The Month in International Trade—March 2023

In this issue:

• Top Trade Developments
  • Proposed Rule Requires Certain Contractors to Provide Export Authorizations to DCMA
  • BIS Amends EAR to Include Human Rights Protection as a Basis For Adding Entities To the Entity List
  • FinCEN Issues Guidance on the “Who, What, When” of Beneficial Ownership Information Reporting Requirements
  • Proposed Rule from Commerce on National Security Guardrails for CHIPS Act Funding: Restrictions on China and other Countries of Concern
  • China’s New Standard Contractual Clauses and Impact on Data Intensive Businesses
  • CBP Issues Guidance Requiring Reporting of Smelt and Cast Country of Origin for Aluminum Products to Enforce 200% Tariff on Russian Aluminum
  • The United States Imposes New Sanctions and Export Controls Targeting Russia and Belarus, Issues Joint Compliance Guidance, and Announces Corporate Compliance with Sanctions and Export Controls as an Enforcement Priority
  • Takeaways from the 2023 Trade Policy Agenda and 2022 Annual Report
• Crowell in the Press
• Crowell Speaks

This news bulletin is provided by the International Trade Group of Crowell & Moring. If you have questions or need assistance on trade law matters, please contact Jana del-Cerro, Anand Sithian, or Simeon Yerokun or any member of the International Trade Group.

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Top Trade Developments

Proposed Rule Requires Certain Contractors to Provide Export Authorizations to DCMA

On March 22, 2023, the Department of Defense (DoD) issued a proposed rule that would amend the Defense Federal Acquisition Regulation Supplement (DFARS) to require certain contractors to provide export authorizations to the Defense Authorization Management Agency (DCMA).

Read More

For more information, contact: Addie Cliffe, Chandler Leonard, Rachel Schumacher

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BIS Amends EAR to Include Human Rights Protection as A Basis for Adding Entities to The Entity List

On March 28^th, BIS issued a final rule amending the Export Administration Regulations (EAR) to confirm that protecting human rights worldwide is a basis for adding entities to the Entity List. Additionally, BIS added 11 entities from Burma, China, Nicaragua, and Russia to the Entity List.

Read More

For more information, contact: Jana del-Cerro, Aryn Gruneisen

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FINCEN Issues Guidance on the “Who, What, When” Of Beneficial Ownership Information Reporting Requirements

On March 24, 2023, the Financial Crimes Enforcement Network (“FinCEN”) issued its first set of guidance documents for its beneficial ownership reporting requirements, which take effect on January 1, 2024.

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For more information, contact: Caroline Brown, Carlton Greene, Anand Sithian, Nicole Succar

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Proposed Rule from Commerce on National Security Guardrails for Chips Act Funding: Restrictions on China and Other Countries of Concern

The U.S. Department of Commerce (“Commerce”) is seeking public comment on how to protect national security while boosting investment in the domestic semiconductor manufacturing industry as part of a new financial incentive program established under the CHIPS and Science Act.

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For more information, contact: Byron Brown, Jeremy Iloulian

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China’s New Standard Contractual Clauses and Impact on Data Intensive Businesses

Eight months after the issuance of the draft Measures on the Standard Contract for the Export of Personal Information (“SCC Regulations”), on February 24, 2023, the Cyberspace Administration of China (“CAC”) released the final version of the SCCs Regulations, along with the Standard Contractual Clauses (“SCCs”).

Read More

For more information, contact: Christiana State, Zhiwei Chen

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CBP Issues Guidance Requiring Reporting of Smelt and Cast Country of Origin for Aluminum Products to Enforce 200% Tariff on Russian Aluminum

Customs and Border Protection (CBP) released new guidance following the announcement of new 200% tariffs on Russian aluminum.  CBP’s guidance outlines new reporting requirements for all imports of aluminum and aluminum derivative products, regardless of the country of origin.

The new reporting requirements follow the issuance of Presidential Proclamation 10522.  Under Proclamation 10522, any imports of aluminum articles or aluminum derivative articles that are produced in Russia, or produced in any other country using any amount of primary aluminum that is smelted or cast in Russia are subject to a 200 percent ad valorem duty, effective as of March 10, 2023 and April 10, 2023, respectively.

Read More

For more information, contact: John Brew, Weronika Bukowski, Emily Devereaux

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The United States Imposes New Sanctions and Export Controls Targeting Russia and Belarus, Issues Joint Compliance Guidance, and Announces Corporate Compliance with Sanctions and Export Controls as An Enforcement Priority

On February 24, 2023, the United States and other G7 nations announced a number of new sanctions and export control measures coinciding with the one-year mark of Russia’s military invasion of Ukraine. Shortly after these expansive sanctions and export controls were announced, the Departments of Justice (“DOJ”), the Treasury (“Treasury”), and Commerce (“Commerce”) issued their first-ever joint guidance regarding a planned crack-down by these agencies on sanctions and export controls evasion related to Russia in concert with DOJ’s sweeping announcements of a renewed focus on corporate compliance with sanctions and export controls.

Read More

For more information, contact: Caroline Brown, Weronika Bukowski, Carlton Greene, Jason Prince, Anand Sithian, Dj Wolff

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Takeaways from the 2023 Trade Policy Agenda and 2022 Annual Report

This client alert summarizes the Administration’s ongoing trade priorities and summarize trade activities in the past year based on the Biden Administration’s 2023 Trade Policy Agenda and 2022 Annual Report, which was issued on March 1, 2023.

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For more information, contact: Robert Holleyman, Kate Growley, Jackson Pai, Kate Beale, Neda Shaheen, Eric Obscherning

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Crowell in the Press

Lawyer Says UFLPA Led to 'Sea Change' In Customs Compliance

April 4, 2023 — International Trade Today
Access Article (Web)
Related Professionals: David R. Stepp and Carolyn Krampitz.

Choose Words Carefully In Forced Labor Communications With Chinese Suppliers, Lawyer Says

March 22, 2023 — International Trade Today
Access Article (Web)
Related Professionals: David R. Stepp.

US' New China Tech Unit Raises Domestic Research Scrutiny

March 17, 2023 — Law360
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Related Professionals: Caroline E. Brown, Michael K. Atkinson, Jeremy Iloulian, and Kelsey Clinton.

Russia-Related Service Restrictions Causing Compliance Challenges, Lawyers Say

March 8, 2023 — Export Compliance Daily
Access Article (Web)
Related Professionals: Carlton Greene, Jason Prince, David (Dj) Wolff, and Anand Sithian.

Figures Reveal Likely Russia Sanctions Evasion Hubs

March 1, 2023 — Global Trade Review
Access Article (Web)
Related Professionals: David (Dj) Wolff.

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Crowell Speaks

"Wall Street Journal Risk & Compliance Forum," Webinar, The Wall Street Journal (May 9, 2023). Speaker: Jason Prince.

"Crafting OFAC’s Russia Sanctions Strategy," CFT Roundtable Series, Washington Institute, Washington, DC (May 1, 2023). Speaker: Jason Prince.

"Forced Labor in the Global Supply Chain: Understanding New Regulations and Due Diligence Requirements," Kharon, Webinar, 2023. (April 4, 2023). Speakers: David R. Stepp and Carolyn Krampitz.

"Treacherous Waters for U.S. Importers: How Customs Violations Can Lead to False Claims Act Liability," Crowell & Moring Webinar Series, 2023. (April 4, 2023). Speakers: Jason Crawford, Weronika Bukowski, Rachel Schumacher and Simeon Yerokun.

"Addressing Unique Issues Relating to Purchases of Non-U.S. Registered Aircraft," Crowell & Moring Webinar, 2023. (March 22, 2023). Speakers: Caroline E. Brown and Christopher B. Younger.

"Compliant on Forced Labor? Prove It! | A Practical Guide on Preventing Forced Labor in Your Supply Chain and Responding to U.S. Customs Actions," Crowell & Moring Webinar Series, 2023. (March 21, 2023). Speakers: John Brew, Evan Chuck, Carolyn Krampitz, Laurel Saito, David R. Stepp and Simeon Yerokun.

"Russia One Year Later: Lessons Learned, Lingering Risks, and 2023 Predictions," Crowell & Moring Webinar Series, 2023. (March 7, 2023). Speakers: Carlton Greene, Michelle J. Linderman, Jason Prince, Anand Sithian, Nicole Sayegh Succar, and Dj Wolff.