INTERNATIONAL BUSINESS AND TRADE 

Dumping

U.S.:           

Imports of a type of polyester from Asia will face new anti-dumping duties of up to 50% under a recent International Trade Commission (ITC) ruling issued on July 19, 2018  (35 ITR 992; 7/26/18).

Stainless steel flanges from China will be assessed additional anti-dumping duties of up to 257.11 % of the value of the merchandise  (35 ITR 945; 7/19/18).

Trade Policies

Russia:         

In response to the U.S. imposition of tariffs on steel and aluminum, Russia imposed import duties on some U.S. products from 25% to 40% as used in its construction, oil and gas and metal processing and fiber optics industries   (35 ITR 915; 7/12/18).

U.S.:           

The Commerce Department announced it will probe whether the present quantity and circumstances of imports of uranium ore and products  threaten to impair U.S. national security under the standards of Section 232 of the 1962 Trade Expansion Act using the same legal reasoning the Trump Administration used to impose duties on steel and aluminum  (35 ITR 993; 7/26/18).

The Commerce Department will impose anti-dumping duties on imports of polyester fiber from China, India, South Korea and Taiwan.  (35 ITR 879; 7/5/18).

LEGISLATIVE DEVELOPMENTS

Foreign Investment

U.S.:           

The National Defense Authorization Act (NDAA) includes a provision for the Foreign Investment Risk Review Modernization Act (FIRRMA) (S. 2098) that would mandate economic reviews of all foreign investment in the U.S.

Dumping/Countervailing Duties

U.S.: 

Sunpreme, Inc. must pay anti-dumping and anti-subsidy duties on its imports of solar modules from China according to the Federal Circuit Court of Appeals (Sunpreme, Inc. v. U.S., Fed. Cir., No. 2017-1338, 2017-1351, 6/14/18; 35 ITR 814, 6/21/18).

LEGAL DEVELOPMENTS

Dumping

U.S.:           

Universal Steel Products, Inc. is challenging a Commerce Department decision to expand tariffs on Chinese steel products finished in Vietnam (Universal Steel Products, Inc. v. U.S., Ct. Int'l Trade No. 18-00149, filed 6/20/18; 35 ITR 845; 6/28/18).

Maverick Tube Corp. lost its bid to get the United States to reinstate duties on oil drilling equipment imported from Taiwan (Tension Steel Industries Co. v. U.S., Fed. Cir. No. 2017-2526, 6/6/18; 35 ITR 787; 6/14/18).

Customs Duties

U.S.:           

The Federal Circuit Court of Appeals rejected the requests of plaintiffs Silfab Solar, Inc., Heliene, Inc. and Canadian Solar Solutions, Inc. for temporary exemption from the duties while their court cases are heard and their challenges against the "safeguard" tariffs on imports of solar sales and modules from around the globe to protect U.S. manufacturers against flood of cheap solar imports are adjudicated  (Silfab Solar, Inc. v. U.S., Fed. Cir., No. 18-01718, 6/15/18; 35 ITR 814; 6/21/18).

Dumping/Countervailing Duties

U.S.:           

Vietnamese steel producer Ton Dong A Corp is challenging the U.S. decision to expand duties on Chinese steel to cover products that are finished in Vietnam (Ton Dong A Corp v. U.S., Ct. Int’l Trade No. 18-001, filed 6/15/18; 35 ITR 816; 6/21/18).

Trans-Pacific Trade

Canada:        

Canadian International Trade Minister introduced legislation to implement the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with ratification expected in the Fall of 2018 (35 ITR 828; 6/21/18).

EXPORTS AND SANCTIONS

Compliance

U.S.:           

The Bureau of Industry and Security (BIS) of the Commerce Department determined that ZTE must pay $1 billion and place an extra $400 million in escrow before being removed from the Denied Persons List which penalties are in addition to the $892 million already paid under the 2017 Agreement (70 WorldECR June, 2018, p. 3).

Blocking Regulations

E.U.:           

The E.U. has initiated steps to activate a Blocking Regulation to prohibit the U.S. from re-imposing sanctions on European companies which trade with Iran after the withdrawal of the U.S. from the Joint Comprehensive Plan of Action (JCPOA)  (70 WorldECR, p. 7).

Trade Counter Measures

Russia:         

President Putin signed a law allowing severance of relations or restriction of trade with foreign states viewed as hostile to Russia as a response to unfriendly actions of the United States (70 WorldECR, p. 7).

Sanction Regulations

U.S.:           

Additional sanction regulations have been imposed on Venezuela banning certain additional transactions and designating a number of current or former government officials as “blocked persons” for repeated violations of individual freedoms by the government (70 WorldECR, p. 7).

Export Controls

Australia:      

Amendments were made to the Customs Prohibited Exports (Regulations 1958) (Cth) to treat transfer of the same control subject matter outside of Australia in a physical form consistently with such treatment for intangible transfers and shall now include email content (70 WorldECR, p. 14).

Anti-Money Laundering

United Kingdom:

The United Kingdom (UK) passed the Sanctions and Anti-Money Laundering Act of 2018 coming into force May 23, 2018, affording broad new powers to suspend and revoke sanctions regimes to implement UN sanctions (70 WorldECR, p. 27).

Cryptocurrencies

Switzerland: 

The Swiss State Secretariat for Economic Affairs (SECO) confirmed along with the U.S. Office of Foreign Asset Control (OFAC) that transactions involving digital currencies are subject to U.S. and Swiss sanctions and embargo laws (70 WorldECR, p. 30).

INTERNATIONAL DEBT WATCH*

*Excerpts from Economic and Financial Indicators published by The Economist, July 28th, 2018.

Sources: The Government Contractor (GC); Thomson Reuters Publishers; Federal Contracts Report, Bloomberg BNA, Bureau of National Affairs, Inc. (FCR); International Trade Reporter (ITR), International Trade Reporter Decisions (ITRD), TMIJ-Tax Management International Journal; IL – International Lawyer; FT – Financial Times; TE – The Economist Magazine; WSJ – Wall Street Journal; ILN/ABA-International Law News, American Bar Association; WorldECR; www.worldecr.com; London, England; Trade Security Journal (TSJ), London, U.K..