The US Department of Defence recently published a list of 20 Chinese companies that have been identified as 'Communist Chinese military companies', complying with a two-decade-old mandate that Congress issued during the Clinton administration. The takeaway for companies, universities and individuals is that they should proceed with caution and carefully conduct due diligence when dealing with China.
The Federal Trade Commission (FTC) has published a proposed rule for Made in the USA (MUSA) claims which would codify its current standard that unqualified MUSA claims for a product should have a reasonable basis for asserting that all or virtually all of the product is made in the United States and authorise it to assess monetary penalties on unsubstantiated claims. Controversially, the proposed rule would also extend the FTC's enforcement authority to labels, mail-order catalogues and online advertising.
In view of the recent action taken by President Trump in an executive order regarding Hong Kong's status, US importers should prepare for increased risk exposure in US-Hong Kong trade. Although Hong Kong technically continues to be treated as its own separate customs territory by multilateral agreements, the commitments undertaken by the United States with regard to the original 2047 timeline for Hong Kong's full reintegration into China are being rapidly accelerated.
Certain products from France, including leather handbags and certain beauty preparations and soaps, will soon become pricier. Following a disagreement over how to tax US tech companies in France, the US Trade Representative has imposed additional duties of 25% on French goods, effective 6 January 2021 – a cost that importers and retailers will have to absorb or pass on to their customers.
The US Court of International Trade recently granted judgment in favour of an importer of steel from Turkey, ruling that there are limits on the president's power to impose tariffs for national security purposes. The importer had argued that the president's proclamation of a 50% tariff on Turkish steel failed to follow the procedures required by the animating statute and violated the importer's constitutional rights.