As we wrote previously, the U.S. Department of the Treasury has issued a final rule that takes effect on December 26 that will dramatically raise the Committee on Foreign Investment in the United States (CFIUS) penalties from...more
12/30/2024
/ Artificial Intelligence ,
Bureau of Industry and Security (BIS) ,
Canada ,
CFIUS ,
China ,
Conspiracies ,
Directorate of Defense Trade Controls (DDTC) ,
Economic Sanctions ,
Export Controls ,
False Statements ,
Financial Institutions ,
Foreign Investment ,
International Trade ,
Investment ,
Iran ,
ITAR ,
Mexico ,
Office of Foreign Assets Control (OFAC) ,
Outbound Transactions ,
Russia ,
Tariffs ,
Trump Administration ,
U.S. Treasury
The U.S. Commerce Department is soliciting comments on a proposed rule to prohibit importing and selling Vehicle Connectivity System hardware and software designed, developed, manufactured, or supplied by persons owned by,...more
10/11/2024
/ Boycotts ,
CFIUS ,
China ,
Connected Cars ,
Customs and Border Protection ,
Economic Sanctions ,
Export Controls ,
Hong Kong ,
Motor Vehicles ,
National Security ,
Office of Foreign Assets Control (OFAC) ,
PRC ,
Recordkeeping Requirements ,
Red Flags Rule ,
Russia ,
Software ,
Supply Chain ,
Tariffs ,
U.S. Commerce Department ,
US Department of State ,
USTR
The Department of Commerce’s Bureau of Industry and Security (BIS) recently issued an interim final rule implementing licensing requirements for these emerging technology products for export to all foreign countries. See the...more
9/20/2024
/ AUKUS ,
Australia ,
Belarus ,
Bureau of Industry and Security (BIS) ,
CFIUS ,
Directorate of Defense Trade Controls (DDTC) ,
Economic Sanctions ,
Emerging Technologies ,
Export Administration Regulations (EAR) ,
Export Controls ,
Foreign Direct Product Rule ,
Foreign Governments ,
Foreign Investment ,
ITAR ,
National Security ,
Office of Foreign Assets Control (OFAC) ,
Russia ,
Technology ,
U.S. Treasury ,
UK ,
US Department of State
The Bureau of Industry and Security (BIS) issued new guidance to prevent the diversion of controlled items to Russia. This guidance recommends the use of the Trade Integrity Project (TIP) database, which tracks suppliers with...more
8/14/2024
/ Bureau of Industry and Security (BIS) ,
CFIUS ,
Commerce Control List ,
Directorate of Defense Trade Controls (DDTC) ,
Emerging Technologies ,
Export Administration Regulations (EAR) ,
Export Controls ,
Exports ,
Federal Contractors ,
Foreign Adversaries ,
Foreign Investment ,
International Trade ,
National Security ,
NCSC ,
Office of Foreign Assets Control (OFAC) ,
Real Estate Transactions ,
Russia ,
Sensitive Business Information
What is a CFIUS filing, when should it be made, and what happens if a party fails to file?
In passing the Foreign Investment and Risk Review Modernization Act in 2018, Congress provided CFIUS with increased resources to...more
5/10/2024
/ CFIUS ,
Critical Infrastructure Sectors ,
FIRRMA ,
Foreign Investment ,
Mandatory Declarations ,
National Security ,
NPRM ,
Private Equity ,
Proposed Rules ,
Rulemaking Process ,
Technology
On April 15, the U.S. Department of the Treasury published a proposed rule that would enhance certain Committee on Foreign Investment in the United States (CFIUS or the Committee) procedures and increase CFIUS penalty and...more
5/9/2024
/ AUKUS ,
CFIUS ,
Copyright Infringement ,
Customs and Border Protection ,
Department of Homeland Security (DHS) ,
Economic Sanctions ,
Export Administration Regulations (EAR) ,
FIRRMA ,
Foreign Investment ,
Immigration and Customs Enforcement (ICE) ,
International Emergency Economic Powers Act (IEEPA) ,
ITAR ,
Made in the USA ,
National Security ,
NDAA ,
Prohibited Transactions ,
Proposed Rules ,
Russia ,
U.S. Treasury ,
United States-Mexico-Canada Agreement (USMCA) ,
US Department of State ,
Uyghur Forced Labor Prevention Act (UFLPA)
Ford Motor Company Agrees to $365M Settlement for Attempted Tariff Engineering Ford has agreed to settle the long-standing dispute over the tariff classification of vans imported from 2009 to 2013. At the time, Customs and...more
4/8/2024
/ Antiboycott Requirements ,
Bribery ,
Bureau of Industry and Security (BIS) ,
CFIUS ,
Connected Cars ,
Court of International Trade ,
Customs and Border Protection ,
Economic Sanctions ,
Executive Orders ,
Export Controls ,
Forced Labor ,
Ford Motor ,
Foreign Corrupt Practices Act (FCPA) ,
Information and Communication Technology (ICT) ,
Office of Foreign Assets Control (OFAC) ,
Personal Data ,
SDN List ,
Section 301 ,
Tariffs ,
U.S. Treasury ,
Unfair or Deceptive Trade Practices ,
USDA ,
USTR ,
Uyghur Forced Labor Prevention Act (UFLPA)
On February 24, the two-year anniversary of Russia’s invasion of Ukraine, the Biden administration issued hundreds of new Russia-related export controls and sanctions. The Office of Foreign Assets Control (OFAC) and the...more
3/7/2024
/ Arms Export Control Act ,
Bureau of Industry and Security (BIS) ,
CAFC ,
CFIUS ,
Department of Justice (DOJ) ,
Directorate of Defense Trade Controls (DDTC) ,
Economic Sanctions ,
Export Controls ,
False Statements ,
Federal Trade Commission (FTC) ,
Foreign Investment ,
International Trade ,
Iran ,
ITAR ,
Labeling ,
Made in the USA ,
Money Laundering ,
National Security ,
National Security Agency (NSA) ,
Office of Foreign Assets Control (OFAC) ,
Popular ,
Russia ,
Section 301 ,
U.S. Commerce Department ,
US Department of State ,
USTR
Crypto Asset Company Settles Sanctions Violations for $7.5 million-
On May 1, the U.S. Department of Foreign Assets Control (OFAC) announced a $7.5 million settlement with crypto asset company Poloniex LLC for 65,942 apparent...more
6/14/2023
/ Books & Records ,
CFIUS ,
China ,
Coronavirus/COVID-19 ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Directorate of Defense Trade Controls (DDTC) ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Workers ,
Form I-9 ,
Human Resources Professionals ,
International Emergency Economic Powers Act (IEEPA) ,
Know Your Customers ,
Office of Foreign Assets Control (OFAC) ,
Popular ,
Securities and Exchange Commission (SEC) ,
Tariffs ,
USTR
1. BIS, DOJ Technology Strike Force to Investigate Disruptive Technologies On February 16, the Department of Justice (DOJ) and the Department of Commerce’s Bureau of Industry and Security (BIS) announced the creation of...more
3/9/2023
/ Biden Administration ,
Bureau of Industry and Security (BIS) ,
Buy American Act ,
CFIUS ,
Customs and Border Protection ,
Department of Justice (DOJ) ,
Digital Assets ,
Disruptive Technology ,
DOJ Strike Force ,
Export Controls ,
Huawei ,
License Renewals ,
National Security ,
OMB ,
Uyghur Forced Labor Prevention Act (UFLPA)
1. Reverse CFIUS Expected To Be Narrow and Only Forward-Looking Laura Black, a former Treasury Department official, recently discussed how companies should prepare for any potential U.S. outbound investment review process....more
2/20/2023
/ CFIUS ,
China ,
Consolidated Appropriations Act (CAA) ,
Coronavirus/COVID-19 ,
Customs and Border Protection ,
Foreign Investment ,
NDAA ,
Section 301 ,
Supply Chain ,
U.S. Treasury ,
USTR ,
Uyghur Forced Labor Prevention Act (UFLPA)
1. Late last year, the Federal Communications Commission (FCC) adopted new rules to block the importation and sale of telecommunications equipment considered unacceptably hazardous to U.S. national security. The Report and...more
1/11/2023
/ CFIUS ,
China ,
Covered Entities ,
Criminal Conspiracy ,
Directorate of Defense Trade Controls (DDTC) ,
Economic Sanctions ,
FCC ,
General Licenses ,
Memorandum of Understanding ,
NPRM ,
Office of Foreign Assets Control (OFAC) ,
Popular ,
Russia ,
Section 301 ,
Supply Chain ,
Telecommunications ,
US Department of State ,
USTR ,
Uyghur Forced Labor Prevention Act (UFLPA) ,
Wire Fraud
Importer Pays $3.25M Settlement in FCA Case A California importer paid $3.25 million (Law360 subscription required to view) to settle a whistleblower suit brought by a former employee of its overseas supplier under the False...more
12/6/2022
/ Arms Export Control Act ,
CFIUS ,
China ,
Customs and Border Protection ,
Department of Defense (DOD) ,
Department of Justice (DOJ) ,
Discrimination ,
False Claims Act (FCA) ,
Importers ,
Intent to Defraud ,
Russia ,
Section 301 ,
U.S. Commerce Department ,
USTR ,
Uyghur Forced Labor Prevention Act (UFLPA) ,
Whistleblowers
The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) recently issued an interim final rule that significantly expands export controls on advanced computing materials and semiconductors. These controls are...more
On September 15, President Biden issued the first ever executive order (E.O.) regarding the Committee on Foreign Investment in the United States (CFIUS). While the E.O. does not change the law or regulations related to CFIUS...more
10/6/2022
/ Bureau of Industry and Security (BIS) ,
CFIUS ,
China ,
Customs and Border Protection ,
Cybersecurity ,
Department of Defense (DOD) ,
Economic Sanctions ,
Executive Orders ,
Export Administration Regulations (EAR) ,
Export Controls ,
Federal Contractors ,
Forced Labor ,
Foreign Investment ,
Imports ,
Investigations ,
Office of Foreign Assets Control (OFAC) ,
Russia ,
U.S. Treasury ,
Uyghur Forced Labor Prevention Act (UFLPA)
1. Chip Producer ‘Is Informed’ of New License Requirement via BIS Letter According to a Securities and Exchange Commission filing by NVIDIA, the largest producer of graphics processing units (GPUs), Commerce’s Bureau of...more
9/9/2022
/ Bureau of Industry and Security (BIS) ,
CFIUS ,
Department of Defense (DOD) ,
DFARS ,
FedEx ,
Global Market ,
International Trade ,
Office of Foreign Assets Control (OFAC) ,
Popular ,
Securities and Exchange Commission (SEC) ,
Semiconductors ,
Uyghur Forced Labor Prevention Act (UFLPA)
On June 13, legislators released a new proposed version of the National Critical Capabilities Defense Act, which would establish an outbound investment review mechanism to protect U.S. technologies against adversaries like...more
7/13/2022
/ CFIUS ,
Chief Compliance Officers ,
China ,
Court of International Trade ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Emerging Technologies ,
Export Controls ,
International Trade ,
National Intelligence Agencies ,
Russia ,
U.S. Commerce Department ,
UK ,
USTR
1. Updates to Russia Sanctions and Export Controls-
In response to the ongoing attack on Ukraine, the U.S. government continues on a weekly basis to increase economic sanctions and export controls on Russia.
...more
4/11/2022
/ Bureau of Industry and Security (BIS) ,
CFIUS ,
China ,
Court of International Trade ,
Cryptocurrency ,
Economic Sanctions ,
Environmental Social & Governance (ESG) ,
Export Administration Regulations (EAR) ,
Export Controls ,
FCC ,
International Trade ,
National Security ,
Office of Foreign Assets Control (OFAC) ,
Oil & Gas ,
Russia ,
Supply Chain ,
Tariffs ,
U.S. Treasury
1. Treasury Mandates Reporting of Foreign Securities Holdings of $200M or More-
All U.S. persons (custodians and end investors) who manage $200 million or more in foreign securities for themselves or others must file a...more
2/2/2022
/ Anti-Money Laundering ,
Biotechnology ,
Bureau of Industry and Security (BIS) ,
Burma ,
CFIUS ,
Cybersecurity ,
Export Controls ,
Forced Labor ,
Foreign Securities ,
Hong Kong ,
Office of Foreign Assets Control (OFAC) ,
Policies and Procedures ,
Popular ,
Reporting Requirements ,
Russia ,
Sanctions ,
SDN List ,
Supply Chain ,
U.S. Treasury ,
Ukraine
Premise: Nearly all companies have exposure to international trade laws when doing business. Spotting these risks early when negotiating agreements and transactions will prevent future liability and costs. So, when drafting...more
11/30/2021
/ Buy American Act ,
CFIUS ,
Environmental Social & Governance (ESG) ,
Exports ,
Foreign Investment ,
Imports ,
International Trade ,
Liability ,
Sanctions ,
Supply Chain ,
Tariffs
Export control requirements, economic sanctions, foreign ownership rules, import restrictions — cross-border trade continues to get more complex.
Do you know there are trade laws that restrict who you can do business...more
10/22/2021
/ Blocked Entities ,
CFIUS ,
Compliance ,
Cross-Border ,
Customs and Border Protection ,
Duties ,
Economic Sanctions ,
Embargo ,
Export Controls ,
Foreign Entities ,
Foreign Investment ,
Foreign Ownership ,
Foreign Workers ,
Imports ,
National Security ,
Startups ,
Tariffs ,
Technology Sector ,
Trademark Infringement
We are continuing to see strong interest in basic facts about CFIUS. One reason is increased CFIUS enforcement of its authorities. Another is news coverage of Chinese investment in U.S. critical technology and companies...more
8/18/2021
/ CFIUS ,
China ,
Critical Infrastructure Sectors ,
Cross-Border Transactions ,
Foreign Investment ,
Foreign Nationals ,
Mandatory Declarations ,
National Security ,
Target Company ,
Technology Sector ,
U.S. Treasury
1. Biden Administration Trade Posture-
The Biden administration is slowly and steadily reviewing the decisions of the Trump administration. So far, the administration has struck a deal with the EU to end the 17-year-old...more
8/9/2021
/ Airbus ,
Biden Administration ,
Boeing ,
CFIUS ,
China ,
Department of Homeland Security (DHS) ,
Foreign Corrupt Practices Act (FCPA) ,
Foreign Investment ,
Foreign Policy ,
Interagency Guidance ,
National Security ,
OECD ,
Office of Foreign Assets Control (OFAC) ,
Popular ,
Sanctions ,
Section 301 ,
Supply Chain ,
Trump Administration ,
U.S. Commerce Department ,
U.S. Treasury ,
Unfair or Deceptive Trade Practices ,
WTO
Have you made the classic mistake of assuming that — because your company is a startup, hasn’t gone global or never plans to engage in international transactions — you aren't required to comply with export controls and U.S....more
Despite heightened US-China trade tensions and the COVID-19 pandemic’s disruptive effects on the global economy, mergers and acquisitions continue. The US government’s Committee on Foreign Investment in the United States...more