Insights

Los Angeles – March 11, 2019: Crowell & Moring LLP is broadening its ability to help multinational clients navigate global expansion and regulatory compliance in China and the Asia Pacific by adding four international trade and global employment lawyers: partners Nicole J. Simonian and Evan Yee-Fan Chuck, senior counsel Robert Clifton Burns, and counsel Jackson Pai to its Los Angeles and Washington offices. As part of this move, Crowell & Moring International (CMI), the firm’s global policy and regulatory affairs consulting affiliate, is launching an office in Shanghai with seven trade, transactions, and tax professionals to support global businesses facing cross-border transactional, investigative, policy, and regulatory needs.

On January 12, 2022 the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) issued a federal register notice delaying the effective date of new controls on cybersecurity items and an accompanying new license exception. The rules are now set to take effect on March 7, 2022.

Today, December 6th, is the deadline to file comments on the Department of Commerce’s Bureau of Industry and Security’s (BIS) interim final rule introducing export controls over cybersecurity items. The rule was issued on October 21st and broadly speaking covers intrusion software and internet protocol (IP) network communication surveillance that software is “subject to the Export Administration Regulations (EAR),” i.e., is either exported from the United States or is developed and exported from abroad with more than a minimal percentage of U.S.-origin content.[i]

On April 15, 2021, the United States unveiled a sweeping series of additional sanctions on Russia, marking the first major Russia-related sanctions development of the Biden Administration and the most material such U.S. action in several years.  The actions were spearheaded by President Biden’s issuance of Executive Order 14024 (the “EO”) that grants the Department of Treasury a wide-ranging set of new designation authorities, including to designate persons “operating in” the “technology” and “defense and related material” sectors of the Russian economy.  Acting under this authority, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated six Russian entities for operating in the “technology” sector as well as expanding existing restrictions on U.S. financial institutions to now restrict participation in the primary market for certain ruble-, as well as non-ruble-denominated bonds, as well as certain ruble- or non-ruble-denominated lending activities.

Law.com* speaks with senior counsel Clif Burns about the challenges companies are facing when closing down branches in Russia with a considerable number of American employees. According to Burns, companies don’t want to start closing down operations while Americans are there and risk their arrest, and several strategies have been developed for paying Russia-based employees.

Celebrating its 93rd Anniversary, World Trade Week Southern California (WTW), an initiative of the L.A. Area Chamber, is the most extensive and unique program of its kind in the country. WTW dedicates itself to educating the business community on the positive aspects of international trade on the local and national economy through educational programs and events. World Trade Week is celebrated throughout the month of May with nearly 30 events that are jumpstarted by the annual WTW Kickoff Breakfast.

Crowell & Moring’s sanctions team provides guidance on the rapidly-changing U.S. sanctions against Russia, including measures against various Russian banks and Russia’s central bank, National Wealth Fund, and Ministry of Finance, and how these new sanctions can arise in syndicated loans and other lending arrangements, and loan trading.

Crowell & Moring International Trade attorneys will discuss the most prominent developments of the last year and the trends we expect to continue into 2022. 

Supply chain disruptions have exacerbated strains and weaknesses in existing trade infrastructure, causing widespread ripple effects throughout the global economy.  From an international trade perspective, companies face real-time pressures to make business decisions that may have complex legal implications going forward.  Our International Trade Team will lead a discussion highlighting current risks companies are encountering, potential legal implications, and strategies to mitigate risks in real-time in this dynamic and changing landscape.