International Law Bulletin - Vol. 15, No. 4
INTERNATIONAL BUSINESS AND TRADE
Automotive
EU:
The European Union (EU) is providing more than $1 billion in loans to three leading European automobile manufacturers for the production of fuel efficient vehicles through the loan program administered by the European Investment Bank. (26 ITR 512; 4/16/09)
Germany:
The German Cabinet increased the amount to be allotted for car bonuses to the level of 2,500 euros for the purchase and registration of a new car satisfying the Euro 4 emission standard. (26 ITR 513; 4/16/09)
Agriculture
U.S.:
The Office of the U.S. Trade Representative (USTR) asked for public comments on its investigation launched against Canada to enforce U.S. rights under the Softwood Lumber Agreement. (74 Fed. Reg. 16,436 (April 10, 2009)); 26 ITR 520; 4/16/09)
Antitrust
U.S.:
Cargolux, Nippon Cargo Airlines Co. (NCA) of Japan and Asiana Airlines, Inc., of Korea pleaded guilty and agreed to pay a total of $214 million for price fixing conspiracy in violation of the Sherman Act. (26 ITR 538; 4/23/09)
Countervailing Duties
U.S.:
The Commerce Department announced a preliminary determination that India is providing countervailable subsidies to exporters of commodity matchbooks. (Commodity Matchbooks from India, ITA) (26 ITR 460; 4/2/09)
Customs
U.S.:
The U.S. Customs and Border Protection (CBP) will use $720 million to upgrade land port facilities from the funds provided by the American Recovery and Reinvestment Act. (26 ITR 539; 4/23/09)
Dumping
EU:
The European Commission imposed temporary anti-dumping and anti-subsidy duties on U.S. biodiesel imports after concluding the products were being sold at prices below cost and receiving subsidies in the form of tax credits. (26 ITR 377; 3/19/09).
Export Controls
U.S.:
The Treasury Department released a list of 8 countries that may solicit participation in or cooperation with a wrongful boycott thereby constituting a potential for violation of export laws within the meaning of the Internal Revenue Code to include Kuwait, Lebanon, Libya, Qatar, Saudi Arabia, Syria, United Arab Emirates (UAE), and the Republic of Yemen with Iraq remaining on the review list for further study. (26 ITR 539; 4/23/09)
The Satellite Industry Association (SIA) continues to make the case that the system of controlling exports of satellite-related goods and technology needs to be reformed under the licensing regime established under the International Traffic and Arms Regulations (ITAR). (26 ITR 475; 4/9/09)
Government Procurement
U.S.:
The Environmental Protection Agency (EPA) will grant a waiver from the "Buy American Provision" attached to economic stimulus funds to allow for the refinancing of debt for water projects receiving funding from the American Recovery and Reinvestment Act 2009. (EPA telephone: 202-564-3750; 26 ITR 474; 4/9/09)
The "Buy America" provisions in the economic stimulus plan were published by the Department of Defense, the General Services Administration and the National Aeronautics and Space Administration (74 Fed. Reg. 14,621, March 31, 2009) amending the Federal Acquisition Circular controlling U.S. government procurement to exclude the application of the Buy America restrictions to designated country construction material which includes countries that are part of the WTO's Government Procurement Agreement, have a free trade agreement with the United States, or are considered a Least Developed Country (LDC) excluding the Caribbean Basin countries. (26 ITR 440; 4/2/09)
Imports
Russia:
The Customs Agency amended its regulations to facilitate value added tax (VAT) exemptions for some imported goods through issuance of Order No. 31-R of the Russian Federal Customs Service. (26 ITR 542; 4/23/09)
International Finance
OECD:
The Organization for Economic Cooperation and Development (OECD) forecasts worldwide international trade to contract more than 13% across a 30 country base in the first quarter of 2009 as a result tight financial conditions, low consumer confidence and the slow recovery anticipated by most participants but the outlook suggests trade will pick up in 2010 accelerating to 6.9% by the fourth quarter. (26 ITR 481; 4/9/09)
Taxation
Brazil:
A government decree was finally signed to create the regulatory body for companies placed in special export processing zones to receive exemptions from several taxes to include the IPI tax, the Cofin Social Security and Important Taxes, the PIS/PASEP Social Security Tax and the Merchant Marine Freight tax on imports provided the goods are exported from the zone. (26 ITR 551; 4/23/09)
Transportation
Mexico:
Mexico will increase duties on $2.4 billion of U.S. products ranging from 10-45% on 90 U.S. products as a result of the recent continuation of the U.S. ban on cross border Mexican trucking pilot program alleging that the United States is violating its NAFTA obligations on transport negotiated under the 1994 agreement. (26 ITR 370; 3/19/09)
LEGISLATIVE & LEGAL DEVELOPMENTS
Pharmaceuticals
U.S.:
The Pharmaceutical Market Access and Drug Safety Act was introduced to allow the safe importation of prescription drugs from certain foreign countries to include those approved by the Food and Drug Administration (FDA) from Canada, Europe, Australia, New Zealand and Japan. (26 ITR 346; 3/12/09)
Dumping
U.S.:
A class action lawsuit was filed in the U.S. Court of International Trade (CIT) against major insurance companies by the domestic producers of fresh garlic, crawfish tail meat, canned mushrooms and honey for the alleged negligent issuance of customs surety bonds on imports from China subject to anti-dumping duties and the subsequent refusal to pay under those bonds. (Sioux Honey Association v. Hartford Insurance, Co., Ct. Int.'l Trade, No. 09-00141, filed 4/7/09; 26 ITR 553; 4/23/09)
Intellectual Property
U.S.:
The U.S. District Court for the District of Colorado held that the implementation of the Berne Convention which had the effect of restoring copyright protection to foreign works that had lapsed into the public domain violated the first amendment rights of the parties that had been using these materials. (Golan v. Holder, D. Col., No. 01-CV-1854, 4309; 26 ITR 557; 4/23/09)
Tariffs
U.S.:
An importer challenged the Harmonized Tariff Schedule of the United States (HTSUS) provisions as facially discriminatory denying equal protection and due process guarantees since the schedule imposes a 14% ad valorem duty on seamless leather gloves for men but only a 12.6% duty on seamless leather gloves for other persons; i.e., women and children. (Totes-Isotoner Corp. v. U.S., Fed. Cir. No. 2009-1113; 3/3/09; 26 ITR 360; 3/12/09)
Sources: IR - Interpreter Releases, Federal Publications, Inc.; Financial Times (FT); 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; TE - The Economist Magazine; GATM - German American Trade Magazine published by the German American Chamber of Commerce; 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
The articles published in this newsletter are intended only to provide general information on the subjects covered. The contents should not be construed as legal advice or a legal opinion. Readers should consult with legal counsel to obtain specific legal advice based on particular situations.