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PROTECTION AGAINST TERRORISM

Customs

U.S.:

• The U.S. Department of Homeland Security (DHS) needs additional detection equipment and a change in search protocols and procedures to improve the effectiveness of their inspection processes (21 ITR 1711; 10/21/04).

Canada:

• Continued delay in cross border movement in transportation threatens trade opportunities between the U.S. and Canada (21 ITR 1428; 8/26/04).

Immigration

U.S.:

• DHS is seeking to expand the Container Security Initiative (CSI) by stationing U.S. Custom’s officers in foreign ports to work with counterparts prescreening cargo containers before shipment to the United States. Approximately 630 million entries of foreign nationals are made in the United States each year with 330 million entries being made being made as non-U.S. citizens and 300 million persons entering across the Canadian or Mexican borders (21 ITR 1730; 10/21/04).

• The US-Arab Chamber of Commerce estimates the “restricted” approach to granting into the U.S. visas is costing the U.S. economy an estimated $5 billion a year in lost commercial opportunities with Arab countries (21 ITR 1527; 9/16/04).

Customs

U.S.:

• The National Customs Automation Program test will be conducted in conjunction with the DOT to implement provisions of the 2002 Trade Act providing advanced automated manifest information on cargo entering and leaving the United States by air, rail, sea vessel and truck (69 Fed. Reg. 55,167; September 13, 2004; 21 ITR 1498; 9/16/04).

INTERNATIONAL BUSINESS AND TRADE

Textiles

U.S.:

• The U.N. Conference on Trade and Development (UNCTAD) anticipates World Trade Organization (WTO) members to seek imposition of special safeguard restrictions on Chinese textile imports through the end of 2008 in by applying special, non-market criteria and information regarding antidumping and countervailing determinations through the end of 2006 (21 ITR 1711; 10/21/04).

Intellectual Property

Canada:

• Proposed regulations have been released for public comment to authorize the export of low cost, high priority pharmaceuticals to least developed and developing countries under an agreement reached with the WTO (21 ITR 1691; 10/14/04).

Transportation

U.S.:

• California passed legislation requiring heavy duty diesel trucks entering California from Mexico or Canada to meet U.S. federal emissions standards (21 ITR 1644; 10/7/04).

INTERNATIONAL AGREEMENTS AND INVESTMENTS

Bilateral Agreements

U.S.:

• Disagreement by U.S. pharmaceutical and copyright industries over aspects of the implementing legislation of Australia to adopt the U.S.-Australia Free Trade Agreement may delay the start date of the pact past the January 1, 2005 target day (21 ITR 1721; 10/21/04).

• A Free Trade Agreement has been signed with Bahrain to enhance commercial relations with the economic leader in the Gulf (21 ITR 1526; 9/16/04).

Foreign Investments

China:

• The Commerce of Ministry relaxed rules on domestic companies seeking to invest outside of China, since China exported capital for the first half of 2004 in the amount of $1.2 billion and experienced capital inflows of $33.9 billion during the same period (21 ITR 1723; 10/21/04).

Auto Finance

China:

• Foreign car makers are now allowed to establish auto finance operations under the new car finance lending rules (21 ITR 1418; 8/26/04).

Taxation

Vietnam:

• The controversial plan to curtail corporate income tax incentives enjoyed by companies operating in designated industrial parks has been dropped since it apparently deterred new investment ( 21 ITR 1421; 8/26/04).

IMMIGRATION

New National Immigration Court

• The recently created Headquarter Immigration Court (HQIC) hears cases from other immigration courts via video teleconference allowing an immigration judge to substitute for any other immigration judge elsewhere in the country with such video capability and Records of Proceedings (ROP) will be created by the field base city immigration court (81 IR 1315; September 27, 2004).

The Department of Justice to Release Memorandum on State and Local Authority to Enforce Federal Immigration Laws

• U.S. District Court for Southern District of New York directed the Department of Justice to release a memorandum on its position on the authority of the state and local police to enforce federal immigration laws (81 IR 1369; October 4, 2004; National Council of LaRaza v. Department of Justice, No. 03 Civ.2559 LAK, 2004 WL 2153929, SDNY, September 24, 2004).

9/11 Recommendations Implementation Act (HR 10) and National Intelligence Reform Act of 2004 (S 2845)

• On October 8th the House approved HR 10 and on October 6th, the Senate approved S 2845 with both bills to be reconciled in conference (81 IR 1416; October 11, 2004).

LEGISLATIVE AND LEGAL DEVELOPMENTS

Taxation

U.S.:

• HR 4520 was signed by the Senate and House and is expected to be signed by the new President but the European Commission shows concerns over the grandfather clause in the repeal legislation that eliminates the U.S. export tax subsidy in violation of WTO rules since it allows certain U.S. companies to keep foreign sales corporation tax benefits past 2007 (21 ITR 1714; 10/21/04).

Chemicals

E.U.:

• Regulations considered by the European Parliament are not likely to be finalized prior to 2007 (21 ITR 1719; 10/21/04).

Trade

U.S.:

• Final passage of the Miscellaneous Tariff Bill (HR 1047) has been delayed over Senate objections to including normal trade relations with Laos (21 ITR 1664; 10/14/04).

Defense

U.S.:

• HR 4200 has been labeled “counterproductive” to U.S. trade and foreign policy interests by prohibiting the president from modifying the export licensing process to expedite transfer of military technology to close allies (21 ITR 1624; 10/7/04).

Antitrust

U.S.:

• The Department of Justice failed to resurrect an antitrust challenge to a foreign non-compete agreement restricting the development of long shelf life tomato seeds for use in growing tomatoes destined for the U.S. market on the grounds that the federal judiciary lacks subject matter jurisdiction over the complaint under the 1982 Foreign Trade Antitrust Improvement Act (21 ITR 1433; 8/26/04); U.S. v. LSL Biotechnologies, 9th Cir. No. 02-16472, 81104).

Immigration

U.S.:

• HR 5040 “9/11 Commission Implementation Act of 2004” requires DHS to create a strategy for combining terrorists travel intelligence, operations and law enforcement (81 IR 1316; September 27, 2004).

• HR 5024 “9/11 Commission Recommendations Implementation Act of 2004” requires DHS to complete a biometric entry and exit symptoms as quickly as possible (81 IR 1317; September 27, 2004).

• S 2774 “9/11 Commission Report Implementation Act of 2004” creates an Officer of Civil Rights and Civil Liberties, and integrated screening system and biometric entry and exit data system (81 IR 1318; September 27, 2004).

• HR 10 “9/11 Recommendations Implementation Act” establishes a national intelligence director and makes detailed recommendations for federal regulation governing state rules regarding drivers’ licenses and personal identification cards (81 IR 1366; October 4, 2004).

• S 2845 “National Intelligence Reform Act of 2004” would implement the 9/11 Commission’s recommendations and reform the intelligence community by creating the National Intelligence Director and Civil Liberties Board (81 IR 1368; October 4, 2004).

• HR 4453 would exempt J-1 positions from the H1-B cap (81 IR 1420; October 11, 2004).

• HR 5178 “Driver’s License Improvement and Security Act of 2004” would direct the Secretary to carry out a pilot program to improve the security of state drivers’ licenses and identification cards (81 IR 1427; October 11, 2004).

Sources: IR - Interpreter Releases, Federal Publications, Inc.; ITR - International Trade Reporter, Bureau of National Affairs, Inc.; IB-Bender’s Immigration Bulletin; ILT - Immigration Law Today, American Immigration Lawyers Association Monthly Journal; IL - International Lawyer, SMU School of Law; FT- Financial Times; KTF - Korea Trade Focus Monthly Newsletter (Korea International Trade Association) TE - The Economist Magazine; GATM - German American Trade Magazine published by the German American Chamber of Commerce; MAPI - Manufacturers Alliance Legal Analysis and Regulations; WSJ - Wall Street Journal; ILN/ABA-International Law News, American Bar Association; TMIJ-Tax Management International Journal, Bureau of National Affairs, Inc.; AILA - American Immigration Lawyer’s Association

International Law Bulletin is an international legal news digest published monthly as a service to Nelson Mullins’ clients and friends.  The articles are summaries of particular developments in the law and are not intended to be a solicitation or to render legal advice. This publication can be considered advertising under applicable laws.  Copyright 2004

Nelson Mullins Riley & Scarborough, L.L.P.

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