EU, EFTA - 26 legal acts incorporated into the EEA Agreement

On 9 July 2014, the EEA EFTA States (Iceland, Liechtenstein and Norway) and the European Union adopted seven Joint Committee Decisions (JCDs) by written procedure incorporating 26 EU legal acts into the European Economic Area (EEA) Agreement.

One of the JCDs adopted by written procedure was the supplementary package on adaptations to the EEA Agreement, which were necessary due to Croatia’s accession to the EU.

EEA EFTA Comment on product safety and market surveillance proposal
On 17 July 2014, Iceland, Liechtenstein and Norway submitted a joint comment to the European Commission's proposals for actions in the field of product safety and market surveillance.

The Commission proposals are part of a package of initiatives outlined in the Communication '20 actions for safer compliant products for Europe: a multi-annual action plan for the surveillance of products in the EU'. The package also includes proposals for a Regulation on Consumer Product Safety and a Regulation on Market Surveillance.
EFTA-Central America FTA set to enter into force

On 23 July 2014, the European Free Trade Association (EFTA) announced that following its ratification by all parties, the free trade agreement (FTA) between the EFTA States – Iceland, Liechtenstein, Norway and Switzerland – and the Central American States of Costa Rica and Panama will become operational in the coming weeks. The announcement stated:

The FTA was signed in June 2013. Its entry into force will occur in three stages: on 19 August 2014 between Norway and the Central American States; on 29 August between Liechtenstein and Switzerland and the Central American States; and on 5 September between Iceland and the Central American States.

Notably covering trade in goods, trade in services, investment, competition, protection of intellectual property, sustainable development, cooperation and government procurement, the FTA will create new opportunities for economic operators on both sides.

Over the last four years, two-way merchandise trade between the EFTA and Costa Rica has increased by more than 80%, reaching a value of USD 265 million in 2013. Between EFTA and Panama, two-way merchandise trade reached a value of USD 546 million in 2013, representing an increase of 40% since 2009.

The agreement foresees that other Member States of the Central American Economic Integration System may accede to the FTA. Not counting their agreements with the European Union, the EFTA States currently have 25 FTAs with a total of 35 partner countries worldwide.

EU and US - E3/EU+3 and Iran agree to extend negotiations; limited sanctions easing under Joint Plan of Action also extended

On 20 July 2014, the E3/EU+3 (i.e., China, France, Germany, Russia, the UK and the United States, coordinated by the European Union High Representative for Foreign Affairs and Security Policy Catherine Ashton) agreed with Iran to extend the implementation of the measures agreed to under the Joint Plan of Action (JPOA) until 24 November 2014, including the limited sanctions relief specified in the JPOA.

As part of the voluntary relief measures agreed to by the EU, the EU agreed not to pursue new nuclear-related EU sanctions and to suspend certain nuclear-related and oil-related sanctions, as well as to set up a financial mechanism to facilitate Iran’s import of certain humanitarian goods.

The EU has extended the suspension of certain restrictive measures with effect from 21 July 2014 until 24 November 2014 pursuant to Council Decision 2014/480/CFSP. By way of summary, the suspension, as extended, continues to cover:

• the provision of insurance and transport in relation to Iranian crude oil sales to current customers;
• the import, purchase or transport of Iranian petrochemical products;
• the trade in gold and precious metals with the Iranian government and its public bodies; and
• an increase in thresholds for authorising financial transfers to and from Iran.

On 20 January 2014, the US Government implemented the JPOA by relaxing limited extraterritorial sanctions targeting certain parts of the Iranian petrochemical, automotive, previous metals, civil aviation, and petroleum sectors. These measures are described in more detail in our February 2014 client alert, and our comments in that alert regarding which activities are authorized, not authorized, and where we would advise proceeding with caution continue to apply.

As noted in our February 2014 client alert, except for the favourable US licensing policy for certain exports related to civil aviation safety and the financial mechanism to facilitate humanitarian transactions, this relaxation of sanctions had virtually no impact on persons subject to the US trade embargo against Iran. For these purposes, this includes entities organized under US laws and their non-US branches; individuals and entities in the US; US citizens and permanent resident aliens wherever located or employed; non-US entities owned or controlled by any of the foregoing; and non-US persons that cause any Iran-related transactions to occur in whole or in part in the US. The US Government has reiterated that it will continue to aggressively enforce the Iran sanctions during this period.

As announced by the State Department on 18 July 2014, the above-described limited sanctions relaxation is now extended through 24 November 2014. During the extended JPOA period, the US Government will continue to coordinate with Iran regarding the humanitarian financial mechanism. In response to these developments, the Office of Foreign Assets Control in the US Treasury Department (OFAC) updated and reissued guidance and FAQs on the U.S. implementation of the JPOA and also updated the statement of licensing policy on civil aircraft to reflect the new dates.

The foregoing is intended only to provide a general summary of recent developments. If you have any questions about the operation of the limited sanctions easing or if you require advice on any specific transactions or plans, please contact one of the members of Baker & McKenzie’s International Trade Practice Group. The contact information for inquiries may be found on Baker & McKenzie’s latest Client Alert on this subject, from which this article is excerpted.

Canada and the US announce Trusted Traveller and Trusted Trader enhancements under Beyond the Border Action Plan

On July 21, 2014, the Government of Canada announced that Canada and the United States (US) are delivering on key Beyond the Border Action Plan commitments related to joint Trusted Traveller and Trusted Trader programs, including the official opening of the eGate pilot project that allows NEXUS members extended expedited passage at the Peace Bridge port of entry in Fort Erie, Ontario. The announcement stated:

In addition, trusted traders importing goods into Canada can now apply for additional benefits to help them save time and money. Customs Self Assessment – Platinum (CSA-Platinum) is available to CSA importers who voluntarily demonstrate that their business systems, internal controls and self-testing processes are effective and reliable at ensuring trade compliance. In addition, non-resident importers in the US will now be eligible to apply to the CSA importer program. Previously, only importers residing in Canada or, in the case of corporations who had their head office in Canada or operated a branch office in Canada, were eligible to participate in the CSA program.

The CBSA has also launched a new online Trusted Trader Portal that allows companies to apply for membership in the Partners in Protection (PIP) program, and allows existing members to maintain their Trusted Trader membership. The Portal will serve as the foundation for future phases of Trusted Trader enhancements, including the streamlined exchange of program information between the Trusted Trader and the US Customs-Trade Partnership Against Terrorism (C-TPAT) portals.

US - President extends national emergency with respect to transnational criminal organizations

On July 22, 2014, the Federal Register published the Notice of July 18, 2014—Continuation of the National Emergency With Respect to Transnational Criminal Organizations. The notice extends for an additional year the national emergency declared in Executive Order 13581 of July 24, 2011 pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701–1706) to deal with the unusual and extraordinary threat to the national security, foreign policy and economy of the United States constituted by the activities of significant transnational criminal organizations. The notice stated:

The activities of significant transnational criminal organizations have reached such scope and gravity that they threaten the stability of international political and economic systems. Such organizations are becoming increasingly sophisticated and dangerous to the United States; they are increasingly entrenched in the operations of foreign governments and the international financial system, thereby weakening democratic institutions, degrading the rule of law, and undermining economic markets. These organizations facilitate and aggravate violent civil conflicts and increasingly facilitate the activities of other dangerous persons.

US - CBP and ITA seek comments on improving the entry process and airport-specific plans for international travelers
On July 22, 2014 the International Trade Administration (Commerce) and US. Customs and Border Protection (CBP) published in the Federal Register a notice with an opportunity for comments relating to the Presidential Memorandum, issued by President Obama on May 22, 2014 establishing a national goal and developing airport specific action plans to enhance the entry process for international travelers to the United States. The Memorandum directs the Secretaries of Commerce and Homeland Security to develop within 120 days a national goal for improving service levels for international arrivals. It also directs the Secretaries to develop airport-specific action plans that include actions from both private and public sectors to measurably improve the entry experience for international arrivals to those airports. The notice notifies interested stakeholders about how to submit comments and ideas on determining the national goal and how to improve all aspects of the international arrivals process. Comments must be received on or before Friday, August 15, 2014.
US-BIS adds Crimean, Russian and Ukrainian entities to the Entity List
On July 22, 2014, the Bureau of Industry and Security (BIS) published in the Federal Register a final rule [Docket No. 140429382-4382-01] which amends the Export Administration Regulations (EAR) by adding eleven persons under twelve entries to the Entity List. The persons who are added to the Entity List have been determined by the US Government to be acting contrary to the national security or foreign policy interests of the United States. These persons will be listed on the Entity List under the destinations of Crimea (Occupied), Russia, and Ukraine. There are twelve entries for the eleven persons on the Entity List because one person is being listed in multiple locations, resulting in an additional entry. Specifically, the additional entry covers one person that will be listed on the Entity List under the destinations of Crimea (Occupied) and Ukraine. See final rule for names.
US - CBP to close Jamieson Line, New York Border Crossing
On July 22, 2014, US. Customs and Border Protection (CBP) published in the Federal Register a final rule [Docket No. USCBP-2012-0037; CBP Dec. 14-08] amends the Department of Homeland Security (DHS) regulations pertaining to the field organization of CBP by closing the Jamieson Line, New York border crossing, which is used by six or fewer vehicles per day. The change is part of CBP’s continuing program to utilize its personnel, facilities, and resources more efficiently, and to provide better service to carriers, importers, and the general public. The final rule is effective on August 21, 2014.
US - FinCEN proposes special measures against FBME Bank Ltd.

On July 22, 2014, the Financial Crimes Enforcement Network (FinCEN), Treasury, published in the Federal Register a notice of proposed rulemaking to impose special measures against the FBME Bank Ltd., formerly known as Federal Bank of the Middle East, Ltd., as a financial institution of primary money laundering concern. In a Notice of Finding (also published in the Federal Register on July 22, 2014), the Director of FinCEN on July 15, 2014, found that FBME Bank Ltd., formerly known as Federal Bank of the Middle East, Ltd., is a financial institution operating outside of the United States that is of primary money laundering concern.

The Director of FinCEN proposes to impose the special measure authorized by 31 U.S.C. § 5318A(b)(5) (the “fifth special measure”). In connection with this action, FinCEN consulted with representatives of the Federal functional regulators, the Departments of Justice and State, among others. The fifth special measure proposed by the rulemaking would prohibit covered financial institutions from opening or maintaining correspondent accounts for or on behalf of FBME after the effective date of the final rule implementing the fifth special measure. Written comments must be submitted on or before September 22, 2014.

US - FWS to stop sending courtesy reminders that import/export licenses are expiring
On July 11, 2014, the US Fish and Wildlife Service (FWS) sent a Notice to the Wildlife Import/Export Community advising that due to staff and other resource constraints, the FWS Office of Law Enforcement (OLE) will, as of August 1, 2014, no longer be able to provide written notifications by mail to license holders to inform them in advance of the pending expiration date of their license and encourage them to request renewal on a timely basis. OLE will also no longer provide advance written notice to holders of designated port exception (DPE) permits to remind them of pending expiration. These notifications had been provided in the past as a courtesy.

Individuals and businesses that hold wildlife import/export licenses and DPE permits will be responsible for monitoring expiration dates and obtaining license/permit renewals without notification from the FWS. The FWS states that it is exploring options for electronic reminders for users of its eDecs system.
Russia - Sanctions issued against 12 Americans
In retaliation for the latest round of US sanctions against Russian entities in connection with activities related to Ukraine, on 19 July 2014, the Russian Ministry of Foreign Affairs announced that it had placed 12 Americans on its sanctions list pursuant to Federal Law № 272-FZ. The list of names contains an Admiral and a Federal Judge who were involved in ending the hunger strike by prisoners at Guantanamo Bay. The other ten are identified as soldiers, mostly retired, who were involved in the Abu Ghraib prison in Iraq, plus the Lt. General who was the Commander of US troops in Iraq in 2003-2004. The sanctions deny entry to the Russian Federation.
EU - New sanctions with respect to the situation in Ukraine

On 19 July 2014, the Official Journal published Council Decision 2014/475/CFSP of 18 July 2014 amending Decision 2014/145/CFSP and Council Regulation (EU) No 783/2014 of 18 July 2014 amending Regulation (EU) No 269/2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine. The new provisions replace Article 2(1) of Decision 2014/145/CFSP and Article 3(1) of Regulation (EU) № 269/2014 and expand the conditions for freezing of funds and economic resources to target legal persons, entities or bodies materially or financially supporting actions which undermine or threaten the territorial integrity, sovereignty and independence of Ukraine:

(a) natural persons responsible for, actively supporting or implementing, actions or policies which undermine or threaten the territorial integrity, sovereignty and independence of Ukraine, or stability or security in Ukraine or which obstruct the work of international organisations in Ukraine, and natural or legal persons, entities or bodies associated with them;
(b) legal persons, entities or bodies supporting, materially or financially, actions which undermine or threaten the territorial integrity, sovereignty and independence of Ukraine; or
(c) legal persons, entities or bodies in Crimea or Sevastopol whose ownership has been transferred contrary to Ukrainian law, or legal persons, entities or bodies which have benefited from such a transfer.

The Decision and Regulation follow a special meeting of the European Council held on 16 July 2014 in which the delegations agreed to:

• Discontinue the application of their agreement of 20 February 2014 on export licences
• Expand the restrictive measures, with a view to targeting entities, including from the Russian Federation, that are materially or financially supporting actions undermining or threatening Ukraine's sovereignty, territorial integrity and independence.
• Consider the possibility of targeting individuals or entities who actively provide material or financial support to the Russian decision-makers responsible for the annexation of Crimea or the destabilisation of Eastern-Ukraine
• Request the EIB to suspend the signature of new financing operations in the Russian Federation.
• Invite the Commission to re-assess EU-Russia cooperation programmes with a view to taking a decision, on a case by case basis, on the suspension of the implementation of EU bilateral and regional cooperation programmes. However, projects dealing exclusively with cross-border cooperation and civil society will be maintained.

Legal 500 Names Baker & McKenzie Team of the Year for International Trade

The Legal 500 USA recently named Baker & McKenzie "Team of the Year" for its International Trade practice in its first-ever awards recognizing the best private practice teams in the United States. The awards are given to "elite practitioners" based on results of more than 50,000 interviews and comprehensive research into the US legal market.

Click here to view the full press release.

US announces new sectoral sanctions targeting Russia’s financial services and energy sectors, sixth round of Ukraine-related designations, and strengthened US export controls targeting Russia

On July 16, 2014, the Office of Foreign Assets Control (OFAC) announced new sectoral sanctions targeting Russia’s financial services and energy sectors and a sixth group of “Specially Designated Nationals” (SDNs) related to the crisis in Ukraine with the designation of 11 entities and 5 individuals in Crimea and Russia. On the same day, the Bureau of Industry and Security (BIS) also announced plans to add the same 11 entities to the Entity List.

1. New Sectoral Sanctions Targeting Russia

On July 16, 2014, OFAC announced the imposition of sectoral sanctions to target the financial services and energy sectors in Russia under Executive Order 13662. Under these new sectoral sanctions, limited and targeted restrictions have been placed on “US-Person” dealings in new debt or new equity of two Russian banks (Gazprombank OAO and VEB) and in new debt of two Russian energy companies (OAO Novatek and Rosneft).

None of these four Russian companies has been designated as an SDN or had its property or interests in property blocked/“frozen.” Instead, pursuant to Executive Order 13662, these four Russian companies have been added to a new “Sectoral Sanctions Identifications List” pursuant to Directives 1 (financial services sector) and 2 (energy sector).

For purposes of the sectoral sanctions, “US Persons” include (i) entities organized under US laws and their non-US branches, (ii) individuals or entities in the United States, or (iii) US citizens or permanent resident aliens (“Green Card” holders) wherever located or employed. Non-US Persons, including separately incorporated foreign subsidiaries of US companies, may be subject to US jurisdiction if they cause prohibited transactions to occur in whole or in part in the United States or anywhere by US Persons.

Under Directive 1, US Persons are prohibited, as of July 16, from transacting in, providing financing for, or otherwise dealing in new debt of longer than 90 days maturity or new equity in relation to Gazprombank OAO, VEB, or any entity 50% or more owned by either company. Other than these specific restrictions, US Persons are generally permitted to engage in transactions and dealings with Gazprombank OAO or VEB, including dealings in debt or equity that predates July 16, 2014.

Under Directive 2, US Persons are prohibited, as of July 16, from transacting in, providing financing for, or otherwise dealing in new debt of longer than 90 days maturity in relation to OAO Novatek, Rosneft, or any entity 50% or more owned by either company. Other than these specific restrictions, US Persons are generally permitted to engage in transactions and dealings with OAO Novatek or Rosneft, including dealings in debt that predates July 16, 2014. Directive 2 does not impose restrictions on US-Person dealings in new equity of OAO Novatek or Rosneft.

As part of its announcement, OFAC issued General License No. 1 to authorize US-Person dealings in derivative products linked to underlying assets that constitute new debt described above. OFAC also published FAQs about these developments.

2. New SDNs

On the same day, OFAC also announced its sixth group of SDNs related to the crisis in Ukraine and added 11 entities and 5 individuals in Crimea and Russia to the US SDN List pursuant to Executive Order 13660 or Executive Order 13661. US Persons are now prohibited from dealing (directly or indirectly) with these SDNs and any entity 50% or more owned by an SDN.

According to the US Treasury Department press statement, the new SDNs have been designated for the following reasons:

Eight companies for operating in the arms or related materiel sector in Russia under Executive Order 13661:

• JSC Concern Almaz-Antey
• Federal State Unitary Enterprise State Research and Production Enterprise Bazalt
• JSC Concern Sozvezdie
• JSC MIC NPO Mashinostroyenia
• Kalashnikov Concern
• KBP Instrument Design Bureau
• JSC Concern Radio-Electronic Technologies
• Uralvagonzavod

Four individuals for their status as Russian government officials under Executive Order 13661:

• Sergey Beseda
• Oleg Savelyev
• Sergei Neverov
• Igor Shchegolev

Three entities and one individual under Executive Order 13660:

• Luhansk People’s Republic
• Donetsk People’s Republic
• Feodosiya Enterprise
• Aleksandr Borodai

3. New Designations on the Entity List

In a coordinated statement, BIS also announced that it plans to add the same 11 entities designated as SDNs to the Entity List pursuant to the Export Administration Regulations (EAR). (The four Russian companies subject to Executive Order 13662’s sectoral sanctions were not added to the Entity List.)

The inclusion of the 11 entities on the Entity List means that a BIS license will be required for the export, reexport or in-country transfer by any US or non-US person of items (i.e., goods, software, technology) subject to the EAR to any of these entities, with a presumption of denial. Based on previous Entity List designations under US sanctions targeting Russia, the new EAR licensing requirements are likely to apply to both controlled and non-controlled (aka EAR99) items intended for any of these entities.

For additional information on the sanctions related to the situation in Ukraine, please contact Nick Coward, Ed Dyson, Janet Kim or Alex Lamy.

US - President extends national emergency with respect to Taylor Regime (Liberia)
On July 17, 2014, the Federal Register published the Notice of July 15, 2014 - Continuation of the National Emergency With Respect to the Former Liberian Regime of Charles Taylor. The notice extends for an additional year the national emergency declared in Executive Order 13348 of July 22, 2004 pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701–1706) to deal with the unusual and extraordinary threat to the foreign policy of the United States constituted by the actions and policies of former Liberian President Charles Taylor and other persons, in particular their unlawful depletion of Liberian resources and their removal from Liberia and secreting of Liberian funds and property, which have undermined Liberia’s transition to democracy and the orderly development of its political, administrative, and economic institutions and resources.

Although Liberia has made significant advances to promote democracy, and the Special Court for Sierra Leone convicted Charles Taylor for war crimes and crimes against humanity, the actions and policies of Charles Taylor and others have left a legacy of destruction that still challenge Liberia’s transformation and recovery. The actions and policies of these persons continue to pose an unusual and extraordinary threat to the foreign policy of the United States.
Turkey - Safeguard investigation on printing, writing and copying papers launched
On 15 July 2014, the WTO announced that Turkey, by communication dated 14 July 2014, notified the WTO’s Committee on Safeguards that it initiated on 21 June 2014 a safeguard investigation on printing, writing and copying papers. The investigation is being conducted by the Ministry of Economy, Directorate General for Imports, Department of Safeguards.

A safeguard investigation seeks to determine whether increased imports of a product are causing, or is threatening to cause, serious injury to a domestic industry.

During a safeguard investigation, importers, exporters and other interested parties may present evidence and views and respond to the presentations of other parties.

A WTO member may take a safeguard action (i.e. restrict imports of a product temporarily) only if the increased imports of the product are found to be causing, or threatening to cause, serious injury.

Further information is available in document G/SG/N/6/TUR/18 on the WTO website.
WCO, INTA sign MOU to collaborate against global counterfeiting
On 15 July 2014, the WCO announced that it and the International Trademark Association (INTA) signed a Memorandum of Understanding at the WCO headquarters in Brussels on 14 July 2014. Through this partnership INTA and WCO will increase their collaborative efforts in the fight against counterfeiting and its impact on businesses, governments and citizens worldwide. WCO Secretary General Kunio Mikuriya and INTA CEO Etienne Sanz de Acedo signed the agreement on behalf of their organizations.

The partnership will provide INTA and WCO with a platform to strengthen Customs coordination through education and training projects, and through the exchange of information and best practices between Customs and the private sector. The organizations will also place a strong emphasis on public education to raise awareness about the dangers of counterfeiting and its impact on the global economy, including collaboration on INTA’s public awareness initiative, the Unreal Campaign.

The International Trademark Association (INTA), founded in 1878, is a global association of trademark owners and professionals dedicated to supporting trademarks and related intellectual property in order to protect consumers and to promote fair and effective commerce. Members include more than 6,400 trademark owners, professionals and academics from more than 190 countries, who benefit from the Association’s global trademark resources, policy development, education and training, and international network.
US-FTC issues final revisions to the Guides for the Rebuilt, Reconditioned and Other Used Automobile Parts Industry

On July 14, 2014, the Federal Trade Commission (FTC) published in the Federal Register a final revision to the Guides for the Rebuilt, Reconditioned and Other Used Automobile Parts Industry (Used Auto Parts Guides or Guides). The FTC has completed its review of the Guides and has determined to revise and retain them. The Guides provide advice to industry members on how they can avoid engaging in unfair or deceptive practices that violate Section 5 of the Federal Trade Commission Act, 15 U.S.C. 45. The Guides deem certain practices to be unfair or deceptive, including the following:

• Misrepresenting industry products as new or misrepresenting the amount of use of an industry product;
• Misrepresenting the identity of anyone who worked on an industry product after it was removed from the original vehicle;
• Misrepresenting the condition of an industry product or the amount of work done to it after its removal from the original vehicle.

This action is effective as of August 22, 2014.

US - FTC seeks comments on its Hobby Protection Act rules and regulations
On July 14, 2014, the Federal Trade Commission (FTC) published in the Federal Register a request for public comments on the overall costs and benefits, and regulatory and economic impact, of its Rules and Regulations Under the Hobby Protection Act (Rules), as part of the agency’s regular review of all its regulations and guides. Comments must be received on or before September 22, 2014.

On November 29, 1973, the President signed into law the Hobby Protection Act (the Act), 15 U.S.C. 2101-06. The Act requires manufacturers and importers of “imitation political items” to “plainly and permanently” mark them with the “calendar year” the items were manufactured. The Act also requires manufacturers and importers of “imitation numismatic items” to “plainly and permanently” mark these items with the word “copy.” The Act directed the Commission to promulgate regulations for determining the “manner and form” that imitation political items and imitation numismatic items are to be permanently marked with the calendar year of manufacture or the word “copy.” In 1975 (amended in 1988), the FTC issued Rules and Regulations Under the Hobby Protection Act, 16 C.F.R. Part 304. The FTC most recently reviewed the Rules in 2004. That review yielded many comments proposing that the FTC expand coverage to products beyond the scope of the Act and address problems involving the selling (or passing off) as originals of reproductions of antiques and other items not covered by the Act. However, the FTC retained the Rules without change, noting that it did not have authority under the Act to expand the Rules as requested.
Canada - CBSA posts trade compliance verification priorities

The Canada Border Services Agency (CBSA) has posted on its website a document entitled, Trade Compliance Verifications – July 2014. The document explains that CBSA manages trade compliance with the Tariff Classification, Valuation, and Origin programs using two post-release verification processes: random verifications and verification priorities.

Random verifications are designed to measure compliance rates and revenue loss and the results may be used for many purposes, including risk assessment; revenue assessment; and promoting voluntary compliance.

Targeted verification priorities are determined through a risk-based, evergreen process, meaning that new targets are added throughout the year. Verification priorities may also be carried over from previous years. The current verification priorities are:

Tariff Classification

Harmonized System Number(s)

1.

Fresh Cut Flowers

0603.19.00

2.

Pickled Vegetables

2001.90.90.91

3.

Curling Irons (Round 2)

8516.32.10

4.

Spectacle Lenses

9001.40.10 and 9001.50.10

5.

Furniture for Non-Domestic Purposes

Various goods of Headings 94.01 and 94.03

6.

Palm Oil

1511.90.10 and 1511.90.20

7.

Chemical Products

Various goods of Heading 38.08

8.

Safety Headgear (Round 2)

6506.10.10.90

9.

Seaweed (Round 2)

1212.21.00 and 1212.29.00

10.

Dextrins and Other Modified Starches (Round 2)

3505.10.90

11.

Disposable and Protective Gloves (Round 2)

3926.20.10 and 4015.19.10

12.

Wheel Rims and Spokes (Round 2)

8714.92.00

13.

Coconut Milk From Asian Countries (Round 2)

1106.30.00; 2008.19.90 and 2106.90.10.90

14.

Batteries (new)

8506.10.10 and 8506.50.10.

15.

Gazebos (new)

9406.00.90.20

16.

Apparel Samples (new)

9936.00.00

17.

Bags of Polymers of Ethylene (new)

3923.21.90

18.

Footwear Valued at $30 or More per Pair (new)

6403.59.20 and 6403.99.30

19.

Hair Extensions (new)

6703.00.00

20.

Machinery for Public Works (new)

8479.10.00

21.

Sacks and Bags under Tariff Item 9903.00.00 (new)

3923.21.90, 6305.32.00 and 6305.33.00

22.

Special Purpose Motor Vehicles (new)

8705.90.90.90

23.

Polyurethanes in Primary Forms (new)

3909.50.00

Valuation

Harmonized System Number(s)

24.

Fresh Cut Flowers

0603.19.00

25.

Apparel

Various goods of Chapters 61 and 62

26.

Footwear

Various goods of Chapter 64

27.

Yachts for Pleasure or Sport

Various goods of Heading 89.03

28.

Preparations and Pastrycooks’ Products

Various goods of Chapter 19

Origin

Harmonized System Number(s)

29.

Bedding and Drapery

Various goods of Headings 63.01, 63.02 and 63.03

30.

Mattress Upholstery

Various goods of Chapters 54, 55 and 60

31.

Cotton Pants

6203.42

32.

T-Shirts

Heading 61.09

33.

Jewelry (new)

7113.11.90; 7113.19.90 and 7113.20.90


MOFCOM announces ruling on re-investigation of AD/CVD measures against US chicken in light of WTO decision
On July 10, 2014, the Ministry of Commerce (MOFCOM) announced that on July 8, 2014, it released a ruling announcement on re-investigation of anti-dumping (AD) and countervailing (CV) measures against chicken imported from the United States to carry out the ruling by the WTO trade dispute settlement mechanism.

MOFCOM made the ruling in its announcement that during the period of investigation, dumping and subsidy existed in chicken imported from the US. China’s domestic industry was substantially harmed and there was causal relationship between dumping and subsidy and the substantive damage. In addition, MOFCOM adjusted the dumping margin and price-subsidy rate of the US companies in light of the results.

Starting from July 9, 2014, importers of chicken products imported from the US should pay AD and CV duties at Chinese Customs in accordance with the duty rates determined by the announcement. It is understood that the Chinese antidumping duties will now range from 46.6 percent to 73.8 percent on imports from US suppliers, a significant dip from the previous 50.4-105.4 percent levy.

The tariff numbers of the above cited products are 02071100, 02071200, 02071311, 02071319, 02071321, 02071329, 02071411, 02071419, 02071421, 02071422, 02071429 and 05040021 in the Customs Import and Export Tariff of the People’s Republic of China.
USTR seeks applicants for NAFTA Chapter 14 dispute settlement roster
On July 10, 2014, the Office of the United States Trade Representative (USTR) published in the Federal Register an invitation for applications from eligible individuals wishing to be included on roster of individuals who would be willing and able to serve as panelists in dispute settlement proceedings arising under Chapter Fourteen (Financial Services) of the NAFTA. Individuals are appointed for a term of three years.

Applications should be received no later than August 25, 2014.
International Policy Statement issued by the NRC
On July 10, 2014, the Nuclear Regulatory Commission (NRC) published in the Federal Register a document [NRC-2014-0112] issuing an International Policy Statement. The International Policy Statement captures a brief history of almost 40 years of involvement in international activities and how this has impacted the NRC. The International Policy Statement also outlines how international activities directly support the NRC’s goals and mission, and enumerates specific elements in which the NRC will proactively engage.
NRC amends rules on export and import of nuclear materials
On July 10, 2014, the Nuclear Regulatory Commission (NRC) published in the Federal Register a final rule [NRC-2014-0007] amending its regulations pertaining to the export and import of nuclear materials and equipment. The rulemaking is necessary to conform the export controls of the United States to the international export control guidelines of the Nuclear Suppliers Group (NSG), of which the United States is a member. The final rule conforms the NRC’s export and import regulations in 10 C.F.R. part 110, “Export and Import of Nuclear Equipment and Material,” and appendices A, B, C, D, E, F, G, H, I, J, K, N, and O, which contain illustrative lists of items under the NRC’s export licensing authority, to current nuclear nonproliferation policies of the Executive Branch. These revisions are necessary to implement changes made to the NSG Guidelines, “Guidelines for Nuclear Transfers (INFCIRC/254/ Revision 12/Part 1), June 2013,” as adopted by the governments participating in the NSG at the June 2012 and 2013 Plenary Meetings. In addition, this rule amends § 110.30, “Members of the Nuclear Suppliers Group,” to add Mexico and Serbia as member countries of the NSG that are eligible to receive radioactive materials under certain general licenses for export. The NSG Guidelines can be found at: www.nuclearsuppliersgroup.org

In addition, the final rule incorporates by reference the current version of the International Atomic Energy Agency’s (IAEA) document, “Nuclear Security Recommendations on Physical Protection of Nuclear Material and Nuclear Facilities (INFCIRC/225/Revision 5), January 2011.” The final rule makes certain editorial revisions, and corrects typographical errors.

The final rule is effective August 11, 2014, except that the changes to § 110.44(a) and (b)(1) and appendix M to 10 C.F.R. part 110 are effective December 31, 2014. The incorporation by reference of the material in this document is approved as of December 31, 2014.
US - OFAC adopts Zimbabwe Sanctions Regulations with changes
On July 10, 2014, the Office of Foreign Assets Control (OFAC) published in the Federal Register a final rule, adopting with changes, the Zimbabwe Sanctions Regulations (31 C.F.R. Part 541) that were previously published on July 29, 2004, as an interim final rule. These changes primarily amend the Zimbabwe Sanctions Regulations to implement Executive Order (EO) 13391 of November 22, 2005, “Blocking Property of Additional Persons Undermining Democratic Processes or Institutions in Zimbabwe,” and EO 13469 of July 25, 2008, “Blocking Property of Additional Persons Undermining Democratic Processes or Institutions in Zimbabwe.”
US - APHIS continues to implement risk-based sampling at additional plant inspection stations

On July 8, 2014, the Animal and Plant Health Inspection Service (APHIS) announced that on August 4, 2014, APHIS Plant Protection and Quarantine (PPQ) will continue the implementation of risk-based sampling on shipments of plants for planting at the following plant inspection stations:

• Seattle, Washington
• Los Angeles (City of El Segundo), California
• Atlanta, Georgia
• Jamaica, New York
• Miami, Florida (air cargo)

On September 2, 2014, APHIS PPQ will implement risk-based sampling on shipments of plants at the following plant inspection stations:

• Los Indios, Texas
• Miami, Florida (maritime cargo)
• San Francisco, California (air cargo)

APHIS-PPQ will use sampling rates and methods that consider input from affected industries to minimize adverse effects on commerce. This new inspection protocol will provide data to improve APHIS understanding of the highest risk plants entering the United States, which will allow it to focus its efforts to safeguard US agriculture and the environment from the introduction of harmful plant pests and diseases. This information will also help in expediting the inspection process of low-risk plants entering the United States. APHIS-PPQ will adjust operational procedures as needed prior to implementation at other plant inspection stations.

All plants for planting will be sampled at a rate that will provide sufficient data to evaluate the level of risk. The categorization of risk will be revised regularly in response to data from all inspections. This will allow APHIS-PPQ to more effectively focus resources towards plant species that pose the greatest risk. APHIS-PPQ will be expanding risk-based sampling in the coming months, utilizing the incremental implementation to minimize delay of imports.

Risk-based sampling will require more time to inspect some shipments. More samples may be inspected at the discretion of the APHIS inspector. To expedite the process, importers should ensure that an adequate number of staff is available to unload sample units for inspection. APHIS inspectors do not provide loading or unloading services. When quarantine action pests are detected on a commingled shipment, the entire shipment is subject to action required. APHIS is committed to providing the necessary number of inspectors to avoid any delays associated with the implementation of the new sampling protocol.

US, Chile sign Customs Mutual Assistance Agreement

On July 1, 2014, US Customs and Border Protection (CBP) announced that the United States signed a Customs Mutual Assistance Agreement (CMAA) with Chile on June 30, 2014 marking a significant milestone in collaboration on security and trade facilitation between the two countries. The CBP Commissioner signed the agreement on behalf of CBP and US Immigration and Customs Enforcement (ICE) and the Minister of Finance signed the agreement on behalf of Chile.

The U.S. – Chile Customs Mutual Assistance Agreement was signed at the US Department of State as a part of a larger Chilean delegation visit to the United States, including meetings between President Barack Obama and Chilean President Michelle Bachelet.

The United States has now signed 70 CMAAs with other customs administrations across the world. CMAAs are bilateral agreements between countries and enforced by their respective customs administrations. They provide the legal framework for the exchange of information and evidence to assist countries in the enforcement of customs laws, including duty evasion, trafficking, proliferation, money laundering, and terrorism-related activities. CMAAs also serve as foundational documents for subsequent information sharing arrangements, including mutual recognition arrangements on authorized economic operator programs.

US - CBP posts exporter eligibility requirements for C-TPAT

US Customs and Border Protection recently posted “Exporter Entity Eligibility Requirements” for participation in the Customs-Trade Partnership Against Terrorism (C-TPAT).

For C-TPAT purposes, an exporter is defined as a person or company who, as the principal party in interest in the export transaction, has the power and responsibility for determining and controlling the sending of the items out of the United States.

Entities that wish to participate in the C-TPAT Exporter program must meet with the program’s definition of an exporter as well as meet with the following eligibility requirements:

• Be an active US Exporter out of the United States.
• Have a business office staffed in the US
• Be an active US Exporter with a documentable

o Employee Identification Number (EIN), or
o Dun & Bradstreet (DUNS) number.

• Have a documented export security program and a designated officer or manager who will act as the C-TPAT program main point of contact. Additionally the participant should have an alternate point of contact should the designated point of contact be unavailable.
• Commit to maintaining the C-TPAT supply chain security criteria as outlined in the C- TPAT Exporter agreement.
• Create and provide CBP with a C-TPAT supply chain security profile which identifies how the Exporter will meet, maintain, and enhance internal policy to meet the C-TPAT Exporter security criteria.
• In order to be eligible the Exporter must have an acceptable level of compliance for export reporting for the latest 12-month period and be in good standing with US Regulatory Bodies such as: Department of Commerce, Department of State, Department of Treasury, Nuclear Regulatory Commission, Drug Enforcement Administration, and Department of Defense.

Additional details on business partner requirements; security procedures; point of origin; participation/certification in foreign Customs Administrations supply chain security programs; container security, inspection, seals and storage; conveyance tracking and monitoring procedures; physical access controls; personnel security; procedural security; physical security; export training and threat awareness; and information technology are found in a separate document entitled, “Customs-Trade Partnership Against Terrorism (C-TPAT) Exporter Eligibility Requirements.”

US - Issuance of an Executive Order Related to the Democratic Republic of the Congo

The President on July 8, 2014 signed a new Executive Order “Taking Additional Steps to Address the National Emergency With Respect to the Conflict in the Democratic Republic of the Congo”.

The new Executive order blocks all property and interests in property that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person (including any foreign branch) of the following persons and provides that the property may not be transferred, paid, exported, withdrawn, or otherwise dealt in the persons listed in the Annex to the order; and any person determined by the Secretary of the Treasury, in consultation with the Secretary of State:

• to be a political or military leader of a foreign armed group operating in the Democratic Republic of the Congo (DRC)that impedes the disarmament, demobilization, voluntary repatriation, resettlement, or reintegration of combatants;
• to be a political or military leader of a Congolese armed group that impedes the disarmament, demobilization, voluntary repatriation, resettlement, or reintegration of combatants;
• to be responsible for or complicit in, or to have engaged in, directly or indirectly, any of the following in or in relation to the DRC:

(1) actions or policies that threaten the peace, security, or stability of the DRC;
(2) actions or policies that undermine democratic processes or institutions in the DRC;
(3) the targeting of women, children, or any civilians through the commission of acts of violence (including killing, maiming, torture, or rape or other sexual violence), abduction, forced displacement, or attacks on schools, hospitals, religious sites, or locations where civilians are seeking refuge, or through conduct that would constitute a serious abuse or violation of human rights or a violation of international humanitarian law;
(4) the use or recruitment of children by armed groups or armed forces in the context of the conflict in the DRC;
(5) the obstruction of the delivery or distribution of, or access to, humanitarian assistance;
(6) attacks against United Nations missions, international security presences, or other peacekeeping operations; or
(7) support to persons, including armed groups, involved in activities that threaten the peace, security, or stability of the DRC or that undermine democratic processes or institutions in the DRC, through the illicit trade in natural resources of the DRC;

• except where intended for the authorized support of humanitarian activities or the authorized use by or support of peacekeeping, international, or government forces, to have directly or indirectly supplied, sold, or transferred to the DRC, or been the recipient in the territory of the DRC of, arms and related materiel, including military aircraft and equipment, or advice, training, or assistance, including financing and financial assistance, related to military activities;
• to be a leader of an entity, including any armed group, that has, or whose members have, engaged in any of the activities described above or an entity whose property and interests in property are blocked pursuant to the order;
• to have materially assisted, sponsored, or provided financial, material, logistical, or technological support for, or goods or services in support of any of the activities described above or any person whose property and interests in property are blocked pursuant to this order; or
• to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to this order."

A new subsection (d) is added to section 1 of Executive Order 13413 to read as follows:

"(d) The prohibitions in subsection (a) of this section apply except to the extent provided by statutes, or in regulations, orders, directives, or licenses that may be issued pursuant to this order, and notwithstanding any contract entered into or any license or permit gr granted prior to the effective date of this order

US - USTR reallocates unused 2014 raw cane sugar TRQ

On July 3, 2014, the Office of the United States Trade Representative (USTR) announced country-specific reallocations of the fiscal year (FY) 2014 in-quota quantity of the World Trade Organization (WTO) tariff-rate quota (TRQ) for imported raw cane sugar. TRQs allow countries to export specified quantities of a product to the United States at a relatively low tariff, but subject all imports of the product above a pre-determined threshold to a higher tariff.

Based on consultations with quota holding countries, USTR is reallocating 99,290 metric tons* raw value (MTRV) of the original TRQ for raw cane sugar from countries that have stated they will be unable to fill previously allocated FY 2014 WTO raw sugar TRQ quantities.

USTR is allocating this quantity to the following countries in the quantities specified below:

Country

FY 2014

Reallocation

Country

FY2014

Reallocation

Argentina

4,523

Honduras

1,052

Australia

8,730

India

841

Belize

1,157

Jamaica

1,157

Bolivia

841

Mozambique

1,367

Brazil

15,251

Nicaragua

2,209

Colombia

2,524

Panama

3,050

Costa Rica

1,578

Peru

4,312

Dominican Republic

18,512

Philippines

14,199

Ecuador

1,157

South Africa

2,419

El Salvador

2,735

Swaziland

1,683

Fiji

947

Thailand

1,473

Guatemala

5,049

Zimbabwe

1,262

Guyana

1,262

These allocations are based on the countries’ historical shipments to the United States. The allocations of the raw cane sugar TRQ to countries that are net importers of sugar are conditioned on receipt of the appropriate verifications of origin. Certificates for quota eligibility must accompany imports from any country to which an allocation is provided. [*Conversion factor: 1 metric ton = 1.10231125 short tons.]

Mexico - Revised public procurement FTA thresholds published

On July 4, 2014, the Secretariat for Public Procurement and Administrative Functions published in the Diario Oficial de la Federación (Official Gazette) an Official Circular setting forth the Public Procurement provisions of the various Mexican Free Trade Agreements and the updated thresholds (in national currency) applicable from 1 July through 31 December 2014.

The summary charts follow:

LOCATION OF AGENCIES AND ENTITIES COVERED BY PUBLIC PROCUREMENT CHAPTERS OR TITLES
OF FREE TRADE AGREEMENTS

Annex

Chapter or Title Number

Treaty Name

Annexes 1001.1a-1 and 1001.1a-2 Article 1001

Chapter X

North American Free Trade Agreement (NAFTA)

Sections 1 and 2 of Part A of Annex I to Article 6-01

Chapter VI

Free Trade Agreement between the United Mexican States and the State of Israel (Mexico - Israel FTA)

Sections 1 and 2 of Part A of Annex XII to Article 56

Chapter V

Free Trade Agreement between the United Mexican States and the countries of the European Free Trade Association (Mexico- EFTA FTA)

Sections 1 and 2 of Part A of Annex VI Article 25 of Decision No. 2/2000 of the EC-Mexico JC

Title III

Economic Partnership, Political Coordination and Cooperation Agreement between the United Mexican States and the European Community and its Member States, and specifically the Decision 2/2000 of the EC-Mexico Joint Commission. (EU FTA)

Sections 1 and 2 of Part B of Annex 11 to Article 119

Chapter 11

Agreement to Strengthen the Association Economic between the United Mexican States and Japan (Mexico- Japan FTA)

Annex 15bis-01, Section B- List of Mexico

Chapter 15bis

Free Trade Agreement between the United Mexican States and the Republic of Chile (Chile- Mexico FTA)

UNITS OF THE FEDERAL PUBLIC ADMINISTRATION

LISTED IN THE PUBLIC PROCUREMENT CHAPTERS OR TITLES

TYPE OF PROCUREMENT

THRESHOLD AMOUNT IN U.S. DOLLARS BY TREATY

(Converted to National Currency @ US$1= $12.9108 MN)

NAFTA, FTA Mexico – Israel, Mexico - EFTA FTA, EC-Mexico FTA, Mexico Japan FTA and Mexico Chile FTA

Procurement contracts,
leases of personal property and
services, including those
related to public works

$ 1'026, 499.00

(One million twenty-six thousand, four hundred ninety-nine pesos 00/100 MN)

Public Works Contracts

$ 133'445, 138.00

(One hundred thirty-three million four hundred and forty five thousand one hundred thirty eight pesos 00/100 MN)

PARASTATAL ENTITIES OF THE FEDERAL PUBLIC ADMINISTRATION

LISTED IN GOVERNMENT PROCUREMENT CHAPTERS OR TITLES

TYPE OF PROCUREMENT

THRESHOLD AMOUNT IN U.S. DOLLARS BY TREATY

(Converted to National Currency @ US$1= $12.9108 MN)

NAFTA, Mexico - Israel FTA, Mexico - EFTA FTA, EC-Mexico FTA, Mexico- Japan FTA and Mexico – Chile FTA

Procurement contracts,
leases of personal property and
services, including those
related to public works

$ 5'132, 495.00

(Five million one hundred thirty-two thousand four hundred ninety-five pesos 00 /100 MN)

Public Works Contracts

$ 164'247, 841.00

(One Hundred sixty-four million, two hundred forty seven thousand eight hundred forty-one pesos 00/100 MN)

WTO-Trade Policy Review: China
The fifth review of the trade policies and practices of China took place on 1 and 3 July 2014. The basis for the review was a report by the WTO Secretariat and a report by the Government of China.
EU - Operation ERMIS: 70,000 counterfeit goods seized in EU joint customs operation
On 7 July 2014, the European Commission announced that over 70,000 counterfeit goods were seized during a major Joint Customs Operation (JCO) code-named “ERMIS”, which focussed on postal and courier mail traffic, to identify fake products shipped through small consignments. JCO ERMIS was carried-out by the Greek Customs Administration and the European Anti-Fraud Office (OLAF), and also involved customs experts from the Commission, Member States, FYROM, Montenegro, Serbia and Turkey. The results of this operation, which was conducted in March 2014, were unveiled at a debriefing meeting in Athens.

During the operation, Customs authorities performed intensified controls and exchanged intelligence on parcels coming into the EU from third countries, via mail. Within the course of the operation, over 70 000 counterfeit items were seized in 634 different seizures. According to the Commission press release, the goods varied in nature from mobile phones, sunglasses, and small vehicle spare parts, to medicines and pharmaceutical products. Most goods were found to come from the Far East.

An additional number of 210 seizures were made, but the goods were released by Customs officials because of the lack of cooperation from rights-holders, who did not come to identify the goods and certify they were counterfeit. The press release notes that the cooperation of rights holders is essential to the success of such customs operations since only they can certify that the goods seized are not authentic.

JCO ERMIS follows up on previous actions coordinated by OLAF (JCO FAKE, JCO SIROCCO and JCOs DIABOLO I and DIABOLO II) which aim to curb the smuggling of counterfeit goods. Joint Customs Operations help generate increased intelligence, stronger cross-border cooperation and more accurate targeting of smuggling risk areas. The press release also stated that through the high number of seizures, the Joint Customs Operation once again helped avoid losses to the EU’s and Member States’ budgets in the form of evaded customs duties and taxes.
US - CBP announces ACE capabilities for July Deployment D

In a July 3, 2014 Information Notice of ACE Capabilities for Trade Users, US Customs and Border Protection (CBP) announced that “Deployment D” will have three releases: July 12, October 18, 2014 and January 3, 2015.

The July 12, 2014 deployment will allow for submission of Importer Security Filing (ISF) data together with Cargo Release/Entry data on the same record. Only 6 shipment types will be allowed in conjunction with ACE Cargo Release; anything outside the below shipment types will need to be filed as a stand-alone ISF transaction:

• Standard or regular filings
• To Order Shipments
• Military, Government
• U.S. Goods Returned
• International Mail Shipments
• Outer Continental Shelf Shipments

This capability will be initially launched through expansion of the existing ACE Cargo Release pilot. After successful completion of initial processing, this capability will be expanded to additional eligible ocean filers.

US, Israel sign C-TPAT-AEO mutual recognition arrangement
On June 27, 2014, US Customs and Border Protection (CBP) announced that CBP Commissioner R. Gil Kerlikowske and the Israel Tax Authority Director General Moshe Asher today signed a mutual recognition arrangement between CBP's Customs-Trade Partnership Against Terrorism (C-TPAT) program and the Israel’s Authorized Economic Operator (AEO) program. The signing was held at the World Customs Organization conference in Brussels, Belgium.

In addition to Israel, the United States also has mutual recognition arrangements with New Zealand, Canada, Japan, Korea, Jordan, the European Union and Taiwan.
US - OFAC issues Central African Republic Sanctions Regulations
On July 7, 2014, the Office of Foreign Assets Control (OFAC) published in the Federal Register a final rule, the Central African Republic Sanctions Regulations (31 C.F.R. Part 553) to implement Executive Order 13667 of May 12, 2014 (“Blocking Property of Certain Persons Contributing to the Conflict in the Central African Republic”). OFAC intends to supplement this part 553 with a more comprehensive set of regulations, which may include additional interpretive and definitional guidance and additional general licenses and statements of licensing policy. The regulations were effective on publication.
Canada publishes regulations implementing Central African Republic Sanctions

On July 2, 2014, the Canada Gazette published Regulations Implementing the United Nations Resolutions on the Central African Republic (SOR/2014-163, June 19, 2014) pursuant to the United Nations Act. The Regulations implement UN Security Council Resolution (UNSCR) 2127 (2013) adopted on December 5, 2013 which imposed an arms embargo against the Central African Republic (CAR), UNSCR 2134 (2014) adopted on January 28, 2014, which imposed a travel ban and asset freeze on individuals or entities designated by the Committee of the Security Council (the Committee) designated under paragraph 57 of UNSCR 2127 and UNSCR 2149 (2014) adopted on April 10, 2014, which authorized the deployment of a new stabilization mission to the CAR led by the United Nations, for whom the arms embargo would not apply.

According to the Regulatory Impact Analysis Statement:

The Regulations prohibit persons in Canada and Canadians outside of Canada from knowingly exporting, selling, supplying or shipping arms and related material, directly or indirectly, and wherever situated, to the CAR or to any person in the CAR. Persons in Canada and Canadians outside of Canada are also prohibited from knowingly providing or transferring, to the CAR or to any person in the CAR, directly or indirectly, technical assistance, financial assistance or other assistance related to: (a) military activities, including the recruitment or provision of armed mercenary personnel; or (b) the provision, manufacture, maintenance or use of arms and related material.

In addition, the Regulations prohibit the owner or master of a Canadian vessel or the operator of an aircraft registered in Canada from knowingly permitting their vessel or aircraft to be used by any person to export, sell, supply or provide any of the items or forms of assistance referred to above, wherever situated or originating.

The Regulations also prohibit any person in Canada and any Canadian outside Canada from knowingly: (a) dealing directly or indirectly, in any property in Canada as of January 28, 2014, or at any time after that date, that is owned or controlled by a designated person, by a person acting on behalf of, or at the direction of, a designated person or by a person owned or controlled by a desig¬nated person; (b) entering into or facilitating, directly or indirectly, any financial transaction related to a dealing referred to in para¬graph (a); (c) providing any financial or other related service in respect of the property referred to in paragraph (a); (d) making any property or any financial or related service available to a desig¬nated person, to a person acting on behalf of, or at the direction of, a designated person or to a person owned or controlled by a desig¬nated person; or (e) making property or any financial or other related service available for the benefit of any person referred to in paragraph (d).

The Regulations include a number of exceptions to the above-noted prohibitions, including supplies intended solely for the use of international forces enumerated in Resolution 2127 (2013) and Resolution 2149 (2014) which have been deployed to the CAR; supplies of non-lethal military equipment intended solely for humanitarian or protective use, and related technical assistance or training, as approved in advance by the Committee of the Security Council established under Resolution 2127 (2013) [the Commit¬tee]; protective clothing temporarily exported to the CAR by United Nations personnel, representatives of the media and humanitarian and development workers and associated personnel; supplies of small arms and other related equipment intended solely for use in international patrols providing security in the Sangha River Tri-national Protected Area for specified purposes; supplies of arms and related material to the CAR security forces that are intended solely for support of or use in security sector reform in the CAR, as approved in advance by the Committee; and any act or thing that has been approved in advance by the Security Council or the Committee. The Regulations also allow a person whose prop¬erty is affected by the prohibitions to apply for a certificate from the Minister of Foreign Affairs to exempt the property from the prohibitions if the property is necessary for basic or extraordinary expenses, or if the property is the subject of a judicial, administra¬tive or arbitral lien or judgment, a hypothec, prior claim, mortgage, charge or security interest.

Canada’s sanctions regulations are enforced by the Royal Canadian Mounted Police and the Canada Border Services Agency.

Canada - Remission granted for FIFA Women’s (and Women’s U-20) World Cup imports

On July 2, 2014, the Canada Gazette published the FIFA U-20 Women’s World Cup Canada 2014 — Remission Order (SOR/2014-154, June 13, 2014) and the FIFA Women’s World Cup Canada 2015 — Remission Order (SOR/2014-155, June 13, 2014), both pursuant to the Customs Tariff, in order to that Canada respects its international commitments with respect to these FIFA World Cup events.

According to the Regulatory Impact Analysis Statement:

In 2014, Canada will host the Fédération Internationale de Foot¬ball Association (FIFA) U-20 Women’s World Cup. Canada will also host, in 2015, the FIFA Women’s World Cup. This event, fea¬turing 24 nations, is held every four years and is recognized as the world’s largest international women’s sporting competition. Approximately 2 million visitors are expected to attend these events, in which some 1 500 athletes and team officials from across the world will participate.

As part of Canada’s bid to win these events, Canada made a commitment to the Canadian Soccer Association and to FIFA that certain duties and taxes on goods imported in connection with the events would be remitted.

***

These orders remit Goods and Services Tax/Harmonized Sales Tax (GST/HST), or a portion thereof, customs duties and excise taxes paid or payable on certain goods, such as personal effects, goods for display, gifts and awards, and various other goods and equipment to be imported in connection with the 2014 FIFA U-20 Women’s World Cup and the 2015 FIFA Women’s World Cup, that are to be held in various cities in Canada from August 5 to August 24, 2014, and June 6 to July 5, 2015, respectively.

Canada - Tariff Schedule amended to eliminate MFN duties on certain inputs

On July 2, 2014, the Canada Gazette published the Order Amending the Schedule to the Customs Tariff, 2014–1 (SOR/2014-156, June 13, 2014) pursuant to the Customs Tariff. It is the Government’s longstanding policy to provide tariff relief on manufacturing inputs to enhance competitiveness. The Govern¬ment has received specific industry requests for tariff relief to help lower production costs for Canadian manufacturers and enhance their overall competitiveness.

The Order eliminates the Most-Favoured-Nation (MFN) rate of customs duty on the following products used in manufacturing:

• Dried palm oil for use in the manufacture of animal feed (1511.90.30)
• Certain fish meal for use in the manufacture of animal feed (2301.20.18)
• Certain corrosion resistant coatings specifically designed for use in the manufacture of mirrors (3208.90.10)
• Certain rubber parts, gaskets, washers and other seals, brackets or clamps, for use in the manufacture of aftermarket gas tanks and radiators for motor vehicles (4016.93.11, 4016.99.10, 8302.30.10)
• Certain other parts of radiators for use in the manufacture of aftermarket radiators for motor vehicles (8708.91.91)
• Certain other parts of gas tanks for use in the manufacture of aftermarket gas tanks for motor vehicles (8708.99.91)
• Certain lead acid accumulators for use in the manufacture of smoke, fire or gas detection and alarm systems, including power supply panels and modules therefor (8507.20.10)
• Certain fixed and sliding railway bumping posts and friction buffer stops (8608.00.10)

Canada - Royal Assent given for the Canada-Honduras FTA
Save the Date: November 19-20, 2014: Year-End Review of Import/Export Developments
John F. McKenzie

Each year Baker & McKenzie trade compliance lawyers from around the world come together to present a year-end review of import and export developments. Mark your calendars for this year's two-day conference, which will be held Wednesday, November 19 through Thursday, November 20 at the Hyatt Regency in Santa Clara, California.

If you are unable to attend the conference, but still wish to participate, we will offer a live webcast option as well.

Further information to follow in the coming months.

July 30 in Washington, DC: Reception during the BIS Annual Conference

Baker & McKenzie's U.S. Outbound Trade Compliance Practice cordially invites you to a cocktail reception to be held on Wednesday, July 30, 2014, following the second day of the Bureau of Industry and Security (BIS) annual conference 2014 in Washington, DC.

The reception will be held in our office overlooking the White House. Please join members of our team and representatives of other companies for drinks and hors d'oeuvres. You're welcome to attend whether or not you're participating in the conference. If you would like to bring a guest(s), please be sure to submit their information with your RSVP.

To attend this event, click here and provide your information. Please register by Friday, July 25. If you have any questions, please call Sal Gonzalez at +1 202 835 1661.

We look forward to seeing you at this event!

Date
Wednesday, July 30, 2014

Time
5:30 pm - 8:00 pm

Location
Baker & McKenzie
815 Connecticut Avenue, NW
Washington, DC 20006

US - ITC releases revised Harmonized Tariff Schedule
The US International Trade Commission (ITC) released the Harmonized Tariff Schedule of the United States (2014) (Revision 1) Annotated (HTSA, HTS or HTSUS) for download. The revisions were effective on July 1. As in past years, the HTSA is also available in a chapter-by-chapter format and will soon be available in a delimited text file. The revisions appear in the Change Record. Most revisions were to the statistical suffixes as a result of the “484(f)” Committee. However, four were made as a result AGOA revisions in Presidential Proclamation 9145.
US - CPSC to hold workshop on filing electronic compliance certificates with CBP
On July 3, 2014, the Consumer Product Safety Commission (CPSC) published in the Federal Register an announcement of a meeting and request for comments [CPSC Docket No. CPSC–2013–0017]. The CPSC staff is holding a workshop on aspects of the CPSC’s proposed rule on Certificates of Compliance (certificates), which were published on May 13, 2013. Among other things, the CPSC proposed to require electronic filing of certificates for regulated imported consumer products with US Customs and Border Protection (CBP) at the time of filing the CBP entry or the time of filing the entry and entry summary, if both are filed together. The workshop will focus on this aspect of the proposed rule. CPSC invites interested parties to participate in, or attend the workshop, and to submit written comments.

The workshop will be held from 9 a.m. to 4 p.m. on Thursday, September 18, 2014. Individuals interested in presenting information and participating on a panel at the workshop should register by Friday, August 8, 2014; all other individuals who wish to attend the workshop should register by Friday, September 5, 2014. The workshop will be available via webcast, but viewers will not be able to interact with the panelists and presenters. Written comments must be received by October 31, 2014. Contact information is in the announcement.

USTR seeks comments on Environmental Review of the proposed Trade in Services Agreement
On July 2, 2014, the Office of the United States Trade Representative (USTR) published in the Federal Register a notice of intent to conduct an environmental review of the proposed Trade in Services Agreement and request for comments.

USTR, through the Trade Policy Staff Committee (TPSC), is initiating an environmental review of the Trade in Services Agreement (TiSA) currently being negotiated among 23 economies, including the United States. The TPSC invites written comments from the public on the topics that should be included in the scope of the environmental review, including potential positive or negative environmental effects that might result from the trade agreement and potential implications for US environmental laws and regulations. The TPSC also welcomes public views on appropriate methodologies and sources of data for conducting the review. The review will be conducted consistent with the relevant procedures of Executive Order 13141: Environmental Review of Trade Agreement (64 Fed. Reg. 63169, November 18, 1999) and its implementing guidelines (65 Fed. Reg. 79442, December 19, 2000). Persons submitting written comments should provide as much detail as possible on the manner and degree to which the subject matter they propose for inclusion in the review may raise significant environmental issues that should be considered in the context of the negotiations.

Public comments on environmental issues submitted in response to prior notices (78 Fed. Reg. 5238, January 24, 2013) and (78 Fed. Reg. 55135, September 9, 2013) requesting comments from the public regarding the TiSA will be taken into account in preparing the environmental review and do not need to be resubmitted. DATES: Comments should be submitted on or before September 2, 2014, to be assured of timely consideration by the TPSC.
US - USTR seeks comments on Environmental Review of the proposed Transatlantic Trade and Investment Partnership Agreement
On July 2, 2014, the Office of the United States Trade Representative (USTR) published in the Federal Register a notice of intent to conduct an environmental review of the proposed Transatlantic Trade and Investment Partnership agreement and request for comments.

USTR, through the Trade Policy Staff Committee (TPSC), is initiating an environmental review of the Transatlantic Trade and Investment Partnership agreement (T–TIP), a free trade agreement under negotiation between the United States and the European Union. The TPSC invites written comments from the public on the topics that should be included in the scope of the environmental review, including potential positive or negative environmental effects that might result from the trade agreement and potential implications for US environmental laws and regulations. The TPSC also welcomes public views on appropriate methodologies and sources of data for conducting the review. The review will be conducted consistent with the relevant procedures of Executive Order 13141: Environmental Review of Trade Agreement and its implementing guidelines. Persons submitting written comments should provide as much detail as possible on the manner and degree to which the subject matter they propose for inclusion in the review may raise significant environmental issues that should be considered in the context of the negotiations.

Public comments on environmental issues submitted in response to a notice published in the Federal Register on April 1, 2013, requesting comments from the public regarding the T–TIP will be taken into account in preparing the environmental review and do not need to be resubmitted. Comments should be submitted on or before September 2, 2014, to be assured of timely consideration by the TPSC.
US - OFAC issues South Sudan Sanctions Regulations
On July 1, 2014, the Office of Foreign Assets Control (OFAC) published in the Federal Register a final rule, the South Sudan Sanctions Regulations (31 C.F.R. Part 558), to implement Executive Order (EO) 13664 of April 3, 2014 (“Blocking Property of Certain Persons with Respect to South Sudan”). OFAC intends to supplement this Part 558 with a more comprehensive set of regulations, which may include additional interpretive and definitional guidance and additional general licenses and statements of licensing policy. A copy of EO 13664 appears in Appendix A to Part 558. The appendix to the Regulations will be removed when OFAC supplements this part with a more comprehensive set of regulations. The regulations were effective on publication.
US - BIS and State revise EAR and ITAR for USML Category XI (Military Electronics)
On July 1, 2014, the Bureau of Industry and Security, U.S. Department of Commerce (BIS) published in the Federal Register a final rule [Docket No. 120330233–4307–03] which adds to the Commerce Control List military electronics, technology and software for certain wing folding systems, certain superconducting and cryogenic equipment, and related items the President determines no longer warrant control under the United States Munitions List (USML). This also amends ECCNs 7A006 and 7A106 to apply the ‘‘missile technology’’ reason for control only to items in those ECCNs on the Missile Technology Control Regime (MTCR) Annex. This rule is being published simultaneously with a Department of State rule that amends the list of articles controlled by USML Category XI to control only those articles the President has determined warrant control in that category of the USML. Both rules are part of the President’s Export Control Reform Initiative. The revisions in this rule also are part of the Department of Commerce’s retrospective plan under EO 13563 completed in August 2011.

This rule is effective December 30, 2014, except for the addition of software and technology for certain wing folding systems to ECCNs 0D521 and 0E521 via Supplement No. 5 to part 774 of the EAR (amendatory instruction number 24), which is effective July 1, 2014.

On the same date, the Department of State published in the Federal Register a final rule [Public Notice 8775] which amends Category XI (Military Electronics) of the United States Munitions List in the International Traffic in Arms Regulations (ITAR), as part of the President’s Export Control Reform (ECR) effort. The Department of State is also amending Category VIII (Aircraft and Related Articles) with respect to wing folding systems and both Categories VIII and XIX to remove three paragraphs superseded by the revision of Category XI. The revisions contained in this rule are part of the Department of State’s retrospective plan under EO 13563.

This rule is effective on December 30, 2014, except for to the revision to § 121.1, Category VIII(h)(4), which is effective August 15, 2014.
US - BIS requests comments on civil uses of certain microwave monolithic integrated circuit (MMIC) power amplifiers, discrete microwave transistors and bi-static and multi-static radar
On July 1, 2014, the Bureau of Industry and Security, U.S. Department of Commerce (BIS) published in the Federal Register a notice of inquiry with request for comments [Docket No. 140611493–4493–01 ] that cite specific examples of civil uses of certain MMIC power amplifiers and discrete microwave transistors, both of which operate at frequencies exceeding 2.7 GHz, and (3) bi-static/multi-static radar that exploits greater than 125 kHz bandwidth and is lower than 2 GHz center frequency to passively detect or track using radio frequency (RF) transmissions (e.g., commercial radio or television stations).

BIS is requesting this information because several comments on rules recently published by the Departments of State and Commerce made claims that civil applications for these types of commodities exist or soon will be developed. However, the commenters did not provide specific examples of such applications. BIS is seeking specific examples to assess whether it should propose to the Departments of State and Defense further amendments to the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR) as part of the Administration’s Export Control Reform Initiative. Comments should be received no later than September 2, 2014.
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Chair, NA International
Commercial Practice Group

Miguel Noyola
Partner, Chicago
Email: Miguel Noyola
T + 1 312 861 7589


Members, US International
Trade Compliance Steering Committee


Janet K. Kim
Partner, Washington DC
Email: Janet Kim
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John F. McKenzie
Partner, San Francisco
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Ted Murphy
Partner, Washington DC
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Editor, International Trade
Compliance Update


Stuart P. Seidel
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