The Month in International Trade – May 2024

Crowell & Moring LLP Secures Significant Legal Victory for Apiário Diamante in Antidumping Duty Case

Top Trade Developments

• USTR Issues Request for Comment on Proposed Section 301 Changes, Extends Exclusions
• Voluntary Self-Disclosure Leads to National Security Division’s First Declination to Prosecute Company Under Enforcement Policy
• DHS Adds Chinese Firms to Entity List for UFLPA Violations
• Biden Administration Proposes New Section 301 Tariffs
• New Antiboycott Advisory on Türkiye
• BIS Targets Chinese Companies with Entity List Additions
• Global Trade Talks – Expanded U.S. Sanctions and Export Control Authorities Included in the Ukraine, Israel, and Taiwan Aid Bills
• U.S. Tightens Sanctions on Russia, Now Targeting Companies Based in China

Crowell Welcomes

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.

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Crowell & Moring LLP Secures Significant Legal Victory for Apiário Diamante in Antidumping Duty Case

Crowell & Moring LLP is pleased to announce a significant legal victory on behalf of our clients, Apiário Diamante Comercial Exportadora Ltda. and Apiário Diamante Produção e Comercial de Mel Ltda. (collectively known as “Supermel”). The United States Court of International Trade, in a decision issued by Judge Timothy C. Stanceu on May 30, 2024, has remanded the U.S. Department of Commerce’s final determination in the antidumping duty investigation on Raw Honey from Brazil.

In its April 2022 final determination, the Department of Commerce had assigned Supermel a punitive dumping margin of 83.72%, a decision based on the application of total adverse facts available (“AFA”). The court found that this decision was unsupported by substantial evidence, noting multiple deficiencies in Commerce’s analysis. Notably, the court determined that the agency wrongly relied on differences between information submitted by Supermel and its beekeepers and found no deficiencies in the accounting records provided by Supermel. The court also found that Commerce had not adequately notified Supermel of alleged discrepancies in their submissions, nor provided sufficient opportunity to remedy these deficiencies.

The court ordered the Department of Commerce to reconsider its application of AFA and determine a new dumping margin for Supermel based on the existing record. Commerce is required to submit the remand redetermination within 60 days, followed by a 45-day comment period.

Crowell & Moring LLP is dedicated to advocating for fair trade and supporting our clients in navigating the complexities of international trade law. This victory exemplifies our commitment to achieving favorable outcomes for our clients through diligent representation and legal expertise.

For more information, contact: Dan Cannistra, Pierce Lee

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Top Trade Developments

USTR Issues Request for Comment on Proposed Section 301 Changes, Extends Exclusions

On May 28, the Office of the United States Trade Representative (“USTR”) published a request for comments on the proposed modifications and machinery exclusion process in its Four-Year Review of Section 301 tariffs (the “Review”).

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For more information, contact: John Brew, Andrew Schlegel

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Voluntary Self-Disclosure Leads to National Security Division’s First Declination to Prosecute Company Under Enforcement Policy

On May 22, 2024, the U.S. Department of Justice’s National Security Division (NSD) announced its first declination to prosecute a company under its Enforcement Policy for Business Organizations (Enforcement Policy).

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For more information, contact: Michael Atkinson, Caroline Brown, Jeff Severson, Jeremy Iloulian, David Favre, Kelsey Clinton

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DHS Adds Chinese Firms to Entity List for UFLPA Violations

On May 16, the United States Department of Homeland Security (“DHS”) announced the addition of 26 Chinese firms to the Uyghur Forced Labor Prevention Act (“UFLPA”) Entity List for allegedly sourcing cotton from the Xinjiang Uyghur Autonomous Region (“XUAR”). Among the parties added to the Entity List are several warehousing and logistics providers.

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For more information, contact: Simeon Yerokun, Pierfilippo Natta, Andrew Schlegel

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Biden Administration Proposes New Section 301 Tariffs

Last month, President Biden directed the United States Trade Representative (“USTR”) to take further action against Chinese unfair trading practices following the release of the statutory four-year review of Section 301 tariffs against the People’s Republic of China (“PRC”). Per Biden’s direction, Ambassador Katherine Tai announced that she will be proposing modifications to existing China tariffs under Section 301, while also maintaining existing tariffs on certain goods.

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For more information, contact: Simeon Yerokun, Pierfilippo Natta, Andrew Schlegel

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New Antiboycott Advisory on Türkiye

On May 14, the U.S. Department of Commerce Bureau of Industry and Security’s Office of Antiboycott Compliance (OAC) issued an advisory regarding the Turkish government’s announcement that it will “suspend all exports and imports to and from Israel until the Israeli government allows an uninterrupted and sufficient flow of humanitarian aid into Gaza.”

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For more information, contact: Dj Wolff, Anand Sithian, Jeremy Iloulian

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BIS Targets Chinese Companies with Entity List Additions

On May 9, the U.S. Department of Commerce Bureau of Industry and Security (BIS) added 37 Chinese entities to the Entity List. Among them were technology companies (predominately those tied to quantum computing), manufacturing firms, and research institutions.

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For more information, contact: Tim Laderach

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Global Trade Talks – Expanded U.S. Sanctions and Export Control Authorities Included in the Ukraine, Israel, and Taiwan Aid Bills

In this session, hosts and International Trade Practice Leaders Nicole Simonian and Dj Wolff talk with Crowell lawyers Jeremy Iloulian and Laurel Saito about the significant new sanctions and export control authorities included in the recently enacted National Security Supplemental fiscal package. While this legislation is best known for providing U.S. foreign aid commitments for Ukraine, Israel, and Taiwan, it also contains critical trade related provisions that (i) expand the statute of limitations for U.S. sanctions violations; (ii) give the President new authorities to coordinate sanction efforts with the US and UK; (iii) expand sanctions and export controls on Iran (with some targeting Chinese financial institutions); and (iv) provide for new sanctions authorities targeting terror groups.

Listen: Crowell.com | PodBean | SoundCloud | Apple Podcasts 

For more information, contact: Nicole Simonian, Dj Wolff, Jeremy Iloulian, Laurel Saito

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U.S. Tightens Sanctions on Russia, Now Targeting Companies Based in China

On May 1, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced that it issued new sanctions on nearly 200 entities and individuals for supporting Russia’s invasion of Ukraine, intensifying U.S. efforts to thwart Russia’s attempts to circumvent Western sanctions. The list includes more than a dozen of companies located in China and Hong Kong, as well as entities located in Russia, Azerbaijan, Belgium, Slovakia, Tukey and the United Arab Emirates (UAE). In addition to OFAC’s sanctions, the Department of State is imposing sanctions on over 80 entities and individuals that are engaged in sanctions evasion or are related to Russia’s chemical and biological weapons programs and military industrial base.

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For more information, contact: Anand Sithian, Jeremy Iloulian, Dmitry Bergoltsev

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Crowell Welcomes

Maria Krestiyanova is a Counsel in our Brussels office. She joins us from the Brussels office of another multinational firm, where she represented clients in various industry sectors, mainly steel and aluminum, but also chemical and automotive. Maria’s practice focuses on trade defense instruments and she has more than a decade of experience in dealing with anti-dumping, anti-subsidy and safeguard investigations in the EU, Eurasian Economic Union and other jurisdictions worldwide. Maria has also supported multinational groups with matters pertaining to customs, sanctions, CBAM, the WTO, and other international trade related matters.

Maritza Perez, a licensed customs broker, joins the firm as a senior international trade specialist in Crowell & Moring’s International Trade Group and a resident in the firm’s Chicago office. She joins Crowell after spending seven years working as a trade compliance analyst at an electrical, communications, utility distribution, and supply chain services company. She brings a background in developing and implementing compliance processes, conducting audits, and providing training to ensure compliant trade practices. Maritza will provide support to the International Trade Group on import regulatory matters pending primarily before U.S. Customs & Border Protection (CBP).  

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Crowell Speaks

Banking Cryptocurrency Companies After Crypto Winter – (June 13, 2024). Speaker: Anand Sithian

Doing Business with the U.S. Government – West Coast Government Contracts Seminar (June 11 and 12, 2024). Speakers: Jana del-Cerro and Addie Cliffe

Special Focus on China: New, Unique Considerations Affecting Your Compliance Strategy – FCPA Enforcement and Compliance (June 12, 2024). Speaker: Evan Chuck

Scripps News Live – Biden’s China EV Tariffs (Video Download)
June 4, 2024 – Scripps News
Related Professionals: Evan Chuck

“Navigating Russian Sanctions” - A Presentation to the Membership of the National Aircraft Finance Association (June 5, 2024). Speakers: Caroline Brown, Jeremy Iloulian

“Changing Sanctions: How to Stay Ahead?” – ENGAGE 2024 (June 4, 2024). Speaker: Anand Sithian

“A Practical Approach for Comparing Key U.S., UK, and EU Sanctions and Export Control Restrictions” - A Presentation to ACI’s Women in Sanctions Network (May 22, 2024). Speakers: Caroline Brown and Sophie Davis

OFAC Warning Could Complicate Divestment Due Diligence
May 21, 2024 – ACAMS Moneylaundering.com
Related Professionals: Anand Sithian

The US BIOSECURE Act: De-Risking China from the US Life Sciences Supply Chain and Getting Prepared
May 21, 2024 – grc outlook
Related Professionals: Evan Chuck

Trade Lawyer: U.S. businesses should monitor supply chains as new tariffs hit
May 17, 2024 – Inside U.S. Trade’s World Trade Online
Related Professionals: Evan Chuck

ACAMS Masterclass: The Threat from Within a Financial Institution (May 17, 2024). Speaker: Anand Sithian

Virginia Society of CPAs: U.S. Sanctions in 2024: Key Developments and Compliance Challenges (May 16, 2024). Speaker: Anand Sithian

Evan Chuck Discusses U.S.-China Tariffs (May 14, 2024). Speaker: Evan Chuck