The Month in International Trade – October 2023

Top Trade Developments

• Commerce Initiates Review of Vietnam’s Nonmarket Economy Status
• The EU CBAM Transitional Period Begins: A Practical Guide for EU Importers
• The Catch 22 of Defending Parallel Civil and Criminal Proceedings
• DOJ Announces Safe Harbor for Acquirers Who Disclose Pre-Acquisition Misconduct
• In Major Win for Multinationals, China Proposes to Ease Restrictions on Cross-Border Data Transfers
• New Antidumping and Countervailing Duties (“ADCVD”) Petition on Aluminum Extrusions Submitted, Covering an Estimated $1.5 Billion in Imports
• FinCEN Proposes Delaying Some Beneficial Ownership Filing Deadlines and Releases Additional Guidance for Beneficial Ownership Reporting

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.

---

Top Trade Developments

Commerce Initiates Review of Vietnam’s Nonmarket Economy Status

In an October 24 press release, the U.S. Department of Commerce (“Commerce”) announced that it will initiate a review of  Vietnam’s current status as a “nonmarket economy”. Commerce’s decision follows an official request submitted by the Government of Vietnam on September 8, 2023, to recognize the country as a market economy, and a recent meeting between U.S. Secretary of Commerce Gina Raimondo and Vietnamese Prime Minister Phạm Minh Chính on September 19, 2023.

Commerce will undertake this review using a so-called “Changed Circumstances Review”, as stated in the U.S. government’s most recent Federal Register Notice published on Oct. 30. 

Click here to continue reading the full version of this article.

For more information, contact: Bob LaFrankie and Dmitry Bergoltsev

---

The EU CBAM Transitional Period Begins: A Practical Guide for EU Importers

On October 1, 2023, the transitional period of the Carbon Border Adjustment Mechanism (the “CBAM”) began. The mechanism is part of the EU’s efforts to achieve objectives outlined in its green agenda, in particular to tackle the issue of the relocation of emission-heavy production to countries with less stringent environmental policies.

In practical terms, it means that starting from October 1, 2023 until December 31, 2025, emissions on goods in certain sectors should be reported when they are imported into the customs territory of the EU. Subsequently, during the definitive period, the trading in CBAM certificates will be added to the reporting obligations, and, gradually, the existing EU Emission Trading System (“ETS”) will be replaced with the CBAM in 2034.

In this alert, we discuss certain basic elements of the CBAM as well as certain complex technical aspects of the reporting requirements.

Click here to continue reading the full version of this article.

For more information, contact: Vassilis Akritidis and Oleksii Yuzko

---

The Catch 22 of Defending Parallel Civil and Criminal Proceedings

Defendants facing parallel civil regulatory and criminal proceedings brought by the same government raises important Fifth and Sixth Amendment questions for defendants.

Click here to continue reading the full version of this article.

For more information, contact: Thomas Hanusik, Danielle Giffuni, Andrea Charles

---

DOJ Announces Safe Harbor for Acquirers Who Disclose Pre-Acquisition Misconduct

On October 4, 2023, Deputy Attorney General (DAG) Lisa O. Monaco announced the Department of Justice’s (DOJ) new safe harbor policy for voluntary self-disclosures made in connection with mergers and acquisitions (Safe Harbor Policy).

Click here to continue reading the full version of this alert.

For more information, contact: Peter Eyre, Addie Cliffe, Stephen Byers, Stephanie Crawford, Allison Skager, Agustin Orozco, Christian Curran, Michael Samuels, Sarah Burgart

---

In Major Win for Multinationals, China Proposes to Ease Restrictions on Cross-Border Data Transfers

On September 28, 2023, the Cyberspace Administration of China published the draft Provisions on Regulating and Promoting Cross-Border Data Flows (“Draft Provisions”) for public consultation, demonstrating that China is trying to strike a balance between enhancing data security and promoting data-driven economic growth.

Multinational companies with cross-border data transfers involving China are recommended to revisit their previous analysis based on the changes introduced in the Draft Provisions.

Click here to continue reading the full version of this alert.

For more information, contact: Evan Chuck, Kate Growley, Zhiwei Chen, Christiana State

---

New Antidumping and Countervailing Duties (“ADCVD”) Petition on Aluminum Extrusions Submitted, Covering an Estimated $1.5 Billion in Imports

On October 4, 2023, a new ADCVD petition (“the Petition”) covering an estimated $1.5 billion in imports of aluminum exclusions was submitted before the U.S. Department of Commerce (“Commerce”) and the U.S. International Trade Commission (“USITC.”) 

The Petition alleges that certain aluminum extrusion from Colombia, the Dominican Republic, Ecuador, India, Indonesia, Italy, Malaysia, Mexico, China, South Korea, Taiwan, Thailand, Turkey, the United Arab Emirates, and Vietnam are being or are more than likely being sold at less than normal value. 

Furthermore, of these 15 countries, the Petition further alleges that imports from China, Indonesia, Mexico, and Turkey are being subsidized by their home countries.   

Click here to continue reading the full version of this article.

For more information, contact: Dan Cannistra, Martin Yerovi

---

FinCEN Proposes Delaying Some Beneficial Ownership Filing Deadlines and Releases Additional Guidance for Beneficial Ownership Reporting

In advance of the impending January 1, 2024 effective date for the U.S. Treasury Department, Financial Crimes Enforcement Network’s (“FinCEN’s”) beneficial ownership information (“BOI”) reporting requirements, FinCEN has proposed an extension of the reporting deadline for some reporting companies, and issued additional guidance regarding BOI reporting requirements, including a Small Entity Compliance Guide, a BOI Brochure, and supplementary Frequently Asked Questions (“FAQs”). 

Click here to continue reading the full version of this alert.

For more information, contact: Carlton Greene, Caroline Brown, Anand Sithian, Kelsey Clinton, Nicole Succar

---

Crowell Welcomes

Richard Yoon is a senior international trade analyst in Crowell & Moring’s International Trade Group and a resident in the firm’s Washington, D.C. office. He joins Crowell after spending four years working as an anti-dumping duty consultant in South Korea, where he developed effective strategies for clients facing anti-dumping investigations, translating complex economic concepts into actionable responses. Richard will provide practice support to the International Trade Group on unfair trade investigations including antidumping (AD) and countervailing duty (CVD) investigations, sunset reviews, and changed circumstance reviews before the Department of Commerce and International Trade Commission (ITC). Richard is also a Certified Public Accountant (CPA).  

---

Crowell Speaks

Emerging Trends in Sanctions and Export Enforcement: Takeaways for Responding to Enforcement Actions, and Informal Regulator Outreach – ACI/C5 New York Forum on Economic Sanctions (Dec 14, 2023). Moderator: Jason Prince.

“Shifting Geopolitical Tensions – Trillion Dollar Questions” - Healthy Markets Association Annual Conference (Nov 29, 2023). Speaker: Caroline Brown.

“DOJ - Focus of Investigations and FCA Settlements” - Federal Publications Seminars and Capital Edge Consulting 2023 Year End Federal Contracting Forum (Nov 2, 2023). Speakers: Caroline Brown, Steve Byers, Jason Crawford

Planning Compliance For Updated FinCEN Reporting Rules
October 27, 2023 – Law360 (subscription required)
Related Professionals:  Kelsey Clinton, Anand Sithian, Caroline Brown.

Special Guest Speaker for the inaugural meeting of the American Bankers Association’s Sanctions Working Group (Oct 18, 2023). Speaker: Jason Prince.

US slaps sanctions on Turkey and UAE-based shippers over oil cap breaches
October 18, 2023 – Global Trade Review
Related Professionals:  Jason Prince.

US Could Sanction More Hamas Front Companies, Former OFAC Official Says
October 17, 2023 – Export Compliance Daily
Related Professionals: Jason Prince

Judge Chides Commerce For Ignoring Wind Tower Duty Order
October 12, 2023 – Law360
Related Professionals: Dan Cannistra

US Takes Russia Sanctions Showdown to Sea
October 12, 2023 – Law360
Related Professionals: Jason Prince

Global Sourcing and National Security: Special Considerations for Government Contractors – Government Contracts 101 Back to Basics (Oct 10, 2023). Participants: Addie Cliffe and Jana del-Cerro.

Examine Contracts for Chinese Anti-Foreign Sanctions Law Liability, Lawyer Says
October 4, 2023 – Export Compliance Daily
Related Professionals: Evan Chuck

Export Controls and Sanctions - 2023 WITA Academy Virtual Intensive Trade Seminar (Oct 2, 2023). Participant: Jason Prince.