extension requests should be sent via email to DTCC-CaseStatus@state.gov on company letterhead in PDF format.
  • DDTC is also pursuing a one-time temporary reduction in registration fees for certain categories of DDTC registrants.  More information on any change will be provided on DDTC’s website.
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ILN Today Post

This trade bulletin summarizes important developments affecting international trade.

USMCA Interim Implementing Instructions
COVID-19 or not the United States Mexico Canada agreement’s (USMCA) implementation date is fast approaching. The U.S. Customs and Border Protection has issued Interim Implementing Instructions to provide early guidance on the new requirements under the USMCA, including on claiming USMCA preferential treatment for goods. The Final Implementing Instructions will be released prior to the date the USMCA enters into force.

For the Interim Implementing Instructions click here. Don’t hesitate to contact us with questions.

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Importers Facing “Significant Financial Hardship” May Defer Duty Payments for 90 Days

On April 18, 2020, President Trump issued an Executive Order providing authority to the Secretary of the Treasury, under 19 U.S.C. § 1318, to extend the deadline for payments of certain estimated duties, taxes, and fees for importers suffering significant financial hardship during the national emergency created by the COVID-19 novel coronavirus pandemic. Pursuant to the Executive Order, the Department of the Treasury and U.S. Customs and Border Protection (“CBP”) jointly issued a Temporary Postponement of the Time to Deposit Certain Estimated Duties, Taxes, and Fees During the National Emergency Concerning the Novel Coronavirus Disease (COVID19) Outbreak (the “Temporary Final Rule”), which temporarily postpones for 90 days the deadline for importers with a significant financial hardship to deposit certain estimated duties, taxes, and fees that they would ordinarily be obligated to pay as of the date of entry, or withdrawal from warehouse, for consumption.

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InsightsPresident Trump Adds Teeth to CFIUS Bite: Chinese Company Ordered to Divest Acquisition of U.S. Hotel-Software Company

The U.S. Department of the Treasury finalized the new Committee on Foreign Investment in the United States (“CFIUS”) regulations, which became effective on February 13, 2020.[1]

Amongst other matters, the new regulations significantly expand CFIUS’s jurisdiction for non-controlling investments, including the review of transactions involving U.S. businesses that manage or collect “sensitive personal data” of U.S. citizens. Notably, section 721 of the Defense Production Act of 1950, authorizes CFIUS’s jurisdiction to review covered transactions for national security implications, and enumerates the President’s authority to “suspend or prohibit any covered transaction that threatens to impair the national security of the United States.” Read more…

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What to Know about CBP Export Seizures

Regular readers of our newsletter, and those familiar with U.S. import and export regulations, know that U.S. Customs and Border Protection (“CBP” or “Customs”) generally enforces the U.S. import regulations, while multiple executive government agencies administer regulations related to the export of goods. Such agencies include, but are not limited to, the Department of Commerce Bureau of Industry and Security (“BIS”), the Department of State Directorate of Defense Trade Controls (“DDTC”), the Department of the Treasury Office of Foreign Assets Control, the Drug Enforcement Agency, and the Census Bureau. Read more…

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Recent Key OFAC Actions and Related Legal News

Key OFAC Actions

Central Bank of Iran (CBI) General License and FAQs

In September 2019, OFAC designated the CBI under terrorism-related sanctions authorities, which appeared to prohibit CBI’s involvement in processing payments for humanitarian-related transactions, such as those authorized under OFAC general licenses for agricultural commodities, medicines, or medical devices (“AgMed Licenses”). Read more…

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When Federal R&D Funding meets U.S. Trade Controls: Proceed with Caution

Cutting-edge technology is often a vital component for businesses seeking to expand their commercial market share. However, investing in research and development to develop a new product line can be costly and time consuming, making it difficult for some companies to reach their goals of advancing their current suite of products or exploring new innovations. To supplement their budgets for research and development, or “R&D” as it is commonly referred to, businesses may elect to pursue funding options available from the U.S. Government. Read more…

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CONDUCTING EFFECTIVE CORPORATE INVESTIGATIONS

Companies often must decide whether to conduct internal investigations after receiving information that could indicate ongoing violations of export control or economic sanction laws and regulations. It is important that they take adequate steps to preserve attorney-client privilege, immediately stop ongoing violations, and ensure resources and personnel are assigned to the investigative team. Deciding whether to conduct an investigation will ultimately depend on a variety of factors, and there are a number of decisions to be made at the outset of the investigation as outlined below. Read more…

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NEW CFIUS PART 802 GEOGRAPHIC REFERENCE TOOL

Pursuant to the Foreign Investment Risk Review Modernization Act of 2018 (“FIRRMA”), the Committee on Foreign Investment in the United States (“CFIUS”) is authorized to review certain real estate transactions by foreign persons in the United States. The regulations at 31 C.F.R. part 802[1] (effective on February 13, 2020), implement CFIUS’s authority to review certain “covered real estate transactions,” involving the purchase or the lease by, or a concession to, a foreign person of certain real estate in the United States. The real estate transactions subject to review include transactions meeting certain criteria and that are in, or around, sensitive sites such as specific airports, maritime ports, and military installations. The airports and maritime ports are identified in the regulations and contained on lists published by the U.S. Department of Transportation. Furthermore, the military installations are listed at Appendix A to Part 802.

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