Multinational businesses have always been affected by major developments in international trade, global risk and geopolitical shifts. The importance of these issues is increasing every day in light of events such as the U.S.-China trade war, the global response to the war in Ukraine, and the risks posed by rogue state actors such as Iran and North Korea.
Continue Reading Nota Bene Podcast Re-Launched to Provide International Law and Policy Insights
As you may have heard here (and here and here), in October 2022, the United States issued sweeping measures aimed at the semiconductor industry in China. The new regulations restrict the export of semiconductors and related technology, manufacturing equipment, software, and even U.S.-person support, to China. The regulations are part of a high-stakes chess match between the United States and China, as they compete for technological and economic dominance. One important result of this struggle is that the global semiconductor industry is being squeezed by the regulatory and geopolitical pressure exerted by both sides.
Continue Reading The New Containment: How the Semiconductor Industry Came to Be at the Heart of the Technological Cold War
As we close out a wild year for international trade regulation,[1] after hearing much talk about outbound investment review mechanisms, we may see a final dramatic change before the ball drops. Since the summer, we have talked here about potential outbound investment reviews (reverse CFIUS? SUIFC?). And while there have been reports of potential action by both Congress and the Biden Administration on outbound investment, it is all the more possible to see executive action before a new Congress takes seat.
Continue Reading Will We Ring in the New Year with Outbound Investment Restrictions?
Key Takeaways
On November 28, 2022, the Office of Foreign Assets Control (OFAC) announced a $362,158.70 settlement agreement with Payward, Inc. (Kraken), an online virtual currency exchange, in connection with 826 apparent violations of the Iranian Transactions and Sanctions Regulations. This enforcement action highlights the OFAC compliance risks for virtual currency platforms and comes on the heels of the Bittrex settlement which we discussed here. Again, it is critical to assess your risks and take steps to make sure you’re addressing them with smart compliance and screening measures.
Continue Reading OFAC Continues Focus on Virtual Currency Industry with Announced Settlement with Payward, Inc.
On November 15, 2022, the United States Trade Representative (USTR) opened its docket (USTR-2022-0014) seeking public comments in its review of the Trump-era tariffs on Chinese imports. The tariffs were issued by then-President Donald J. Trump under Section 301 of the Trade Act of 1974.
Continue Reading China Tariffs: Opportunity to Request Modifications
On Monday, October 24, 2022, the Department of Justice (DOJ) announced charges against two alleged Chinese intelligence officers for bribing and stealing documents to obstruct the criminal investigation of, reportedly, Huawei (while the complaint does not name Huawei, it is the company according to multiple reports).
Continue Reading Bribes, Bitcoin and Obstruction: DOJ Announces Charges Against Chinese Agents for Trying to Impede Investigation of Huawei
Today, the Financial Action Task Force (FATF) officially moved Myanmar onto the agency’s blacklist, where it joins Iran and North Korea, the only other two listed countries. It is likely that the United States and other countries will take the FATF designation as grounds to impose financial sanctions on the country, likely focusing on its central bank and financial institutions.
Continue Reading Myanmar Sanctions – A Last Resort Against a Non-Cooperating Country
The United States Trade Representative (USTR) has announced the next steps in its review of the Trump-era tariffs on Chinese imports. Today, on October 17, 2022, USTR published the official request for comments in the Federal Register. The tariffs were issued by then-President Donald J. Trump under Section 301 of the Trade Act of 1974.
Continue Reading China Tariffs: USTR Requests Comments for Review of Section 301 Tariffs
Settlement Agreement with Bittrex, Inc.
Today, on October 11, 2022, the Office of Foreign Assets Control (OFAC) announced a $24,280,829.20 settlement agreement with Bittrex, Inc., an online virtual currency exchange and hosted wallet service provider, in connection with 116,421 apparent violations of multiple sanctions programs. This enforcement action highlights the OFAC compliance risks for virtual currency platforms. So, assess your risks and take steps to make sure you’re addressing them with smart compliance and screening measures.
Continue Reading OFAC Announces Hefty Settlement with Virtual Currency Exchange / Hosted Wallet Services Provider
On September 30, 2022, the Office of Foreign Assets Control (OFAC) published compliance guidance for instant payment systems. The guide highlights the need for emerging payment technology companies to assess their sanctions risks and implement compliance programs that mitigate those risks. Specifically, the guidance: (i) reaffirms that financial institutions should take a risk-based approach to managing sanctions risks; (ii) highlights key factors that may be relevant in determining that risk-based approach; (iii) encourages the development and deployment of innovative sanctions compliance approaches and technologies to address identified risks; and (iv) encourages developers of instant payment systems to incorporate sanctions compliance
Continue Reading OFAC Issues Sanctions Compliance Guidance for Instant Payment Systems
The Announcement
On Friday, October 7, 2022, the U.S. Bureau of Industry and Security (BIS) released for public inspection (available here) one hundred forty pages of regulations (which we’ll call “the Regulation” here). Nearly all of the changes in the Regulation restrict the export of semiconductors, as well as related technology, manufacturing equipment, software, and even U.S.-person support, to China.
Continue Reading China Semiconductor Export Regulations, Episode I – Counting Your Chips Carefully
In response to Russia’s illegal declaration of annexations of Ukrainian territory, the United States and the European Union have imposed additional sanctions on Russia.
Continue Reading U.S. and Allies Impose Additional Russia Sanctions After Sham Annexations
** Update: Announcement has been moved to Friday October 7, 2022 at 9:30 AM Eastern Daylight Time **
On Thursday, the Biden administration will announce new restrictions preventing China from accessing advanced U.S. semiconductor technology.
Continue Reading Further Export Controls on Semiconductor Technology for China coming this Week
After Mahsa Amini was killed in the custody of “Gasht-e-Ershad” or Iran’s Guidance Patrol, commonly referred to as Iran’s morality police, following an arrest for placement of her hijab, protests have erupted throughout Iran over women’s rights and Iran’s authoritarian regime more generally. Iran’s police and other security forces are retaliating severely against protestors. In response to these human rights abuses, on September 22, the U.S. Department of Treasury, Office of Foreign Assets Control (OFAC) sanctioned Iran’s morality police and senior leaders of Iran’s security organizations for the violence against protesters.
Continue Reading Technology to Iran: OFAC Lifts Certain Iran Sanctions In Response to Protests in Iran
On September 16, 2022, the U.S. Commerce Department released its final rule regarding antidumping and countervailing duty (AD/CVD) circumvention inquiries on solar cells and modules from Cambodia, Malaysia, Thailand, and Vietnam. The rule implements President Biden’s June 6, 2022, Proclamation 10414, (which we discuss here) declaring an emergency with respect to the U.S. energy market, and temporarily waives the collection of AD/CVD duties for certain cells and modules subject to the AD/CVD anticircumvention inquiry initiated by Commerce in April 2022.
Continue Reading Commerce Department Adds Guardrails Against Stockpiling of Certain Solar Cells and Modules During Temporary Waiver of AD/CVD Duties