Volume 10, Number 12           In Memoriam of the Victims of Terrorist Attacks               December 2004

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* Carsten Alting

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Henry M. Burwell

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INTERNATIONAL BUSINESS AND TRADE

Dumping


WTO:

  • The World Trade Organization authorized the eighth WTO member to start imposing duties under Dispute Settlement Body rules adding Chile to existing authorizations for the EU, Japan, Brazil, Canada, India, Mexico and South Korea to impose retaliatory duties on U.S. imports as a result of a failure to comply with the WTO ruling condemning the Continued Dumping and Subsidy Offset Act of 2000 (Byrd Amendment) (21 ITR 1935; 12/2/04).

U.S.:

  • The Commerce Department announced that Brazil, Ecuador, India and Thailand are dumping frozen and canned warm water shrimp in margins ranging from 2.35 to 67.8 percent (Frozen and Canned Warm Water Shrimp from Brazil, Ecuador, India and Thailand, ITA; 21 ITR 2089; 12/23/04).

  • The International Trade Commission determined the U.S. bedroom furniture industry has suffered “material injury” from low price Chinese imports (Wooden Bedroom Furniture from China, ITC (21 ITR 2043; 12/16/04).

Information Technology Taxation


Peru:

  • A new tax will be levied on companies registering digital signatures and certificates (21 ITR 2087; 12/23/04).

Textiles


China:

  • The Ministry of Commerce (MOFCOM) announced a higher export tariff to be implemented on some of its textile and clothing products (21 ITR 2016; 12/16/04).

U.S.:

  • The Committee for the Implementation of Textile Agreements (CITA) accepted a “safeguard” petition on combed cotton yarn from China based on the threat of market disruption the result of which could impose limits on this import category (301) from China (69 Fed. Reg. 68,133/November 23, 2004; 11/25/04).

EU:

  • The Council of Ministers approved regulations proposed by the EC to eliminate all quotas on textiles and apparel effective January 1, 2005 requiring the issuance of an import surveillance document for certain products from China until a monitoring system is in place and reserving the right to use a “safeguard clause” if a flood of imports or severe threat to domestic producers arises (21 ITR 2028; 12/16/04).

Trade


WTO:

  • The World Trade Organization reached an agreement subscribed by 147 WTO members on a framework for future talks on reforming trade in agriculture, manufactured goods and services and customs procedures (usinfo.state.gov/August 1, 2004; USTR R. Zoellick, WTO General Council Meeting).

INTERNATIONAL AGREEMENTS AND INVESTMENTS

Textiles


E.U.:

  • The European Union (EU) entered a bilateral agreement with Vietnam in preparation for World Trade Organization (WTO) accession (21 ITR 2061; 12/23/04).

U.S.:

  • The Committee for the Implementation of Textile Agreements (CITA) may restrict some apparel imports from China, India and Pakistan in early 2005 pursuant to the rules published in Federal Register December 13, 2004 which affects those countries who have already filled some of the clothing import quotas for 2004 (69 Fed. Reg. 72,181/December 13, 2004; 21 ITR 2030; 12/16/04).

Foreign Investments


Japan:

  • The Judicial System Council of the Ministry of Justice began drafting a sweeping revision of the 1899 Japan Commercial Code regulating corporate behavior to liberalize the accommodation of foreign acquisitions of Japanese companies with home country stock shares, abolition of the minimum paid-up capital requirements and repeal of the mandatory corporate board establishment rule in starting new companies in Japan (21 ITR 2077; 12/23/04).

Exports


Egypt:

  • Egypt signed an agreement allowing it to export to the United States some duty-free products containing components from Israel (21 ITR 2044; 12/16/04).

Intellectual Property


U.S.:

  • The Patent Office chiefs of the U.S., Japan and the EU signed a memorandum of understanding to coordinate work-sharing, electronic business developments and harmonization of search strategies, tools and substantive patent law (21 ITR 1983; 12/9/04).

IMMIGRATION

New Regulations on Labor Certification for Permanent Employment (PERM) Effective March 28, 2005

  • USDOL adopted a new labor certification scheme significantly reducing the processing time for labor certification of permanent employment for foreign nationals in the U.S.

  • The prevailing wage standard for PERM will be that recently adopted by H-1B amendments requiring 100% payment of prevailing wage with four available wage levels reflecting job experience requirements.

  • The goal for electronic decisions under PERM will be for adjudication within 45-60 days after submission.

  • Conversion of pending applications may occur under restricted circumstances involving “identical job opportunities”.

  • Presently no fees are charged but may be levied in the future

  • Anti-fraud provisions include verification that employer is a bonafide business entity with employees on its payroll.

  • There are no present monetary penalties or debarment for fraud or willful representation of a material fact, but future rule making in this area may occur.

Maintenance of Status

  • USCIS Chief Counsel’s Office advises Service Centers will be instructed that an adjustment of status applicant under Section 245(k) needs to demonstrate maintenance of status only from the last entry up to the date of filing of the adjustment of status application (C. Williams at aila.org.; 6/7/2004).

Pilot Program for Work Confirmation Expanded to All Fifty States

  • The USCIS Pilot Program, allowing employers to get automated confirmation of a newly hired employee’s work authorization after completion of the I-9 form, is to be expanded to all states (69 Fed. Reg. No. 243 December 20, 2004, CIS No. 2321-04).

Employment Authorization Document (EADs) Term of Validity Amended

  • EAD validity periods are amended under an interim rule (8 C.F.R. Part 274a) to adjust the term for validity based on discretion of the DHS for initial, renewal and replacement cards authorizing the lengthening and shortening of the term according to immigration status, general processing time, required background checks and other security considerations and factors deemed appropriate (69 Fed. Reg. No. 146, July 30, 2004).

New Temporary Evidence of I-551 Permanent Resident Status

  • An unexpired foreign passport containing a temporary I-551 stamp is an acceptable List A document No. 4 for Form I-9 verification purposes (July 26, 2004 Bulletin, Office of Business Liaison, USDHS; www.uscis.gov).

  • The new Machine Readable Immigrant Visa (MRIV) with temporary I-551 language must be endorsed upon admission to qualify as a List A Document under 8 C.F.R. 274a.

  • Bearers carrying the I-551 stamp must have it endorsed in secondary inspection upon first border crossing after placement of the 551 stamp in their passport.

L-1 Visa Reform Act of 2004

  • The Omnibus Appropriations Act for FY 2005 contains the L-1A Visa Reform Act of 2004 which partially addresses the issue of “outsourcing” establishing that L-1B temporary workers can no longer work primarily at a worksite other than their petitioning employer if the work will be controlled and supervised by a different employer or if the offsite arrangement is essentially to provide labor for hire rather than service related to the specialized knowledge of the petitioning employer.

  • All L-1 temporary workers must have worked for no less than one year outside the U.S. for an employer with a qualifying relationship eliminating the six-month rule available formerly under the “blanket L-1” program.

  • A new fraud prevention and detection fee of $500 must be paid by the petitioner seeking an initial grant of L status (or H-1B status) effective March 8, 2005 which is in addition to the base processing fee of $185 for the Form I-129 petition (USCIS Press Release, December 8, 2004/www.uscis.gov).

H-1B Visa Reform Act of 2004

  • The Omnibus Appropriations Act for FY 2005 reinstitutes the former “training fee” under the ACWIA and raises it to $1500 unless the petitioner employ no more than 25 fulltime employees including any affiliate or subsidiary or is otherwise exempt.

  • The new fraud prevention and detection fee of $500 is payable in addition to the training fee and is effective March 8, 2005.

  • The petition fee of $185 for the Form I-129 fee remains applicable.

  • Although the H-1B cap for FY 2004-2005 was reached effective October 1, 2004, an additional 20,000 H-1B beneficiaries who have earned a master’s degree or higher from a U.S. institution of higher education are not subject to the H-1B visa cap of 65,000 and petitions for this cap modification may be filed effective March 8, 2005 (USCIS Press Release, December 8, 2004; www.uscis.gov).

LEGISLATIVE AND LEGAL DEVELOPMENTS

Intellectual Property


China:

  • The USTR requested comments on protection of Intellectual Property Rights (IPR) in China (69 Fed. Reg. 74,561/December 14, 2004; 21 ITR 2073; 12/23/04).

Trade Adjustment Assistance


U.S.:

  • The U.S. Court of International Trade remanded a case to the Department of Labor for further review where USDOL had made a finding that information technology workers did not produce an “article” for purposes of trade adjustment assistance eligibility which finding was based upon an improper legal analysis (Former Employees of Electronic Data Systems, Corp. v. U.S. Department of Labor, Ct. Int’l Trade, No. 03-00373, Slip Op. 04-151; 21 ITR 2088; 12/23/04).

Textiles


U.S.:

  • The U.S. Association of Importers of Textiles and Apparel (USA-ITA) seeks an injunction against the U.S. Commerce Department (CITA) to prevent it from taking further action on a “threat-based” petition filed by the U.S. textile industry requesting extension of import limits on Chinese goods (U.S. Association of Importers of Textiles and Apparel vs. the U.S., Ct. Int’l Trade No. 04-00598; 12/1/04; 21 ITR 2005; 12/9/04).

PROTECTION AGAINST TERRORISM

Customs


Honduras:

  • The government is seeking entry for the Port of Cortes to join the U.S. Container Security Initiative (CSI) (21 ITR 2084; 12/23/04).


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 2005

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

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