On August 31, 2016, Hanjin Shipping Co. filed for bankruptcy protection in South Korea. Two days later, Hanjin filed in U.S. Bankruptcy Court for the District of New Jersey for Chapter 15, which provides a mechanism in the U.S. for resolving problems that arise in cross-border bankruptcies. Three out of four U.S. shippers reportedly have
2016
U.S. Expands Russia/Ukraine Sanctions to Target Evasion
On September 1, 2016, the Office of Foreign Assets Control (OFAC) placed sanctions on 37 new individuals and entities to prevent attempts to circumvent U.S. sanctions against Russia, help the private sector with compliance and to foster a diplomatic resolution to the conflict in Ukraine. The new list (found here) includes 17 separatists in eastern Ukraine or Russian-occupied Crimea, including 11 officials operating in Crimea. 18 companies operating in Crimea, including a number of construction, defense and maritime firms, and a Ukrainian charity were added to the Specially Designated Nationals (SDN) list. The list includes construction companies, PJSC Mostotrest and SGM –Most OOO, which were awarded contracts to complete the Kerch Strait Bridge to connect Russia to Crimea.
Scheduled Flights to Cuba Resume After More Than 50 Years
U.S. Secretary of Transportation Anthony Foxx was among the passengers aboard the historic flight from Fort Lauderdale, Florida to Santa Clara, Cuba today as JetBlue provided the first regularly scheduled commercial flight from the U.S. to Cuba in 55 years. Scheduled air service from the United States to Cuba is the most recent step in a string of important changes in the normalization of relations between the two nations. As a result of these changes, which have been previously reported on here, a U.S. embassy was opened, direct mail service has been restored, Carnival cruise line has begun trips to Cuba and various regulatory changes have been made to ease travel, trade and financial transactions with Cuba.
Implications of Brexit for U.S. Companies
For companies engaged in the international trade of goods or services, the decision of the United Kingdom to exit from the European Union, creates uncertainty on many levels. Laying aside political effects, such as potential reconsideration of Scotland’s 2014 decision to remain in the U.K. (Scotland having overwhelmingly voted to stay in the U.K. during the Brexit referendum), the legal issues stemming from the Brexit decision are almost too numerous to mention. But, for a U.S. company thinking through the implications of Brexit, resultant changes in treaty obligations, British law, and U.S. law are the major categories to monitor carefully.
U.S. Visit From Cuban Ag Minister Highlights Future Trade Opportunities Under Amended Sanctions
Cuba’s Minister of Agriculture, Gustavo Rodriguez Rollero, made an official visit to the U.S. last week together with a delegation of officials from other Cuban ministries. Minister Rollero’s visit was preceded by a February 2016 visit from Rodrigo Malmierca, Cuba’s Foreign Trade Minister. These visits marked the first U.S. visits from senior Cuban government officials in over 50 years. President Obama, U.S. Agriculture Secretary Tom Vilsack and Missouri Governor Jay Nixon have also made their own historic visits to Cuba within recent months. Secretary Vilsack’s visit included a meeting in Havana to sign a Memorandum of Understanding (the “MOU”) between the U.S. Department of Agriculture and the Cuban Ministry of Agriculture enabling the two agencies to cooperate in fields such as phytosanitary standards, plant and animal sanitation, organic production methods, climatology and irrigation through collaborative efforts such as information exchange and scientific research.
U.S. Secretary of State Adjusts Policy on Sale of Defense Items to Vietnam
Effective May 23, 2016, the U.S. State Department revised its policy and terminated the embargo that had previously prohibited any exports to and imports of lethal arms and related material from Vietnam. President Obama announced this change in policy during a visit to Hanoi, Vietnam. Under the new policy, U.S. persons and other individuals or business entities subject to the Arms Export Control Act (AECA) may now apply for a license to export lethal defense articles and defense services to Vietnam or temporarily import the same from Vietnam. The Directorate of Defense Trade Controls will then review any license applications on a case-by-case basis.
Amended Rules Authorize Further Travel To and Trade With Cuba
Shortly before President Obama’s upcoming visit to Cuba, the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) and U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”) have released new rule amendments in order to permit increased travel, financial transactions and trade between the two countries.
These amended rules remove the sponsoring organization requirement from OFAC’s general license allowing “people to people” travel to Cuba. As a result, U.S. persons may now to travel to Cuba much more easily on their own accord under the “people to people” program. However, persons doing so must still must maintain a full-time schedule of meaningful interactive activities, keep appropriate documentation and satisfy other requirements. Travel to or within Cuba for tourism purposes remains prohibited.
ITC Determination a Win for U.S. Tape Manufacturers
On Tuesday, the U.S. International Trade Commission (USITC) made an affirmative determination in a five-year (sunset) review concerning pressure sensitive plastic tape from Italy. The was welcome news to the U.S. tape manufacturers, which made a priority of the renewal of this order, which is decades old but still effective. Husch Blackwell’s international trade team…
Husch Blackwell Joins Society of Chemical Manufacturers and Affiliates
Husch Blackwell announced today its membership to the Society of Chemical Manufacturers and Affiliates, the leading international trade association representing the specialty chemical industry.
The Washington-based group supports chemical manufacturers with commercial and networking opportunities, advocates for the passage of rational laws and regulations, and works to increase public confidence in the industry.
“We welcome Husch Blackwell as our newest affiliate member, and we encourage them to consider SOCMA a resource with the tools to assist them in not only staying abreast of issues impacting the specialty chemical industry, but environmental stewardship and growing their business,” said SOCMA President and CEO Lawrence D. Sloan. “We look forward to their active participation in the organization.”
Husch Blackwell Cuba Team in the News
Husch Blackwell’s Grant Leach and Cortney Morgan attended a lunch meeting on February 16, 2016 at the U.S. Chamber of Commerce in D.C. where the Cuban minister of trade, Rodrigo Malmierca, was the keynote speaker. During a break in the lunch, a reporter from McClatchey interviewed Grant for this article.