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The Month in International Trade—February 2023

Client Alert | 11 min read | 03.01.23

In this issue:

Chambers Ranks Eight Crowell Practice Groups and 15 Lawyers in 2023 Global Guide

You’re Invited: Tuesdays with Trade Webinar Series

Crowell in the Press

Crowell Podcasts

Crowell Speaks

This news bulletin is provided by the International Trade Group of Crowell & Moring. If you have questions or need assistance on trade law matters, please contact Jana del-Cerro, Anand Sithian, or Simeon Yerokun or any member of the International Trade Group.

Chambers Ranks Eight Crowell Practice Groups and 15 Lawyers in 2023 Global Guide

You’re Invited: Tuesdays with Trade Webinar Series

Register Now

This March please join Crowell’s International Trade team for two webinar events. These 1-hour, CLE virtual events will cover the Russian invasion of Ukraine and what that means for companies, one year later, and discuss the current state of human rights and forced labor regulations in the U.S. and EU. More information about these two webinars can be found below. 

We hope you can join!

March 7th—1:00 PM ET
Russia One Year Later: Lessons Learned, Lingering Risks, and 2023 Predictions

One year after the Russian invasion of Ukraine led to an unprecedented ramp up in coordinated economic sanctions from the United States, United Kingdom, EU, and their allies, our panel of sanctions practitioners from both sides of the Atlantic will examine their impact on how companies are planning for 2023.  What are the risks for companies continuing to do business, or wind-down, in Russia?  How might the crisis escalate and what could that mean for companies both inside and outside of Russia?  Where will the regulators’ place their enforcement priorities, including perspectives from OFAC’s most recent Chief Counsel.  And, what lessons can we draw from the last 12 months that inform companies’ broader compliance and risk management approaches as they look to 2023 and thereafter.

Presenters: Carlton Greene, Michelle Linderman, Jason Prince, Anand Sithian & Nicole Succar

March 21st—1:00 PM ET
Compliant on Forced Labor? Prove It! | A Practical Guide on Preventing Forced Labor in Your Supply Chain and Responding to U.S. Customs Actions

Crowell & Moring International Trade attorneys will discuss the current state of human rights and forced labor regulations in the U.S. and EU. We will examine the myriad of challenges in this evolving regulatory environment and provide practical advice on: 

  • Identifying high-risk sectors
  • Navigating China’s Antiforeign Sanctions Law
  • Applying the requirements to a real-world case study
  • Interacting with U.S. Customs and Border Protection

Presenters: John Brew, Evan Chuck, Carolyn Krampitz, Laurel Saito, David Stepp & Simeon Yerokun

Top Trade Developments

U.S. Department of Commerce Imposes New Expansive Export Controls on Russia and Belarus

On February 24th, the U.S. Department of Commerce Bureau of Industry and Security (BIS) issued its latest set of export controls in response to Russia’s invasion of Ukraine. The broadest expansion of U.S. export controls on Russia since last fall, Friday’s actions are separate and distinct from the new sanctions regulations imposed by the U.S. Department of the Treasury Office of Foreign Assets Controls (OFAC). Both sets of controls are in coordination with the United States’ allies, resulting in the United Kingdom and Australia imposing their own controls, and the European Union’s control expected soon.

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For more information, contact: Jeff Snyder, Jana del-Cerro, Jeremy Iloulian

New U.S. Disruptive Technology Strike Force Highlights Risks for Research Facilities and Universities in The U.S.-China Competition for Technical Supremacy

Last week the U.S. Department of Justice (“DOJ”) and U.S. Department of Commerce announced a new Disruptive Technology Strike Force (the “DIS-TECH Strike Force”). The Strike Force will bring together experts throughout government—including the Federal Bureau of Investigation (“FBI”), Homeland Security Investigations (“HSI”), and 14 U.S. Attorneys’ Offices in 12 metropolitan regions across the country—to target illicit actors, strengthen supply chains, and protect critical technological assets from being acquired or used by nation-state adversaries. The Strike Force will be co-led by DOJ’s National Security Division (“NSD”) and the Commerce Department’s Bureau of Industry and Security (“BIS”).

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For more information, contact: Michael Atkinson, Caroline Brown, Jeremy Iloulian, Kelsey Clinton

OFAC and OFSI Issue Licenses for Humanitarian Aid in Syria and Turkey

On February 6, 2023, two massive earthquakes of 7.8 and 7.6 magnitude struck Turkey and Syria, resulting in substantial physical damage and tremendous loss of life with over 40,000 deaths as of February 14, 2023. Non-governmental organizations, the United Nations, and other non-profits have mobilized efforts to assist in disaster recovery efforts. As the search for survivors continues the United Nations Secretary-General, Antonio Guterres, announced that “delivering food, health, nutrition, protection, shelter, winter supplies and other life-saving supplies to all the millions of people affected is of the utmost urgency.”

While Turkey is not subject to any U.S. sanctions programs, the disaster area includes Syria which presents challenges for humanitarian aid in light of substantial U.S. and Western sanctions on Syria. Generally speaking, U.S. sanctions on Syria broadly prohibit dealings involving persons located in Syria, including financial transactions, except in narrow circumstances.

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For more information, contact: Dj Wolff, Anand Sithian, Dmitry Bergoltsev

The Indo-Pacific Economic Framework in 2023: What to Look for This Year

The Indo-Pacific Economic Framework for Prosperity (IPEF) partners engaged in another negotiating session as they seek to finish negotiations by the end of the year. Here’s what to watch for.

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For more information, contact: Robert Holleyman, Nicole Simonian, Clark Jennings, Kate Beale, Emily Devereaux

Buy America, By Americans—Office of Management and Budget Solicits Industry Input on Harmonizing Domestic Preference Regimes

Proposed rule to improve uniformity and consistency in the implementation of Build America, Buy America (BABA) requirements applicable to federally funded infrastructure projects pursuant to the Infrastructure Investment and Jobs Act (IIJA). This alert would be targeted to companies that are involved in federally-funded infrastructure projects, whether as contractors or lower-tier suppliers.

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For more information, contact: Addie Cliffe, Allison Skager, William B. O’Reilly

European Commission Seeks Stakeholders’ Views on Draft Foreign Subsidies Implementing Regulation

Last year, the European Union legislature adopted the far-reaching Foreign Subsidies Regulation aiming to tackle the distortive effects on EU markets of financial support by non-EU countries to undertakings active in the EU. On 6 February 2023, the European Commission launched the much-anticipated public consultation on a draft Implementing Regulation, including two annexes containing notification forms for concentrations and public procurements. Stakeholders have until 6 March 2023 to submit comments.

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For more information, contact: Vassilis Akritidis, Karel Bourgeois, Karl Stas

Congress Increases CBP’s Forced Labor Enforcement Budget to More Than $100 Million

At the end of December 2022, Congress passed the Consolidated Appropriations Act of 2023. This Act contains a number of discretionary spending acts for different Departments, including the Department of Homeland Security Appropriations Act, 2023. Per the Senate Committee on Appropriation, the Department of Homeland Security Appropriation Act for FY 2023 includes a total discretionary amount of $60.7 billion, which is a $3.2 billion increase compared to FY 2022. The Committee further announced that $101 million is to be provided to “support efforts to prevent the importation into the U.S. of merchandise mined, produced or manufactured, wholly or in part, in any foreign country by forced labor—including forced or indentured child labor.” The announcement stated that the $101 million represents a 108% increase compared to FY 2022.

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For more information, contact: John Brew, Laurel Saito, Martin Yerovi

Customs Rulings of the Week

For more information, contact: Simeon Yerokun, Maria Vanikiotis, Martín Yerovi, Emily Devereaux

Crowell in the Press

Justice Department to Increase Scrutiny of Technology Exports, Investments

February 16, 2023—The Wall Street Journal

Access Article (Web)

Related Professionals: Jason Prince

Crowell Podcasts

Global Trade Talks: Russia- and China-Related Sanctions with Jason Prince, Former Chief Counsel to the Office for Foreign Assets Control (OFAC)

Global Trade Talks is a podcast that shares brief perspectives on key global issues on international trade, current events, business, law, and public policy as they impact our lives. In this podcast, hosts Nicole Simonian and Ambassador Robert Holleyman talk to Jason Prince, a Crowell & Moring Partner and immediate-past Chief Counsel to OFAC, about what it was like to be at the eye of the sanctions hurricane following Russia’s full-scale invasion of Ukraine, what to expect in the Russia-related sanctions arena in 2023, and steps that companies should be taking now to mitigate the risks of potential future China-related sanctions.

Crowell Speaks

Chandler Leonard will be speaking on “Creating an Effective Export Compliance Program” at the ICPA’s 2023 Annual Conference in Orlando, FL, on March 15.

"Corporations and National Security: Is the Private Sector the New Battleground?" 28th Annual National Security Law Conference, Durham, NC. (February 24, 2023). Speaker: Caroline E. Brown

"Crushing the Customs Audit (and related investigations): How to Survive and Thrive During Compliance Review," Sanchez Devanny Webinar, 2023. (February 16, 2023). Speaker: Maria Vanikiotis

"Investing, Trading, and Doing Deals in a Dynamic World 2023: Navigating Persistent Risk," Practicing Law Institute, New York, NY. (February 16, 2023). Speaker: Jason Prince

 

Contacts

Insights

Client Alert | 3 min read | 12.10.24

Fast Lane to the Future: FCC Greenlights Smarter, Safer Cars

The Federal Communications Commission (FCC) has recently issued a second report and order to modernize vehicle communication technology by transitioning to Cellular-Vehicle-to-Everything (C-V2X) systems within the 5.9 GHz spectrum band. This initiative is part of a broader effort to advance Intelligent Transportation Systems (ITS) in the U.S., enhancing road safety and traffic efficiency. While we previously reported on the frustrations with the long time it took to finalize rules concerning C-V2X technology, this almost-final version of the rule has stirred excitement in the industry as companies can start to accelerate development, now that they know the rules they must comply with. ...

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