Congratulations! You have developed or launched an innovative new product or service, and your business dreams are becoming a reality. It’s all very exciting. One thing you may not have considered much, however, is whether your innovations or brand are susceptible to infringement in the international context. Will competitors try to make a knock-off product or steal your trade secrets? Are foreign companies going to ship infringing articles to the U.S. market? Protecting your intellectual property (IP) is key. Here are some fundamental suggestions to thwart such threats to your growing business.
United States-Mexico-Canada Agreement (“USMCA”), the NAFTA Replacement
Late on September 30, 2018, the United States and Canada reached a new trade agreement (the USMCA) that addresses many of the contentious issues that delayed Canada from rejoining the countries’ trilateral trade agreement (NAFTA).
In a joint statement, Canadian Foreign Affairs Minister Chrystia Freeland and U.S. Trade Representative Robert Lighthizer said that the new agreement “will give our workers, farmers, ranchers, and business a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region. It will strengthen the middle class, and create good, well-paying jobs and new opportunities for the nearly half billion people who call North America home.”
Senators Nelson and Rubio Introduce New Amendment for Seasonal and Regional AD/CVD Cases
On September 27, 2018, Senators Marco Rubio (R) and Bill Nelson (D) introduced legislation that would give producers of seasonal fruits and vegetables standing to seek trade remedy relief. The proposed bill would amend the Tariff Act of 1930 to expand the criteria needed for petitioners to have standing to request the imposition of antidumping or countervailing duties.
Update on Current Issues Impacting Transportation Intermediaries
The following is a short, to the point, summary of recent developments which impact transportation intermediaries, some of which can be implemented simply without fanfare, others which just bear careful monitoring. The Federal Maritime Commission (“FMC”) recently passed new regulations relating to Negotiated Rate Arrangements (“NRAs”), and NVOCC Service Arrangements (“NSAs”) which require some simple implementation, but then little else. The Federal Motor Carrier Safety Administration (“FMCSA”) has amended Hours of Service regulations which provide for strict usage of Electronic Logging Devices (“ELDs”), and a corresponding obligation for those intermediaries who select motor carriers for transport. Last but not least, we will briefly explore the question of where is the transport intermediary industry headed in the evolving e-commerce revolution?
OFAC Extends Authorization Period for Licensed Transactions with Certain Russian SDNs
As previously covered here, on April 6, 2018, the U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”) invoked authority provided under the Countering America’s Adversaries Through Sanctions Act (“CAATSA”) in order to place several Russian oligarchs, political officials and businesses under their control on its Specially Designated Nationals and Blocked Persons List (“SDN List”). These designations generally prohibited U.S. persons from engaging in transactions with the sanctioned individuals and entities, however OFAC also issued several General Licenses simultaneously which were intended to provide limited windows for maintaining or winding down preexisting transactions with those sanctioned individuals or entities. OFAC has now partially extended those authorized wind down periods by issuing the following General Licenses last week on September 21, 2018:
Will there be an Exclusion Process for Section 301 List 3 Products?
On September 17, 2018, USTR finalized a list of 5,745 imported products from China (referred to as “List 3”) for which additional tariffs are to be collected starting September 24, 2018 at a rate of 10 percent, rising to 25 percent starting January 1, 2019. The value of List 3 goods is estimated at approximately $200 billion. The Federal Register notice for this announcement was published on Friday, September 21, 2018 and differs somewhat from the Section 301 tariff announcements previously published for List 1 and List 2.
Petition Summary: Aluminum Wire and Cable from China
On September 21, 2018, Petitioners Encore Wire Corporation and Southwire Company, LLC filed a petition for the imposition of antidumping and countervailing duties on imports of Aluminum Wire and Cable from the People’s Republic of China.
Trump Administration Issues New CAATSA Executive Order, Adds 33 Persons to LSP List and Sanctions Chinese Defense Buyer
On September 20, 2018, President Trump released a 16-page Executive Order which delegated various Presidential powers established under the Countering America’s Adversaries Through Sanctions Act (“CAATSA”) to both the U.S. Secretary of Treasury and the U.S. Secretary of State. As a result of this delegation, the U.S. Treasury Department‘s Office of Foreign Assets Control (“OFAC”) and the U.S. State Department are now empowered to take actions which include (but are not limited to) designating parties to be sanctioned under various CAATSA provisions, selecting the specific menu-based sanctions to be imposed upon those parties and implementing those menu-based sanctions (we previously covered the CAATSA statute here, here and here). OFAC also updated its website to provide an additional FAQ response explaining the new Executive Order and indicating that it anticipates promulgating regulations to implement these sanctions.
Petition Summary: Refillable Stainless Steel Kegs from Germany, Mexico, and China
On September 20, 2018, Petitioner American Keg Company LLC filed a petition for the imposition of antidumping duties on imports of Refillable Stainless Steel Kegs from Germany, Mexico, and the People’s Republic of China.
Petition Summary: Mattresses from China
On September 18, 2018, Petitioners Corsicana Mattress Company, Elite Comfort Solutions, Future Foam Inc., FXI, Inc., Innocor, Inc., Kolcraft Enterprises Inc., Leggett & Platt, Incorporated, Serta Simmons Bedding, LLC, and Tempur Sealy International, Inc. filed a petition for the imposition of antidumping duties on imports of mattresses from the People’s Republic of China.