On September 24, 2024, China’s Ministry of Commerce (MOFCOM) announced that the Working Mechanism of the Unreliable Entities List (the “Working Mechanism”) had initiated an investigation of the PVH Group, a global clothing company and owner of brands such as Tommy Hilfiger, Calvin Klein, Warner’s, Olga and True & Co. The action was taken pursuant to the Provisions on the Unreliable Entities List (UEL), a relatively new law in China that allows the Chinese government to impose countersanctions against foreign entities, including companies, organizations or individuals. The Working Mechanism indicated that PVH Group is being investigated for suspected violation of normal market transaction principles, suspension of normal transactions with Chinese enterprises, organizations or individuals, and adoption of discriminatory measures with respect to products from the Xinjiang Uygur Autonomous Region.
New Antidumping and Countervailing Duty Petitions on Thermoformed Molded Fiber Products from China and Vietnam
On October 8, 2024, Genera, Tellus Products LLC, and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO (USW), collectively, “American Molded Fiber Coalition” (Petitioner or Coalition), filed petitions with the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC) seeking the imposition of antidumping duties (AD) and countervailing duties (CVD) on imports of thermoformed molded fiber products from China and Vietnam. Genera and Tellus Products LLC are both domestic producers of thermoformed molded fiber products. USW is a certified labor union representative of the industry producing such products within the U.S.
G7 Issues New Recommendations to Prevent Circumvention of Sanctions Against Russia
The primary objective of this guidance is to ensure industry compliance with export controls and help businesses identify risks associated with circumvention of export restrictions directed against the Russian military-industrial complex. The joint guidance identifies the following priority areas: (i)products posing an increased risk of reexport to Russia; (ii) red flag indicators of potential export control and/or sanctions evasion; and (iii) best practices for industry to use to address these red flags and conduct enhanced due diligence. On 24 September 2024, for the first time, the US, Canada, France, Germany, Italy, Japan, the UK and the European Union (collectively, the G7) issued joint guidance aimed at preventing the evasion of export controls and sanctions imposed on Russia. The guidance highlights several key focus areas, particularly the identification of items that are at a heightened risk of diversion to Russia. These items are included on the Common High Priority List (CHPL). The primary goals of this guidance are to safeguard these items from misappropriation, prevent reputational damage and reduce liability risks, all while maintaining the effectiveness of coordinated export controls and sanctions. The CHPL categorises these items into four tiers:
New Antidumping and Countervailing Duty Petitions on Hexamine from China, Germany, India, and Saudi Arabia
On September 29, 2024, Bakelite LLC (Petitioner or Bakelite), domestic producer of granular hexamethylenetetramine (hexamine), filed petitions with the U.S. Department of Commerce (DOC) and the U.S. International Trade Commission (ITC) seeking the imposition of antidumping duties (AD) on imports of hexamine from China, Germany, India, and Saudi Arabia, and countervailing duties (CVD) on imports of hexamine from China and India.
BIS Issues Rule on Implementation of Export Controls on Several Advanced Technologies
On September 5, 2024, the Bureau of Industry and Security (BIS) issued an Interim Final Rule (IFR) implementing export controls on several semiconductor, quantum and additive manufacturing items, as well as Gate-All-Around Field-Effect Transistor (GAAFET) technology. This long-awaited rule is largely aimed at preventing China and other foreign adversaries from advancing their artificial intelligence (AI) capabilities, as the targeted technologies are crucial for developing high-performance computing systems essential for AI research and applications. Notably, however, the rule includes a new License Exception Implemented Export Controls (IEC) for countries implementing comparable controls, a likely strategic move to strengthen coordination with key partners.
DoD Advances CMMC: Key Takeaways from the Proposed August 2024 DFARS Rule
On August 15, 2024, the US Department of Defense (DoD) published a proposed rule to amend the Defense Federal Acquisition Regulation Supplement (DFARS) in order to implement the Cybersecurity Maturity Model Certification (CMMC) program. DoD is executing a phased rollout of CMMC, and the August 2024 proposed rule is the second proposed rule DoD has published as part of its implementation.
US Department of State Proposes New Rule to Revise Definition of Defense Service in the ITAR
On July 29, 2024, the US Department of State published a new proposed rule to revise the definition of defense service in the International Traffic in Arms Regulations (22 CFR parts 120-130, “ITAR”) in the Federal Register. Interested parties are invited to submit comments to the State Department through September 27, 2024.
Decarbonizing the Global Shipping Industry: Is Hydrogen Fuel the Answer?
Decarbonization is coming to the global shipping industry. Accounting for nearly one- quarter of all carbon emissions from the world’s transportation sector and one billion tons of carbon dioxide annually, shipping stands at a critical juncture in its efforts to reduce carbon emissions and mitigate its environmental impact. Among the emerging alternatives to traditional fossil fuels, hydrogen is one of the most promising candidates due to its potential for zero carbon emissions, the relative ease of retrofitting existing ships with hydrogen fuel cells and the high energy intensity needed to propel enormous ocean-going vessels. This article explores the prospects of hydrogen fuel as a replacement for fossil fuels in maritime transport in the context of some of the emerging and overlapping technology, regulatory and public policy issues.
CFIUS Clearance: Czechoslovak Group a.s. and Sporting Products business of Vista Outdoor Inc.
Status: Clearance
Acquirer: Czechoslovak Group a.s. (Czech Republic)
Acquired: Sporting Products business of Vista Outdoor Inc. (U.S.)
Value: $1.91 billion
Industry Tags: Firearms; Law Enforcement
EU Expands Sanctions Regime Against Republic of Belarus After 14th Package of Sanctions on Russia
On 29 June 2024, the Council of the EU extended its restrictive measures against Republic of Belarus (Belarus) due to its involvement in Russia’s continued aggression against Ukraine. These measures aim to prevent Belarus from facilitating the evasion of sanctions against Russia and are in line with the EU’s recent efforts to strengthen existing prohibitions introduced by the 14th package of sanctions.
