International Trade Law News

As expected, the Bureau of Industry and Security (BIS) published in today's Federal Register a notice extending the comment period on proposed changes to "deemed export" licensing practices from May 27, 2005 to June 27, 2005. The notice can be found at the following link:
a257.g.akamaitech.net/7/257/2422/01jan20051800/
edocket.access.gpo.gov/2005/05-10672.htm

The Government of Turkey has formally announced the privatization of Eregli Demir Celik (Erdemir), Turkey's only integrated steelmaker. Erdemir has a production capacity of 3.0 million tons per year and produces steel plates, hot and cold rolled sheet and tinplate.

The Turkish Government intends to sell the 46.12% stake in Erdemir held by Turkey's Privatization Administration, the governmental body responsible for the privatization process of state-owned asset, and the 3.17% of Erdemir's shares held by the Turkish Development Bank. The remainder of Erdemir's shares are currently held by the public (and traded on the Istanbul Stock Exchange) and by Turkish Halk Bank.

Companies that are interested in submitting a bid, must file pre-qualification applications by July 8, 2005 and the deadline for submitting bids is September 26, 2005. Due diligence for short-listed firms is to take place between July 25, 2005 and September 9, 2005. A bid bond of $40 million will be required from the firms that will submit bids.

Several Turkish and foreign steel companies have expressed interest in purchasing Erdemir, including Corus, Arcelor, Mittal Steel, U.S. Steel Corp., Russia's Novolipetsk and Severstal.

More information on Erdemir and the privatization process can be found on the Privatization Administration's website at: www.oib.gov.tr/portfoy/eregli_dc_eng.htm.

As previously reported, the Bureau of Industry and Security (BIS) is planning to extend the May 27, 2005 deadline to submit comments on the advanced notice of proposed rulemaking (ANPR) proposing changes to the "deemed export" regulations. Today, BIS finally posted on its website (www.bis.doc.gov) a statement announcing that the new deadline for submitting comments will be June 27, 2005. A formal notice is expected to be issued by BIS on Friday.

The Nuclear Regulatory Commission (NRC) today published a final rule in the Federal Register amending its export/import regulations to remove Syria from the list of restricted destinations and add it to the list of embargoed destinations. This amendment is being issued as a result of the Syria Accountability and Lebanese Sovereignty Restoration Act of 2003 (Pub. L. 108-175) (SAA) and Executive Order 13338, which implemented the SAA. This rule moves Syria from the list of restricted destinations for exports at 10 CFR 110.29 to the list of embargoed destinations at 10 CFR 110.28. The text of the regulation can be found at the following link:
a257.g.akamaitech.net/7/257/2422/01jan20051800/
edocket.access.gpo.gov/2005/05-10391.htm

The Foreign Corrupt Practices Act saga involving airport bomb detector manufacturer InVision Inc. continues -- this time in the Philippines. As previously reported in International Trade Law News, InVision entered into settlement agreements with the U.S. Government in February 2005 after it voluntarily disclosed possible violations of the Foreign Corrupt Practices Act in connection with sales activities in Thailand, China and the Philippines. The settlement agreements indicate that InVision's sales agent in the Philippines paid $108,000 "to make gifts or pay cash to influence Filipino government officials to purchase InVision products."

NowThe Manila Times reports that the Government of the Philippines is poised to conduct an investigation to determine the persons that were involved in the bribery scheme. Ombudsman Simeon Marcelo, who heads a panel of government lawyers prosecuting major graft cases in the Philippines' antigraft court, said his office will immediately request the US government for information on the parties involved. The article quotes Mr. Marcelo as saying, "we're confident we will get it and we will prosecute and file charges against those guilty."

The entire article can be found at the following link: www.manilatimes.net/national/2005/may/24/yehey/top_stories/20050524top4.html

As a follow-up to our story in yesterday's International Trade Law News on the FCPA settlements entered into by Diagnostic Products Corporation (DPC), the Corporate Crime Reporter questions the timing of the late Friday afternoon press release issued by the Justice Department in that case. The article notes that since the press release was issued so late on Friday afternoon that the mainstream press had few stories on the pleas agreement. DPC's counsel denies that the timing of the press release was negotiated with the Justice Department. The article can be viewed at the following link: www.corporatecrimereporter.com/chinabribery052305.htm.

The Commerce Department's Bureau of Industry and Security (BIS) today published in the Federal Register a proposed rule that would amend section 742.5 the Export Administration Regulations (EAR) by imposing a license requirement for exports and reexports of items controlled for missile technology (MT) reasons to Canada. To date, the EAR have required a license for MT-controlled items to all destinations except Canada.

Today's proposed rule comes more than three years after BIS published an advanced notice of proposed rulemaking (ANPR) seeking comments on the removal of the Canadian exemption for MT items. BIS received seventeen comments in response to its 2001 ANPR from Canadian and U.S.-based trade associations, Canadian and U.S.-based companies, a foreign airline and the Government of Canada. Not surprisingly, all of the comments were opposed to the implementation of a licensing requirement for MT items to Canada. Most of the comments stated that imposing a license requirement on MT-controlled items would have an adverse impact on U.S.-Canada trade by forcing Canadian companies to seek business relationships and equipment sources outside of the U.S.

Although the comments received in response to the ANPR were opposed to the license requirement, BIS is now requesting more specific comments as to the effect that the rule will have in terms of numbers of license applications that the industry and/or individual companies would expect to submit under such a requirement. BIS is also seeking specific information on the estimated additional costs of complying with the licensing requirement for exports and reexports of MT-controlled items to Canada.. The deadline for submitting comments to BIS on the proposed rule is June 23, 2005.

The proposed rule can be found at the following link:
a257.g.akamaitech.net/7/257/2422/01jan20051800/
edocket.access.gpo.gov/2005/05-10356.htm

As expected, the House Ways and Means Committee today unanimously recommended by voice vote the rejection by the full House of H.J. Res. 27, a resolution withdrawing the approval of the Congress from the World Trade Organization (WTO) Agreement. While many members of the committee voiced their concerns over the WTO, including the tendency of WTO dispute-settlement panels to side against the U.S., the consensus was that WTO's problems are best resolved by the continued engagement of the U.S.

Even though the committee adversely reported the resolution, it will still be considered by the House. The timing for the floor vote has yet to be determined, but a vote is expected by mid-June. The House is expected to reject the resolution by a wide margin just as it did on a similar resolution in 2000, which was rejected by a vote of 363-56 vote. The Senate is not expected to consider the resolution.

Under the Under the Uruguay Round Agreements Act (URAA), the 1994 law that approved U.S. participation in the WTO, any member of Congress has the right once every five years to demand a vote by the full House or Senate on withdrawing from the WTO. On March 2, 2005, Rep. Bernard Sanders (D-VT) introduced H.J. Res 27 to withdraw the approval of the U.S. from the Agreement establishing the WTO. The resolution would not automatically pull the United States out of the WTO and does not require the President to withdraw the United States from the WTO. Rather the resolution merely states that Congress does not approve of U.S. membership in WTO.

The fourth annual "National Summit on Cuba " will be held at the Mobile Convention Center and Spring Hill College on June 10-11, 2005 in Mobile, Alabama. The Mobile Summit will present diverse, nationally recognized speakers on current U.S.- Cuba commercial relations and policy. The Summit will feature panel discussions on the impact of Cuba on the American South and present data on past and potential trade with Cuba. Congressman Jeff Flake (R-AZ), one of the leading proponents of normalizing trade relations with Cuba. Pedro Alvarez, Director of Cuba's Alimport is scheduled to appear via videoconference. The complete agenda and registration information can be found at the following link: www.worldpolicy.org/projects/uscuba/summit.html.

In another example of the high price paid by U.S. companies for violations of the Foreign Corrupt Practices Act (FCPA) committed by their foreign subsidiaries, a Los Angeles, California-based medical equipment manufacturer and exporter has pleaded guilty to bribing Chinese hospital officials and agreed to pay nearly $4.8 million in penalties and interest

Diagnostic Products Corporation (DPC) announced on May 20, 2005 that it and its wholly owned Chinese subsidiary, DPC (Tianjin) Co. Ltd. (DPC Tianjin), had reached agreements with the U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Justice (DOJ) to settle issues related to violations of the FCPA.

The DOJ settlement was announced after the agency filed a one-count criminal information charging DPC Tianjin with violating the FCPA in connection with the payment of approximately $1.6 million in bribes in the form of illegal "commissions" to physicians and laboratory personnel employed by government-owned hospitals in the People's Republic of China. According to the criminal information, DPC Tianjin made cash payments to laboratory personnel and physicians employed in certain hospitals in China in exchange for agreements that the hospitals would obtain DPC Tianjin's products and services. This practice, apparently authorized by DPC Tianjin's general manager, involved personnel who were employed by hospitals owned by the legal authorities in China and, thus were considered to be "foreign officials" as defined by the FCPA. DOJ claimed that in most cases the bribes were paid in cash and hand-delivered by DPC Tianjin salespeople to the person who controlled purchasing decisions for the particular hospital department. DPC Tianjin recorded the payments on its books and records as "selling expenses" and DPC Tianjin's general manager regularly prepared and submitted to its parent company financial statements that reported such sales expenses. The "commissions," typically between 3 percent and 10% of sales, totaled approximately $1,623,326 from late 1991 through December 2002, and allowed DPC Tianjin to earn approximately $2 million in profits from the sales.

In its settlement agreement with DOJ, DPC Tianjin agreed to plead guilty to the criminal charge and to pay a criminal penalty of $2 million. In addition, DPC and DPC Tianjin agreed to adopt internal compliance programs and to appoint an independent compliance expert to audit the company's compliance program and monitor its implementation of new internal policies and procedures. In its settlement agreement with the SEC, the SEC ordered DPC to cease and desist from violating the FCPA and to disgorge approximately $2 million in "ill-gotten gains", representing DPC's net profit in China for the period of its misconduct, plus $750,000 in prejudgment interest.

The payments made by DPC Tianjin were voluntarily disclosed to the SEC and DOJ by DPC after the company's current U.S. management discovered the payments. While the improper payments and guilty plea were limited to DPC Tianjin and its activities in China, DPC announced that its remedial efforts include expanded company-wide FCPA and ethics policies and procedures.

May 23, 2005: No hearings, votes or meetings scheduled.

May 24, 2005: Preliminary Conference -- Preliminary phase antidumping investigation: Diamond Sawblades and Parts Thereof from China and Korea, Inv. Nos. 731-TA-1092-1093 (Preliminary), 9:30 a.m., Courtroom A, ITC Building. Federal Register notice:
www.usitc.gov/secretary/fed_reg_notices/701_731/731_1092_notice552005sgle.pdf
[Note: This conference has been postponed to June 15, 2004]

Commission Vote -- Five-year (sunset) reviews: Iron Construction Castings from Brazil, Canada, and China, Inv. Nos. 701-TA-249 and 731-TA-262, 263, and 265 (Second Review), 11:00 AM
ITC Building. Federal Register notice:
www.usitc.gov/secretary/fed_reg_notices/sunset/701_249_notice02092005sgl.pdf

May 25, 2005: Commission Hearing -- Five-year (sunset) review: Petroleum Wax Candles from China, Inv. No. 731-TA-282 (Second Review), 9:30 AM, ITC Building. Federal Register notice:
www.usitc.gov/secretary/fed_reg_notices/sunset/731_282_notice01142005sgle.pdf

May 26-27, 2005: No hearings, votes or meetings scheduled.

The D.C. Circuit Court of Appeals has amended the opinion that it issued in United States v. Yakou, 393 F.3d 231 (D.C. Cir. 2005), to clarify that the opinion does not address provisions of the International Traffic in Arms Regulations (ITAR) regulating foreign persons "otherwise subject to U.S. jurisdiction." The amended opinion can be found at the following link: pmdtc.org/docs/yakou_case.pdf.

The World Trade Organization (WTO) Secretariat has released statistics on the number of new antidumping investigations and new final antidumping measures imposed during the second half of 2004. The WTO reports, that between July 1, 2004 through December 31, 2004, both the number of initiations of new antidumping investigations and the number of new final antidumping measures substantially declined compared with the corresponding period of 2003 and continued the downward trend noted in the first half of 2004.

During the second half of 2004,17 WTO Members initiated a total of 103 new antidumping investigations, down from 135 cases initiated in the second half of 2003. In addition, 15 WTO Members imposed a total of 91 new antidumping measures during the second half of 2004, a decline from the 108 antidumping measures imposed during the second half of 2003.

The following WTO members initiated the most new antidumping investigations in the second half of 2004:

1. EU - 17 new AD investigations
2. China - 16 new AD investigations
3. India - 14 new AD investigations
4. Turkey -12 new AD investigations
5. US- 4 new AD investigations

Not surprisingly, China remained the most frequent target of new antidumping investigations, with 25 investigations directed at its exports during the second half of 2004. Korea was the second most frequent subject, with 12 new investigations directed at its exports. Brazil and Taiwan, subject to six initiations each on their exports during the second half of 2004, were tied for third place, followed by Japan and the United States, each of which was subject to five antidumping investigations.

The products that were the subject of the most new antidumping investigations during the second half of 2004 included chemicals (28 initiations), plastic products (16 initiations) and base metals (12 initiations).

As previously reported in International Trade Law News, the Bureau of Industry and Security (BIS) imposed a $904,500 civil penalty on EMD Biosciences, Inc. (EMD) of San Diego, California to settle charges that EMD exported a number of biological toxins (classified as ECCN 1C351) to Canada in violation of the Export Administration Regulations (EAR). The San Diego Union-Tribune reports that EMD has decided to stop exporting biological toxins since "it's not worth the risk." The article claims that the exports were made because the company was "unaware" that the Export Administration Regulations had been amended on May 31, 2003 to require export licenses to export human pathogens and toxins classified under ECCN 1C351 to all destinations, including Canada.

As a result of numerous requests made by industry and academia, the Bureau of Industry and Security will grant a 30-day extension of the deadline to submit comments on proposed changes to the regulations governing the issuance of "deemed export" licenses for the transfer of controlled technology to foreign nationals in the U.S. that were published in the Federal Register on March 28, 2005. The new deadline for submission of comments will be June 27, 2005. A formal announcement is expected soon.

By a 6-0 vote, the U.S. International Trade Commission (ITC) today determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of artists' canvas from China that are allegedly sold in the United States at less than fair value. As a result of the ITC's affirmative determination, the U.S. Department of Commerce will continue to conduct its antidumping investigation of imports of artists' canvas from China, with its preliminary determination due on or about September 8, 2005.

As reported in today's Washington Post, the Senate Permanent Subcommittee on Investigations has released three reports in advance of tomorrow's hearing on the manipulation of the U.N.'s Iraq Oil-for-Food Program. The reports detail how Iraq manipulated the Oil-for-Food Program to win influence and reward foreign officials with lucrative oil allocations that could be converted to money. The reports also examine the illegal surcharges paid on Iraqi oil sales, using examples involving the recently indicted U.S. company, Bayoil. The three reports can be viewed at the following link and scrolling down to "Related Files":
hsgac.senate.gov/index.cfm?Fuseaction=Subcommittees.
Home&SubcommitteeID=11&Initials=PSI

May 16, 2005: Commission vote in preliminary phase antidumping investigation: Artists' Canvas from China, Inv. No. 731-TA-1090 (Preliminary), 11:00 a.m. ITC Main Hearing Room. Federal Register notice:
www.usitc.gov/secretary/fed_reg_notices/701_731/731_1091_notice412005sgle.pdf

May 17, 2005: No hearings, votes or meetings scheduled.

May 18, 2005: Commission vote in five-year (sunset) review on Potassium Permanganate from China, Inv. No. 731-TA-125 (Second Review), 3:00 p.m. ITC Main Hearing Room. Federal Register notice:
www.usitc.gov/secretary/fed_reg_notices/sunset/731_125_notice222005sgle.pdf

May 19-20, 2005: No hearings, votes or meetings scheduled.

The Bangkok Post reports today that the Government of Thailand will terminate its corruption probe into the purchase of CTX 900 explosives detection machines for Bangkok's new airport after receiving a letter from GE InVision Technologies Inc. stating that the company's predecessor did not pay bribes to any Thai government official.

GE InVision's letter stated that ''In its investigation related to Thailand, InVision did not find that any official of the Royal Thai Government had in fact received any improper payment or accepted any offer of an improper payment and such a finding was not a prerequisite to US authorities nonetheless concluding that InVision had violated US law" and that under US law, a company can be found to have violated the FCPA based on evidence that an offer or promise of an improper payment was made, even if there is no evidence that a payment was in fact received."

As previously reported, InVision entered into settlement agreements with the U.S. Government after it voluntarily disclosed that possible violations of the Foreign Corrupt Practices Act in connection with sales activities in Thailand, China and the Philippines.

Former E.U. Trade Commissioner Pascal Lamy, of France, was selected today to be the next Director-General of the World Trade Organization (WTO). Formal action on Mr. Lamy's selection will take place at the WTO's General Council meeting on May 26th. Lamy will succeed former Thai deputy prime minister Dr. Supachai Panitchpakdi when his three-year term expires on August 31, 2005. Dr. Supachai this week was confirmed to lead the United Nations Conference on Trade and Development (UNCTAD).

In a press release issued this afternoon, new U.S. Trade Representative Rob Portman praised Lamy's "experience and prominence in international trade" matters. The USTR's press release can be viewed at the following link:
www.ustr.gov/Document_Library/Press_Releases/2005/May/
Portman_Praises_Recommendation_of_Lamy_to_be_Head_of_WTO.html

Senior Judge Tsoucalas of the U.S. Court of International Trade (CIT) today issued an opinion that conclusively resolves a major issue involving the duty drawback adjustment used in many U.S. antidumping cases. In Allied Tube & Conduit and Wheatland Tube v. United States, Slip Op. 05-56 (May 12, 2005), the U.S. standard pipe industry appealed the U.S. Department of Commerce's (DOC) decision to grant a duty drawback adjustment in calculating the Borusan Group's (Borusan), dumping margin in the 2002-2003 antidumping review on standard pipe from Turkey. Borusan is Turkey's leading producer and exporter of steel pipe and tube products.

In its brief submitted to the CIT, DOC contended that it properly applied its standard two-prong test for granting a duty drawback adjustment and properly determined that Borusan satisfied the requirements of the test. DOC also stated that it verified that Borusan paid duties upon inputs used in the production of merchandise sold domestically. Borusan's brief noted that there is no additional requirement in U.S. law that a respondent must show that it paid duties on other imported raw materials or that its home market price was based on a duty-inclusive cost. In any event, Borusan stated that it had provided evidence during the sales verification that it paid import duties on imported raw materials.

In an opinion issued only 15 days after the oral argument, Judge Tsoucalas found that that the statute is clear on its face and neither U.S. law, CIT precedent or DOC's practice required Borusan to prove that it paid import duties on inputs used in the home market. Moreover, Judge Tsoucalas held that DOC's determination that Borusan satisfied both prongs of its standard two-prong test for duty drawback adjustments was supported by substantial evidence and in accordance with law. As a result, the court denied Allied Tube’'s claims in all respects and found that DOC properly granted Borusan's duty drawback adjustment.

Office of the Press Secretary
May 12, 2005

World Trade Week, 2005
A Proclamation by the President of the United States of America

Free and fair trade creates jobs, raises living standards, and lowers prices for families throughout America. It also strengthens our relationships with other countries, helping us to forge new partnerships based on a commitment to generate new prosperity and a better way of life for people in America and throughout the world. This year, as we mark the tenth anniversary of the World Trade Organization, World Trade Week provides an opportunity to recognize the many benefits of free and fair trade in strengthening economies and improving lives.

Because 95 percent of the world's population resides outside of our borders, trade creates opportunities for American farmers, small businesses, and manufacturers to sell their products to consumers across the world. Trade also raises up the world's poor, bringing hope to those in despair.

Millions of American jobs depend on exports, and my Administration is committed to opening markets around the world for American products. Since 2001, we have completed free trade agreements with 12 nations, representing a combined market of 124 million consumers for American products, goods, and services. These agreements will create millions of new consumers for America's farmers, manufacturers, and small business owners, and deepen our friendships with countries in other parts of the world.

As we open up new markets to trade, we must always ensure that American workers are treated fairly. Our workers can compete with anyone, anywhere, so long as the rules are fair. My Administration will continue to enforce trade agreements and insist upon a level playing field for America's workers.

NOW, THEREFORE, I, GEORGE W. BUSH, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim May 15 through May 21, 2005, as World Trade Week. I encourage all Americans to observe this week with events, trade shows, and educational programs that celebrate the benefits of trade to our Nation and the global economy.

IN WITNESS WHEREOF, I have hereunto set my hand this twelfth day of May, in the year of our Lord two thousand five, and of the Independence of the United States of America the two hundred and twenty ninth.

GEORGE W. BUSH

The U.S. Attorney for the District of Massachusetts announced that Bernard Smith, president and part owner of Stealth Components, Inc. ("Stealth"), pleaded guilty on May 11, 2005 to a seven-count Indictment charging him with conspiracy and false Statements in connection with a scheme to avoid paying over $385,000 in U.S. Customs import duties.

As part of his guilty plea, Smith admitted that from November of 1998 through May of 2000, he and others participated in a scheme to defraud the U.S. Custom Service in order to minimize the payment of antidumping duties that Stealth was required to make on imported Korean Dynamic Random Access Memory semiconductors ("DRAMs"). As detailed in the indictment, the scheme involved the presentation of false and fraudulent invoices to U.S. Customs that undervalued the purchase price and falsely described the Korean DRAMs that Stealth imported in order to lessen the cash deposit amount of antidumping duties that Stealth was required to pay. Smith perpetrated this scheme by directing foreign suppliers to prepare fraudulent invoices and other false entry documents that would be presented to U.S. Customs at the time of entry for each shipment of DRAMs that Stealth imported. Over the course of this scheme, Stealth was able to avoid paying more than $385,000 in antidumping duties.

U.S. District Judge Douglas P. Woodlock scheduled Smith's sentencing for September 8, 2005. Smith faces a maximum sentence of 5 years in prison on the conspiracy charge and 2 years in prison on each of the six false statements charges.

The Seattle Post-Intelligencer reports that, due to the requirements of the U.S. International Traffic in Arms Regulations (ITAR), Boeing will produce the Navy's P-8 Multi-Mission Maritime Aircraft (MMA) in a separate building adjacent to the Renton, Washington plant where the commercial B-737s are now assembled. The P-8 is a military version of the B-737-800ERX and is designed to replace the P-3 Orion, which has been in service since November 1959 (P-3A) and August 1969 (P-3C).

The complete article can be viewed at the following link: seattlepi.nwsource.com/business/223741_air11.html

The U.S. Department of Commerce's Bureau of Industry and Security (BIS) announced today that EMD Biosciences, Inc. (EMD) of San Diego, California, has agreed to pay a $904,500 civil penalty to settle charges that it exported biological toxins to Canada in violation of the Export Administration Regulations (EAR). This penalty is one of the largest civil penalties imposed by BIS. Under the terms of the Settlement Agreement, EMD's export privileges under the EAR were denied for a period of two years, all of which is suspended provided that EMD commits no violations of the EAR during the next two years.

In its charging letter, BIS alleged that, between June 2002 and July 2003, EMD committed 134 violations of the EAR stemming from 67 exports of biological toxins to Canada that were made without obtaining required BIS export licenses.

EMD, formerly known as CN Biosciences, Inc. (CN), previously paid civil fines for unlicensed exports of the same and similar toxins. In 1999 CN agreed to pay a civil penalty of $708,000 to the Commerce Department to settle charges that between July 1992 and January 1994, CN made 171 unlicensed shipments to various destinations in violation of the EAR. $354,000 of the civil penalty was suspended for one year provided that the company committed no further violations of the EAR during that time.

Today's Federal Register contains a notice advising that the President's Export Council (PEC) will hold a full Council meeting in Washington, DC on May 25th from 11:45 to discuss topics trade priorities and initiatives, PEC subcommittee activity and proposed letters of recommendation. The location of the meeting has not yet been determined. For more information on the PEC, see their website at: www.ita.doc.gov/td/pec. Click on the following link to review the PEC's December 17, 2004 letter to the President on export controls: www.ita.doc.gov/td/pec/eclletter.tif.

The U.S. Department of Commerce's (DOC) International Trade Administration yesterday published in the Federal Register an important clarification involving the statutory deadlines for adntidumping and countervailing duty administrative proceedings. The notice states that "where a statutory deadline falls on a weekend, federal holiday, or any other day when the Department is closed, the Department will continue its longstanding practice of reaching our determination on the next business day."

This clarification was made in light of the Court of Appeals for the Federal Circuit's (CAFC) recent decision in Dofasco, Inc. v. United States, 390 F.3d 1370, 1372 (Fed. Cir. 2004). In Dofasco, DOC published its notice of opportunity to request an administrative review on August 1, 2003. The notice stated that an administrative review would be conducted pursuant to "requests received by the last day of August 2003." The last day of August 2003 was a Sunday and September 1, 2003, was Labor Day, a federal holiday. United States Steel Corporation (USSC) filed a request for administrative review of Dofasco's antidumping liability on September 2, 2003. Dofasco asked the DOC to rescind its administrative review on the basis that USSC's request was untimely, not having been filed "by the last day of August." DOC refused to rescind the administrative review, claiming that its regulations provide that "if the applicable time limit expires on a non-business day, [Commerce] will accept documents that are filed on the next business day." The CAFC disagreed with Dofasco and held that a request for an administrative review was timely filed as long as the filing is made on the next business day following a non-business day, even if that day falls in the following month.

DOC's clarification notice can be found at the following link:
a257.g.akamaitech.net/7/257/2422/01jan20051800/
edocket.access.gpo.gov/2005/E5-2234.htm

A coalition comprised of a number of prominent trade-related associations is requesting the Bureau of Industry and Security (BIS) to grant a 60-day extension of the May 27, 2005 deadline to submit comments on BIS's March 28, 2005 advance notice of proposed rulemaking regarding revisions to and clarifications of the "deemed export" regulatory requirements.

BIS's proposed changes to the regulations governing the issuance of "deemed export" licenses for the transfer of controlled technology to foreign nationals in the U.S. has unleashed a considerable amount of interest and concern from academia and the business community. These concerns were reflected by the large attendance at last Friday's workshop on the deemed export issue at the National Academy of Sciences (NAS) in Washington, DC. A link to the recording of the NAS workshop and the presentations made by Acting Under Secretary Lichtenbaum and others can be found at the following link: www7.nationalacademies.org/rscans/.

Customs and Border Protection (CBP) has issued a notice on its website reminding customs brokers of the importance of validating and verifying the identity and legal authority of customs powers of attorney (POA).

CBP notice states that security concerns, the broker's own professional business interests and continuing obligation to demonstrate "reasonable care" require verification of the POA grantor's identity and legal authority to enter into a POA.

CBP provided the following examples of ways a customs broker can validate a POA:

• Have POAs completed in person so the grantor's personal identification (drivers license, passport, etc.) can be reviewed.
• Check applicable websites to verify the POA grantor's business and registration with state authorities.
• If the principal uses a trade or fictitious name in doing business, confirm that the name appears on the POA.
• Verify that the importer's name, importer number and Employer Identification Number on the POA match what is in ACS.
• Check whether the POA grantor is named as a sanctioned or restricted person or entity by the U.S. Government (BIS Denied Parties List, etc.).

The House Committee on International Relations' Subcommittee on Europe and Emerging Threats will hold a hearing on the State of U.S. Turkish Relations on May 11, 2005 in Room 2172 of the Rayburn House Office Building. The following witnesses are scheduled to appear at the hearing:

Ms. Zeyno Baran, Director, International Security and Energy Programs The Nixon Center

Henri J. Barkey, Ph.D., Department Chair, Department of International Relations, Lehigh University

The Honorable Mark Parris (Former American Ambassador to Turkey), Senior Public Policy Advisor, Baker, Donelson, Bearman, Caldwell & Berkowitz, P.C.

Soner Cagaptay, Ph.D., Director, Turkish Research Program, The Washington Institute for Near East Policy

The Office of the U.S. Trade Representative (USTR) published a notice in today's Federal Register announcing that it will accept petitions to modify the list of products that are eligible for duty-free treatment under the Generalized System of Preferences (GSP) program and to modify the GSP status of certain GSP beneficiary developing countries because of country practices. The deadline for submitting petitions for the 2005 Annual GSP Product and Country Eligibility Practices Review is 5:00 p.m. on June 15, 2005.

Congressman E. Clay Shaw, Jr. (R-FL), Chairman of the House Ways and Means Committee's Subcommittee on Trade has announced that the Subcommittee will hold a hearing to review future prospects for U.S. participation in the World Trade Organization (WTO). The hearing will focus on: (1) overall results of U.S. membership in the WTO and the GATT, (2) whether future participation of the United States in the WTO and the multilateral trading system can be expected to benefit Americans, and (3) prospects for increased economic opportunities for U.S. farmers, workers, and consumers in the Doha Round.

The hearing will take place at 10 a.m. on Tuesday, May 17, 2005, in room 1100 of the Longworth House Office Building. The witnesss schedule has not been finalized, but Deputy U.S. Trade Representative Peter F. Allgeier has been invited. The Subcommittee has announced that individuals and organizations may submit a written statement for consideration by the Subcommittee or for inclusion in the printed record of the hearing. Further details about this hearing can be found at the following link:
http://waysandmeans.house.gov/hearings.asp?formmode=view&id=2633

President Bush today issued a notice and notified Congress that he is continuing for an additional year the national emergency blocking the property of certain persons and prohibiting the exportation or reexportation of certain goods to Syria.

On May 11, 2004, as a result of the passage of the Syria Accountability and Lebanese Sovereignty Restoration Act of 2003 (Public Law 108 175), the President issued Executive Order 13338 blocking the property of certain persons and prohibiting the exportation or reexportation of most goods to Syria. Under General Order No. 2 issued by BIS, food as well as medicines classified as EAR99 may be exported or reexported to Syria without a license. In addition, medical devices, certain telecommunications equipment and associated computers, software and technology are licenseable to Syria on a case-by-case basis.

In the notice continuing the national emergency (which will be published in the Federal Register on a later date) and in his letter to Congress, the President indicated that he is extending the national emergency because "the actions and policies of the Government of Syria continue to pose an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States."

The next meeting of the NCITD will be held at 9:15 a.m. on May 12, 2005 at the University Club in Washington, DC. The speakers include:

Mr. John P. Priecko, who is with Headquarters, Department of the Army (HQDA), Office of the Deputy Assistant Secretary of the Army (ODASA), Defense Exports & Cooperation (DE&C). Mr. Priecko will be making a presentation on the commodity jurisdiction process (EAR versus ITAR) (on a personal note, I have seen this presentation and it is excellent); and

Mr. Don Burton, President of the International Import-Export Institute, who will be speaking on international trade certification programs and megatrends in international trade compliance.

RSVP for the meeting and lunch to the Secretariat by email (cu@ncitd.org), phone (202-872-9280) or online at www.ncitd.org.

Reprinted below is the joint press release that was issued this morning by BASF and Shell formally announcing the sale of Basell to the U.S.-India consortium. The Reuters and Bloomberg stories on today's announcement can be found by clicking the respective links. The deal is expected to close in the second half of 2005:

BASF and Shell to sell their stakes in Basell to consortium led by Access Industries

The transaction is subject to approval by the relevant antitrust authorities and closing is expected in the second half of 2005.

BASF and Shell announced plans to review options for the joint venture in July 2004. The two companies established Basell as an independent company in 2000 to successfully consolidate their polyolefins businesses across the world. Basell achieved competitive advantages such as cost leadership through world-scale plants, and has developed into one of the world leaders in its industry.

"Basell's recent strong performance has shown that it was the right decision to form the joint venture," said Dr. John Feldmann, member of the Board of Executive Directors of BASF Aktiengesellschaft, and Chairman of Basell's Supervisory Board. "The strategic divestment will now create additional value for the BASF Group as part of the company's ongoing portfolio management. In its Plastics segment, BASF will continue to focus its strategic position on styrenics, performance polymers, polyurethanes and their related value chains."

"Basell has successfully consolidated the portfolio of polyolefins assets of the two shareholders to become a major player in the industry," said Fran Keeth, Executive Vice President, Shell Chemicals. "The divestment enables Shell to optimize shareholder value and focus on our strategy of leveraging the synergies between oil products and chemicals activities, to strengthen our core portfolio in Europe and North America, and to grow in Asia and the Middle East."

"I'm very pleased that we are the successful bidder for Basell," said Len Blavatnik, Chairman of Access Industries. "We are experienced in industrial investments in companies that compete in large, cyclical markets, and we believe Basell is an attractively positioned global business with an excellent future. I am very impressed by Basell's track record, and by the company's highly professional and motivated management and workforce."

Dr. Chatterjee, Chairman of The Chatterjee Group, likewise praised Basell's "broad-based customer portfolio, premium market position and leading capability in product and process innovation. We look forward to consolidating Basell's global leadership position through enhanced commitments in technology."

Basell
Basell is headquartered in Hoofddorp, the Netherlands. The company has sales activities in more than 120 countries and operates production sites in 21 countries worldwide. Basell employs a workforce of 6,600 employees: about 5,200 in Europe and about 1,000 in North America. In 2004, Basell posted sales of €6.7 billion.

Basell is the world's largest producer of polypropylene and advanced polyolefins, and is a leading supplier of polyethylene and catalysts. The company is a global leader in the development and licensing of polypropylene and polyethylene processes. These plastics are used in a wide number of applications, for example in the packaging and automotive industries and for consumer goods.

BASF
BASF is the world's leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics, performance products, agricultural products and fine chemicals to crude oil and natural gas. As a reliable partner to virtually all industries, BASF's intelligent solutions and high-value products help its customers to be more successful. BASF develops new technologies and uses them to open up additional market opportunities. It combines economic success with environmental protection and social responsibility, thus contributing to a better future. In 2004, BASF had approximately 82,000 employees and posted sales of more than EUR 37 billion. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA), New York (BF), Paris (BA) and Zurich (AN). Further information on BASF is available on the Internet at www.basf.com.

Shell
Shell Chemicals collectively refers to the companies of the Royal Dutch/Shell Group engaged in the chemicals business. Shell chemicals companies manufacture and deliver petrochemical building blocks and polyolefins to industrial customers. These products are widely used in plastics, coatings and detergents. For further information please visit www.shell.com/chemicals/news.

Access Industries
Access Industries, founded by company Chairman and President Len Blavatnik in 1986, is a privately held, US-based industrial holding company with investments worldwide. Access has long-term strategic interests in the oil, aluminium, coal and telecommunications sectors.

The Chatterjee Group
The Chatterjee Group (TCG) is a privately held, US-based investment organisation with a significant business presence in India. Dr. Purnendu Chatterjee is the chairman of TCG, which has a controlling interest in Haldia Petrochemicals Ltd, a major integrated petrochemical company that utilises Basell technology.

Reuters reported this morning that the managing director of Iran's National Petrochemical Company (NPC) has stated that "due to U.S. pressures we are unofficially told Iran cannot buy Basell." The article states that NPC's inability to clinch a deal with BASF and Shell is the latest evidence of a deep reluctance among European companies to do business with Iran in the face of U.S. pressure.

The most recent version of the Reuters story quotes a source saying that "there's a decent chance of a deal (with Haldia) happening overnight" and another source said a sale could be agreed by the end of the week.

The BBC picked up this story late this afternoon and published an article entitled "US 'blocking Iran plastics deal.'"

The Telegraph of Calcutta, India reported late today that the Chatterjee-led Indian/U.S. group was "locked in final negotiations" to purchase Basell "in what would be the biggest foreign acquisition involving an Indian." The paper notes that the "two sides in London had entered the final stage and the deal could be signed any time."

Thursday's edition of The Guardian says "Shell appears to have bowed to American pressure and backed out of a $4.4bn (£2.3bn) plan to sell [Basell] to Iran, for fear of damaging its extensive US interests."

The fallout over the InVision airport bribery scandal continues in Thailand. The Bangkok Post reports today that Deputy Secretary of State Robert Zoellick, who is visiting Bangkok, has indicated that the U.S. government has pledge "to share facts about the procurement of airport baggage scanners to get to the bottom of the scandal." The article quotes Mr. Zoellick as saying both countries wanted clean government systems and Washington wished to have U.S. businesses operate in a fair and transparent manner.

The article reports that the scandal has threatened to push back the deadline of the new airport's expected opening next year. Thailand's Prime Minister has indicated that the delay and finding a new supplier to replace GE InVision [the company's current name] were a small price to pay for repairing the country's reputation tainted by the allegation. The article also contains details about a potential legal battle between the Government of Thailand, GE InVision and the ITO Joint Venture, commissioned to buy and install the scanners.

This morning, many news outlets picked up on yesterday afternoon's Dow Jones/Wall Street Journal story and are reporting that Royal Dutch Shell/Group and BASF AG "are close to a deal to sell" Basell to the Indian consortium, rather than to Iran's NPC. I suspect that a bigger story on this issue will be coming out today.

Dow Jones reported this afternoon that Royal/Dutch Shell Group is leaning toward selling Basell N.V., its joint venture with BASF AG, to the Indian consortium rather than to Iran's National Petrochemical because of the political issues involved in dealing with a country the Bush administration has labeled an outpost of tyranny. The article notes that the sale has triggered an intense debate within Shell."

The Press Trust of India reports that the State Department is extremely concerned about China's role as a weapons proliferator. The article quotes quotes an unnamed State Department official as saying that "Chinese companies are continuing shipping of 'troubling' Weapons of Mass Destruction, notably missile technology, and that could threaten the security of the world.

The article notes that while China has issued regulations intended to control exports that could be used by other countries pursuing nuclear, chemical or biological weapons or missiles, many Chinese companies, most of them state-owned, continue to make many troubling shipments.

The official noted that from January 2001 through April 2005, the State Department has sanctioned foreign companies 115 times over controlled export shipments and that 80 of those sanctions were aimed at Chinese companies.

The article can be found at the following link:
www.ptinews.com/pti%5Cptisite.nsf/0/
F98C8CD030FF42D465256FF60016EA67?OpenDocument