On January 18, 2023, Cleveland-Cliffs Inc. and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, filed a petition to impose (a) antidumping (AD) duties on imports of Certain Tin Mill Products from Canada, China, Germany, Netherlands, South Korea, Taiwan, Turkey and the United Kingdom; and, (b) countervailing (CVD) duties on the imports from China. Such imports are claimed to be at unfairly low prices (i.e., below cost, comparison market price, normal value), AD, and/or, government subsidized, CVD; and to injure a U.S. industry. Remedial AD/CVD import duties are requested.
DDTC Issues Updated Guidance for US Persons Abroad
On January 5, 2023, the Directorate of Defense Trade Controls (DDTC), which administers the International Traffic in Arms Regulations (ITAR), announced updated guidance and FAQs for US persons abroad (USPAB) authorization requests. DDTC also released a submission letter template and sample § 121.13 certification letter to accompany such requests.
BIS Amends EAR to Apply Recent Advanced Computer and Semiconductor Export Controls to Macau
On January 18, 2023, the U.S. Commerce Department’s Bureau of Industry and Security (BIS) published in the Federal Register an Interim Final Rule, 88 Fed. Reg. 2821, amending the Export Administration Regulations (EAR) (15 CFR Parts 730-774) by adding Macau to the recent controls implemented on certain advanced computing and semiconductor manufacturing items destined for China. This interim final rule is effective as of January 17, 2023. Parties wishing to submit comments to BIS on this interim final rule must do so no later than January 31, 2023.
CFIUS Clearance: GIC Private Limited and STORE Capital Corporation
Status: Clearance
Acquirer: GIC Private Limited (Singapore); Blue Owl Capital (U.S.)
Acquired: STORE Capital Corporation (U.S.)
Value: $14 billion
Industry Tags: Real Estate
CFIUS Clearance: Tiga Acquisition Corp. and Grindr Group LLC
Status: End of Investigation; Likely Clearance
Acquirer: Tiga Acquisition Corp. (Singapore)
Acquired: Grindr Group LLC (U.S.)
Value: $384 million
Industry: Information Services; Software
BIS ISSUES FIRST FAQS FOR CHINESE SUPERCOMPUTERING AND SEMICONDUCTOR MANUFACTURING EXPORT CONTROLS
On Friday, October 28, 2022, the U.S. Commerce Department’s Bureau of Industry and Security (“BIS”) issued its first Frequently Asked Questions (FAQs) regarding the Interim Final Rule, 87 Fed. Reg. 61286, entitled “Implementation of Additional Export Controls: Certain Advanced Computing and Semiconductor Manufacturing Items; Supercomputer and Semiconductor End Use; Entity List Modification.” These FAQs cover the following topics: the applicability of the new restrictions on exports and reexports to Hong Kong and Macau; the definition of fabrication “facility;” deemed export/reexports; U.S. person definition and restrictions; licenses; and encryption.
Background
On Thursday, October 13, 2022, the BIS published in the Federal Register an Interim Final Rule, 87 Fed Reg. 62186, amending the Export Administration Regulations (EAR) (15 CFR parts 730-774) to impose new export controls on Chinese advanced computing integrated circuits (ICs), computer commodities containing such ICs, and certain semiconductor manufacturing items. For more information on these controls, see our blog post here.
These controls, all of which are currently effective, include:
- New Foreign Direct Product Rules, as outlined in EAR § 734.9, including Entity List Modifications
- New license requirements for export to China of certain advanced computing semiconductor chips and semiconductor manufacturing items, as outlined in EAR § 742.6
- U.S. Persons “Support” Modifications that Implicate General Prohibitions in EAR § 744.6
- New Supercomputing and Semiconductor Manufacturing End Use and End User Controls, as outlined in EAR § 744.23
Failure to Follow the Rules Dooms Requests for ITC Sanctions
The U.S. International Trade Commission is a popular venue for patent litigation under Section 337 of the Tariff Act of 1930. The ITC’s unique rules, however, can catch inexperienced counsel off guard.
Our colleagues, Adam Hess and Alex Wolcott, review a recent decision emphasizing the need to know and understand the ITC’s rules regarding sanctions.
Read the full blog post here.
Proposed Rule Would Require Government Contractors to Disclose Climate-Related Risks
Today, the Biden-Harris Administration released the Federal Supplier Climate Risks and Resilience Proposed Rule (also known as the Gas Emissions and Climate-Related Financial Risk Proposed Rule), which would require contractors of the federal government to disclose their climate-related risks. Of particular note:
Under the proposed rule:
- Federal contractors receiving more than $50 million in annual contracts would be required to publicly disclose Scope 1, Scope 2, and relevant categories of Scope 3 emissions; disclose climate-related financial risks, and set science-based emissions reduction targets.
- Federal contractors with more than $7.5 million but less than $50 million in annual contracts would be required to report Scope 1 and Scope 2 emissions.
- Small businesses with over $7.5 million in annual contracts would only be required to report Scope 1 and Scope 2 emissions under the proposed rule.
- All Federal contractors with less than $7.5 million in annual contracts would be exempt from the rule.
View the proposed rule, published Nov. 14, 2022. The deadline for comments is January 13, 2023.
BIS Implements New Chinese Supercomputer and Semiconductor Manufacturing Export Controls
On Thursday, October 13, 2022, the U.S. Department of Commerce, Bureau of Industry and Security (BIS) published in the Federal Register an Interim Final Rule, 87 Fed. Reg. 62186, amending the Export Administration Regulations (EAR) (15 CFR parts 730-774) to impose new export controls on Chinese advanced computing integrated circuits (ICs), computer commodities containing such ICs, and certain semiconductor manufacturing items. These controls, all of which are currently effective, include:
- New Foreign Direct Product (FDP) Rules, as outlined in EAR § 734.9, including Entity List Modifications;
- New license requirements for export, reexport, or transfer (in-country) to or within China certain advanced computing semiconductor chips and semiconductor manufacturing items, as outlined in EAR § 742.6;
- U.S. Persons “Support” Modifications that Implicate General Prohibitions in EAR § 744.6; and
- New Supercomputing and Semiconductor Manufacturing End Use and End User Controls, as outlined in EAR § 744.23.
These controls generally fall into two broad categories: (1) semiconductor manufacturing and (2) advanced chips and supercomputing.
Executive Order on CFIUS Review Factors Provides Insights into Heightened CFIUS Risks Faced by Specific Activities
On September 15, 2022, President Biden signed an Executive Order 14083 (the “Order”), titled “Ensuring Robust Consideration of Evolving National Security Risks by the Committee on Foreign Investment in the United States” (87 Fed. Reg. 57369). The Order does not expand the Committee on Foreign Investment in the United States’ (“CFIUS” or the “Committee”) authority or review abilities, but instead requires the Committee to consider certain criteria when reviewing the national security implications of a covered transactions (i.e., a transaction within its authority), and specifically identifies areas of concern for the Committee’s attention. For investors and U.S. businesses, the Order’s instructions to CFIUS provide important information about activities and areas that will raise heightened CFIUS risk and, for those transactions that fall within the stated areas of concern, parties should anticipate a filing with CFIUS. This alert provides a summary of the Order followed by diligence recommendations that parties should keep in mind in the context of assessing current CFIUS risks for prior or future covered transactions.
