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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

  • work Practice Area

    Commercial Law

Date & Time
  • event Date

    Tuesday, May 16, 2023

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$297.00
CLE
ALL

This CLE webinar will examine how counsel negotiating current supply chain agreements should address the restrictions imposed by the recent U.S.-China trade law restrictions. The panel will focus on how the U.S. government's forced labor import ban affects companies from apparel vendors to solar panel makers; the newest rules expanding U.S. export controls targeting China; and new limits on the use of goods and services from China for U.S. Government contracts.

Faculty

Eunkyung Kim Shin
Attorney
Baker Mckenzie, LLP

Ms. Shin regularly advises multinational companies on complex international trade, regulatory compliance, and customs and import law related matters. She also counsels on cross-border compliance and commercial issues. Ms. Shin advises clients on various regulatory compliance and trade issues, concentrating on the U.S. export controls such as the Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR), economic and trade sanctions, U.S. customs and import laws, the US Foreign Corrupt Practices Act (FCPA), and foreign anti-bribery laws. Additionally, she advises clients in internal and external audits of compliance with U.S. and non-U.S. export controls, economic and trade sanctions, and customs and import laws, structuring compliance programs, and obtaining authorization from the U.S. Government for activities subject to the EAR, the ITAR, and US economic and trade sanctions programs. Ms. Shin also advises clients on M&A export control, economic and trade sanctions, customs and import law, anti-corruption, and anti-boycott due diligence reviews of target companies in Europe, Latin America, and Asia, in collaboration with the firm's M&A attorneys in multiple jurisdictions. Her assistance extends to voluntary disclosure filings to, and enforcement actions brought by, the US government in relation to the EAR, the ITAR, economic and trade sanctions, antiboycott rules and regulations, and US customs and import laws. She frequently writes and speaks on these areas. 

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T. Augustine Lo
Senior Attorney
Dorsey & Whitney Llp

Mr. Lo practices in the firm’s National Security Law Practice Group. He advises clients on U.S. customs and international trade law, economic sanctions, export controls, and U.S. government review of foreign investments. With experience in state and federal court litigation in New York and Seattle, Mr. Lo protects clients’ interests in government enforcement actions and international trade proceedings. He has obtained successful outcomes for clients in customs enforcement matters involving U.S. Customs and Border Protection and tariff relief in Section 301 proceedings before the Office of the U.S. Trade Representative. He advises clients on U.S. trade remedies under Section 232, antidumping duties, countervailing duties, and safeguard duties. He counsels clients on tariff preferences under free trade agreements, including the U.S.-Mexico-Canada Agreement. Mr. Lo advises clients on national security requirements for cross-border transactions, including U.S. export controls under ITAR and the EAR, and economic sanctions programs administered by the Office of Foreign Assets Control. He helps clients successfully resolve matters through voluntary self-disclosures and license applications. 

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Description

As tensions in U.S.-China relations continue to affect the trade dimension, companies must proactively manage their supply chains. In light of fast moving legal developments, risk mitigation measures are more important than ever. Several U.S. laws and regulations in recent years highlight these challenges.

The Uyghur Forced Labor Prevention Act (UFLPA) created a rebuttable presumption that "any goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region of the People's Republic of China" or produced by a "UFLPA entity" will be prohibited from entry into the United States. U.S. Customs and Border Protection (CBP) has significantly increased its tools available under the ULFPA and Section 307 of the Tariff Act of 1930 to enforce the forced labor import ban. These developments have wide-ranging effects on the way supply chain management and due diligence should be conducted.

In addition, on Oct. 7, 2022, the U.S. Commerce Department's Bureau of Industry and Security (BIS) issued the much anticipated rules aimed at restricting China's ability to obtain advanced computing chips, develop and maintain supercomputers, and manufacture advanced semiconductors. This new rule imposed a wide range of new and enhanced restrictions targeting China's advanced computing and semiconductor sectors by, among other things: (1) adding certain semiconductor manufacturing equipment, advanced chips, and commodities containing such chips to the Commerce Control List of the Export Administration Regulations (EAR); (2) adding new license requirements for certain items destined for China, including certain items for use in supercomputers, the development or production of semiconductors or semiconductor manufacturing equipment, and destined for semiconductor fabrication facilities (fabs) in China that produce certain advanced chips; (3) restricting U.S. persons from engaging in or facilitating activities supporting the development or production of certain integrated circuits at fabs in China; and (4) substantially expanding the scope of items that are "subject to the EAR" under the foreign direct product (FDP) rules to cover additional items in the advanced computing and semiconductor sector produced outside the U.S. This has caused, and continues to cause, a major supply chain disruption in advanced semiconductors and related fields.

BIS also has continued to target Chinese entities for trade restrictions under its Entity List for a variety of reasons. Notably, BIS recently designated several Chinese entities for their role in supporting Russia's invasion of Ukraine, identifying them as Belarusian or Russian "military end users." Given the recently expanded scope of FDP rules for Belarus and Russia, and widely reported concerns that Chinese entities may send items to support the Russian military, companies should be on guard against such potential diversion risks.

Lastly, the National Defense Authorization Act for Fiscal Year 2023 (NDAA) enacted in December 2022 includes provisions that target certain goods and services from China for U.S. government contracts. In particular, Chinese-origin semiconductor products and services will become subject to these restrictions. Federal contractors should begin reviewing their agreements and sourcing strategies to stay ahead of the new NDAA restrictions.

Listen as our expert panel discusses these regulations and what companies with contracts for goods produced in restricted Chinese regions can do to overcome the presumption against them, what suppliers of goods subject to the EAR's export controls can do to ensure compliance, what goods and services may become off-limits for U.S. government contracts, and what documentation is needed to reduce the risk of delay in continued international trade between the countries.

Outline

  1. UFLPA and Forced Labor Import Ban
    1. Common pitfalls and challenges
    2. Due diligence and compliance measure best practices
  2. Semiconductor and supercomputer rules targeting China
    1. Identification of items subject to new rule
    2. EAR licensing strategies
    3. Documentation for continued trade
  3. Supply chain agreements with Chinese companies
    1. Key risk areas that should be proactively addressed
    2. Other end-user risks (Entity List/Military End Use Rule)
  4. NDAA
    1. New restrictions for sourcing goods and services from China for U.S. government contracts
    2. Timeline for implementation and context

Benefits

The panel will address these and other key issues:

  • What are the immediate due diligence steps and compliance measures that every company should consider in light of the UFLPA?
  • What are key risk areas that should be proactively addressed when entering into a supply agreement with a Chinese party?
  • How should companies manage U.S. export controls targeting the semiconductor and supercomputer sections in China, including potential licensing strategies?
  • What are some other restrictions that are on the horizon, particularly for U.S. government contracts?