International Trade & National Security Law Firm

Much has been written about the Corporate Transparency Act (“CTA”), which was enacted on January 1, 2021, and went into effect on January 1, 2024. Briefly, the CTA requires “reporting companies” to disclose beneficial ownership information (“BOI”) to the federal government. A perhaps overlooked effect of the CTA’s BOI reporting rule is its potential impact on the Department of the Treasury’s continual search for foreign investment transactions that were not notified to the Committee on Foreign Investment in the United States (“CFIUS” or “the Committee”).

The Directorate of Defense Trade Controls, usually referred to as “DDTC,” is somewhat notorious for- as the saying goes- holding their cards close to the vest when it comes to offering guidance on specific topics related to the ITAR and how it applies to exporting goods and services to foreign persons or countries. So, for any U.S. exporter whose products or services are captured under the ITAR, it is important to take notice when DDTC speaks by publishing guidance.  

On March 25, 2024, DDTC published a short series of Frequently Asked Questions regarding joint ventures[1] and how those contractual arrangements affect an exporter’s DDTC registration. Following are a few of the key points from the FAQs.

This article will provide an overview of the global legal landscape for forced labor due diligence, highlight jurisdictions with forced labor due diligence and reporting requirements, and examine the kinds of steps companies should be taking to address forced labor risks in their supply chains and comply with relevant laws.

On July 23, 2024, the Committee on Foreign Investment in the United States (“CFIUS” or “the Committee”) released its annual report to Congress regarding the Committee’s national security reviews and investigations of certain foreign investment transactions from the preceding year. The report offers valuable insight into the CFIUS review process and highlights the various foreign investment transaction elements that are coming under scrutiny. Even with an overall decrease in global merger and acquisition activity in 2023, CFIUS activity was still significant.

On May 22, 2024, the United States Trade Representative (“USTR”) announced the publication of a Federal Register Notice (“the FRN”) setting forth additional and increased Section 301 tariffs for specific Harmonized Tariff Schedule of the U.S. (“HTSUS”) subheadings. In addition, the FRN provides details on products subject to potential exclusions from the tariffs and establishes a period for interested parties to provide comments on the tariff modifications and potential exclusions.

On May 14, 2024, the United States Trade Representative (“USTR”) announced the publication of its long-awaited report on the Four-Year Review of Actions Taken in the Section 301 Investigation: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation (“the Report”). Considering the reported efficacy of the tariffs as strategic measures to counteract adverse Chinese policies and practices, and findings that unfair practices persist, President Biden and the USTR are now set to take further action related to Section 301 tariffs on Chinese-origin goods.