International Trade Law News

The Bureau of Industry and Security (BIS) has posted on its Web site a list of Frequently Asked Questions regarding the recent decision to revise the license review policy for certain entities in India and to modify the Entity List. The list of Frequently Asked Questions can be found on BIS's Web site at the following link: www.bis.doc.gov/InternationalPrograms/IndianEntityQandA.htm.

On September 29, 2004 the U.S. International Trade Commission (ITC) made its final injury determination in the antidumping investigation of light-walled rectangular pipe and tube from Turkey and Mexico. By a unanimous vote (6 to 0), the ITC held that imports from Turkey and Mexico are not causing injury or threatening to cause injury to the U.S. pipe industry.

As a result of this determination, the U.S. Department of Commerce's (DOC) antidumping investigation will be terminated. DOC will instruct Customs and Border Protection to return any bonds that have been posted by importers and to refund any antidumping duty deposits with regard to imports of light-walled rectangular pipe and tube from Mexico and Turkey.

The ITC's written decision will not be issued for another few weeks. However, it appears that the record prices and profits realized by the U.S. pipe industry in 2004 played a crucial role in the ITC's negative injury finding.

Treasury Secretary John Snow announced today that Robert (Bob) Werner will become the new Director of the Office of Foreign Assets Control (OFAC) on October 1, 2004.

Werner currently serves as the Treasury Department's Assistant General Counsel for Enforcement and Intelligence. He previously served as Treasury's Counselor to the Office of the General Counsel and the Chief of Staff at the Financial Crimes Enforcement Network (FinCEN).

Before coming to Treasury, Werner served in the Justice Department's Office of Legal Counsel. He also served as a federal prosecutor in the U.S. Attorney's Office in Connecticut, Associate Attorney General in the State of Connecticut, and he headed Connecticut's gaming regulatory agency. Werner's private sector experience includes work as a partner at Bingham Dana LLP (now Bingham McCutchen) and as an officer at The Phoenix Home Life Mutual Insurance Company (now The Phoenix Companies). Werner is also a former law clerk to Associate Justices Lewis F. Powell, Jr. and Anthony M. Kennedy.

Werner replaces Richard Newcomb, who announced earlier this month his intent to depart the Treasury after 17 years as OFAC Director.

If you are planning to attend the BIS Update 2004 or the Customs Law Update next week in Washington, DC and would like to meet with Douglas Jacobson to discuss your company's export controls or customs compliance programs please contact us to schedule a meeting. You can reach us by e-mail at info@djacobsonlaw.com or by telephone at 202-721-0020.

The Bureau of Industry and Security (BIS) published a notice in today's Federal Register

requesting public comments on whether foreign policy-based export controls administered

by BIS should be modified, rescinded or extended for another year.



The notice indicates that BIS is particularly interested in the experience of individual exporters

in complying with the proliferation controls, with emphasis on economic impact and specific

 instances of business lost to foreign competitors.



BIS is also interested in industry information relating to the following:

1. Information on the effect of foreign policy-based export controls on sales of U.S. products to

third countries (i.e., those countries not targeted by sanctions), including the views of foreign

 purchasers or prospective customers regarding U.S. foreign policy-based export controls.

2. Information on controls maintained by U.S. trade partners. For example, to what extent do they

have similar controls on goods and technology on a worldwide basis or to specific destinations?

3. Information on licensing policies or practices by our foreign trade partners which are similar

to U.S. foreign policy-based export controls, including license review criteria, use of conditions,

requirements for pre and post shipment verifications (preferably supported by examples of

approvals, denials and foreign regulations).

4. Suggestions for revisions to foreign policy-based export controls that would (if there are any

differences) bring them more into line with multilateral practice.

5. Comments or suggestions as to actions that would make multilateral controls more effective.

6. Information that illustrates the effect of foreign policy-based export controls on the trade or

acquisitions by intended targets of the controls.

7. Data or other information as to the effect of foreign policy-based export controls on overall

trade at the level of individual industrial sectors.

8. Suggestions as to how to measure the effect of foreign policy-based export controls on trade.

9. Information on the use of foreign policy-based export controls on targeted countries, entities,

or individuals.



Comments must be submitted to BIS by November 19, 2004. The complete notice can

be found at the following link:

a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/04-21734.htm.

The Bureau of Industry and Security (BIS) today published in the Federal Register a notice requesting comments on the effectiveness of licensing procedures for the export of agricultural commodities to Cuba under the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA). The comments will be included in a biennial report to Congress covering the operation of the TSRA licensing system for the period from October 1, 2002 to September 30, 2004. Comments must be submitted to BIS by October 28, 2004.

As a result of TSRA, BIS created License Exception Agricultural Commodities (AGR) in section 740.18 of the Export Administration Regulations which authorizes exports and certain reexports of eligible agricultural commodities that are classified as EAR99 to Cuba. Under License Exception AGR exporters must notify BIS and obtain confirmation from BIS that no agency of the U.S. Government that reviews AGR notifications objects to the sale prior to any export or reexport to Cuba.

A copy of the complete notice can be found at the following link:
a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/04-21733.htm.

On September 27, 2004, the Department of Commerce (DOC) announced its preliminary determinations in the antidumping duty investigations of magnesium metal from the People's Republic of China (PRC) and the Russian Federation (Russia). DOC preliminarily found that producers/exporters have sold magnesium metal from the PRC and Russia in the U.S. market at less than fair value, with PRC antidumping margins ranging from 117.41% to 177.62% and antidumping margins of 10.62% (Solikamsk Magnesium Works) to 21.49% (Avisma Magnesium-Titanium Works) for the Russian producers.

The scope of this antidumping investigation includes primary and secondary pure and alloy magnesium metal, regardless of chemistry, raw material source, form, shape, or size. Although DOC has determined these products to be one "like product" for purposes of these investigations, the scope of the Chinese and Russian investigations differ because prior antidumping duty orders exist on pure magnesium in both ingot and granular form from the PRC. Thus, the scope of the investigation for Russia covers primary and secondary pure and alloy magnesium metal, whereas the scope of the investigation for the PRC covers primary and secondary magnesium metal.

These antidumping investigations were commenced as the result of petitions filed on February 27, 2004 by the US Magnesium Corporation LLC, United Steelworkers of America, Local 8319, and Glass, Molders, Pottery, Plastics & Allied Workers International, Local 374.

DOC is expected to announce its final determinations in this case on or about February 16, 2005.

USA*Engage and the National Foreign Trade Council (NFTC) have issued their "report card" on the 108th Congress which grades each Member of Congress on their cumulative voting records on key issues affecting international trade, unilateral sanctions and global engagement. The report card reviewed nine different floor votes in the U.S. House of Representatives and Senate, including the Syria Accountability Act and four Free Trade Agreements. In the House 37 Members received an "A" rating by voting in favor of trade and engagement. In the Senate, 27 Members achieved the highest rating.

The report card includes an "honor roll" of Members voting to affirm all four Free Trade Agreements (Singapore, Chile, Australia and Morocco) that went to the floor during this session of Congress. In the House, 211 Members voted affirmatively on all four votes; while in the Senate, 53 Members had perfect FTA records. Senator Mike Enzi (R-WY) and Rep. Jeff Flake (R-AZ) both received grades of "A+" for their perfect voting records.

USA*Engage and NFTC member companies and associations have tabulated and analyzed Congressional voting patterns on trade and engagement issues since 1997. A complete breakdown of the House and Senate voting records and individual grades is available at the following site:
www.usaengage.org/legislative/2001/2001%20Report%20Card/reportcard-index.html.

Today the Treasury Department's Office of Foreign Assets Control published in the Federal Register a final rule revising the Rough Diamonds Control Regulations (31 CFR part 592) that implement the Clean Diamond Trade Act and the Kimberley Process Certification Scheme for rough diamonds.

The final rule revised the interim rule issue on August 4, 2003 (68 Fed. Reg. 45777) in order to make the following changes to the reporting and recordkeeping requirements of the regulations: (1) specifies that the ultimate consignee is responsible for retaining the original Kimberley Process Certificate accompanying an importation into the United States; (2) requires the ultimate consignee to report the receipt of a shipment of rough diamonds to the relevant foreign exporting authority within 15 calendar days of the date that the shipment arrived at a U.S. port of entry; (3) advises persons engaged in the diamond trade of a pending requirement of U.S. Customs and Border Protection (CBP) that customs brokers, importers, and filers making entry of a shipment of rough diamonds either submit through CBPs Automated Broker Interface (ABI) system the unique identifying number of the Kimberley Process Certificate accompanying the shipment or, for non-ABI entries, indicate the certificate number on the Customs Form 7501 Entry Summary at each entry line; (4) clarifies the country-of-origin reporting requirements for shipments of parcels of mixed origin rough diamonds; and (5) revises the regulation in order to reflect properly the basis upon which OFAC may decide to issue a prepenalty notice.

The complete text of the final rule can be found at the following link:
http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/04-21329.htm

Customs and Border Protection (CBP) has issued a document containing Frequently Asked Questions (FAQs) describing the truck advanced manifest requirements under the Trade Act of 2002 that will be phased-in starting on November 15, 2004. The FAQs state that for a period of time (exact dates to be announced later) all non-compliant trucks will be informed of their non-compliance with CBP regulations and receive guidance on complying with the new regulations. After the initial period of informed compliance trucks may be denied entry or unlading privileges and may be returned to their country of origin and carriers and other providers of information may be subject to penalty action under current regulation governing information submission to CBP.

The list of FAQs can be found at the following link (this is a MS-Word document):
http://www.cbp.gov/linkhandler/cgov/import/communications_to_industry/advance_info/truck_faqs.ctt/truck_faqs.doc

The Bureau of Industry and Security (BIS) published a final rule in today's Federal Register making certain changes to the Export Administration Regulations (EAR) in order to implement the Next Steps in Strategic Partnership (NSSP) progam with India.

The final rule implements three initial steps the United States has agreed to take under the NSSP: (1) Removing the Indian Space Research Organization (ISRO) Headquarters in Bangalore from the Department of Commerce Entity List; (2) removing the license requirement for the seven ISRO subsidiaries listed on the Entity List for all items subject to EAR having a classification of EAR99 or a classification where the third through fifth digits of the Export Commodity Classification Number (ECCN) are "999''; and (3) establishing a presumption of approval for all items not controlled for nuclear proliferation reasons going to the "balance of plant" (i.e., power generation) portion of Indian nuclear facilities subject to International Atomic Energy Agency safeguards.

The final rule also contains one non India-related amendment to the EAR. The final rule amends section 744.1 of the EAR by revising the phrase "Exporters are" to read "The public is" in the second sentence of paragraph (c). This change was made in order to make clear the longstanding interpretation that information regarding the Entity List is intended to inform the public, not simply to inform exporters.

The complete text of the final rule can be found at the following link:
http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/04-21303.htm

On September 20, 2004, the U.S. State Department's Bureau of Nonproliferation imposed sanctions on China Xinshdai Company for providing material and technical expertise to a country for use in programs capable of delivering weapons of mass destruction.

Xinshidai, which means "new era" in English, markets equipment for many of China's largert state owned firms and is one of China's two primary organizations involved in the arms trade. Xinshidai is an intermediate level supervisory body for missile sales and has jurisdiction over six major Chinese defense industry trading companies. Xinshidai is affilated with North China Industries Corporation (NORINCO), which is also subject to U.S. sanctions for engaging in proliferation activities.

The sanctions imposed include the prohibition on the importation of Xinshidai goods into the U.S. and the prohibition of all U.S. Government contracts with Xinshidai. In addition, the U.S. will deny all license applications seeking to export or import defense articles to or from Xinshidai.

The State Department's debarment notice can be found at:
http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/04-21079.htm

The specific reference to the sanctions imposed on Xinshidai can be found on the Exluded Parties List System (EPLS) at: www.epls.gov/epls/servlet/EPLSGetInputSearch/UDUXTRUKKKSXPBTQKWEDTIQPJKPBDJFY.

Today the President signed an Executive Order that lifts the remaining economic sanctions on Libya. The Executive Order, which will become effective at midnight tonight, terminates all of the remaining prohibitions contained in the Libyan Sanctions Regulations (31 C.F.R. Part 550) and ends the need for Treasury Department licences for trade with Libya. As a result of this Executive Order all property and interests in property blocked under the Libyan Sanctions Regulations will be unblocked. The Executive Order also lifts the remaining U.S. restrictions imposed on aviation relations with Libya and permits direct air service and regular charter flights between the U.S. and Libya. Finally, the Executive Order revokes the 1985 Executive Order that prohibits the importation into the United States of petroleum products refined in Libya.

While the Executive Order formally lifts U.S. sanctions on Libya, it will not lift a wide variety of other restrictions sanctions imposed on Libya due to its designation as a state sponsor of terrorism under section 620A of the Foreign Assistance Act (restriction on foreign assistance), section 40 of the Arms Export Control Act (restriction on arms exports), and section 6(j) of the Export Administration Act of 1979 (restriction on exports of certain items on the Commodity Control List).

The text of the Executive Order is as follows:

EXECUTIVE ORDER

TERMINATION OF EMERGENCY DECLARED IN EXECUTIVE ORDER 12543 WITH RESPECT TO THE POLICIES AND ACTIONS OF THE GOVERNMENT OF LIBYA AND REVOCATION OF RELATED EXECUTIVE ORDERS

By the authority vested in me as President by the Constitution and the laws of
the United States of America, including the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50
U.S.C. 1601 et seq.) (NEA), section 5 of the United Nations Participation Act,
as amended (22 U.S.C. 287c) (UNPA), sections 504 and 505 of the International
Security and Development Cooperation Act (22 U.S.C. 2349aa-8 and 2349aa-9), and section 40106 of title 49, United States Code,

I, GEORGE W. BUSH, President of the United States of America, find that the
situation that gave rise to the declaration of a national emergency in Executive
Order 12543 of January 7, 1986, with respect to the policies and actions of the
Government of Libya, and that led to the steps taken in that order and in
Executive Order 12544 of January 8, 1986, and Executive Order 12801 of April 15, 1992, has been significantly altered. Accordingly, I hereby terminate the
national emergency declared in Executive Order 12543, and revoke that Executive
Order, Executive Order 12544, and Executive Order 12801. I also hereby revoke
Executive Order 12538 of November 15, 1985, and further order:

Section 1. Pursuant to section 202(a) of the NEA (50 U.S.C. 1622(a)),
termination of the national emergency declared in Executive Order 12543 with
respect to the policies and actions of the Government of Libya shall not affect
any action taken or proceeding pending not finally concluded or determined as of
the effective date of this order, any action or proceeding based on any act
committed prior to such date, or any rights or duties that matured or penalties
that were incurred prior to such date.

Sec. 2. This order is not intended to, and does not, create any right or
benefit, substantive or procedural, enforceable at law or in equity by any party
against the United States, its departments, agencies, instrumentalities, or
entities its officers or employees, or any other person.

Sec. 3. (a) This order is effective at 12:01 a.m. eastern daylight time on
September 21, 2004.

(b) This order shall be transmitted to the Congress and published in the Federal
Register.

THE WHITE HOUSE
09/20/2004

The U.S. Department of Commerce (DOC) has unveiled three initiatives, the China Business Information Center, American Trade Centers and the Global Supply Chain Initiative, intended to assist U.S. companies interested in exporting to China.

The China Business Information Center (BIC) offers U.S. companies access to counseling with trade specialists in the United States, referrals to U.S. Commercial Service officers in China, and helps channel trade leads to clients through U.S. Export Assistance Centers. The BIC consists of a toll free telephone number that the public can use to speak with a China specialist, a Web site with China-focused information and export tools, and a series of outreach events planned throughout the United States.

The BIC's Web site at www.export.gov/china features a variety of information that U.S. exporters can use to undertake the following activities:

• Promoting products and services to qualified Chinese buyers, distributors and agents;
• Understanding Chinese laws, regulations and customs;
• Collecting market research;
• Developing new or additional business relationships in China;
• Initiating the basic steps to enter the Chinese market; and
• Resolving trade disputes.
  

Chiquita Brands International Inc.'s (Chiquita) Form 8-K filed with the Securities and Exchange Commission (SEC) on September 14, 2004 indicated that Chiquita has voluntarily disclosed to the SEC and the Department of Justice that in 2003 Chiquita's Greek subsidiary made a payment of approximately 14,700 euros (approximately $18,000) that may not comply with the U.S. Foreign Corrupt Practices Act (FCPA). Chiquita noted that the payment, "which was made in connection with the settlement of a local tax audit, was made in contravention of Company policies." Chiquita indicated that the SEC and DOJ have requested certain additional information from the company and that it will comply with that request and cooperate with any further inquiry or investigation. Chiquita noted that while the company "is taking corrective and disciplinary action" the company "cannot predict the outcome of this matter, including whether these agencies would view it as involving a violation of a 2001 consent agreement signed with the SEC in 2001. At that time Chiquita paid a $100,000 fine and consented to a finding that, as a result of similar payments by its former Colombian subsidiary in 1996-97, Chiquita violated the books and records and internal controls provisions of the Securities Exchange Act of 1934. At that time Chiquita signed a consent order that provided that the company cease and desist from committing or causing any future violations of these provisions of U.S. law.

The U.S. Department of Commerce has announced that industry experts in the automotive, information technology and healthcare sectors will be relocated from Washington, DC to field posts to more effectively focus on the specific needs of these industries.

The following industry experts have been assigned field posts:

* Elizabeth Couch has been based in Pontiac, Mich., to focus on the automotive sector for the Midwest region on a six-month, temporary basis since August;

* Danielle Kriz will has been based in San Francisco and San Jose, Calif., to focus on the information technology industry for the Pacific states and Arizona on a three-month, temporary basis in each city since September; and

* Marnie Morrione has been based in Portland, Maine, and to focus on healthcare industries in the New England area on a permanent basis that began in June.

The field specialists will be co-located with the Commerce Department's U.S. Export Assistance Centers offices and will focus their efforts in identifying international and domestic trade policies, regulations, standards and other related issues that affect the competitiveness of U.S. industry. The information gathered on industry trends will be used to develop recommendations on how to address and resolve these issues. In 2004, Congress directed the Commerce Department's new Manufacturing and Services unit to "redirect industry experts from headquarters to the field where resources may be more effectively focused on the specific needs of local industry."

The Bureau of Industry and Security (BIS) has announced that registration for Update 2004 has closed since the event is sold out. In the past, BIS has established a waiting list for the event but it has not yet announced plans to do so this year. For more information continue to watch BIS's Web site at: http://www.bis.doc.gov/SeminarsAndTraining/Update2004.htm.

The U.S. Department of Commerce's Bureau of Industry and Security (BIS) has imposed a $560,000 civil penalty on Lattice Semiconductor Corporation (Lattice) of Hillsboro, Oregon for making unlicensed exports and "deemed exports" to China in violation of the U.S. Export Administration Regulations (EAR). In its charging letter BIS alleged that on six occasions between April 2000 and July 2001, Lattice exported extended temperature range programmable logic devices to China without the required export licenses. The extended temperature range programmable logic devices are military grade semiconductor microchips that have possible dual-use technology implications. BIS also charged that, on five occasions between July 2000 and January 2002, Lattice released related technical data to Chinese nationals in the United States without the required "deemed export" licenses. BIS further charged that, on one occasion between August 2000 and September 2001, Lattice exported the related technical data to China without the required export licenses.

BIS alleged that Lattice failed to obtain export licenses for five Chinese nationals who, during the course of their employment with Lattice, were brought to the United States from China for technical training. Such technical training in the United States requires an export license. The "deemed export" provision of the EAR states that an export license is required for the release of technology to a foreign national in the United States if a license would be required for the release of technology to his/her country of citizenship.

Not surprisingly, the Coalition for Fair Lumber Imports, the lobby group that represents the U.S. softwood lumber industry, will request the U.S. to seek an extraordinary challenge to the NAFTA panel ruling on softwood lumber. As a result of the NAFTA panel's decision the U.S. International Trade Commission voted on September 10, 2004 that imports of softwood lumber from Canada pose no threat of injury to the U.S. industry (see post below) .

To date, the U.S. has filed five extraordinary challenges to NAFTA panel rulings and lost all five times, including a case involving lumber in 1994.

The Bureau of Customs and Border Protection (CBP) has published on its Web site an updated fact sheet, entitled "Frequently Asked Questions & Answers Regarding CBP Procedures under the Bioterrorism Act (BTA)." The FAQs provide information on CBP's enforcement of the U.S. Food and Drug Administration's prior notice requirements for food imported under the Public Health Security and Bioterrorism Preparedness and Response Act of 2002.

CBP has also issued posted on its Web site several fact sheets, guidance documents and other instructions related to the implementation of the prior notice and food facility registration requirements under the Bioterrorism Act.

These documents can viewed at the following link: www.cbp.gov/xp/cgov/import/commercial_enforcement/bioterrorism/.

The Treasury Department today announced that Richard Newcomb, the longtime director of the Treasury Department's Office of Foreign Assets Control (OFAC), will leave government service on October 1, 2004. Mr. Newcomb, who has served as OFAC's director for more than 17 years plans to work for a law firm. The Treasury Department has indicated that it will announce OFAC's acting director on October 1st.

The following is the statement issued today by the Secretary of the Treasury on Mr. Newcomb's departure:

"Director Newcomb has brought strong leadership and great distinction
to the Treasury Department's Office of Foreign Assets Control (OFAC),
where he has served as director for over 17 years. Under Rick's
leadership, OFAC has been pivotal in administering and enforcing
economic sanctions against rogue nations and targeted individuals - a
crucial economic and foreign policy weapon in our arsenal against
terrorism, terrorist financing, drug kingpins, narcotic traffickers
and their support networks and those who threaten the security of the
United States and international community."

"During his tenure, OFAC has played a significant role within the U.S.
Government and the international community in demonstrating that
economic sanctions can be very effective as a tool of international
diplomacy. Moreover, the methodologies and strategies for sanctions
implementation and targeting developed under his leadership and
supervision are among the principal tools used today to wage the war
on terrorism and terrorist financing. This is an extraordinary
accomplishment and a major contribution to national security."

"Rick has dedicated much of his life to serving the U.S. Government,
and I praise him for that service. His leadership and accomplishment
exemplifies the highest standards of public service in terms of
quality, efficiency and results. He has attracted to OFAC a group of
highly talented and dedicated public servants who serve the American
people well every day. His colleagues and I wish him the best in his
future endeavors and he departs with the sincere gratitude and best
wishes of all of us here at Treasury."

The U.S. International Trade Commission on September 10, 2004 reluctantly voted to comply with the NAFTA Panel's remand instructions and issued a negative threat of injury decision in the antidumping (AD) and countervailing duty (CVD) investigatins on Softwood Lumber from Canada. The decision was made after the United States-Canada Binational Panel on August 31, 2004 remanded the ITC's previous threat of injury determinations with explicit instructions directing “the Commission to make a determination consistent with the decision of this Panel that the evidence on the record does not support a finding of threat of material injury."

In its written decision, the ITC stated that "because the Commission respects and is bound by the NAFTA dispute settlement process, we issue a determination, consistent with the Panel’s decision, that the U.S. softwood lumber industry is not threatened with material injury by reason of subject imports from Canada. In so doing, we disagree with the Panel’s view that there is no substantial evidence to support a finding of threat of material injury1 and we continue to view the Panel’s decisions throughout this proceeding as overstepping its authority, violating the NAFTA, seriously departing from fundamental rules of procedure, and committing legal error."

As a result of the ITC's negative threat of injury finding, the U.S. no longer has the legal grounds to impose the AD and CVD duties on softwood lumber from Canada, currently totaling 27%. However, the AD and CVD orders are unlikely to be revoked immediately as the U.S. lumber industry may request the U.S. Government to raise an "extraordinary challenge" on the NAFTA Panel's ruling. Under the provisions of Chapter 19 of NAFTA, an extraordinary challenge proceeding is a streamlined process to consider whether a decision taken by a particular binational panel is outside the scope of the panel’s authority and poses a threat to the integrity of the panel review system. To date, no NAFTA Panel decision has ever been overturned by an extraordinary challenge.

The ITC's decision can be viewed at the following link: ftp://ftp.usitc.gov/pub/reports/opinions/fremand3opin.pdf.

U.S. Customs and Border Protection (CBP) has announced that it will hold its 5th annual Trade Symposium on December 9-10, 2004. The trade symposium will be held at the Ronald Reagan Building and International Trade Center in Washington, DC. This year's theme is "Security and Facilitation of Trade: The Way Forward." The event will include discussions between senior CBP managers and representatives of the international trade and transportation community. Panels for the symposium will include a Department of Homeland Security/Border Transportation Security Executive roundtable, Trade Act of 2002 implementation, Bioterrorism Act of 2002, the Container Security Initiative (CSI), and the Automated Commercial Environment (ACE). Registration for the symposium will commence in October on CBP's web site at www.cbp.gov.

The Treasury Department's Office of Foreign Assets Control (OFAC) has issued a specific license permitting Southern Illinois University (SIU) to engage in educational activities with Cuba. SIU's previously obtained license expired on June 30, 2004 and OFAC had advised SIU that the license would not be renewed.

SIU enlisted the support of several members of Congress in its efforts to convince OFAC to issue a new Cuba travel license. While the efforts to obtain the license paid off, the new license is more restrictive then the previous license. Consistent with the new Cuba travel regulations issued by OFAC on June 16, 2004, the new license is valid for only one year, not two, and the license contains a number of restrictions on who can travel to Cuba and for what purpose.

Many U.S. universities have curtailed or cancelled their Cuba study programs as a result of the June 16, 2004 changes to the Cuba travel regulations.

On September 8, 2004, the U.S. Senate Agriculture Appropriations Subcommittee unanimously approved a proposal co-sponsored by Senators Byron Dorgan (D-ND) and Larry Craig (R-ID) to permit U.S. citizens that want to sell agricultural products to Cuba under the Trade Sanctions Reform Act (TSRA) to travel to Cuba without having to obtain a license from the Treasury Department's Office of Foreign Asset Control (OFAC). The measure will next be considered by the full U.S. Senate Appropriations Committee.

A similar proposal is being circulated in the House of Representatives in connection with the Transportation/Treasury appropriations bill.

Today the Office of the U.S. Trade Representative (USTR) announced that the Bush Administration has rejected a petition filed by theChina Currency Coalition requesting the United States to investigate China's currency policy under section 301 of the Trade Act of 1974.

The China Currency Coalition, an alliance of industry, agriculture, service and worker organizations, claimed in their 301 petition that the Chinese Yuan was undervalued by 40%, "placing unjustifiable burdens and restrictions on U.S. companies and commerce."

In rejecting the petition, the USTR stated that “today's petition is reckless because the remedy it seeks of a 40 percent across the board tariff would put up walls around America, hurting U.S. exports, destroying U.S. jobs and endangering our economic recovery. It is a petition that has much less support in the U.S. business community than it did just four months ago, when the Administration last addressed this issue."

The U.S. Department of Commerce (DOC) today published in the Federal Register a second amended preliminary determination in the antidumping investigation of wooden bedroom furniture from China in order to reflect the correction of significant ministerial errors that were made for several Section A respondents. The second amended preliminary also corrects the weighted-average rate assigned to certain Section A respondents that were granted a separate rate from 10.92 to 12.91 percent. The DOC's notice can be viewed at the following link:

a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/04-20464.htm

An antidumping petition on Polyvinyl Alcohol from Taiwan was filed on September 7, 2004 by Celanese Chemicals Ltd. of Dallas, Texas. The parent company of Celanese Chemicals Ltd. is the Frankfurt, Germany-based Celanese AG. Polyvinyl alcohol is used as an additive or modifiers in polyvinyl acetate emulsion-based adhesives and as the major component in solid fiber laminating and spiral tube winding adhesives.

The Treasury Department's Office of Foreign Assets Control (OFAC) has issued its monthly list of civil penalties imposed against companies and individuals for violating the sanctions programs administered by OFAC. During August 2004, OFAC imposed more than $300,000 in civil penalties to settle 23 separate enforcement actions for violations of the current or former embargoes imposed by the U.S. on Afghanistan, Cuba, Iran, Iraq, Libya, Sudan and Yugoslavia. During the same period OFAC imposed more than $100,000 in penalities on individuals for alleged violations of the Cuban and Sudan sanctions regulations.

The following is a summary of some of the settlements announced by OFAC:

• OFAC imposed more than $26,000 in penalites on American Express for operating unblocked Cuba accounts, advising a letter of credit relating to Iran and making a funds transfer involving Libya.
• A $64,000 penalty was levied on Sempra Energy Trading Corp. on behalf of Sempra Metal Ltd. for 2002-2004 contracts with a Cuban Specially Designated National (SDN).
• OFAC imposed a $68,750 penalty on Irridelco International Corp., New Jersey-based manufacturer and distributor of agricultural irrigation equipment, for facilitating trade with Iraq in 2001.
• OFAC assessed a $19,200 penalty on the First National Bank of San Diego for operating accounts on behalf of a person designated as a Specially Designated National pursuant to the Foreign Narcotics Kingpin Designation Act and the Foreign Narcotics Kingpin Sanctions Regulations (SDNTK).
• $25,000 penalty was imposed against Dolphin Lagoon, Inc./Dolphin Fantaseas,Inc., an Anguilla-based aquatic park, for entering into a contract with a Cuban entity and for violating the ban on Cuba-related business travel transactions. There are reports that OFAC is negotiating a similar settlement with the owner of the aquatic park for purchasing dolphins from Cuba.
• OFAC levied a $25,000 penalty against an individual for entering into an unspecified contract with a Cuban entity and for engaging in business travel-related transactions with Cuba. OFAC does not release the names of individual persons that enter into settlement agreements.
  
• A $16,500 penalty was assessed on an individual for several violations of the Sudan Sanctions Regulations, including entering into a contract relating to Sudan, facilitation of trading with Sudan and attempted evasion of the regulations.

President Bush issued a proclamation today that, among other things, designates Iraq as a beneficiary developing country under the Generalized System of Preferences (GSP). U.S. Imports of qualifying Iraq-origin products will no longer be subject to import duties on September 22, 2004.

Customs and Border Protection will soon issue an Administrative Message providing instructions on the filing of GSP claims for goods originating in Iraq.

The President's proclamation can be reviewed at the following link: http://www.whitehouse.gov/news/releases/2004/09/20040907-5.html.

The State Department announced today that the U.S. Nuclear Regulatory Commission has issued licenses for the export of nuclear components to China for Chinese nuclear power reactors subject to the terms and conditions of the U.S.-China Agreement for Peaceful Nuclear Cooperation. The State Department also announced that the Department of Energy has also authorized transfers of nuclear technology to China for the Chinese civilian nuclear power program on the basis of written nonproliferation assurances provided by the Government of China.

Today's Financial Times contains an article discussing the monetary penalties imposed by the Office of Foreign Assets Controls (OFAC) on several European companies, including Alitalia, the Italian airline, for violations of the Cuban Assets Control Regulations (CACR). The article notes that the "fines, news of which emerged yesterday, follow the penalty imposed on Iberia, the Spanish airline, after it was accused of shipping Cuban goods through the U.S." The article further states that the "sanctions may force the European Commission, which has strongly criticised the extra-territorial application of the Cuban embargo laws, to protest to Washington."

The timing of this article is puzzling, given that these penalties were imposed and publicly announced by OFAC earlier this year. For example, the civil penalty against Alitalia, which amounted to only $500, was posted on OFAC's Web site on April 2, 2004. The civil penalty against Iberia was posted on OFAC's Web site on June 4, 2004. While the article describes the EU's concerns with the extra-territorial application of U.S. law, it does not mention that the penalties imposed on Alitalia and Iberia involved the transportation and importation of Cuban-origin goods into the U.S., a clear violation and non extra-territorial application of U.S. law.

The State Department today announced that it has approved the sales of defense articles to Yemen for the first time in more than 12 years and that license applications to export defense articles to Yemen would be reviewed on a case-by-case basis. The U.S. has imposed significant restrictions on the export of defense articles and services to Yemen since 1992. See 57 Fed. Reg. 59852 (Dec. 16, 1992).

The State Department announced that it had recently approved a license permitting the export to Yemen of spare parts for C-130 cargo planes and is in the process of approving a license to permit the export to Yemen of spare parts for F-5 fighter jets. According to a State Department spokesman, "The reason for the modification is that it was deemed necessary to support Yemen's active role in the war on terror." The State Department's announcement coincided with a visit to Yemen by Lincoln Bloomfield, assistant secretary of state for political-military affairs.

Customs and Border Protection (CBP) has announced that the Customs Electronic Bulletin Board (CEBB) is being systematically migrated into CBP.gov and will become invalid in the near future. CBP has created a page on its Web site containing links to the information formerly contained on the CEBB at: www.customs.gov/xp/cgov/import/communications_to_industry/cebb_linklist.xml.

The Commerce Department's Bureau of Industry and Security (BIS) has settled two enforcement cases involving unlicensed exports to organizations included on BIS's Entity List.

In the first case, New Brunswick Scientific Co., Inc., an Edison, New Jersey-based manufacturer of laboratory equipement, agreed to pay a $51,000 civil penalty to settle charges that it exported various types of laboratory equipment and other items in violation of the Export Administration Regulations (EAR). Specifically, BIS alleged that, on seven occasions between March 13, 1999, and August 24, 2001, New Brunswick Scientific exported laboratory equipment and other items to India, Taiwan, and Israel without the required export licenses. BIS also charged that New Brunswick Scientific made false statements on export control documents and, in certain instances, failed to file the requisite export control documents. At the time of the exports to India, three of the recipients of such shipments were on BIS's Entity List, and exports to those entities therefore required prior authorization.

In the second case, Chyron Corporation, a Melville, New York-based supplier of broadcast graphics hardware, software and services, agreed to pay a $15,300 civil penalty to settle charges that it knowingly exported an animation system to the Indian Space Research Organization's (ISRO) Space Applications Center in Ahmedabad, India, in violation of the EAR. BIS charged that Chyron exported the animation system to the ISRO Space Applications Center without a license, even though the ISRO Space Applications Center was on BIS's Entity List. BIS also charged that Chyron made a misrepresentation on the Shipper's Export Declaration when submitting the required shipping documents.