Treasury’s Final FIRRMA Regulations: New Foreign Investment Restrictions in Tech, Infrastructure and Data
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Apple’s Lesson: Screening Software Alone Won’t Prevent Export Violations
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.…
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…
New Foreign Investment Restrictions on the Horizon in Tech, Infrastructure and Data
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…
Will USMCA become a casualty of the US election?
Though the USMCA has been ratified by Mexico, the trade agreement still faces a vote in Canada and, perhaps more concerning, the US. Under the Trade Promotion Authority (“TPA”), both houses of US Congress must vote in favor of the implementing bill, which is expected to be submitted to Congress after September 1. Submission of the implementing legislation operates to start the 90-day clock for Congressional approval. Accordingly and assuming the implementing bill is submitted…
What Do CBP’s Proposed New Verification Requirements Mean for Customs Brokers?
In an August 14, 2019 Notice of Proposed Rule Making, U.S. Customs and Border Protection (“CBP”) announced its intent to increase requirements on licensed customs brokers to verify the identity of the importers with whom they transact. CBP reports that each year, approximately 350,000 importers actively engage with CBP through almost 2,100 licensed customs brokers. Ensuring that each of these importers is a legitimate entity and not, for instance, a shell corporation used to…
USTR Announces Delays to Portions of Section 301 List 4
On August 13, the Trump Administration announced the “next steps” in implementation of the approximately $300 billion in additional tariffs set to go into effect September 1. This fourth round of Section 301 tariffs (known as “List 4”) was originally announced on May 17; however, the USTR has now modified and separated that list into List 4A and List 4B. Several products (25 tariff lines in total) were removed from the lists following the public…
Recent CFIUS Enforcement Hints at Its Priority Industries and Concerns
The Committee on Foreign Investment in the United States (CFIUS)* recently cleared several investments and acquisitions involving foreign actors, giving businesses a small glimpse into which investment characteristics the interagency committee may be favoring in its clearance process.
With last year’s passage of the Foreign Investment Risk Review Modernization Act (FIRRMA), the scope of CFIUS’s oversight has expanded and the committee has become more frequently involved in acquisitions and investments by foreign actors. Earlier this…