Month: January 2014

Rewrite of Cat. XI of the U.S. Munitions List – Changes Coming

Acme Electronics (Acme) is a medium-sized company that produces populated printed circuit board assemblies and wiring harnesses as a subcontractor to aerospace and electronics companies.  Currently, Acme’s process for classifying its products for export control purposes has been a simple one: If the products are used in a military application they go in Category XI

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Anti-Dumping Duties: How Importers Can Protect Themselves

On June 21, U.S. Customs and Border Protection (CBP) announced that it had arrested five individuals from three separate companies indicted on three counts of conspiracy to smuggle goods into the U.S., as well as conspiracy to commit money laundering. Specifically, the defendants were accused of having provided CBP with fabricated documents to avoid paying

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A Year in Review: Export Enforcements in 2013

2013 was a significant year in export enforcement cases in both the high-profile nature of certain enforcement actions as well as the significant penalties levied over the course of the year. Companies involved in all aspects of exporting, as well as exporters from all industries, are well served by a review of notable enforcement actions

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The Interplay of FCPA and Export Control Violations: When Bad Decisions and Lack of Internal Controls Lead to Severe Consequences

Weatherford International and Subsidiaries Agree to Pay $252 Million in Penalties and Fines On November 26, 2013, three subsidiaries of Weatherford International Limited (Weatherford International), a Swiss oil services company that trades on the New York Stock Exchange, agreed to plead guilty to anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA), and export control

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Export Control Reform – Get Ready for Round 2

The first major implementation event of export control reform took place on Oct. 15, 2013, when the revised Cat. VIII and new Cat. XIX of the US Munitions List (USML) and the corresponding provisions in the 600 series of the Commerce Control List (CCL) went into effect. The next implementation is on Jan. 6, 2014,

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Special Considerations When Classifying Automotive Goods Under the Harmonized Tariff Schedule of the United States (HTSUS)

The classification of automotive goods and accessories is often challenging given the complexity of the vehicles themselves and the interplay of the HTSUS Rules of Interpretation and Section and Chapter notes.  This article is concerned primarily with “vehicles” which are classifiable under Chapter 87 of the HTSUS, and in particular those classifiable under Headings 8701

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Saving Duties: Using the contract to your advantage

Resolving a problem before it arises is a time tested strategy. You don’t leave your house without locking your doors, you don’t walk across the street without looking both ways, and you don’t drive to work without putting on your seatbelt. You might ask what these analogies have in common with international trade law; the

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Are You Obstructing Justice Without Realizing It?

The crime of obstruction of justice refers to interfering with the work of police, investigators, regulatory agencies, prosecutors, or other government officials.  Obstruction can generally be grouped into the following three categories:  (1) statements and actions toward the government; (2) statements and actions toward third parties; and (3) deleting, altering or failing to produce documents. 

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New Canada-EU Free Trade Agreement

A new trade agreement between Canada and the European Union (EU) may be a welcome boost for Canadian companies and their trade partners.  The Comprehensive Economic and Trade Agreement (CETA) between Canada and the EU is making progress, and may even be implemented by late 2015.  Negotiations for the CETA first began in 2008, and

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A Race for Another Kind of Cure

Some say that the future of oil shale is upon us, while others say “not so fast.” The extraction process to attain oil from shale is no simple task, which is why vast reserves remain undeveloped. Estimated U.S. oil shale reserves total an astonishing 1.5 trillion barrels of oil, or more than five times the

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