Montenegro and New Zealand to join the WTO’s Agreement on Government Procurement
On 29 October 2014, the WTO announced that Montenegro and New Zealand will become the newest members of the WTO’s Government Procurement Agreement (GPA) after their accession bids received the green light on 29 October 2014. The WTO Committee on Government Procurement adopted back-to-back decisions inviting both Montenegro and New Zealand to accede to the GPA on the basis of final market access offers negotiated over the past two years. The accessions will be the first since a revised and expanded version of the GPA entered into force on 6 April 2014.
Presidents extends national emergency with respect to Sudan
On October 28, 2014, the Federal Register published Notice of October 24, 2014 - Continuation of the National Emergency With Respect to Sudan which extends the national emergency originally declared on November 3, 1997, by Executive Order (E.O.) 13067 and expanded on April 26, 2006, and with respect to which additional steps were taken on October 13, 2006,. The national emergency was extended because the actions and policies of the Government of Sudan continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United States.
UK and 13 other Member States write Trade Commissioner-designate seeking broad TTIP agreement

On 21 October 2014, the UK, together with 13 other EU Member States wrote to the EU Commissioner-Designate for Trade, setting out the need for the Transatlantic Trade and Investment Partnership (TTIP) to be comprehensive and ambitious. The letter said, in pertinent part:

If we are to unlock the full potential of a TTIP deal, it must be comprehensive and ambitious. That is why EU Member States agreed a far-reaching mandate as the basis for the Commission to negotiate with the US Trade Representative.

TTIP negotiations have made good progress since then. Given the scope of the potential deal, it is not surprising that TTIP has attracted considerable public debate, which we welcome. We recognise that there are legitimate concerns about the negotiations. That is why we collectively agreed, in the interests of transparency, to publish the TTIP mandate last week.

However, many of the concerns about TTIP are based on misconceptions. For example, that TTIP could undermine public services, undermine the right of national governments to regulate, or undermine EU standards on food or health and safety. The response to those criticisms - as some are calling for and tempting as it may be - should not be to jettison the difficult issues. That will lead to a lowest common denominator deal at best or no deal at all.

Europe needs to think big and demonstrate clear leadership if we are to generate the growth that we badly need and if we are to keep our place on the world stage. That means the Commission and governments across the EU working with businesses and consumer associations to tackle those myths head on.

One of the issues that has attracted criticism is investment protection. The Commission is currently analysing the results of a public consultation on this issue and we look forward to the Commission’s response. The consultation was an important step in ensuring that we strike the correct balance to ensure that governments retain their full freedom to regulate, but not in a way that discriminates unfairly against foreign firms. It is important that the outcome of this consultation runs its course and we carefully consider the views expressed by our stakeholders before reaching firm decisions on the way forward. The Council mandate is clear in its inclusion of investor protection mechanisms in the TTIP negotiations; we need to work together on how best to do so.

We are confident that you can achieve that goal and also secure our objectives across the whole of the mandate that the Council has provided. We will work closely with the Commission to achieve those aims.

UK - BIS/ECO issues report on strategic export controls licences

On 24 October 2014, the Department for Business, Innovation and Skills (BIS) and its Export Control Organisation (ECO) released Strategic Export Controls: Country Pivot Report: 1 January 2014 - 31 March 2014 (BIS/14/1170). The 360 page report covers export licensing decisions made by Her Majesty’s Government between 1 January 2014 and 31 March 2014. All the information relating to a destination is shown together, and the reader will find all (if any) information on SIELs, OIELs, SITLs, SITCLs and OITCLs all in one place. This enhances the readability of the report.

The information within the report covers those licences Issued, Refused or Revoked within the period for the following categories:

  • Standard Individual Export Licences (SIELs) (including information on incorporation and Standard Individual Transhipment Licences)
  • Open Individual Export Licences (OIELs)
  • Open Individual Trade Control Licences (OITCLs)
  • Standard Individual Trade Control Licences (SITCLs)
  • Council Regulation 1236/2005 (concerning trade in certain equipment and products which could be used for capital punishment, torture or other cruel, inhuman or degrading treatment or punishment).

There have been some major changes made to the content and layout of the report, and these take into account the commitment the Government made to the Committee on Arms Export Controls. The changes that have been implemented in this report are as follows:

  • A breakdown of the overall value of SIELs issued, into military and non-military totals
  • A split in the list of items between military and non-military items
  • The inclusion of the control entry list with a breakdown as to how many items were licensed under that
  • category and the value
  • The addition of the ultimate destination for items that are being incorporated
  • The addition of the case summary for SIELs that have been refused
US - OFAC issues licensing report
On October 23, 2014, OFAC announced the issuance of its First Quarter FY2014 Report for Licensing Activities Pursuant to the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA) covering October-December 2013.
US - CBP imposes restrictions on flights carrying passengers who have recently traveled to, from, or through Ebola-stricken countries
On October 23, 2014, U.S. Customs and Border Protection (CBP) published in the Federal Register a notice of arrival restrictions announcing the decision of the Commissioner of CBP to direct all flights to the U.S. carrying persons who have recently traveled to, from, or through Ebola-stricken countries to arrive at one of the U.S. airports where CBP is implementing enhanced screening procedures. Pursuant to 19 U.S.C. 1433(c) and 19 C.F.R. 122.32, CBP has the authority to limit the location where all aircraft entering the U.S. from abroad may land.

In order to assist in preventing the further introduction and spread of this communicable disease in the United States, CBP, in coordination with other DHS components and offices, the Centers for Disease Control (CDC), and other agencies charged with protecting the homeland and the American public, is currently implementing enhanced screening protocols at five U.S. airports that receive the largest number of travelers from Liberia, Guinea, and Sierra Leone. To ensure that all travelers with recent travel to, from, or through the affected countries are screened, CBP directs all flights to the U.S. carrying such persons to arrive at the five airports where the enhanced screening procedures are being implemented. While CBP anticipates working with the air carriers in an endeavor to identify potential travelers from the affected countries prior to boarding, air carriers will remain obligated to comply with the requirement of this notice, particularly in the event that travelers who have recently traveled to, from, or through the affected countries are boarded on flights bound for the U.S.

The action was effective October 21, 2014.
US - President continues national emergency with respect to the DRC
On October 23, 2014, the Federal Register published President Obama’s Notice of October 21, 2014 - Continuation of the National Emergency With Respect to the Situation in or in Relation to the Democratic Republic of the Congo (DRC). The notice continues for an additional year the national emergency first declared on October 27, 2006, by Executive Order (E.O.) 13413 pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701–1706), and subsequently expanded by E.O 13671 of July 8, 2014.
November 19-20, 2014: A Year-End Review of Import/Export Developments in Santa Clara, CA and Via Webinar

In keeping with tradition, Baker & McKenzie is pleased to invite you to our annual Year-End Review of Import/Export Developments. This year's two-day conference will be held Wednesday, November 19 through Thursday, November 20 at the Hyatt Regency in Santa Clara, California and via live webcast. Our international trade compliance lawyers from around the world will review the major global legislative, judicial and administrative activities and trends in export controls, trade sanctions, customs compliance, and import requirements.

Click here to view the agenda and registration details.

Ireland - Mandatory electronic filing of Customs documentation
On 21 October 2014, the Iris Oifigiúil (Irish Official Gazette), published S.I. No. 474/2014 - Customs (Electronic Filing of Returns) Order 2014 and S.I. No. 475/2014 - Customs (Mandatory Electronic Filing) (Specified Persons) Regulations 2014. The Order is made by the Revenue Commissioners under the provisions of section 917E of the Taxes Consolidation Act 1997, which was inserted by section 209 of the Finance Act, 1999. The Regulations are made by the Revenue Commissioners under the provisions of section 917EA of the Taxes Consolidation Act 1997, which was inserted by section 164 of the Finance Act 2003. The Order and Regulations are to be read in conjunction with each other.

The Regulations and the Order underpin Revenue’s programme to establish the use of electronic channels as the normal way of conducting business by providing for the mandatory electronic filing of certain returns by certain categories of persons.

With effect from 18 October, 2014 all cargo manifests will be required to be filed by electronic means.

The Revenue Commissioners may, on application, exclude a person from the obligation to file electronically if they are satisfied that the person does not have the capacity to do so, and in this context “capacity” is taken to mean sufficient access to the Internet and in the case of an individual is not prevented by reason of age, physical or mental infirmity from filing electronically. A person aggrieved at a failure by the Revenue Commissioners to exclude them from the requirements may appeal that failure to the Appeal Commissioners. An excluded taxpayer may, if circumstances change, have that exclusion revoked and that decision may also be appealed to the Appeal Commissioners.
Argentina - Central Bank reduces term to evidence the entry of imported goods
On 16 October 2014, the Argentine Central Bank (the "ACB") issued Communication “A” 5647 (the “Communication”) reducing the term that importers had to evidence the actual entry into the country of imported goods that were paid for in advance.

The Communication was issued in order to avoid the devaluation expectation which accelerate payments of import goods in advance increasing the demand for foreign currency in the foreign exchange market. Accordingly, the ACB has reduced the term to evidence the entry of imported goods into the country from 365 days to 120 days, counted as from the day in which the importer accessed the foreign exchange market to pay such goods in advance. Nevertheless, the ACB admits the possibility of requesting an extension of such term based on causes not attributable to the importer.

In addition, the Communication excluded capitals goods from the term reduced. The term to prove the entry of such goods is still 365 days. In all cases, importers must file an affidavit committing them to prove the entry of the goods within the corresponding term according to the type of the imported good.

For additional information, please contact Alejandro Olivera, Gabriel Gomez Giglio or Francisco José Fernández Rostello of our Buenos Aires office.
US - OFAC issues of guidance on humanitarian assistance by not-for-profit NGOs

On October 17, 2014, the Office of Foreign Assets Control issued “Guidance Related to the Provision of Humanitarian Assistance by Not-For-Profit Non-Governmental Organizations” to further clarify the scope of transactions in which not-for-profit non-governmental organizations (NGOs) may engage to the extent such transactions may implicate designated individuals or take place in areas under the control of designated individuals or groups. The Guidance is for information and does not have the force of law.

Where such transactions are not otherwise exempt or authorized pursuant to OFAC general licenses, OFAC says that it has long had a favorable specific licensing policy supporting the provision of humanitarian assistance notwithstanding economic sanctions, especially in countries subject to comprehensive economic sanctions. OFAC prioritizes requests for licenses to provide humanitarian assistance and endeavors to review such applications expeditiously.

The following OFAC guidance applies to transactions by NGOs that may implicate sanctioned persons or countries.

1. OFAC is fully supportive of the broader U.S. Government approach to facilitating humanitarian assistance. The President’s imposition of economic sanctions against regimes or groups carrying out violence against innocent civilians is a complement to – and not in opposition to – the objectives of humanitarian assistance.
2. Consistent with U.S. foreign policy, OFAC issues general licenses where appropriate and prioritizes license applications, compliance questions, and other requests from non-governmental organizations seeking to provide humanitarian assistance.
3. Non-governmental organizations may provide humanitarian assistance in countries that are not subject to comprehensive sanctions (such as Yemen, Iraq, Somalia, South Sudan, or Côte d’Ivoire) without the need for a license from OFAC, so long as they are not dealing with persons blocked by sanctions, such as those listed on OFAC’s Specially Designated Nationals and Blocked Persons List (SDNs) or any entity owned 50% or more by blocked persons.
4. Some areas may be dominated by armed groups under circumstances where the group’s leaders have been designated by OFAC but the group as a whole has not been designated. An entity that is commanded or controlled by an individual designated by OFAC is not considered blocked by operation of law. Thus, payments – including “taxes” or “access payments” – made to non-designated individuals or entities under the command or control of an SDN do not, in and of themselves, constitute prohibited activity. U.S. persons should employ due diligence, however, to ensure that an SDN is not, for example, profiting from such transactions.
5. In areas dominated by designated armed entities, for example those listed as Specially Designated Global Terrorists, U.S. persons should exercise caution not to provide financial, material, technological, or other services to or in support of the designated entity. In circumstances involving a dangerous and highly unstable environment combined with urgent humanitarian need, OFAC recognizes that some humanitarian assistance may unwittingly end up in the hands of members of a designated group. Such incidental benefits are not a focus for OFAC sanctions enforcement.
6. Finally, if a non-governmental organization is confronted with a situation in which, in order to provide urgently needed humanitarian assistance, the non-governmental organization learns that it must provide funds or material support directly or indirectly to an SDN group that is necessary and incidental to the provision of such humanitarian assistance, the nongovernmental organization should reach out to OFAC directly. OFAC and its interagency partners will work with the non-governmental organization to address any such issues on a case-by-case basis in an expeditious manner.

US – ITDS requests participants for Lacey Act Working Group

On October 16, 2014, U.S. Customs and Border Protection (CBP) distributed CSMS# 14-000552 (Updated in CSMS# 14-000553) on behalf of the International Trade Data System (ITDS) Committee of the Trade Support Network (TSN) seeking participants in an APHIS Lacey Act Working Group. The purpose of the Lacey Act Import Working Group will be to ensure that all stakeholder groups are invited to participate in a discussion of the technical requirements that will be necessary for U.S. Department of Agriculture, Animal and Plant Health Inspection Service (APHIS) to participate in the ITDS/ACE system. The working group will consist of members of the trade whose businesses are regulated by the APHIS Lacey Act Program, trade software developers who support the business processes, as well as representatives from the Lacey Act Program and from the CBP team developing the ITDS software system – the Automated Commercial Environment (ACE). The transition to ACE will result in changes to the way Lacey Act, CBP, and the members of the trade who import these items, do business. Trade involvement is needed to ensure that the proposed changes continue to support efficient trade movement while at the same time the Lacey Act Program complies with the ITDS requirements of the Security and Accountability for Every Port Act (SAFE Port Act).

The ACE system will replace the ACS system, and it will require that Lacey Act specific data be submitted electronically via the Partner Government Agency (PGA) Message Set. APHIS has worked with CBP to identify the specific data elements that will need to be submitted by import filers, as well as the format and content of those data elements, in order to successfully transact business in ACE to comply with the ITDS “single window.” Through a series of conference calls, the Lacey Act Working Group will review the PGA Message Set guidance, as well as the impacts that the transition to ACE will have on Lacey Act’s importation business processes.

The Lacey Act Program is responsible for the regulation and monitoring of the import and export of various plant products to assure compliance with international measures established through U.S. law and international treaties and conventions that govern the harvest and sustainability of plant resources globally. The primary import monitoring program of Lacey Act is the Lacey Act Declaration. This program monitors and regulates the products listed on the APHIS Lacey Act website and includes mandatory reporting requirements for imports.

Persons interested in participating should send an e-mail to: Frank Korpusik at frank.j.korpusik cbp.dhs.gov and fjktrade verizon.net, Sandra Scott at Sandra.scott sekologistics.com
and Debbie Benish at Debbie_benish ftn.fedex.com by October 24, 2014.

UK - Sudan and South Sudan sanctions extended to certain overseas territories
On 15 October 2014, the official Legislation.gov.uk website posted SI 2014/2707 - The Sudan (Sanctions) (Overseas Territories) Order 2014, which gives effect in specified Overseas Territories to sanctions imposed on Sudan by United Nations Security Council resolutions 1556 (2004) of 30th July 2004, 1591 (2005) of 29th March 2005 and 1945 (2010) of 14th October 2010. This Order also reflects the implementation of these sanctions by the European Union in Council Decision 2014/450/CFSP adopted on 10th July 2014.

Council Decision 2014/450/CFSP repeals Council Decision 2011/423/CFSP which previously extended some restrictive measures in place against Sudan to South Sudan, which became a separate State on 9th July 2011. For the sake of clarity, the restrictive measures implemented by the European Union concerning Sudan have now been separated from measures concerning South Sudan. This Order revokes and replaces the Sudan and South Sudan (Restrictive Measures) (Overseas Territories) Order 2012, Sudan (United Nations Measures) (Overseas Territories) Order 2005 and Sudan (Restrictive Measures) (Overseas Territories) (Amendment) Order 2004.

The sanctions imposed include an arms embargo and a prohibition on the provision of related assistance to Sudan and an asset freeze and travel ban against persons designated by the United Nations Security Council as those who impede the peace process, constitute a threat to stability in Darfur and the region, commit violations of international humanitarian law or human rights law or other atrocities, or violate the arms embargo.

On the same date, the official Legislation.gov.uk website posted SI 2014/2703 - The South Sudan (Sanctions) (Overseas Territories) Order 2014, gives effect in specified Overseas Territories to sanctions against South Sudan adopted by the European Union in Council Decision 2014/449/CFSP adopted on 10th July 2014.

For the sake of clarity, measures implemented by the European Union concerning South Sudan have been separated from measures concerning Sudan. The sanctions imposed include an arms embargo and a prohibition on the provision of related assistance to South Sudan and an asset freeze and travel ban against persons designated by the Council of the European Union as obstructing the political process in South Sudan, including by acts of violence or violations of ceasefire agreements, as well as persons responsible for serious violations of human rights in South Sudan and persons associated with them.

Both Orders make provision for the Governor to license certain activities in line with exemptions under the sanctions regime.
UK - Russian sanctions extended to certain overseas territories

On 15 October 2014, the official Legislation.gov.uk website posted SI 2014/2710 - The Russia, Crimea and Sevastopol (Sanctions) (Overseas Territories) Order 2014, which gives effect in specified Overseas Territories (Anguilla, British Antarctic Territory, British Indian Ocean Territory, Cayman Islands, Falkland Islands, Montserrat, Pitcairn, Henderson, Ducie and Oeno Islands, St Helena, Ascension and Tristan da Cunha, South Georgia and the South Sandwich Islands, The Sovereign Base Areas of Akrotiri and Dhekelia in the Island of Cyprus, Turks and Caicos Islands, Virgin Islands) to sanctions imposed on Crimea, Sevastopol and Russia by EU Council Decision 2014/386/CFSP of 23 June 2014 (as amended by EU Council Decision 2014/507/CFSP of 30 July 2014) and EU Council Decision 2014/512/CFSP of 31 July 2014 (as amended by EU Council Decision 2014/659/CFSP of 8 September 2014).

The sanctions imposed include—

• a ban on the import of goods originating in Crimea or Sevastopol;
• a ban on financing such imports;
• a prohibition on certain investment activities in Crimea and Sevastopol and Russia;
• a ban on the supply to Crimea and Sevastopol of equipment and technology related to infrastructure development;
• the imposition of an arms embargo on Russia;
• a ban on the supply of dual-use equipment and technology to Russia;
• a ban on the supply of assistance related to military and dual-use goods;
• a ban on the transfer of oil exploration technologies to Russia; and
• a ban on the provision of services for oil exploration to Russia

The Order makes provision for the Governor to license certain activities in line with exemptions under the sanctions regime.

UK revokes various sanctions orders

On 15 October 2014, the official Legislation.gov.uk website posted SI 2014/2711 - The United Nations Sanctions (Revocations) Order 2014, which revoked the following sanctions orders:

• The Serbia and Montenegro (United Nations Sanctions) Order 1992(1)
• The Serbia and Montenegro (United Nations Prohibition of Flights) Order 1992(2)
• The Serbia and Montenegro (United Nations Sanctions) Order 1993(3)
• The United Nations Arms Embargoes (Liberia, Somalia and the Former Yugoslavia) Order 1993(4)
• The Haiti (United Nations Sanctions) Order 1994(5)
• The United Nations Arms Embargoes (Amendment) (Rwanda) Order 1994(6)
• The Former Yugoslavia (United Nations Sanctions) Order 1994(7)
• The United Nations Arms Embargoes (Former Yugoslavia) (Amendment) Order 1996(8)
• The United Nations Arms Embargoes (Dependent Territories) (Amendment) Order 1997(9)
• The United Nations Arms Embargoes (Rwanda) (Amendment) Order 1997(10)
• The Federal Republic of Yugoslavia (United Nations Sanctions) Order 1998(11)
• The United Nations Arms Embargoes (Amendment) (Sierra Leone) Order 1998(12)
• The United Nations Arms Embargoes (Dependent Territories) (Amendment) (Sierra Leone) Order 1998(13)
• The Federal Republic of Yugoslavia (United Nations Sanctions) (Amendment) Order 1999(14)
• The United Nations (Sanctions) (Amendment) Order 2000(15)
• The Eritrea and Ethiopia (United Nations Sanctions) Order 2000(16)
• The Eritrea and Ethiopia (United Nations Sanctions) (Amendment) Order 2000(17)
• The Al-Qa’ida and Taliban (United Nations Measures) Order 2002(18)
• The United Nations Arms Embargoes (Rwanda) (Amendment) Order 2008

US - CPSC proposes to add certain seasonal/decorative lighting to hazardous product list
On October 16, 2014, the Consumer Product Safety Commission (CPSC) published in the Federal Register a notice of proposed rulemaking [CPSC Docket No. CPSC–2014–0024] that would amend the substantial product hazard list in 16 C.F.R. part 1120 to specify that seasonal and decorative lighting products that do not contain one or more of three readily observable characteristics (minimum wire size, sufficient strain relief, or overcurrent protection) constitute a substantial product hazard under the Consumer Product Safety Act (CPSA). Written comments must be received by December 30, 2014.
Tunisia launches safeguard investigations on wood fibreboard and glass bottles
On 15 October 2014, Tunisia notified the WTO’s Committee on Safeguards that it initiated on 30 September 2014 two safeguard investigations: one on fibreboard of wood (MDF) and the other on glass bottles. Further information is available in G/SG/N/6/TUN/3 and G/SG/N/6/TUN/4.

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. All interested parties are invited to present their views in writing and submit all useful information for the enquiry within 30 days from the date of publication of the notice in the Journal official de la République Tunisienne.

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.
US - CBP announces quarterly interest rates
On October 15, 2014, U.S. Customs and Border Protection (CBP) published in the Federal Register a notice advising the public of the quarterly Internal Revenue Service interest rates used to calculate interest on overdue accounts (underpayments) and refunds (overpayments) of customs duties. For the calendar quarter beginning October 1, 2014, the interest rates for overpayments will be 2 percent for corporations and 3 percent for noncorporations, and the interest rate for underpayments will be 3 percent for both corporations and non-corporations. These interest rates are subject to change for the calendar quarter beginning January 1, 2015, and ending March 31, 2015.
US - USTR announces effective date for GPA amendments for the Netherlands with respect to Aruba
On October 15, 2014, the Office of the United States Trade Representative (USTR) published in the Federal Register a notice announcing that for the purpose of U.S. Government procurement that is covered by Title III of the Trade Agreements Act of 1979, the effective date of the WTO Protocol Amending the Agreement on Government Procurement, done at Geneva on 30 March 2012 (Protocol), for the Netherlands with respect to Aruba (Aruba) is October 31, 2014.

The Protocol entered into force on April 6, 2014 for the United States and the following Parties: Canada, Chinese Taipei, Hong Kong, Israel, Liechtenstein, Norway, European Union, Iceland, and Singapore. The Protocol entered into force on April 16, 2014 for Japan.

The Protocol provides that following its entry into force, the Protocol will enter into force for each additional Party to the 1994 Agreement 30 days following the date on which the Party deposits its instrument of acceptance. On June 4, 2014, Aruba deposited its instrument of acceptance to the Protocol. Effective October 31, 2014 for Aruba, all references in Title III of the Trade Agreement Act of 1979 and in Executive Order 12260 to the Agreement on Government Procurement shall refer to the 1994 Agreement as amended by the Protocol.

With respect to those Parties which have not deposited their instruments of acceptance, all references in Title III of the Trade Agreement Act of 1979 and in Executive Order 12260 to the WTO Agreement on Government Procurement (GPA) shall continue to refer to the 1994 Agreement until 30 days following the deposit by such Party of its instrument of acceptance of the Protocol.
US - BIS imposes controls on read-out ICs and related software and technology, and radar, and other designated technology

On October 14, 2014, the Bureau of Industry and Security (BIS) published in the Federal Register an interim final rule with a request for comments [Docket No. 140131087–4087–01] amending the Export Administration Regulations (EAR) to impose foreign policy controls on read-out integrated circuits and related “software” and “technology,” radar for helicopter autonomous landing systems, seismic intrusion detection “technology”, and “technology” “required” for the “development” or “production” of specified infrared up-conversion devices.

The read-out integrated circuits and related “technology” are controlled under new Export Control Classification Numbers (ECCNs) on the Commerce Control List. An existing ECCN has been amended to control the related “software” for those items. New paragraphs have been added to certain existing ECCNs to control radar for helicopter autonomous landing systems, seismic intrusion detection systems, and the “technology,” as mentioned, for specified infrared up-conversion devices. Specified existing “software” and “technology” ECCNs have been amended to apply to helicopter autonomous landing systems and seismic intrusion detection systems. The items are controlled for regional stability reasons Column 1 (RS Column 1) and Column 2 (RS Column 2), and antiterrorism reasons Column 1 (AT Column 1). The Departments of Commerce, State and Defense have determined that imposition of these license requirements protects U.S. national security and foreign policy interests. Specifically, those agencies have determined that the items described in this rule have civilian applications but also warrant immediate controls under the EAR because of their potential military applications.

This rule is effective October 14, 2014. Comments must be received by December 15, 2014.

US - USTR seeks comments on Special 301 Out-of-Cycle Review of India
On October 14, 2014, the Office of the United States Trade Representative (USTR) published in the Federal Register a request for written comments [Docket No. USTR–2014–0020] regarding the 2014 Special 301 Out-of-Cycle Review (OCR) of India In the 2014 Special 301 Report, USTR announced that, in order to assess progress on engagement with the Government of India on intellectual property rights (IPR) issues, an OCR would be conducted for India. USTR requests written submissions from the public concerning information, views, acts, policies, or practices relevant to evaluating the Government of India’s engagement on IPR issues of concern, in particular those identified in the 2014 Special 301 Report. The 2014 Special 301 Report is available at the USTR website. The deadline for the public, except foreign governments, to submit written comments is October 31, 2014, Deadline for foreign governments to submit written comments is November 7, 2014.
US - OFAC releases consolidated non-SDN data files and upgrade to the Sanctions List Search

On 10 October 2014, the Office of Foreign Assets Control (OFAC) released Consolidated Sanctions List Data Files in order to make it easier to comply with OFAC’s sanctions regulations. OFAC is now offering all of its non-SDN sanctions lists in a consolidated set of data files “the Consolidated Sanctions List.” These consolidated files comply with all OFAC’s existing data standards. In the future, if OFAC creates a new non-SDN style list, the office will add the new data associated with that list to these consolidated data files if appropriate. While the consolidated sanctions list data files are not part of OFAC’s list of Specially Designated Nationals and Blocked Persons “the SDN List,” the records in these consolidated files may also appear on the SDN List.

Included in the Consolidated Sanctions List Data Files:

· Foreign Sanctions Evaders (FSE) List

· Sectoral Sanctions Identifications (SSI) List

· Palestinian Legislative Council (NS-PLC) list

· The List of Foreign Financial Institutions Subject to Part 561 (the Part 561 List)

· Non-SDN Iranian Sanctions Act (NS-ISA) List

The goal of this consolidation effort is to reduce the number of list-related files that must be downloaded in order to maintain an automated sanctions screening program. In the future, if OFAC creates a new sanctions list where the action required of a U.S. person does not necessarily entail blocking, the office will add the new data associated with that list to these consolidated data files if appropriate. Another goal of this effort is to ensure that all sanctions list records are included in OFAC’s Sanctions List Search tool. As of this announcement all of OFAC’s lists are now available in Sanctions List Search.

In approximately 6 months, OFAC will cease issuing independent data files for the FSE List, the SSI List and the NS-PLC List. During the transition period, OFAC will produce these data on both the Consolidated Sanctions List and on the appropriate individual lists. The new Consolidated Sanctions List data files can be accessed on this page. In addition, the Consolidated Sanctions List data files are available on OFAC’s File Transfer Protocol (FTP) site in a folder called, “consolidated_list.” Please visit the Consolidated Sanctions List Specification file for the information about data file nomenclature, column headers and field widths. The XSD specification file for the XML version of the Consolidated Sanctions List may be found here.

OFAC will continue to provide and update independent human readable (.pdf and .txt) versions of the FSE, SSI, NS-ISA, NS-PLC and Part 561 lists and their respective archive of changes files. These file formats will not be affected by the creation of the consolidated data files and will continue to be available even after the transition period.

Some of OFAC’s non-SDN list products have never been offered in a data format before. Other non-SDN lists have not been updated recently and were produced by older information systems. As such, OFAC’s list consolidation effort has resulted in some minor administrative changes to the non-SDN list data. Below is a list of unique ID numbers (UIDs) that correspond to records that were modified during the consolidation.

OFAC has also upgraded its Sanctions List Search tool to provide the users the ability to search for a name on the SDN List, on the Consolidated List, or on both lists simultaneously. By incorporating the Consolidated List, users will be able to look for potential name matches on the SSI, FSE, NS-PLC, NS-ISA and Part 561 lists. Sanctions List Search previously only included the SDN and FSE lists. Please see the related FAQs for additional information on algorithms, scoring, and other technical details regarding Sanctions List Search.

Norway - Licensing requirements to apply to all exports of old military equipment

On 12 September 2014, the Ministry of Foreign Affairs announced that it is introducing the principle ‘once military, always military’ into its regulations for the export of defence-related products. This means that products manufactured for military purposes may not be exported without authorisation from the Ministry. The announcement said that:

Until now, discarded military equipment could, under certain conditions be exempted from the licensing requirement and exported as civilian products, provided that weapons, mountings and other military features were removed. This will no longer be permitted. The amendments to the regulations enter into force today, and mean that all defence-related products are subject to stringent licensing and export control requirements, regardless of their condition.

‘The Norwegian regulations for the export of defence-related products are among the strictest in the world. Introducing the “once military, always military” principle will further reinforce this. It will create a clear framework for disposing of used military equipment and will strengthen our national controls over where and how old military equipment from Norway is used,’ said Minister of Foreign Affairs Børge Brende.

More detailed information about the regulations and about procedures for applying for export licences can be found on the Ministry’s export control webpages.

Norway - Ukraine sanctions revised
On 10 October 2014, the Norwegian Government law site Lovdata published FOR 2014-10-10-1278: Regulation amending the Regulation on restrictive measures concerning actions that undermine or threaten Ukraine's territorial integrity, sovereignty, independence and stability a Royal Decree put forward by the Ministry of Foreign Affairs.

The Decree amends Regulation № 1076 of 15 august 2014 on restrictive measures concerning actions that undermine or threaten Ukraine's territorial integrity, sovereignty, independence and stability.

In Regulation of 15 August 2014 No. 1076 on restrictive measures concerning actions that undermine or threaten Ukraine's territorial integrity, sovereignty, independence and stability certain sections/subsections were revised and new sections/subsections were added freezing money and assets belonging to, owned or controlled by natural or legal persons listed in Annex I. The restricted measures were also extended to natural or legal persons who carry out transactions with the separatist group in the Donbass region of Ukraine.

Exemption from liability has been given to persons who freeze or withhold assets believing them to be covered by the Regulation, unless the act resulted from negligence.

The law prohibits providing financial loans or credits that are specifically linked to the exploitation of oil, gas and mineral resources in the Crimea or Sevastopol, acquiring or extending a participation, including the complete acquisition or acquisition of shares and securities in the nature of capital interest in enterprises established in the Crimea or Sevastopol concerned with the exploitation of oil, gas and mineral resources in the Crimea or Sevastopol, or creating joint ventures relating to the exploitation of oil, gas and mineral resources in the Crimea or Sevastopol.

A new subsection bans the export of multi-purpose (dual-use) products and multi-purpose technology to persons listed in Annex VI. However, the prohibitions in these subsections shall not affect the fulfillment of contracts or agreements concluded before 11 October 2014 nor will they apply to the sale, supply, transfer or export of multi-purpose products and multi-purpose technology designed for the aerospace industry or the provision of associated technical and financial assistance to non-military use and for non-military end-users.

A new section prohibits providing services, directly or indirectly, that are necessary for the purpose of oil exploration and production in deep water, Arctic oil exploration and production or shale oil projects in Russia: drilling, well testing, logging and completion and delivery of specialized floating structures.

The prohibition in the above subsection does not apply if those services are required promptly to prevent or mitigate an incident that could have serious and significant consequences for human health and safety or the environment.

The decree revises the prohibition on directly or indirectly to provide financing or financial assistance related to the goods and technology listed in the "List I - defense related goods' in Annex I to the Regulations of 19 June 2013 No. 718 on the export of defense, multi-purpose products, technologies and services, including in particular grants, loans and export credit insurance or guaranty well as insurance and reinsurance, in connection with the sale, supply, transfer or export of such products or provision of associated professional assistance to individuals or legal entities in Russia or for use in Russia,

There is a prohibition from directly or indirectly buying, selling or providing certain investment services or assistance in the issuance of, or otherwise deal with, transferable securities and money market instruments with certain maturities as well as a prohibition on establishing or participating in schemes designed to provide new loans or credits with a maturity of over 30 days to legal persons referred to in the first or second paragraph after October 10, 2014, with certain exceptions.

In addition, Annex I has been amended to add 24 persons to the list.

A new Annex VI has been added to cover nine legal persons referred to in § 16a .

A new Annex VII includes a list of three legal persons referred to in § 19, second paragraph.

A new Annex VIII includes a list of legal persons referred to in § 19 subsection b.
Duty-free tobacco concessions for travellers are being reduced

The New Zealand Customs Service announced that from 1 November 2014 all tobacco imported into New Zealand will attract duty and GST, except for a limited amount carried by travellers arriving in New Zealand. The duty free limit for travellers will drop from 200 to 50 cigarettes or 50 grams of cigars or tobacco products.

The gift concession will be eliminated. There will not be a duty-free (or GST) allowance for tobacco sent or imported into New Zealand. If a person exceeds the duty-free limit and declared the excess cigarettes or tobacco, they will only pay duty on the excess. If a person fails to declare it on their Passenger Arrival Card, the cigarettes or tobacco will be seized and the traveller may be prosecuted.

The drop in the duty-free limit aligns New Zealand with Australia’s duty-free tobacco allowance, and is another step towards reducing the harm caused by smoking.

New Zealand - Customs Import and Export Prohibition Orders come into effect

On 1 October 2014 the new Customs Import Prohibition Order 2014 and Customs Export Prohibition Order 2014 came into effect.

The Customs Import Prohibition Order continues the import controls on motor vehicles with inaccurate odometers and offensive weapons detailed in the schedule. This also includes changes to the offensive weapons schedule including the inclusion of identifiable components of swordsticks, and an amendment to provide general description of the types of knives requiring a permit to import.

The Customs Export Prohibition Order continues the export controls on live green-lipped mussel with a shell size of less than 50mm in length, Pounamu, and strategic goods.

US - State amends ITAR

On October 10, 2014, the Department of State published in the Federal Register a final rule [Public Notice: 8898] amending the International Traffic in Arms Regulations (ITAR) as part of the Department of State’s retrospective plan under Executive Order 13563 completed on August 17, 2011. The amendment is being published in an effort to streamline, simplify and clarify the recent revisions to the ITAR made pursuant to the President’s Export Control Reform (ECR) initiative.

The following changes are made to the ITAR in the final rule:

• Definitions previously provided in §§ 121.3, 121.4, 121.14, and 121.15 are removed from these sections and incorporated into U.S. Munitions List Categories VIII, VII, XX, and VI, respectively;
• USML Category II is amended to clarify that grenade launchers are controlled in paragraph (a) as a result of the revisions previously made to USML Category IV pursuant to Export Control Reform;
• USML Category IX is amended to enumerate military training not directly related to a defense article, which is a controlled activity pursuant to ITAR § 120.9(a)(3). This change is required in order to provide exporters a USML category to cite for military training when not related to a defense article;
• The note to paragraph (b) in the specially designed definition is revised to clarify that catch-all controls are only those that generically control parts, components, accessories, and attachments for a specified article and do not identify a specific specially designed part, component, accessory, or attachment. This revision is intended to help ensure that exporters properly apply ITAR § 120.41 when classifying their article and clarify that when a specific article is described on the USML, it is enumerated and is not part of a catch-all;
• The definitions previously provided in ITAR § 121.8 are removed to new ITAR § 120.45;
• The policy with regard to when forgings, castings, and machined bodies are controlled as defense articles is removed from ITAR § 121.10 and placed in ITAR § 120.6;
• The threshold for lithium ion batteries controlled in Category VIII(h)(13) is increased from greater than 28 volts of direct current (VDC) nominal to greater than 38 VDC nominal, so as not to control on the USML such batteries in normal commercial aviation use;
• A control for specially designed parts, components, accessories, and attachments is added to the helmets controlled in Category VIII(h)(15); (9) The phrase “electric-generating” is added to the control describing fuel cells in Category VIII(h)(23) to clarify that fuel bladders and fuel tanks are not within this control;
• The word “enumerated” is replaced with the word “described” in the paragraphs of the USML for technical data and defense services directly related to the defense articles in that Category to clarify that the controls on technical data and defense services apply even if the defense article is described in a catchall;
• Conforming changes are made to citations throughout these sections; and
• Minor reference corrections are made to Supplement No. 1 to Part 126, including moving the footnote to the entire Supplement from the end to the opening to better clarify if an item is excluded from eligibility in any row, it is excluded from that exemption, even if also described in another row that contains a description that may also include that item.

Seventh round of TTIP talks ends in US

On 3 October 2014, the European Commission announced that seventh round of EU-U.S. negotiations on a Transatlantic Trade and Investment Partnership (TTIP) took place in Chevy Chase, Maryland from 29 September to 3 October. Negotiators discussed the regulatory elements and rules pillar of TTIP, and services. Negotiators said they had a week of productive discussions. Negotiations are now moving smoothly into the textual phase, where discussions are based on specific textual proposals.

Discussions on the regulatory elements covered:

• horizontal disciplines - regulatory coherence, technical barriers to trade (TBT) and Sanitary and Phytosanitary (SPS) measures); and
• specific sectors identified in previous rounds, such as pharmaceuticals, cars, chemicals and engineering.

Talks on the rules pillar of the agreement looked in particular at:

• energy and raw materials
• customs and trade facilitation
• intellectual property rights (IPR), and
• small- and medium-sized enterprises (SMEs).

Amongst the issues on the table at the next round will be trade and sustainable development, including labour rights and environmental protection. Before the round negotiators will hold regular video conferences to discuss technical details relating to this part of the agreement.

Switzerland - Update of Swiss-EU agreement on the simplification of customs formalities and on customs security measures

On 10 October 2014, the Swiss Government announced that the chairperson of the joint committee signed decree no. 1/2014 on the amendment of Annex I to the agreement between Switzerland and the EU on the simplification of customs formalities and on customs security measures. The decree was approved by the Federal Council on 8 October 2014 and entered into force the day after it was signed. The announcement said:

The agreement of 25 June 2009 between Switzerland and the EU on the simplification of inspections and formalities in respect of the carriage of goods and on customs security measures contains annexes on what are known as entry and exit summary declarations and on authorised economic operators. The agreement aims to ensure an equivalent level of security between Switzerland and the EU in the area of customs.

Annex I to the agreement provides that the customs administration of the country of export shall transmit the security-related information to the customs administration of the country of exit (through which the country of export carries its goods out of the joint security area) if the goods leave from the customs territory of the other Contracting Party. If this information is not transmitted, it must be submitted at the latest upon leaving the country of exit, except if the goods are carried via direct air traffic.

Decree no. 1/2014 provides for an additional exception for the transmission of data relating to goods that are carried by an airline if the first part of the transport was undertaken by road (known as air freight replacement transport).

Brazil and USA sign memorandum ending WTO cotton dispute
On 1 October 2014, the Ministry of Development, Industry and Foreign Trade announced that, after more than a decade of dispute, Brazil and the United States signed in Washington, a Memorandum of Understanding (MOU) terminating the cotton litigation WTO (DS267). Initiated by Brazil in 2002, the dispute involved domestic subsidies granted by the United States to its cotton producers, as well as programs of export credit guarantees, considered incompatible with the Agreement on Agriculture and the Agreement on Subsidies and Countervailing Measures of the WTO. According to a statement released by the Ministry of Foreign Affairs (MFA), the United States pledged to make adjustments in credit and export guarantee program (GSM- 102), which will operate within the parameters negotiated bilaterally, thus providing better conditions for the competitiveness of Brazilian products in the international market.
Brazil - CAMEX reduces import duties for hybrid cars

On 18 September 2014, the Council of Ministers of the Foreign Trade Chamber (CAMEX), chaired by the Ministry of Development, Industry and Foreign Trade (MDIC), decided to approve the inclusion of four new products in the Brazilian List of Exceptions to Common External rate (Letec), with reduction of import duty. Two of these products are hybrid vehicles without external recharging (combustion engine that works with the aid of electric or pneumatic drive system) technology, according to the descriptions below.

• Passenger vehicles hybrid cars without external recharging of a cylinder capacity exceeding 1,000 cm3 technology, but not exceeding 1500 cm3, capable of transporting people sitting less than or equal to six, including the driver, under CN code 8703.22.10 of Mercosur Common Nomenclature (NCM), a reduction of import duty from 35% to 0%, 2%, 4%, 5% and 7% (depending on the ex-tariff) until 31/12/2015;
• Passenger vehicles hybrid cars without external recharging of a cylinder capacity exceeding 1,500 cm3 technology, but not exceeding 3000 cm3, capable of transporting people sitting less than or equal to six, including the driver, under CN code 8703.23.10 of NCM, with reduction of import duty from 35% to 0%, 2%, 4%, 5% and 7% (depending on the ex-tariff) until 31/12/2015;

From the energy efficiency of the vehicle, the importer may frame the corresponding product in the former tariff. The full list of ex-tariff integrate CAMEX Resolution which will be published in the Official Gazette (DOU). CAMEX informs that the reduction of import duty for hybrid vehicles is part of a set of measures needed to create a market and attract investments to domestic production of vehicles using new propulsion technologies. The introduction of these new technologies will provide consumer vehicles with greater energy efficiency and reduced emissions. The decision of the CAMEX also contributes to the qualification of the workforce, and encourage the development of engineering and local suppliers.

The other two products are certain diesel propelled road tractors used to pull semi-trailers, and diammonium hydrogen orthophosphate, a fertilizer.

Canada - Al-Qaida and Taliban sanctions updated

On October 8, 2014, the Canada Gazette published Regulations Amending the United Nations Al-Qaida and Taliban Regulations (SOR/2014-212, Sept. 26, 2014). The adoption of United Nations Security Council (UNSC) Resolutions 1988 (2011) and 1989 (2011) split the Consolidated List of the Security Council into the Al-Qaida Sanctions List (also referred to as the 1267/1989 List) and the Tali¬ban Sanctions List (also referred to as the 1988 List). The current United Nations Al-Qaida and Taliban Regulations (the Regula¬tions) refer only to the 1267 List, and must be updated to reflect the creation of the 1988 List to ensure full implementation of the deci¬sions of the UNSC. Technical amend¬ments to the Regulations, such as clarifying the definition of a member of the Taliban or a member of Al-Qaida, are being proposed to rectify this situation.

On May 9, 2013, the Government of Canada listed the Taliban as a terrorist entity under the Criminal Code, which contains prohibi¬tions on various activities and transactions with respect to listed entities. However, persons in Canada and Canadians abroad were already prohibited from undertaking similar activities and trans¬actions with respect to the Taliban under the Regulations. Such a “double-listing” situation, with overlapping prohibitions, can be problematic for enforcement of offences. In order to resolve this situation, and in keeping with long-standing government policy of avoiding situations where entities are listed under more than one piece of legislation, the offences pertaining to the Taliban in the Regulations need to be removed.

The regulatory amendment aims to

• Update the Regulations to reflect the splitting of the Consoli¬dated List into the Al-Qaida and Taliban sanctions regimes, per UNSC Resolutions 1988 (2011) and 1989 (2011), in order to bring Canada into com¬pliance with its obligations as a member of the United Nations; and
• Remove the prohibitions with respect to the Taliban from the Regulations, thereby eliminating the present problematic situ¬ation of double-listing.

Canada adopts Yemen sanctions

On October 8, 2014, the Canada Gazette published Regulations Implementing the United Nations Resolution on Yemen (SOR/2014-213, Sept. 26, 2014) pursuant to the United Nations Act. The Regulations Implementing the United Nations Resolution on Yemen (the Regulations) are necessary for Canada to fulfill its international legal obligation to implement the applicable deci¬sions of the Security Council set out in Resolution 2140 (2014).

The Regulations prohibit any person in Canada and any Can¬adian outside Canada from knowingly

• dealing directly or indirectly, in any property in Canada as of February 26, 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 designated person;
• entering into or facilitating, directly or indirectly, any finan¬cial transaction related to a dealing referred to above;
• providing any financial or other related service in respect of the property referred to in the first bullet above;
• making any property or any financial or related service avail¬able to a designated 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 designated person; or
• making property or any financial or other related service available for the benefit of any person referred to above.

The Regulations include a number of exceptions to the above-noted prohibitions, including allowing a person whose property is affected by the prohibitions to apply for a certificate from the Min¬ister of Foreign Affairs to exempt the property from the prohibi¬tions. Exemptions include if the property is necessary for basic or extraordinary expenses, or if the property is the subject of a judi¬cial, administrative or arbitral lien or judgment, a hypothec, prior claim, mortgage, charge or security interest.

Canada - Amendments to the Special Economic Measures (Russia) Regs.

On October 8, 2014, the Canada Gazette published Regulations Amending the Special Economic Measures (Russia) Regulations (SOR/2014, Sept. 16, 2014). The Regulations add four entities and five individuals to the list of designated persons under Schedule 1 of the Russia Regulations. Any person in Canada and any Canadian outside Can¬ada are prohibited from

• dealing in any property, wherever situated, held by or on behalf of a designated person whose name is listed in Schedule 1;
• entering into or facilitating, directly or indirectly, any trans¬action related to such a dealing;
• providing any financial or related service in respect of such a dealing;
• making goods, wherever situated, available to a designated per¬son listed in Schedule 1; and
• providing any financial or related service to or for the benefit of a designated person listed in Schedule 1.

Exceptions to the above-noted prohibitions are available for certain types of payments or transactions designated in the Russia Regulations.

The Regulations also add one entity to the list of designated persons in Schedule 2 and amend subsection 3.1(1) to reflect a shorter period of maturity for loans, bonds or debentures for Schedule 2 designated persons. It is now prohibited for any person in Canada and any Canadian outside Canada to transact in, provide or otherwise deal in a loan, bond or debenture of longer than 30 days’ maturity in relation to

• a designated person listed in Schedule 2;
• the property of a designated person listed in Schedule 2; or
• the interests or rights in property of a designated person listed in Schedule 2.

The prohibition noted above does not apply in respect of a loan that was made or a bond or debenture that was issued before the designated person was listed in Schedule 2.

It is also prohibited for any person in Canada and any Canadian outside Canada to transact in, provide or otherwise deal in capital funding through the transaction of shares in exchange for an ownership interest in relation to

• a designated person listed in Schedule 2;
• the property of a designated person listed in Schedule 2; or
• the interests or rights in property of a designated person listed in Schedule 2.

The prohibition noted above does not apply to capital funding that occurred before the designated person was listed in Schedule 2.

Finally, the Regulations also remove two entities from the list of designated persons in Schedule 1 of the Regulations

Canada issues regulations implementing Canada-Honduras FTA

On October 8, 2014, the Canada Gazette published several regulations to implement the Canada–Honduras Free Trade Agreement (CHFTA), which was signed on November 5, 2013. When implementing free trade agree¬ments in Canada, legislation and associated regulations and orders are necessary to implement commitments into the Canadian legal framework. The Canada — Honduras Economic Growth and Prosperity Act received Royal Assent on June 19, 2014. The associated regulations and orders required to fully implement the commitments of the CHFTA into the Canadian legal framework include the following regulations published on October 8, 2014:

• The CHFTA Rules of Origin Regulations implement, in Canada, the rules of origin negotiated by Canada and Honduras that will be used to determine when goods have undergone sufficient produc¬tion to qualify for preferential tariff treatment. Goods that meet the criteria set out in the CHFTA Chapter on Rules of Origin or its associated annexes qualify as originating and therefore are eligible for preferential tariff treatment. Preferential tariff treatment under the CHFTA, which reflects the actual reduction in specific rates of duty, has been implemented in the Customs Tariff through the Canada — Honduras Economic Growth and Prosperity Act.
• The CHFTA Rules of Origin for Casual Goods Regulations establish the conditions under which goods acquired in Honduras by travelers are considered originating and therefore entitled to preferential tariff treatment. Where travellers acquire goods in Honduras that are either marked as made in Honduras, or not marked to the contrary, the traveller can claim the Honduras tariff preference on importation of the goods into Canada.
• The CHFTA Tariff Preference Regulations allow eligible goods that are not shipped directly between Honduras and Canada to retain their eligibility for preferential tariff rates provided the goods remain under customs control in third countries.
• The CHFTA Sugar Aggregate Quantity Limit Order implements the negotiated outcome between Canada and Honduras with respect to market access for sugar. It sets out the annual quantity limits of certain sugar products that can be imported from Hon¬duras and receive preferential tariff treatment. A tariff rate quota has been established under the CHFTA that allows 2 500 metric tonnes of refined sugar to be imported in the first year following the entry into force of the agreement. This quantity gradually increases to 5 000 metric tonnes by year 15 of the CHFTA and remain at that level thereafter.
• The Imports of Certain Textile and Apparel Goods from Hon¬duras Customs Duty Remission Order sets out the maximum quan¬tities of textile and apparel goods that may be eligible for the bene-fits of the CHFTA under tariff preference levels. The tariff preference levels established under the CHFTA allow for a quantity of four million square metre equivalents (SME) of non-originating apparel and one million SME of non-originating fabric and textile goods to be imported at preferential tariff rates.

In addition, the following amendments were made to existing regulations to implement the CHFTA commitments:

Regulations Amending the Marking of Imported Goods Regulations permits the marking of origin of a good imported under the CHFTA to be made in English, French or Spanish. Previously, the Marking of Imported Goods Regulations specified that non-NAFTA goods were to be marked in English or French. In addition, a consequential amendment to section 6 of those Regulations is made to broaden its application to capture the newly-created provisions in section 4. Moreover, three further house-keeping amendments of a non-consequential nature were made to section 6.

Regulations Amending the Canadian International Trade Tribunal Regulations. Subsection 5(1) of the Canadian International Trade Tribunal Regulations is amended to ensure that the Tribunal considers the relevant factors set out under section 5 of the Canadian Inter¬national Trade Tribunal Regulations during a bilateral emergency action inquiry to determine if imports from Honduras are a sub¬stantial cause of serious injury, or threat thereof (e.g. the effect of imported goods on prices of like or directly competitive goods in Canada).

Regulations Amending the Procurement Inquiry Regulations. Subsections 3(1), (2), 6(3) and 7(1), and sections 5 and 10 of the Canadian International Trade Tribunal Procurement Inquiry Regulations are amended to ensure that the Tribunal considers all the necessary factors when conducting a procurement bid inquiry that are subject to the terms of the CHFTA (e.g. a complaint alleging the improper evaluation of a proposal with respect to a government procurement bid).

Order Amending the Import Control List. As per subsection 8(1) of the Export and Import Permits Act (EIPA), import permits may only be issued for goods included on the Import Control List (ICL). Therefore, in order for Canada to implement and administer its international obligations and rights on tariff preference level (TPL) textiles and apparel goods under the Canada-Honduras Free Trade Agreement (CHFTA), and for these goods to receive preferential tariff treatment, the ICL must be amended to include the scope of the CHFTA TPL provisions on textiles and apparel prior to the entry into force of the Agreement.

Indonesia - Updates on the implementation of new labeling requirement

It is almost a year since the enactment of Minister of Trade of the Republic of Indonesia Regulation No. 67/M-DAG/PER/11/2013 on Labeling Requirement in Bahasa Indonesia on Goods as amended by Minister of Trade Regulation No. 10/M-DAG/PER/1/2014 (“Regulation 67”).

At this point, we should remind our readers of the following upcoming changes in the regulation landscape under this regulation. Deadline: 25 December 2014

Regulation 67 became effective on 25 June 2014 for goods which have not been distributed in the market. But there is a grace period for label adjustment until 25 December 2014 for goods which had already been distributed in the market before 25 June 2014. The grace period ends on 25 December 2014.

The labeling requirement applies for both locally manufactured goods and imported goods. The label should be affixed on the packaging or the goods or on both. It must be:

• permanently embossed or printed; or
• attached entirely.

The label in Bahasa Indonesia must include a clear explanation of the goods and the business actors' identity. The explanation should include usage instructions and danger symbols and/or warning signs, while the business actor's identity should include the name and address of the local manufacturer or the name and address of the importer. The symbols of warning, danger or caution are put on if related to safety, security, health or environment.

Regulation 67 stipulates that the label attached to both products and packaging should not be a sticker. However, we have seen in practice that stickers are still allowed provided that they are super adhesive; therefore, it appears that the implementation is quite lenient.

Nevertheless, Regulation 67 is yet to be tested in its entirety, including its supervision and enforcement. Thus, there is still a possibility that the policy may change and become less lenient.
The labeling requirement can be exempted in certain circumstances, such as if the goods are:

• bulk goods which are sold or packaged directly in front of consumers;
• imported goods, such as capital goods, goods for research and knowledge development, sample goods (not for trading), goods imported temporarily, goods that will be reimported, or goods of other countries representatives who work in Indonesia; or manufactured in Indonesia as capital goods or supporting goods of production processes.

As Regulation 67 only came into effect three months ago and there may be adjustments to the system, we may see further changes in the issuance of exemptions, e.g., requests for additional documents other than those listed in Regulation 67 to support the exemption applications.

In one case that our Jakarta office handled, the client's labels were in a foreign language. During the application process, the relevant official insisted that the foreign language terms had to be adjusted to become Bahasa Indonesia. The applicant adjusted the "foreign term" to Bahasa Indonesia, but the approval indicated that the previous "foreign term" was allowed. Based on this experience, there is a possibility of inconsistency from the relevant authority when reviewing and issuing the labeling approval applications. This may need to be addressed.

For further information, please contact Wimbanu Widyatmoko, Mochamed Fachri, or Riza F Buditomo of our Jakarta office, who originally prepared the above information as a Client Alert.

US - Restrictive measures and additions to OFAC, State blocking orders, designations, sanctions and entity lists

During the past seven days, the following notices adding, removing or continuing persons (including entities) to/from restrictive measures lists were published in the Federal Register by the Office of Foreign Assets Control (OFAC) or by the State Department (State):

F.R. Date

Applicable orders

10-02-14

OFAC: Sanctions Actions Pursuant to Executive Order 13224 [“Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten To Commit, or Support Terrorism”] (11 individuals, 1 entity)

State: In the Matter of the Designation of Lavdrim Muhaxheri, aka Ebu Abdullah el Albani, aka Abu Abdullah al Kosova, aka Abu Abdallah al-Kosovi, aka Abu Abdallah al-Kosovo as a Specially Designated Global Terrorist Pursuant to Section 1(b) of Executive Order 13224, as Amended [Public Notice: 8892]

State: In the Matter of the Designation of Murad Margoshvili, aka Muslim Abu al-Walid al-Shishani, aka Muslim al-Shishani, aka Murad Muslim Akhmetovich Margoshvili, aka … aka Artur, as a Specially Designated Global Terrorist pursuant to Section 1(b) of Executive Order 13224, as amended [Public Notice: 8891]

State: In the Matter of the Designation of Nusret Imamovic, aka Nusret Sulejman Imamovic as a Specially Designated Global Terrorist pursuant to Section 1(b) of Executive Order 13224, as Amended [Public Notice: 8890]

10-03-14

State: Persons on Whom Sanctions Have Been Imposed Under the Iran Sanctions Act of 1996 and the Iran Freedom and Counter-Proliferation Act of 2012 [Public Notice: 8897]

10-07-14

State: In the Matter of the Designation of Abd al-Baset Azzouz, aka Abdelbassed Azouz, aka ‘‘AA’’, aka Abdulbasit Azuz as a Specially Designated Global Terrorist Pursuant to Section 1(b) of E.O. 13224, as Amended [Public Notice: 8901]

State: In the Matter of the Designation of Abdessamad Fateh, aka Abu Hamza as a Specially Designated Global Terrorist Pursuant to Section 1(b) of Executive Order 13224, as Amended [Public Notice: 8909]

State: In the Matter of the Designation of Amru al-Absi, aka Abu al- Arthir, aka Abu al-Asir as a Specially Designated Global Terrorist Pursuant to Section 1(b) of Executive Order 13224, as Amended [Public Notice: 8903]

State: In the Matter of the Designation of Harakat Sham al-Islam, aka Haraket Sham al-Islam, aka Sham al-Islam,aka Sham al-Islam Movement as a Specially Designated Global Terrorist Pursuant to Section 1(b) of Executive Order 13224, as Amended [Public Notice: 8908]

State: In the Matter of the Designation of Jaish al-Muhajireen wal-Ansar, aka Katiba al-Muhajireen, aka …, aka Army of Foreign Fighters and Supporters as a Specially Designated Global Terrorist Pursuant to Section 1(b) of Executive Order 13224, as Amended [Public Notice:8904]

State: In the Matter of the Designation of Maalim Salman, aka Mu’alim Salman, aka Mualem Suleiman, aka Ameer Salman, aka…aka Ma’alin Sulayman as a Specially Designated Global Terrorist Pursuant to Section 1(b) of Executive Order 13224, as Amended [Public Notice: 8902]

State: In the Matter of the Designation of Mohammed Abdel-Halim Hemaida Salehaka Muhammad Abdal- Halim Humaydah as a Specially Designated Global Terrorist Pursuant to Section 1(b) of Executive Order 13224, as Amended [Public Notice 8907]

State: In the Matter of the Designation of Muhannad al-Najdi, aka ‘Ali Manahi ‘Ali al-Mahaydali al-‘Utaybi, aka Ghassan al-Tajiki as a Specially Designated Global Terrorist Pursuant to Section 1(b) of Executive Order 13224, as Amended [Public Notice: 8905]

State: In the Matter of the Designation of Salim Benghalem as a Specially Designated Global Terrorist Pursuant to Section 1(b) of Executive Order 13224, as Amended [Public Notice 8906]

US - ATF publishes annual list of explosives

On October 7, 2014, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Department of Justice, published in the Federal Register a notice [Docket No. 2014R–25T] containing the 2014 Annual List of Explosive Materials. Federal law makes it unlawful for any person to engage in the business of importing, manufacturing, or dealing in explosive materials without an ATF license.

Pursuant to 18 U.S.C. 841(d) and 27 C.F.R. 555.23, the Department must publish and revise at least annually in the Federal Register a list of explosives determined to be within the coverage of 18 U.S.C. 841 et seq. The list covers not only explosives, but also blasting agents and detonators, all of which are defined as explosive materials in 18 U.S.C. 841(c). The Department further seeks to clarify that “pyrotechnic fuses” are explosives; and has, therefore, added this term to the List of Explosive Materials. The list is effective October 7, 2014.

US - OFAC issues Ukraine General License 3
On October 6, 2014, the Office of Foreign Assets Control (OFAC) issued Ukraine General License No. 3. “Authorizing Transactions Involving Certain Entities Otherwise Prohibited by Directive 1 under Executive Order 13662.” The General License authorizes all transactions prohibited by Directive 1 under Executive Order 13662 for DenizBank A.Ş., or any entity in which such a financial institution owns, directly or indirectly, a 50 percent or greater interest. The general license does not authorize otherwise prohibited transactions with other persons subject to any Directive under Executive Order 13662, or any other transactions prohibited pursuant to any part of 31 C.F.R. chapter V.
Mexico - List of regulated defense related articles is amended

On October 6, 2014, the Ministries of National Defense and Economy published in the Diario Oficial de la Federacion (the Official Gazette), an Acuerdo amending the existing Acuerdo which establishes the classification and coding of goods whose import or export is subject to regulation by the Department of National Defense, published on June 30, 2007.

The Acuerdo extends the 2007 control scheme due to Mexico’s worldwide commitments to establish mechanisms for arms control of parts and components and dual-use goods that are susceptible to being diverted to the manufacture and proliferation of conventional weapons and those of mass destruction, as provided for in the Treaty for the Prohibition of Nuclear Weapons in Latin America and the Caribbean (Treaty of Tlatelolco).

The Acuerdo also adopts the standards established by the various instruments governing Export Control regimes in the international arena, such as the Wassenaar Arrangement for the Control of Conventional Arms Exports, Goods and Dual-Use Technologies.

Controls are applied to compressed gas in pressurized containers but will not apply to goods that use compressed gas to launch darts to immobilize animals for veterinary purposes, or scientific research, or to spheres, balls or plastic capsules containing paint, used in playing the game known as “Paintball” or “Gotcha,” which are not considered firearms and explosives.

Finally, with the issuance of the Fifth Amendment to the Harmonized Commodity Description and Coding System, in 2012, changes in the tariff items were made.

US - President removes Russia from GSP
On October 3, 2014, the White House announced that President Obama signed Presidential Proclamation -- To Modify the List of Beneficiary Developing Countries Under the Trade Act of 1974, in which he determined that Russia is sufficiently advanced in economic development and improved in trade competitiveness that it is appropriate to terminate the designation of Russia as a beneficiary developing country under the Generalized System of Preferences (GSP) effective October 3, 2014. The President notified the Congress and Russia on May 7, 2014, of his intent to terminate Russia's designation. In order to reflect the termination of Russia's designation as a beneficiary developing country, he has determined that it is appropriate to modify general notes 4(a) and 4(d) and pertinent subheadings of the Harmonized Tariff Schedule of the United States (HTS). [Note: The GSP program expired more than a year ago and has not been renewed by Congress.]
United States and Brazil reach agreement to end WTO Cotton Dispute

On 1 October 2014, U.S. Trade Representative Michael Froman and Secretary of Agriculture Tom Vilsack announced that the United States and Brazil have reached agreement to settle the longstanding Cotton dispute in the WTO. Under the terms of the agreement, Brazil will terminate the Cotton case, giving up its rights to countermeasures against U.S. trade or any further proceedings in this dispute. Brazil has also agreed not to bring new WTO actions against U.S. cotton support programs while the current U.S. Farm Bill is in force or against agricultural export credit guarantees under the GSM-102 program as long as the program is operated consistent with the agreed terms.

For the 2014 Memorandum of Understanding, please click here.

Canada - CBSA proposes to expand trusted traveller programs

On October 4, 2014, the Canada Border Services Agency (CBSA) published in the Canada Gazette proposed Regulations Amending the Presentation of Persons (2003) Regulations pursuant to the Customs Act. The proposed amendments affect the eligibility criteria to join the NEXUS and CANPASS Air programs of the CBSA by expanding the scope of persons who are eligible. The Regulations currently exclude certain groups of persons who would otherwise be eligible for membership given, for instance, their compliance with legislation administered or enforced by the CBSA and lack of criminal record.

Under the proposal, the following persons would be exempted from the residency requirement for membership to the NEXUS and CANPASS Air programs:

• Canadian and American citizens, whether or not they reside in Canada or in the United States;
• If the person applying for an authorization on behalf of a child meets the residency requirements, children adopted outside of Canada or the United States by a citizen or permanent resident of Canada or the United States or born outside of Canada or the United States to a citizen of Canada or the United States and who are permanent residents of Canada or the United States; and
• Citizens of a country with which Canada has a trusted traveller arrangement and who are members of a trusted traveller program in that country.

The provision setting out the residency requirement would be modified to allow the following people to qualify:

• Accompanying spouses, common-law partners and family members of persons who are serving abroad at a Canadian or U.S. diplomatic mission or consulate and who are permanent residents of Canada or the United States;
• Permanent residents of Canada or the United States who are serving overseas in the armed forces; and
• Accompanying spouses, common-law partners and family members of persons who are serving overseas in the armed forces and who are permanent residents of Canada or the United States.

The following persons would be eligible for membership in the NEXUS and CANPASS Air programs, in addition to citizens and permanent residents of Canada and the United States:

• Citizens of a country with which Canada has a trusted traveller arrangement and who are members of a trusted traveller program in that country.

Finally, in order to address uncertainties regarding the concept of a family in the application process, the Regulations would define what constitutes a “parent.”

US - USTR seeks comments on Special 301 Out-of-Cycle Review of Kuwait
On October 6, 2014, the Office of the United States Trade Representative (USTR) published in the Federal Register a request for written comments [Docket No. USTR–2014–0019] regarding the 2014 Special 301 Out-of-Cycle Review (OCR) of Kuwait. In the 2014 Special 301 Report, USTR announced that, in order to monitor progress on specific intellectual property rights (IPR) issues, an OCR would be conducted for Kuwait. USTR requests written comments from the public concerning any act, policy, or practice that is relevant to the decision regarding whether Kuwait should be identified under Section 182 of the Trade Act of 1974 (Trade Act) (19 U.S.C. 2242). The 2014 Special 301 Report is available at the USTR website. The deadline for the public, except foreign governments, to submit written comments is October 15, 2014. The deadline for foreign governments to submit written comments is October 20, 2014.
US - CBP to hold public User Fee Advisory Committee Meeting
On October 6, 2014, U.S. Customs and Border Protection (CBP) published in the Federal Register a notice of a Federal Advisory Public Committee Meeting [Docket No. USCBP–2014–0026] of the CBP Airport and Seaport Inspections User Fee Advisory Committee (UFAC) on October 22, 2014 from 1:00 p.m. to 3:00 p.m. EST, in Washington, DC. The meeting will be open to the public. Meeting participants may attend either in person or via webinar after pre-registering using a method indicated in the Federal Register notice.
Australia to host TPP Ministers’ meeting
On 2 October 2014, the Australian Minister for Trade and Investment, Andrew Robb, announced that he will host a three-day meeting of his counterparts from the 12 countries negotiating the Trans-Pacific Partnership agreement (TPP) in Sydney from 25 October 2014.

Ministers will work to progress negotiations with an eye to concluding the basic elements of the agreement before the end of the year. The Ministers will address key outstanding issues in the negotiations, including agricultural market access, intellectual property and the disciplines on state-owned enterprises.

The countries negotiating the TPP are Australia, the United States, Japan, Canada, Singapore, Malaysia, Mexico, Vietnam, Peru, Chile, Brunei Darussalam and New Zealand. The TPP countries jointly account for almost 40 per cent of the global economy.
US - FDA’s new Data Dashboard tool shares inspection, compliance and recall data

On October 2, 2014, the FDA announced that it has released a new online tool to provide insight into its compliance, inspection, and recall activities.

The new tool represents a departure from the downloadable spreadsheet-based datasets that the FDA has posted in the past. The FDA data dashboard presents information in an easy-to-read graphical format. It also provides access to the underlying data allowing anyone interested to see related data and trends.

The new dashboard provides data for FY 2009 to FY 2013, and allows access to data on:

• inspections;
• warning letters;
• seizures and injunctions;
• and statistics, specifically for recalls.

The FDA plans to update the data semi-annually. It is staged in a cloud environment, and it allows you to:

• download information for additional analysis;
• manipulate what you see by selecting filters;
• rearrange the format of datasets and the way columns are sorted;
• drill down into data; and
• export charts and source information for further review.

The FDA developed this new dashboard after President Obama issued a Presidential Memorandum on Regulatory Compliance in January 2011 which directed federal agencies to make publicly available compliance information easily accessible, downloadable and searchable online, to the extent feasible and permitted by law.

US - CBP and GSA launch Donation Acceptance Program to support port of entry infrastructure needs

On October 1, 2014, U.S. Customs and Border Protection (CBP) announced that it has teamed up with the U.S. General Services Administration (GSA) to develop the Donation Acceptance Program (DAP), a framework supporting the new pilot program authorized by Congress in January 2014 that permits CBP to enter into partnerships for certain services and to accept certain donations. Pursuant to Section 559 of the Consolidated Appropriations Act, 2014, CBP and GSA are authorized to accept donations of real property, personal property (including monetary donations) and non-personal services from private sector and government entities. Accepted donations may be used for activities related to the construction, alteration, operations, and maintenance of CBP or GSA-owned ports of entry. The announcement stated in part:

Infrastructure enhancements play a critical role in the improvement of trade and travel facilitation. CBP faces a growing demand for facilities and renovations at aging ports of entry. This authority provides an alternate method of financing port of entry modernization and construction projects.

CBP will evaluate proposals from private corporations, public entities, municipalities, port authorities, consortiums, and any other private sector or Government entity. Donation proposals will be evaluated based on their individual merit and ability to satisfy the evaluation criteria posted on CBP.gov. Please also note that CBP and GSA will only consider submissions that envision Federal ownership of the proposed donation.

CBP and GSA will be providing multiple opportunities to learn more about the DAP and proposal submission process, including addressing program-related inquiries received, and hosting a live Q&A teleconference in the early November timeframe. Also, on October 20, 2014, CBP will be announcing the open period for submitting donation proposals for CBP and GSA consideration. Details regarding the abovementioned information-sharing opportunities and forthcoming proposal submission period may be found on CBP.gov, which we’ll continue to update as more information becomes available.

Public-private partnerships are a key component of CBP’s Resource Optimization Strategy, and allow CBP to provide new or expanded services at domestic ports of entry. Last year, CBP entered into Section 560 Reimbursable Services Agreements with the City of El Paso, Texas, The City of Houston Airport System, Dallas/Fort Worth International Airport, Miami-Dade County, and South Texas Assets Consortium. These locations have already benefitted from significant wait time reductions despite rising traffic volumes.

Second round of ‘green goods’ negotiations

The European Commission’s EU Trade Newsletter of 2 October 2014, reported that on 22-26 September, the EU and 13 other members of the World Trade Organization participated in the second round of the green goods negotiations (liberalising trade in environmental goods and services) in Geneva. The objective of this initiative was to make it easier to trade green goods internationally.

The following countries are taking part:

Australia, Canada, China, Costa Rica, Chinese Taipei, the European Union, Hong Kong (China), Japan, Korea, New Zealand, Norway, Switzerland, Singapore, United States. (Together, these countries account for around 86% of the world trade in green goods.)

The second round focused on products and technologies dealing with air pollution control and solid and hazardous waste treatment, and the discussions were facilitated by invited experts from international organisations, national environmental agencies, and the industry.

In the next round scheduled for 1-5 December, the negotiators will discuss wastewater management and water treatment, remediation and clean-up of soil and water, noise and vibration abatement. Other environmental categories that will be tackled afterwards are, among other, cleaner and renewable energy, resource efficiency, including energy efficiency, environmental monitoring, analysis and assessment.

Additional information is available on the Commission’s Green Goods Initiative website.

UK - BIS Secretary of State provides TTIP information to all MPs

The Department for Business, Innovation & Skills (BIS) announced that on 22 September 2014, Vince Cable, Secretary of State for BIS wrote to all MPs to provide information about the Transatlantic Trade and Investment Partnership (TTIP) and address civil society concerns.

The letter pointed out that while the UK and the U.S. already have a close trade and investment relationship, too many UK companies still struggle to export their goods and services to the United States. This can be for a number of reasons including:

• high tariffs which make their goods less competitive,
• rules on public procurement which prevent them competing for business,
• unnecessary differences in regulations and requirements that deliver the same safe outcomes but add to their costs and hence prices, or
• excessive checks and delays at the border

The letter stated that the TTIP will look to remove as many unnecessary barriers as possible in much the same way as the EU Single Market has facilitated trade in goods and services in Europe. The letter also explained that both the EU and U.S. have committed to maintaining standards at the highest levels, and the EU will retain the right to set regulatory standards that are higher than internationally agreed minima, for example in food. Neither negotiating side is looking to lower standards through the TTIP process.

The letter addressed the TTIP’s effect on the National Health Service, investment protection, transparency, Member State review and it provided numerous links to position papers and related documents.

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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
T + 1 202 835 1653

John F. McKenzie
Partner, San Francisco
Email: John McKenzie
T + 1 415 576 3033

Ted Murphy
Partner, Washington DC
Email: Ted Murphy
T + 1 202 452 7069


Editor, International Trade
Compliance Update


Stuart P. Seidel
Partner, Washington DC
Email: Stuart Seidel
T + 1 202 452 7088