Crowell & Moring LLP (LexBlog China)
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House Panel Set to Introduce GSP Renewal
The House Ways & Means Committee is set to review a slate of bills addressing trade with China, among which is a bill to renew the Generalized System of Preferences (“GSP”)—which expired in 2020—until 2030. The “Generalized System of Preferences Reform Act” proposes the “largest reforms to the GSP program since inception,” including permanently banning...
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Withhold Release Order Issued on Shanghai Select Safety Products and Subsidiaries
17 months since it’s last issuance of a Withhold Release Order (WRO), U.S. Customs and Border Protection (CBP) revives its enforcement mechanism to target a Chinese importer and its affiliates operating in the safety products industry. Effective Wednesday, April 10, 2024, U.S. Customs and Border Protection (CBP) will detain work gloves manufactured by Shanghai Select...
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Luxury automobiles from China detained by CBP over forced labor violations
“Several thousands” of vehicles from German luxury brands including Porsche, Bentley, and Audi have been detained at U.S. ports following the discovery of a Chinese subcomponent violating U.S. anti-forced labor laws. The parent company, Volkswagen Group, had sourced a key electronic component through a supplier further down the company’s supply chain and was unaware of...
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The FY 2024 National Defense Authorization Act: Key Provisions Government Contractors Should Know
The National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2024, signed into law on December 22, 2023, makes numerous changes to acquisition policy. Crowell & Moring’s Government Contracts Group discusses the most consequential changes for government contractors here. These include changes that impose a new conflict of interest regime for government contractors with a connection...
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BIS Expands Export Administration Regulations, Adds 13 Entities to Unverified List
On December 19, the Bureau of Industry and Security (“BIS”) added 13 new entities to its Unverified List (“UVL”). All 13 of these entities were added under the destination of the Peoples’ Republic of China (“PRC”) on the basis that BIS was unable to verify their bona fides. The UVL contains the names and addresses...
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DHS adds three Chinese entities to UFLPA Entity List
On December 8, the Department of Homeland Security (“DHS”) announced the addition of three People’s Republic of China (“PRC”)-based companies to the Uyghur Forced Labor Prevention Act (“UFLPA”) Entity List as part of the ongoing effort to eliminate forced labor practices in U.S. supply chains. The addition of these three entities—COFCO Sugar Holding Co. Ltd,...
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DHS adds three Chinese entities to UFLPA Entity List
On December 8, the Department of Homeland Security (“DHS”) announced the addition of three People’s Republic of China (“PRC”)-based companies to the Uyghur Forced Labor Prevention Act (“UFLPA”) Entity List as part of the ongoing effort to eliminate forced labor practices in U.S. supply chains. The addition of these three entities—COFCO Sugar Holding Co. Ltd,...
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In Major Win for Multinationals, China Proposes to Ease Restrictions on Cross-Border Data Transfers
On September 28, 2023, the Cyberspace Administration of China published the draft Provisions on Regulating and Promoting Cross-Border Data Flows (“Draft Provisions”) for public consultation, demonstrating that China is trying to strike a balance between enhancing data security and promoting data-driven economic growth. Multinational companies with cross-border data transfers involving China are...
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Final Rule from Commerce on National Security Guardrails for CHIPS Act Funding: Restrictions on China and Other Countries of Concern
What You Need to Know After publishing a proposed rule in March 2023 on how it will implement the national security guardrails for the CHIPS and Science Act of 2022 (“CHIPS Act”) (the “Proposed Rule”), which all funding recipients are required to follow, the U.S. Department of Commerce (“Commerce”) published the corresponding final rule, (the “Final Rule”)....
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Catch Up Fast: The “Data Days” of Summer in China
The summer has been anything but slow in the People’s Republic of China. China is leaning into its regulation of emerging technologies, while attempting to strike a balance with its domestic economic priorities. In just the past few weeks, state authorities have issued a slew of draft measures and announced new initiatives – all with...
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Commerce Concludes Controversial Investigation Into Solar Panels From China
On August 18, the U.S. Department of Commerce concluded an investigation it launched early last year on solar cells and modules from the People’s Republic of China (PRC). Commerce provided its conclusions in a Federal Register notice, highlighting that five specific Chinese companies are shipping Chinese-origin solar products to certain Southeast Asian countries for minor...
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Mandatory Notifications (and Potential Prohibitions) on Outbound Investment in China Ahead?
On July 25, 2023, the Senate overwhelmingly approved a measure to add mandatory notifications of certain investments in China to the National Defense Authorization Act (“NDAA”). The Outbound Investment Transparency Act, authored by Senators John Cornyn (R-TX) and Bob Casey (D-PA), would require U.S. companies to notify the government of investments in certain Chinese sectors,...
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Congress Continues to Target Section 321 – Lawmakers call for USPS data on China-Origin Shipments
On June 28, 2023, Mike Gallagher (R-WI) , Chairman of the Select Committee on the Chinese Communist Party, and James Comer (R-KY), Chairman of the House Oversight and Accountability Committee, jointly sent a formal letter addressed to USPS Postmaster General Louis DeJoy requesting data on Chinese-origin mail and shipments entering the United States. The letter also...
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U.S. Department of Commerce Designates 43 entities to Entity List
On Monday, June 12, the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) added 43 new entities under 50 entries to its Entity List. This list includes 31 entities in China, as well as entities located in Kenya, Laos, Malaysia, Pakistan, Singapore, South Africa, Thailand, the United Arab Emirates, and the United Kingdom....
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Legislation on Higher Tariffs on China Seeks to Reduce U.S. Trade Deficit
The Raising Tariffs on Imports from China Act was introduced by Senator Josh Hawley (R-Mo.) and aims to increase tariffs on imports from China until the United State’s bilateral trade deficit returns to balance. In tandem with this legislation, Senator Hawley is pushing for debt limit talks to focus on the reduction of the trade...
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China’s Revised Counterespionage Law and Recent Actions Highlight Challenges for U.S. Companies Operating in China
While the Biden’s administration’s recent corporate enforcement actions and initiatives have garnered significant press attention, China has engaged in recent months in a series of less-publicized corporate enforcement actions and initiatives against non-Chinese companies (mostly, but not exclusively, U.S.-based) operating in the country, including through new investigations, raids of China-based
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Bipartisan Legislation to Address Issues Involving China Outlined in Proposed Strategic Competition Act of 2021
On April 8, 2021, Senate Foreign Relations Committee Chairman Bob Menendez (D-NJ) and Ranking Member Jim Risch (R-Idaho) introduced the Strategic Competition Act of 2021. The bipartisan proposal will be raised for consideration by the Senate Foreign Relations Committee during a legislative business meeting on April 14. In addition to addressing forced labor, forced sterilization,...
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Proposed Rule from Commerce on National Security Guardrails for CHIPS Act Funding: Restrictions on China and other Countries of Concern
The U.S. Department of Commerce (“Commerce”) is seeking public comment on how to protect national security while boosting investment in the domestic semiconductor manufacturing industry as part of a new financial incentive program established under the CHIPS and Science Act. Click here to continue reading the full version of this alert.
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Fastest 5 Minutes: National Cyber Security Strategy, CHIPS, Conflicts of Interest
This week’s episode covers the National Cyber Security Strategy, a final DFARS clause requiring disclosure of use of workforce and facilities in the China, the Department of Commerce’s first Notice of Funding Opportunity under the CHIPS and Science Act of 2022, and congressional inquiries about financial conflicts of interest and ethically questionable behavior by senior...
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China’s New Standard Contractual Clauses and Impact on Data Intensive Businesses
Eight months after the issuance of the draft Measures on the Standard Contract for the Export of Personal Information (“SCC Regulations”), on February 24, 2023, the Cyberspace Administration of China (“CAC”) released the final version of the SCCs Regulations, along with the Standard Contractual Clauses (“SCCs”). Click here to continue reading the full version of...
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New U.S. Disruptive Technology Strike Force Highlights Risks for Research Facilities and Universities in the U.S.-China Competition for Technical Supremacy
Last week the U.S. Department of Justice (“DOJ”) and U.S. Department of Commerce announced a new Disruptive Technology Strike Force (the “DIS-TECH Strike Force”). The Strike Force will bring together experts throughout government – including the Federal Bureau of Investigation (“FBI”), Homeland Security Investigations (“HSI”), and 14 U.S. Attorneys’ Offices in 12 metropolitan regions across...
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Customs Ruling of the Week – Classification of an Outdoor Gift Set and Axe-Saw
Main Idea: GRI 3(b) of the HTSUS and the explanatory notes to the HTSUS control the classification of both goods put up in sets for retail sale, and individual composite goods. In ruling N329453 (Dec. 6, 2022), Customs and Border Protection (CBP) discussed the tariff classification of an Outdoor Gift Set and an Axe-Saw...
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EU Challenges China’s Anti-Suit Injunctions at the WTO
The European Union has filed a legal challenge before the World Trade Organization against China’s use of “anti-suit injunctions” (ASIs) to restrict EU holders from enforcing standard-essential patents against Chinese companies in any non-Chinese court. The EU’s request for the establishment of a WTO panel challenges Chinese court-issued ASIs as they “forbid patent holders to...
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Customs Ruling of the Week – Classification and Nairobi Protocol Eligibility of Steel Safety Grab Bars
Main Idea: Where goods are demonstrably for the use or benefit of handicapped persons, relief from general and additional duties is possible. In ruling N328828 (Nov. 10, 2022), Customs and Border Protection (CBP) discussed the tariff classification of a Stainless Steel Grab Bar from China and its eligibility for duty-free treatment under the Nairobi Protocol. ...
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USTR extends COVID-related Section 301 tariff exclusions for 81 medical care products
On Wednesday, November 23, the Office of the U.S. Trade Representative (USTR) extended exclusions from Section 301 tariffs for 81 medical care products from China for a sixth time. The tariff exclusions for these products were initially granted in December 2020 and had been extended multiple times throughout the COVID-19 pandemic. The tariff exclusions for...
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Customs Ruling of the Week- Classification of a Steel Racking Structure
Main Idea: Comprehensive understanding of tariff classification and country of origin determinations is necessary for importers to determine the full scope of duties that may be applicable to their merchandise. In N328620 (Oct. 27, 2022), U.S. Customs and Border Protection (CBP) discussed the tariff classification and country of origin marking for a steel racking structure...
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New U.S. Restrictions on Transfers to China for Semiconductor and Advanced Computing Uses
Two new rules announced by the U.S. Department of Commerce, Bureau of Industry and Security (BIS) strive to severely inhibit China’s progress in indigenously producing advanced semiconductors. Although advanced semiconductors are widely used for commercial applications, BIS cited serious concerns regarding China’s use of the technology for WMD and military applications, and enabling human rights..
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Congress Passes Last Minute Three-Year SBIR/STTR Reauthorization Including New National Security-Related Restrictions and Requirements
On September 30, 2022, President Biden signed the SBIR and STTR Extension Act of 2022 (the Act), reauthorizing the Small Business Innovation Research (SBIR), Small Business Technology Transfer (STTR), and six pilot programs for three years, until September 30, 2025. The Act includes new due diligence and reporting requirements, award restrictions, and clawback provisions related to national...
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Customs Ruling of the Week – Classification of Swim Trunks
Main Idea: Proper classification under the HTSUS relies heavily on a complete and robust understanding of the applicable Section and Chapter Notes. In ruling N328096 (Sept. 26, 2022), U.S. Customs and Border Protection (CBP) discusses the tariff classification of the below styles of men’s swim trunks from China. Style Number Description of Item MB220721B...
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Customs Ruling of the Week – Classification of Bird Feeders
Main Idea: The constituent component that is key to how the good is used may impart essential character to a composite good and determine classification under the HTSUS. In ruling NY N327871 (Sept. 12, 2022), U.S. Customs and Border Protection (CBP) determines the tariff classification of birdfeeders from China. CBP reviews three specific products: Snacks’...