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Capital Costs Must be Treated as Indirect Costs

Client Alert | 1 min read | 05.31.11

On May 12, 2011, the Armed Services Board of Contract Appeals issued yet another decision in the on-going Todd Pacific Shipyards Corporation appeal for reimbursement of costs associated with dry dock facilities. The Board's decision contained two key holdings: (1) the six-year statute of limitations for a CDA claim for cost recovery does not begin to run until the contractor has submitted an invoice for payment under the applicable contract's payment provisions (here the Allowable Cost and Payment Clause) seeking reimbursement of the amounts at issue, and the government has failed to pay the invoice, and (2) capital costs that benefit multiple cost objectives, such as those incurred by Todd for refurbishing a dry dock used for government and commercial work, must be charged as indirect costs and not direct costs.

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Client Alert | 6 min read | 07.09.26

EU Steel Overcapacity Regulation: New Permanent Measure in Force from 1 July 2026

The EU’s steel safeguard under Implementing Regulation (EU) 2019/159 expired on 30 June 2026 and has been replaced by a new permanent instrument — the EU Steel Overcapacity Regulation (Regulation (EU) 2026/1384) (the Regulation”). It imposes tariff-rate quotas and an out-of-quota duty, similarly to the steel safeguard measures that expired. The out-of-quota duty has been raised from 25% to 50% to minimize the risk of trade diversion. The Regulation reduces duty-free imports of 26 categories of steel products into the EU by an average of 47% compared with the quotas under the until recently applicable safeguard measures....