Archive for the ‘Trade Policy’ Category

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Complying with Sanctions and Export Controls in Russia and Belarus

August 3, 2022

Agnes Pawelkowska is an International Trade Specialist at the International Trade Administration’s Office of Russia, Ukraine and Eurasia.

This post contains external links. Please review our external linking policy.

This blog is part of an ongoing series designed to provide U.S. exporters with information and resources on developments pertaining to U.S. sanctions and export controls in response to Russia’s aggression against Ukraine. Regulations and market conditions can change with little notice. Companies are encouraged to reach out to the Points of Contact listed at the end of this article for latest information.

Page of paper with words Due Diligence and glasses.

As discussed in our previous blog, Russia’s unprovoked attack on Ukraine and the subsequent Western sanctions and export controls imposed have forced U.S. exporters to rethink the way they perceive the Russian market and conduct business in the country. It has also prompted all of us at the International Trade Administration (ITA) to consider how best we can support U.S. exporters as they seek to ensure their businesses are in compliance with the relevant laws and regulations. As such, ITA’s Office of Russia, Ukraine and Eurasia has compiled and centralized a series of resources that may be of assistance to U.S. exporters. Please see the complete document on the ITA Russia web page for additional details and read on for a high-level overview of the resources that the document contains.

U.S. Government Information & Resources

  • While the United States government has imposed significant sanctions and export controls on Russia in response to its unlawful aggression against Ukraine, some U.S. companies can still do business in Russia.
  • In addition to sanctions and export controls on Russia, the U.S. government has also imposed stringent restrictions on Belarus, including new export controls, in response to its substantial enabling of Russia’s attack on Ukraine.
  • The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is the lead agency for implementing and enforcing sanctions. The Department of Commerce’s Bureau of Industry and Security (BIS) and its Export Administration Regulations (EAR) are the lead agents for implementing and enforcing export controls.

Export Controls

  • Humanitarian aid, agricultural commodities, medicine, medical devices, and telecommunication devices which support the free flow of information are generally exempt from export controls.
  • Apart from the above, to see if your transaction is affected, check out end users on the Consolidated Screening List (CSL) on ITA’s website. A search tool and a downloadable list are available.
  • Make sure your product is properly classified and does not require a BIS license due to expanded export controls against Russia and Belarus. To find out more, call an export counselor at (202) 482-4811 (Washington D.C. outreach office), or at (949) 660-0144 (Western regional office), or e-mail EXDOEXS@bis.doc.gov.

Sanctions

  • To see lists of sanctioned persons and sanctions programs, check out the OFAC website.
  • Check with your financial institution before contracting for payment from Russia. More than 80% of Russia’s financial sector is currently sanctioned by the United States.

General Recommendations for U.S. Exporters Considering Russia or Belarus

  • Sign up for automatic e-mail notifications from OFAC.
  • Check the Federal Register for BIS, OFAC, and other USG actions and set up an account that will allow you to receive automatic e-mail notification of U.S. government actions regarding Russia.

ITA Points of Contact

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Exporting across the Globe: Spotlight on the European Bank for Reconstruction and Development

July 18, 2022

Janelle Santerre Weyek is a senior commercial officer in the Foreign Commercial Service at the International Trade Administration.

This post contains external links. Please review our external linking policy.

Plants grow from soil with a light bulb at the right end, with an upward trending graph line above the plants and lightbulb.

You have probably heard of the World Bank and the IMF (also known as the International Monetary Fund). You also may have heard of some others, e.g., the Inter-American Development Bank, the African Development Bank, or the Asian Development Bank. These institutions are also known as multilateral development banks (MDBs). Although you may not have heard of is the European Bank for Reconstruction and Development (EBRD), now is a great time to learn.

Put simply, MDBs provide financial and technical support to developing countries seeking to strengthen their economic management and reduce poverty. Across the globe every year, these banks lend billions of dollars to countries seeking to improve their economies and the lives of their citizens. They also offer numerous business opportunities for U.S. companies to expand their international footprint while simultaneously supporting global economic development.

For the past 3 years, I have served as the International Trade Administration’s liaison to the EBRD in London. Established in 1991, the EBRD has invested over 160 billion euros in more than 6,000 projects. In particular, the EBRD is a leader in climate finance and has launched extensive programming that dovetails with the Biden-Harris Administration’s Partnership for Global Infrastructure and Investment and clean technology priorities, making EBRD an ideal partner for ITA in collaborating on targeted outreach to U.S. industry.

During my time at the EBRD, I deepened the relationship between ITA and the EBRD to better support U.S. business interests and expand opportunities for U.S. companies interested in competing for tenders issued by the EBRD. This May, my EBRD colleagues and I finalized an unprecedented memorandum of understanding through the ITA Strategic Partnership Program. This memorandum will help us to better support U.S. businesses interested in working with the EBRD in specific priority sectors, namely the digital economy, the green economy and clean tech.

This first-of-its-kind memorandum of understanding mean for ITA and U.S companies advances three key objectives:

  1. The memorandum will facilitate engagement between EBRD borrowers and U.S. industry decision-makers. That is, it will facilitate engagements that will put U.S. businesses in the room with clients of the EBRD, this will help to inform U.S. industry of the bank’s goals and objectives, as well as opportunities to get involved.
  2. The memorandum can provide immense opportunities for U.S. small and medium-sized businesses (SMEs). This is because the memorandum focuses specifically on increasing engagement on the EBRD’s Green Cities Program, which is a strong match for U.S. industry and U.S. small, medium-sized, women-owned, and minority-owned businesses, as the program has municipal-level opportunities of the appropriate size and scale for diverse enterprises looking for new business.
  3. Enhanced public engagement and counseling with U.S. businesses that target projects with international development financing. As a result of this memorandum, ITA is organizing a series of best practices roundtables and webinars that will involve ITA and EBRD clients, EBRD decision-makers and program leads that will take place over the next several months and throughout the fall of 2022.

While we’re just getting started on this partnership, I am very excited about the increased programming and support to boost U.S. businesses access and exposure to opportunities through this new partnership between ITA and the EBRD.

Please visit trade.gov to learn more about ITA’s work with multilateral development banks or check out ITA’s Guide to Doing Business with the Multilateral Development Banks.

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Russia-Ukraine War: Perspectives U.S. Exporters Need to Know

June 22, 2022

Evan Johnson and Agnes Pawelkowska are international trade specialists at the International Trade Administration’s Office of Russia, Ukraine, and Eurasia.

This post contains external links. Please review our external linking policy.

Russia’s latest unprovoked attack on Ukraine, and the Western sanctions that have followed, have had profound impacts on the global economy and forced businesses operating in Russia to re-think their way forward. Although numerous U.S. companies have successfully operated in Russia for many years, many are deciding to either withdraw from the market or suspend their operations in Russia, regardless of the significant economic losses incurred.

In a series of market intelligence pieces, we’ll try to address some of the pressing questions, offer insights, and share updates on how the International Trade Administration and its U.S. and Foreign Commercial Service are working to support U.S. exporters as they navigate these complex considerations.

What is the current economic situation and is it sustainable to do business in Russia since its invasion of Ukraine?

The United States first levied sanctions after Russia first invaded Ukraine in 2014, seizing Crimea and supporting separatists in Ukraine’s eastern Luhansk and Donetsk regions.  During the 2014-2021 period, most businesses outside of a few targeted sectors were able to adjust over time. However, the new international sanctions adopted beginning in February 2022 have been much more swift, severe, and comprehensive, forcing companies to reconsider their business operations in the Russian market. Payment transactions, letters-of-credit, insurance, foreign exchange operations, profit repatriation, new investment, international travel and staffing, and logistics all have become much more complicated. In light of these developments, U.S. companies with regional headquarters in Moscow have had to consider alternative arrangements to sustain their presence in the broader Eurasia region. Although some companies have chosen to stay in Russia while temporarily suspending operations, others have found that the already challenging business environment in Russia has become increasingly unstable and unpredictable virtually overnight. Complicating matters further, Russia has threatened Western companies with retaliatory measures, including proposals to seize the assets of Western companies that decide to leave Russia.

Close up of Central Asia on a colorful world map.

What are U.S. companies doing?

As it becomes increasingly difficult to conduct and plan business in Russia, there are a number of relocation alternatives and alternative markets to consider for companies who would like to sustain their presence in the Eurasia region. Some Russian citizens and businesses have already started to move to Central Asia and the Caucasus. Multilateral development banking institutions have shown renewed interest in supporting regional renewable energy, infrastructure, and agricultural projects.

U.S. companies rethinking investment positions in Russia may want to consider industries ripe for growth in Central Asia. Kazakhstan and Uzbekistan are currently courting U.S. companies in the extractive industries, and firms able to supply the engineering, mining, oil and gas, construction, and infrastructure sectors have good opportunities to expand their presence in the region. These nations not only possess an abundance of natural resources, but both countries are touting their political and economic reforms as selling points that could appeal to U.S. companies looking to shore up footholds in a region made difficult by the sanctions and export controls imposed against Russia.

Opportunities are also ripe for U.S. exporters in agriculture/agribusiness, environmental technology and healthcare sectors.

How is the U.S. government able to help?

Whether U.S. companies are looking to understand the complexities of sanctions and export controls or considering reorienting their regional sales plans or operational footprints, the U.S. government has resources to assist companies conduct due diligence and to consult directly with the agencies responsible for developing and implementing these actions.

For example, the Treasury Department’s Office of Financial Asset Control (OFAC) offers consultations on specific sanctions questions. Commerce’s Bureau of Industry and Security (BIS) export counselors can also consult on specific questions regarding a business’ products and the export control lists that BIS administers. Furthermore, the Commerce Department’s Consolidated Screening List search tool is the most comprehensive due diligence tool for checking entities and individuals against the U.S. government’s sanctions and export control lists.

An upcoming segment will take a look at the current business environment in Ukraine. The U.S. government continues to coordinate humanitarian and other relief to Ukraine. To learn more or get involved, visit our Ukraine: Support and Engagement page.

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Application Process Opens for U.S. Industry Groups Seeking Awards for Projects that Address Barriers to U.S. Exporters

February 11, 2020

By Brad Hess, Director, Market Development Cooperator Program, Office of Industry Engagement

The International Trade Administration (ITA) invites U.S. trade associations, professional societies, standards developing organizations, and other non-profit industry groups to apply for financial and technical assistance for projects that remove trade barriers to U.S. exporters. Applications for the Market Development Cooperator Program (MDCP) awards are due April 27, 2020.

ITA is conducting a series of conference calls to provide further information on how to compete successfully for a 2020 MDCP award. Potential applicants can check the requirements to determine their eligibility to apply for the program.

Pitch Ideas Now to ITA Officials
Prior to the February 27 MDCP notice being published on grants.gov, applicants will have the chance to brainstorm project ideas with ITA officials.

Interested industry groups should contact Jessica.Dulkadir@trade.gov to discuss their ideas. ITA will also include trade professionals in this initial phase that can give potential applicants useful feedback.

2020 Funding Focus is Removing Trade Barriers
Historically, 30-40 percent of MDCP projects have included a strong focus on removing trade barriers. For the 2020 competition, ITA wants all projects it funds to have such a focus.

An MDCP applicant must propose a project that creates or sustains U.S. jobs by increasing or maintaining exports (priority 1 listed below). In addition, a successful applicant must show how its proposed project will address any two of priorities 2-6 below.

  1. Create or sustain U.S. jobs by increasing or maintaining exports.
  2. Address non-tariff barriers to U.S. exports such as discriminatory regulations, local content requirements, onerous standards or conformity assessment procedures, and other measures that may be unreasonably trade restrictive.
  3. Secure strong intellectual property rights protection and combat counterfeiting and piracy.
  4. Counter discriminatory trade policies such as “indigenous innovation” or “localization.”
  5. Participate in the formulation and encourage the adoption of standards that are industry-developed, market-driven, science-based, and internationally recognized.
  6. When appropriate, encourage the development of aligned regulatory requirements that avoid unnecessary costs on businesses.

Examples of Successful Trade Barrier Removal Projects
It takes time to address and remove trade barriers. This is why MDCP projects must last a minimum of three years. Realistically, most projects need even more time to remove trade barriers like discriminatory standards or regulations. The International Association of Plumbing and Mechanical Officials (IAPMO) was able to help Indonesia establish a new plumbing code and implement a conformity assessment regime in just three years.

IAPMO advised Indonesia officials on establishing a national plumbing code then openedPhoto and Caption for MDCP Blog 020920 a lab to certify compliance of products with the new code. Indonesia’s newly adopted national plumbing standard, SNI 8153:2015, requires a lab certification of plumbing products. This allows architects, planners, builders, and building owners the certainty they need to choose the right products for the right applications.

Prior to the MDCP project and the adoption of the plumbing code, low quality plumbing products not up to standard were prevalent throughout the country. The shoddy products made urban living miserable for most residents. Their widespread use also made it hard for high quality U.S.-made products to compete. Now all plumbing products must conform to the same high standards.

A more detailed description of the IAPMO project is available at trade.gov/mdcp on the Addressing Trade Barriers page. Highlights of several other current and past MDCP trade barrier projects are available on this page as well.

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Fostering Commercial Cooperation under the Japan-U.S. Strategic Energy Partnership (JUSEP) to Advance a Free and Open Indo-Pacific

January 27, 2020

The International Trade Administration (ITA) is organizing activities that support U.S. commercial cooperation with Japan in third markets to advance bilateral and regional goals under the Japan-U.S. Strategic Energy Partnership (JUSEP).  This activity is driven by the administration’s broader policy objectives in the Indo-Pacific region. President Trump announced the vision of a free and open Indo-Pacific in Da Nang, Vietnam, in November 2017. The United States is advancing the goal of a free and open Indo-Pacific rooted in respect for: sovereignty; free, fair, and reciprocal trade; transparent governance; and private sector-led economic growth.

The unfettered flow of energy supplies is vital to the stability and security that are necessary for economic growth in the region. The U.S. government launched the Asia Enhancing Development and Growth through Energy, or Asia EDGE, initiative on July 30, 2018, as a mechanism for promoting and supporting open, transparent, and rules-based development policies that would ensure such energy security. Asia EDGE is a U.S. whole-of-government effort to grow sustainable and secure energy markets throughout Asia by promoting U.S. exports, mobilizing private sector investment, removing trade barriers, and strengthening standards and procurement practices.

The United States is working with Japan as a like-minded country to advance the goals of a free and open Indo-Pacific and Asia EDGE. The United States and Japan are strong allies and the world’s first and third largest economies, accounting for about 30 percent of global gross domestic product. On October 7, 2019, the United States and Japan signed the U.S.-Japan Trade Agreement, covering new market access for agriculture and certain industrial goods, as well the U.S.-Japan Digital Trade Agreement. The agreements demonstrate the deepening partnership between the United States and Japan, and our mutual commitment to promoting free, fair, and reciprocal trade throughout the Indo-Pacific.

Through JUSEP the United States and Japan have committed to developing energy infrastructure projects in third-countries. It is a multiagency, bilateral engagement that seeks to promote capacity building, project development, and project financing in several regions, including Southeast and South Asia. Commercial cooperation under JUSEP will strengthen joint strategic efforts in the region and enhance U.S. and Japanese private sector competitiveness by making U.S. and Japanese government resources available to them.

ITA, in cooperation with Japan’s Ministry of Economy, Trade, and Industry (METI), has organized several events that bring the U.S. and Japanese private sectors together to inform them of the tools the governments jointly offer and to help facilitate partnerships between U.S. and Japanese companies pursuing regional energy projects. These events have included the following:

  • 2018 December U.S.-Japan Cooperation on Energy Infrastructure Development in Vietnam Workshop in Ho Chi Minh City: A half-day bilateral workshop that included panel discussions on financing tools, private sector presentations, and a roundtable discussion on opportunities and challenges in Vietnam’s energy sector.
  • 2019 March Jakarta Indonesia-U.S.-Japan LNG Workshop: A trilateral workshop organized with panel discussions held on LNG Business Opportunities in Indonesia, U.S. and Japan Overseas Energy Strategy, Procurement, Gas Distribution, Regional Electrification, and Financing.
  • 2019 August Bangkok JUSEP Meeting: The private sector-inclusive session of the government-to-government JUSEP meeting where issues including Thai energy policy, regional connectivity, and project financing were discussed.
  • 2019 October Singapore Workshop on JUSEP Financing: A workshop discussion that included public and private financing of infrastructure projects.

August 2019 JUSEP Meeting in Bangkok for January Blog

Pictured: Attendees of the August JUSEP meeting in Bangkok.

These events have been supplemented by several others that bring the private sector into contact with government agencies involved in training or financing efforts in the region. These agencies include the Japan Oil, Gas and Metals National Corporation (JOGMEC), Japan Bank for International Cooperation (JBIC), and Nippon Export and Investment Insurance (NEXI).

 

U.S. government agencies and Japanese counterparts are also working to develop the policies and mechanisms to implement JUSEP and organizing specific programs to deliver on these commitments. For example:

  • In August 2019, the United States and Japan announced the Japan-U.S. Mekong Power Partnership (JUMPP), to which the United States government committed an initial $29.5 million under Asia EDGE to promote economic growth and enhanced electricity interconnections among the countries in the Mekong region through free, open, stable and rules-based regional electricity markets.
  • In September 2019, Japan announced intentions to increase its public and private financing for JUSEP activities by another $10 billion. The funding will be utilized to enhance capacity building trainings, which will further promote joint and collaborative activities between the United States and Japan by facilitating financing for projects to supply LNG or build LNG infrastructure in the Indo-Pacific region. This Japanese public finance facility includes support from JOGMEC, JBIC, and NEXI.

In 2020, ITA and METI, with the support and involvement of other federal government agencies, plan to continue this program of events that will further promote the goals of JUSEP, which will enhance export opportunities for U.S. companies in the energy sector.

 

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ITA’s Enforcement and Compliance Unit

December 21, 2018

Candice Appiakorang, Public Affairs Specialist in our Office of Public Affairs sat down with ITA’s Enforcement and Compliance Communications Director, Brooke Kennedy, to get an in-depth look into the importance of enforcing trade laws and ensuring compliance with trade agreements. Keep reading to find out how this office promotes the creation and maintenance of U.S. jobs and economic growth.

Brooke, thanks for joining me for this important discussion on the Enforcement and Compliance business unit within the International Trade Administration (ITA). Here at ITA we are focused not only on the international competitiveness of U.S. industry, promoting trade and investment, but also ensuring fair trade and compliance with trade laws and agreements. Your office leads this effort. Tell me about the Enforcement and Compliance (E&C) unit and your role?Legal signs

Thanks, Candice.  I am really excited to talk about the work of E&C, especially at a time when the importance of fair trade is covered in the media almost daily! 

First, let me say that, very simply, I see the role of ITA as helping U.S. companies participate effectively in the global trading system. In E&C, we carry out this mission by providing a suite of services that enhance the strength of U.S. industries and ensure fair competition both at home and abroad. 

To do this, our E&C team has four primary responsibilities:  enforcing the laws on dumped (sold at less-than-fair value) or unfairly subsidized imports, preventing unfair foreign trade barriers, ensuring compliance with trade agreements by our trading partners, and aiding U.S. manufacturers access the benefits of foreign-trade zones.  In short, E&C has the critical responsibility of making sure that international trade works for American manufacturers and workers. 

Let’s touch on each of E&C’s responsibilities a little bit more. What types of services does each team provide to U.S firms and exporters?

One of E&C’s core responsibilities, our bread and butter, is to examine allegations of sales at less-than-fair value and unfair subsidization, which we refer to as antidumping and countervailing duty (AD/CVD) investigations.  That means that when a foreign company dumps a product into the U.S. market at an unfair price or when a foreign government unfairly subsidizes a particular product, E&C investigates those practices and, when warranted, provides relief to a domestic industry by imposing a duty on imports.  Currently, we have 51 active investigations into allegations of dumping or unfair subsidization from countries such as China, India, Thailand, and Vietnam.  E&C is also currently enforcing over 460 border measures on products ranging from steel and aluminum to olives and pasta.

E&C also provides advocacy and support for U.S. companies subject to foreign trade remedy actions like AD and safeguard proceedings, and we monitor foreign government compliance with international obligations.  Our E&C team works directly with U.S. companies to help ensure they are well-positioned to defend their interests and our team can even intervene with foreign authorities to protect the interests of U.S. exporters.  In 2016, our advocacy efforts helped lead to the termination of 27 foreign trade remedy actions, affecting approximately $374 million in U.S. exports. 

In addition, E&C makes sure foreign governments comply with the terms of our trade agreements.  Non-compliance often manifests itself as non-tariff barriers to U.S. exports and investment; E&C works with experts across ITA, both at headquarters and in the field, to end these barriers now and secure lasting changes to the offending laws, procedures, or practices so these barriers hopefully don’t occur again in the future.  Trade compliance means making trade agreements work for U.S. industry.

Last, but not least, E&C plays a key role in helping U.S. manufacturers access the benefits of the Foreign Trade Zones (FTZ) program.  A FTZ is a special economic area in which manufacturers can operate with delayed or reduced duty payments on imports.  Our FTZs program helps level the playing field by reducing the costs of U.S. operations.  One of our best-known FTZs, for example, is BMW’s factory in South Carolina, which supports $5+ billion in exports annually – over half its production – and 10,000+ jobs.

If a business is interested in learning more, where would you suggest they go? 

If you believe your firm is facing dumping our unfair foreign competition, please contact E&C’s Petition Counseling and Analysis Unit at 202-482-1255.

If your firm or industry is facing a foreign antidumping or countervailing duty investigation, please contact E&C’s Trade Remedy and Compliance Staff at 202-482-3415.

If you need assistance with a foreign trade barrier or would like to report a foreign trade barrier, please contact the Trade Agreement Negotiation and Compliance Office’s hotline at 202-482- 1191.

For matters related to Foreign Trade Zones, please contact 202-482-2862.

For general matters, please contact our experts at the E&C Communication Office at 202-482-0063.

 

 

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U.S. Companies Can Grow Their Business in Southeast Asia Thanks to New Agreements with Singapore

December 7, 2018

Margaret Hanson-Muse is the Minister Counselor for Commercial Affairs for Singapore and ASEAN.

The Commercial Service team in Singapore has developed several new agreements with Singapore leaders that will help U.S. companies grow their business in the Indo-Pacific, particularly in the region known as ASEAN—the Association of Southeast Asian Nations. With a combined population of 647 million people, a burgeoning middle class, and a young and growing population, the ASEAN region presents tremendous commercial opportunities for U.S. companies.

On September 13, Under Secretary for International Trade Gil Kaplan signed Statements of Intent on behalf of the International Trade Administration (ITA) with the Singapore Business Federation, the U.S. Chamber of Commerce, and the Singapore Manufacturing Federation to forge closer ties between U.S. and Singaporean companies and to facilitate ASEAN regional outreach in key areas such as energy, smart cities, aerospace, fintech, and standards.

Meeting in Singapore

U.S. Chamber of Commerce Southeast Asia Executive Director John Goyer, Singapore Business Federation President Ho Meng Kit, and Under Secretary for International Trade Gil Kaplan celebrate the signing of an industry statement of intent on September 13 in Singapore.

On November 16, Vice President Pence and Singapore Prime Minister Lee met in Singapore and announced a two-year government-to-government (G2G) commercial collaboration framework led by the U.S. Department of Commerce and the Singapore Ministry of Trade and Industry. The G2G framework reinforces commitments made in September by U.S. and Singaporean industry leaders and encourages U.S. and Singaporean companies to explore cooperative opportunities in Southeast Asia and other relevant third-country markets. The framework prioritizes collaboration on infrastructure, energy, standards, smart cities, fintech, e-commerce, and deep technology.

A major goal of the framework is to foster links between U.S. and Singaporean companies, including in rapidly developing fields such as additive manufacturing (also known as 3D printing), blockchain, and driverless cars. The benefits of the framework are expected to extend beyond Singapore to include U.S. business partners and consumers in the broader ASEAN and Indo-Pacific regions, including through U.S. support for the newly established ASEAN Smart Cities Network.

Vice President Pence with Singapore Prime Minister Lee during his November 2018 visit to Singapore for the ASEAN and East Asia Summits where they jointly announced a commercial collaboration memorandum of understanding.

Vice President Pence with Singapore Prime Minister Lee during his November 2018 visit to Singapore for the ASEAN and East Asia Summits where they jointly announced a commercial collaboration memorandum of understanding.

Our team is busy implementing the new agreements with Singapore, including through support for these recent and upcoming activities:

  • A September 2018 best practices business roundtable on medical technology standards and certification processes led by the Association for the Advancement of Medical Instrumentation (AAMI) and the Singapore Manufacturing Federation;
  • ASTM International’s October 2018 announcement that Singapore’s National Additive Manufacturing Innovation Cluster (NAMIC) will join ASTM’s Additive Manufacturing Center of Excellence as a strategic partner;
  • An October 2018 memorandum of understanding on additive manufacturing standards between NAMIC and the Ivaldi Group (San Leandro, California), building on previous Access Asia outreach in California;
  • A strategic partnership launched in October 2018 between ITA and the International Association of Plumbing and Mechanical Officials (IAPMO), a global codes, standards, and conformity assessment organization, which will support the development of smart city-related standards throughout Southeast Asia;
  • Participation by ITA Deputy Assistant Secretary for Services James Sullivan in the November 12-16 Singapore FinTech Festival, where he met with U.S. companies displaying their products and services at ITA’s U.S. Pavilion and spoke on a panel on Blockchain Opportunities and Threats;

    Deputy Assistant Secretary for Services James Sullivan (fourth from left) is joined by U.S. Commercial Service staff at the November 2018 FinTech Festival in Singapore.

    Deputy Assistant Secretary for Services James Sullivan (fourth from left) is joined by U.S. Commercial Service staff at the November 2018 FinTech Festival in Singapore.

  • A U.S. Country Showcase in Singapore featured November 12-15 at the ASEAN and East Asia Summit Meetings, highlighting innovative technology, service, and standards solutions from U.S. firms;
  • Plans to support 45 U.S. companies participating in the November 27-29 OSEA Show in Singapore, which is the largest and most significant buying event in Asia for the oil and gas sectors; and
  • Plans to develop a U.S.-ASEAN Smart Cities Network Partnership event in 2019 in close coordination with the National Institute of Standards and Technology (NIST), the U.S. Department of State, and other interagency partners.

Please Share Your Feedback! Welcoming Industry and Stakeholder Ideas to Maximize the Value of the New Agreements

While these steps are a good start, I welcome your ideas on how to maximize the value of these new agreements with government and industry leaders—including through trade events, best practices workshops, business-to-business matchmaking, educational webinars, and other activities that help identify and advance commercial deals. I encourage you to contact me at Margaret.Hanson-Muse@trade.gov or (65) 6476-9037 to share your ideas and to continue the conversation.

Click here for details about the December 10-12, 2018 Discover Global Markets aerospace and defense show in Salt Lake City, Utah. Click here for details about the May 6-13, 2019 Indo-Pacific Trade Winds event in New Delhi, India with optional stops in Bangladesh and Sri Lanka. Participating companies can get country-specific business counseling from Asia-based commercial officers.

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What Small Businesses Should Know About Tariffs

August 13, 2018

This post originally appeared on the U.S. Small Business Administration’s Blog, SBA News and Views.

This post contains external links. Please review our external linking policy.

Our friends at the Small Business Administration recently published a blog post assembling a list of resources to assist small businesses with questions about tariffs and where to find more information about what imported products are impacted. Please continue reading and make use of the resources listed to help you make the most informed business decisions.

Peter J. Cazamias serves as the Small Business Administration’s Associate Administrator for SBA’s Office of International Trade.

What are tariffs?

arrows pointing in various directions

Tariffs are a taxes, levies, or duties on a particular category of imports. These fees are charged as a percentage of the price of an imported good paid for by a U.S. buyer. These charges are collected by U.S. Custom and Border Protection agents at all U.S. ports of entry.

How can I obtain a tariff waiver on my foreign purchases?

U.S. businesses may request that individual imported products be excluded from the new tariff charges; and U.S. producers may also comment on why certain exclusions should be denied. The Department of Commerce and the U.S. Trade Representative (USTR) have separate application procedures based on the actions taken by their organizations.  Decisions are case by case and require separate individual applications for each item to be imported.

Where can I find out more information?

SBA directs small businesses to visit the following U.S. Government resources for more information, to receive answers to frequently asked questions, and to request a tariff exclusion on imported products:

  • Information on a Second Tranche of Goods from China with Additional Tariffs of 25%:
    • A list of goods with additional tariffs of 25% to be collected starting August 23, 2018 is available on the USTR.gov website under press releases.  (Click here ).
  • A List of Goods from China Under Consideration for Further Tariff Actions:
    • A list of Chinese goods USTR proposed additional tariffs of 10% is available at www.regulations.gov under USTR-2018-0026-0001. (Click here). In light of the possible increase of this additional duty rate to 25 %, USTR has extended the public comment period until September 6, 2018 and requests to appear at a public hearing until August 13, 2018.  (Click Here))
  • Information on Tariffs on Steel and Aluminum Global Imports:
    • The United States has imposed tariffs on steel and aluminum imports under Section 232 of the Trade Expansion Act of 1962, as amended.
    • Information on the Department of Commerce exclusion application and objection process can be found on the Bureau of Industry and Security websites at  https://www.bis.doc.gov/232-steel and https://www.bis.doc.gov/232-aluminum.
    • Questions regarding steel exclusion requests can be addressed to the U.S. Department of Commerce at 202-482-5642 or Steel232@bis.doc.gov..
    • Questions regarding aluminum exclusions requests can be directed to 202-482-4757 or Aluminum232@bis.doc.gov.
    • Information on foreign government response and goods impacted can be found here.
  • Some impacted goods may also be subject to anti-dumping (AD) or countervailing duties (CVD) duties for unfair trade actions involving selling at less than fair value and prohibited government support. Small businesses importing goods with additional duties related to an AD/CVD investigation should be aware that the estimated AD/CVD duties paid during an investigation can increase significantly and a bill may follow after the goods clear U.S. Customs.  Small businesses may direct questions on specific tariff lines and AD/CVD duties to the U.S. Department of Commerce’s Enforcement & Compliance Communications at 202-482-0063.
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International Intellectual Property Day

April 26, 2018

This post contains external links. Please review our external linking policy.

By Stevan Mitchell, Director, Office of Intellectual Property Rights, Industry and Analysis, International Trade Administration

Logo for stopfakes.gov websiteIntellectual property (IP) is a key commodity in U.S. trade.  Each year more than 50 percent of U.S. merchandise exports and more than 10 percent of total U.S. services exports come from IP intensive industries.  The United States has become the global leader in cutting edge sectors in part due to strong IP protection regimes. Our commitment to IP protection and enforcement is among the strongest in the world, as reflected in our trade relationships. We know that IP is how the U.S. economy will continue to grow, and that protection both at home and abroad are critical for our industries to flourish worldwide.

Although IP is a private right, government has an essential role to play in educating innovators and creators about its importance, how to obtain protection, and how to enforce against infringers. This is particularly the case when it comes to obtaining and enforcing IP in foreign markets. Although all WTO members must adhere to the minimum IP protections set out in the Agreement on Trade Related Aspects of Intellectual Property (TRIPs), the specifics of IP protection vary widely by country. Even for U.S. businesses that do not export, foreign protection of IP is critical; businesses should always be registered in markets where they manufacture, in addition to markets where they sell their products.

The Office of Intellectual Property Rights at the International Trade Administration (ITA) takes seriously our mandate to educate U.S. business, especially small and medium-sized enterprises (SMEs), about protecting IP in foreign markets. To that end, today, in commemoration of World IP Day 2018, we are pleased to announce the publication of four new Country Toolkits on www.STOPfakes.gov to assist U.S. entrepreneurs in understanding the ins and outs of IP protections in four Southeast Asian markets: Singapore, Malaysia, Vietnam and Brunei. ITA and the Department of Commerce would like to recognize the professionals whose efforts contributed to these toolkits, including Margaret (Maggie) Hanson-Muse and her regional team for envisioning and originating the project, and IP Attaché Peter Fowler for his guidance and expertise.

In addition to the new comprehensive toolkits, we are excited to announce the launch of a brand new series of Country Snapshots, available on the Toolkits page of www.STOPfakes.gov.  The Country Snapshots are a quick and easy way to learn the basics about how to protect IP in a foreign market. Each Snapshot identifies the agencies responsible for obtaining patents or trademarks and for registering copyright, and provides their contact information. The Snapshots also list the international agreements to which the country is a party, the legal framework for the protection of trade secrets, and identify whether the country is listed on the Special 301 Report (an annual report identifying markets with deficient IP protections).

This first tranche of Snapshots includes some of the world’s largest markets. Upcoming releases will include U.S. FTA partners and countries in the European Union. These Snapshots are a first stop for American entrepreneurs who are preparing to export or manufacture abroad. Combined with our national STOPFakes.gov Road Shows and other educational resources available on our site, we are providing our innovative industries with the information they need to take full advantage of export markets without putting at risk their valuable IP assets.

Our office is committed to partnering with ITA industry analysts to produce more industry-specific products. We have recently launched a series of Industry IP Toolkits, which identify for exporters of products and services those IP issues they should address early on in developing export strategies. We now have Industry Toolkits for exporters of building materials, medical devices and auto parts, and today we publish a new Industry Toolkit for pleasure boat exporters. 

We are also excited to announce the launch of @STOPfakesGov twitter account, to keep followers apprised of new events and publications, as well as tips and observations useful to protecting creative, innovative and branded assets.  Follow us!

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STRENGTHENING CREDIT CONDITIONS FOR EXPORTING SMALL AND MEDIUM-SIZED ENTERPRISES

April 6, 2018

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Ericka Ukrow is a Senior International Trade Specialist specializing in Financial Services at the International Trade Administration.

Photo of TFAC meeting in progress, Feb. 22, 2017. From left to right front row: TFAC Chair Kevin Klowden, Commerce Secretary Wilbur Ross, Commerce Deputy Assistant Secretary for Services James Sullivan, Designated Federal Officer for the TFAC Ericka Ukrow.

Meeting of the TFAC, February 22, 2018. From left to right front row: TFAC Chair Kevin Klowden, Commerce Secretary Wilbur Ross, Commerce Deputy Assistant Secretary for Services James Sullivan, Designated Federal Officer for the TFAC Ericka Ukrow.

Exporters, lenders, and researchers are working together to improve options for trade financing through the Department of Commerce’s Trade Finance Advisory Council (TFAC).

In an increasingly interconnected global economy, trade is taking a prominent role in our country’s economic growth.

The availability of finance is essential for a vigorous trading system. Most export transactions are supported by some form of financing or credit insurance. However, significant gaps in the global provision of trade finance remain.

Globally, the trade finance gap in 2017 was estimated at $1.5 trillion, with small and medium-sized enterprises (SMEs) facing the greatest hurdles to access trade finance.

The TFAC advises the Secretary of Commerce on effective ways to increase access to financing resources for all U.S. exporters, especially SMEs. With up to 20 private-sector members representing financial and insurance services providers, manufacturing firms, trade finance industry associations, and research organizations, the TFAC’s thought-leadership coordinates perspectives from diverse stakeholders into the development of policies and programs in this area.

These insights help direct Commerce’s actions toward conducive framework conditions that would amplify U.S. exporters access to strategic educational and financing resources.

Over the last fifteen months, the TFAC has focused on:

  1. export finance best practices;
  2. enabling new private sector channels for the flow of credit to exporting SMEs;
  3. education strategies to reduce the information gap across government, community banks, and other enablers of SME finance;
  4. addressing financing process obstacles that impede SME credit;
  5. analyzing trade credit insurance underutilization in the United States; and
  6. reviewing the performance of alternative export credit agencies’ models.

Photo of TFAC meeting in progress, Feb. 17, 2018. From left to right: Alan Beard and Patricia Gomez (new members), Lou Tierno – Fulton Financial Corporation, Stacey Facter – Bankers Association for Finance and Trade, Peter Bowe – Ellicott Dredges, Gary Mendell - Meridian Finance Group, David Herer – ABC-Amega.

Meeting of the TFAC at the Commerce Department, February 22, 2018. From left to right: Alan Beard and Patricia Gomez (new members), Lou Tierno – Fulton Financial Corporation, Stacey Facter – Bankers Association for Finance and Trade, Peter Bowe – Ellicott Dredges, Gary Mendell – Meridian Finance Group, David Herer – ABC-Amega.

At the February TFAC meeting, Commerce Secretary Wilbur Ross recognized the Council for its critical role in advancing the Administration’s goal of reducing U.S. trade deficits by empowering more SMEs with financing solutions that would increase their export opportunities.

“While we seek to level the playing field and negotiate more favorable terms with our trading partners, we count on you to continue empowering SMEs in the international arena. Without adequate access to finance, it is difficult for U.S. exporters to sell their products and services globally.”

He also encouraged Council members to identify how emerging technologies, such as blockchain, could facilitate trade finance solutions and reduce risk for U.S. SME exporters.

The TFAC also welcomed Secretary Wilbur Ross’ new appointed members this year:

  • Steven Bash, Senior Vice President, International Banking, City National Bank
  • Alan Beard, Managing Director, Interlink Capital Strategies
  • Russell D’Souza, Vice President, Corporate Treasurer, Hanesbrands, Inc.
  • Patricia Gomes, Managing Director, Regional Head Global Trade and Receivables Finance North America, HSBC Bank USA, N.A.
  • William Browning, Senior Vice President, Business Credit – Trade Finance Manager, First National Bank

Photo of TFAC meeting in progress, Feb. 22, 2018. From left to right: Todd McCracken - National Small Business Association, Sergio Rodriguera - The Credit Junction, Karsten Herrmann - Munich Reinsurance America, Tim Gaul - Caterpillar, and new members Russell D’Souza and Steven Bash.

Meeting of the TFA at the Commerce Department, February 22, 2018. From left to right: Todd McCracken – National Small Business Association, Sergio Rodriguera – The Credit Junction, Karsten Herrmann – Munich Reinsurance America, Tim Gaul – Caterpillar, and new members Russell D’Souza and Steven Bash.

These new appointees expand the Council’s expertise in their representation of both users and providers of trade finance in the manufacturing, banking, and management consulting services sectors.

The TFAC expects to discuss improving the credit conditions and diversifying financing sources for U.S. exporters at their Spring meeting.

If you would like to learn more about the TFAC, you can visit our website or you can contact us at TFC@trade.gov.

If you are interested in becoming a member of the TFAC, stay tuned! The Council may be looking for applicants this summer. You can learn more here.