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Section 301 tariffs

Section 301 Tariffs are levied under the Trade Act of 1974 which grants the Office of the United States Trade Representative (USTR) authority to investigate and take action to protect U.S. rights from trade agreements and respond to foreign trade practices. Section 301 of the Trade Act of 1974 provides statutory means allowing the United States to impose sanctions on foreign countries violating U.S. trade agreements or engaging in acts that are “unjustifiable” or “unreasonable” and burdensome to U.S. commerce. Prior to 1995, the U.S. frequently used Section 301 to eliminate trade barriers and pressure other countries to open markets to U.S. goods.

The founding of the World Trade Organization in 1995 created an enforceable dispute settlement mechanism, reducing U.S. use of Section 301. The Trump administration began using Section 301 in 2018 to unilaterally enforce tariffs on countries and industries it deemed unfair to U.S. industries. The Trump administration adopted the policy shift to close what it deemed a persistent "trade gap" between the U.S. and foreign governments that it said disadvantaged U.S. firms. Additionally, it pointed to alleged weaknesses in the WTO trade dispute settlement process to justify many of its tariff actions -- particularly against China. The administration also cited failures in previous trade agreements to enhance foreign market access for U.S. firms and workers.

The Trump Administration launched a Section 301 investigation into Chinese trade policies in August 2017. Following the investigation, President Trump ordered the USTR to take five tariff actions between 2018 and 2019. Subsequent rounds of Section 301 actions against China have continued since. The Office of the U.S. Trade Representative administers Section 301 tariffs, and has also created an exclusion process for importers to seek exemptions from the tariffs.

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Micronesian Official Pleads Guilty After Violating FCPA
April 5, 2019 |FCPA

A Micronesian government official pleaded guilty to money laundering charges that violated the Foreign Corrupt Practices Act, the Department of Justice said April 3. Master Halbert, an official in Micronesia’s Department of Transportation, Communications and Infrastructure, received bribes from a Hawaii-based engineering and consulting company in exchange for contracts with the Micronesian government, the department said.

Topics:Foreign Corrupt Practices Act
OFAC Settles With US Manufacturer, Chinese Subsidiary Over Iran Sanctions Violations
March 28, 2019 by Ian Cohen|Top News

The Treasury’s Office of Foreign Assets Control announced a $1.9 million settlement with a Connecticut-based industrial tool manufacturer and its China-based subsidiary after OFAC said the companies violated U.S.-imposed sanctions on Iran, according to a March 27 notice. The U.S. company -- Stanley Black & Decker -- and the Chinese subsidiary -- Jiangsu Guoqiang Tools Co. (GQ) -- attempted to export 23 “shipments of power tools and spare parts” worth more than $3 million to Iran from mid-2013 to the end of 2014, OFAC said.

Topics:OFAC Sanctions Activity, OFAC, Iran Export Controls
Justice Department Amends FCPA Policy Manual Amid Increasing Use of Encrypted Apps
March 27, 2019 |Export Controls

The Department of Justice updated its policy manual provisions on Foreign Corrupt Practices Act enforcement to reflect changes in the requirements for retention of business records, according to the department. The new guidance, which took effect March 8, lifts a ban on the use of third-party messaging apps, including WeChat, WhatsApp and Snapchat, according to a report from Skadden Arps. The changes were made in light of “certain fast-growing economies, such as China and India, where WeChat and similar messaging apps are used extensively for legitimate business communications,” the report said.

Topics:Foreign Corrupt Practices Act