INTERNATIONAL AGREEMENTS AND INVESTMENTS

Trade Policy

WTO:

The World Trade Organization (WTO) appellant body affirmed that export restrictions of China on tungsten, molybdenum and other rare earth metals which are key inputs for  a range of high tech products violates international trade rules  (31 ITR 1485; 8/14/14). 

LEGISLATIVE DEVELOPMENTS

Export Licensing

OFAC: 

OFAC has published a final rule in the Federal Register amending and reissuing the Burmese Sanction Regulations (www.treasury.gov; 33 WorldECR July/August 2014, p. 5). 

Export Controls

U.S.:

The eight additional countries of China, Croatia, Estonia, Iceland, Lithuania, Malta, Mexico and Serbia are added to the definition of the Nuclear Suppliers Group in the Export Administration Regulations (EAR) final rule published August 7, 2014  (79 Fed. Reg. 46,315; 31 ITR 1464; 8/14/14). 

National Security

U.S.:

The International Trade Commission (ITC) final rules establishing practice and procedure are consistent in handling national security information by applicable authorities (79 Fed. Reg. 46,350; 31 ITR 1468; 8/14/14). 

Foreign Investments

U.S.:

Commerce Department Bureau of Economic Analysis (BEA) has reinstated its survey to expand foreign business investment reporting requirements for BE-13, Survey of New Foreign Direct Investment in the U.S.  (79 Fed. Reg. 47,573; 31 ITR 1511; 8/21/14). 

Procurement

U.S.:

Invest in American Jobs Act (S.2737 could improve existing Buy America preferences for DOT projects and insure consistent coverage across federal infrastructure programs (31 ITR 1414; 8/7/14). 

LEGAL DEVELOPMENTS

Tariff Classifications

Canada:

Mattel Canada Inc. won its appeal of the classification by the Canada Border Service Agency (CBSA) of 20 models of infant jumpers, bouncers and rockers as “seats.” Mattel Canada Inc. v. Canada Border Servs. Agency, (CITT, Nos. AP-2013-034 and AP-2013-040, 7/10/14; 31 ITR 1426, 8/7/14). 

EXPORTS AND SANCTIONS

Trade

Canada:  

The list of goods and technologies known as the Export Control List (ECL) to implement obligations under the Wassenaar Arrangement and the Missile Technology Control Regime have resulted in over 250 amendments in the implementation of the sanctions against Russia  (33 WorldECR July/August 2014, p. 9). 

EU:      

The European Union (EU) has implemented numerous restrictive measures in respect of the actions of Russia threatening the territorial integrity and sovereignty of the Ukraine  (33 WorldECR July/August 2014, p. 10). 

U.S.:

The newly sanctioned items selected by the U.S. for dealing with Russia’s activities in respect of the Ukraine have focused more on products, technology and seismic data  (33 WorldECR July/August 2014, p. 12). 

The US Department of Commerce (BIS) published a rule effective August 26, 2014 imposing controls on a wide range of items for use in the exploration or production of deep water, arctic off-shore or shale projects affecting the oil and gas industry of Russia (33 WorldECR July/August 2014, p. 22). 

Successor Liability 

U.S.:

The U.S. Department of Commerce, like the U.S. Departments of State and Treasury, will pursue successor-in-interest liability for an acquiror of target company which has a history of trade sanctions or bribery violations imposing liability under the theory that transfers of assets includes transfer of contractual liability for such regulatory obligations as established by U.S. export trade control requirements.  (33 WorldECR July/August 2014, p. 25). 

Trade Controls

U.S.:       

Gatewick LLC, a cargo services firm of the United Arab Emirates agreed to a $40,000 civil penalty to settle charges related to the export from the U.S. without government authorization of 2,300 computer mother boards shipped to Iran (31 ITR 1517; 8/21/14).  

 The Commerce Control List (CCL) was revised by the Bureau of Industry and Security (BIS) to enact changes made to the Wassenaar Arrangement list of "dual-use" goods and technologies  (79 Fed. Reg. 45,288; 31 ITR 1421; 8/7/14). 

The BIS amended the EAR by removing references to “Biosensor Systems” and related software and technology from the supplement to avoid the items become automatically designated as EAR 99 (No License Required–NLR).  (79 Fed. Reg. 45,088; 31 ITR 1422; 8/7/14). 

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