U.S. Launches AD & CVD Investigations on Certain Paper Plates
By: Irene Chen on January 26, 2024 | AD/CVD, International Trade
On January 24, 2024, AJM Packaging Corporation (“AJM”), Aspen Products, Inc. (“Aspen”), Dart Container Corporation (“Dart”), Hoffmaster Group, Inc. (“Hoffmaster”), Huhtamaki Americas, Inc. (“Huhtamaki”), and Unique Industries, Inc. (“Unique”), collectively known as the American Paper Plate Coalition (the “APPC” or “Petitioner”) filed a petition with the U.S. International Trade Commission and U.S. Department of Commerce seeking antidumping and countervailing duty investigations on Paper Plates from the People’s Republic of China, The Kingdom of Thailand, and the Socialist Republic of Vietnam.
Dumping occurs when a foreign company sells a product in the United States at less than its normal value. Petitioner alleges that producers and exporters of Paper Plates are dumping Paper Plates with the following margins:
China: 142.45% – 168.45%
Thailand: 36.97% – 42.89%
Vietnam: 255.46% – 278.56%
This percentage is what Petitioner believes should be used as additional import duties on imports of Paper Plates from the People’s Republic of China, The Kingdom of Thailand, and the Socialist Republic of Vietnam.
Subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods. These subsidies may be in the form of discounted loans, tax breaks, direct grants, or low-cost rent, etcetera.
Both types of investigations involve two separate parts: an evaluation by the U.S. International Trade Commission of whether U.S. producers of Paper Plates are being injured by reason of the imports, and a calculation by the U.S. Department of Commerce of the margin of dumping or subsidies of individual exporters of Paper Plates from the People’s Republic of China, The Kingdom of Thailand, and the Socialist Republic of Vietnam.
The U.S. International Trade Commission has initiated its investigation into injury. It will have 45 days to make its preliminary injury determination -- that is, until March 9, 2024. Importers, producers, and exporters can participate in the U.S. International Trade Commission’s evaluation of whether Paper Plates imported from the People’s Republic of China, The Kingdom of Thailand, and the Socialist Republic of Vietnam are injuring the U.S. domestic Paper Plates industry by filling out and sending in a questionnaire response about production, importation, and sales of Paper Plates. The U.S. Department of Commerce will evaluate the petitions to determine whether they contain allegations and evidence that is reasonably available to the Petitioner indicating that Paper Plates sold to the United States from the People’s Republic of China, The Kingdom of Thailand, and the Socialist Republic of Vietnam are dumped and/or subsidized by the government of the People’s Republic of China, The Kingdom of Thailand, and the Socialist Republic of Vietnam. If the Department of Commerce determines that the petition is sufficient, it will initiate its investigations into subsidies in 20 days -- that is, by February 14, 2024, unless further extended.
Once the Department of Commerce initiates its investigations, a series of deadlines will follow immediately, including submissions of Separate Rate Applications for exporters in China and Vietnam.
A separate rates application, or SRA, is a demonstration that the exporter is not controlled by the Government. This filing is required because the Department of Commerce presumes that the Chinese government and Vietnamese government control all exporters unless they prove that they are not. The consequence for failing to submit all filing requirements, or for submitting an incomplete separate rate application (which is rejected) is severe – exporters will be assigned a punitive antidumping duty rate. In this case, the punitive rate is likely to be the additional margins reported by the petitioners.
If there is also an allegation of critical circumstances, imports arriving after the petition is filed but before a preliminary determination may also be subject to the assessment of duties.
* * * * *
Paper Plates
The merchandise subject to this investigation is certain paper plates. Paper plates subject to this investigation may be uncolored, white, colored, or printed. Printed paper plates subject to this investigation may have any type of surface finish, and may be printed by any means with images, text and/or colors on one or both surfaces. Colored paper plates subject to this investigation may be colored by any method, including but not limited to printing, beater-dyeing, and dip-dyeing. Paper plates subject to this investigation may be produced from paper of any type, may have any caliper or basis weight, may have any shape or size, may have one or more than one section, may be embossed, may have foil or other substances adhered to their surface, and/or may be uncoated or coated with any type of coating.
The paper plates subject to this investigation remain covered by the scope of this investigation whether imported alone, or in any combination of subject and non-subject merchandise. The paper plates subject to this investigation include paper plates matching the above description that have been finished, packaged, or otherwise processed in a third country by performing finishing, packaging, or processing that would not otherwise remove the merchandise from the scope of the investigations if performed in the country of manufacture of the paper plates. Excluded from the scope of this investigation are paper plates produced directly from liquid fiber that is formed into the desired shape and then cured.
Also excluded from the scope of this investigation are paper bowls, paper buckets, and paper food containers with closeable lids.
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The Corporate Transparency Act: New BOI Reporting Required
By: Irene Chen on January 24, 2024|Compliance, Corporate Laws
The Corporate Transparency Act is here. The purpose of this new law is to collect ownership information of legal entities to combat fraud, money laundering and terrorism. All U.S. companies and their subsidiaries not exempted must file a beneficial ownership information (BOI) report with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) for parent and subsidiaries by January 1, 2025, or 90 days after formation if after Jan 1, 2024. Entities exempt from the Act include broker-dealers, registered investment advisors, regulated investment companies, venture Capital advisors, public reporting companies, nonprofits, government agencies and an operating business with 20 full time employees, with a physical US location and revenues of at least $5mm.
All other U.S. entities - small companies, coffee shops, solo consulting firms, small law and CPA firms, restaurants, salons, real estate holding companies, investment funds (unless meeting the 20 employees and $5mm rev) are subject to filing.
Disclaimer: The information presented here is provided for informational purposes only and should not be construed as legal advice on any subject matter.
We at Chen Law Group LLC can assist your company by providing support in filing the initial BOI report and addressing your other legal questions regarding corporate compliance.
The Biden-Harris Administration Will Likely Continue Requiring CFIUS Notification for Foreign Investments in US Critical Technologies
By: Donald Gross & Irene Chen on February 20, 2021
The Biden-Harris administration is highly likely to keep in force a recent Treasury Department rule requiring parties that are negotiating foreign investments in any “critical technology” controlled by US export control laws or regulations to report pending transactions to the Committee on Foreign Investment in the United States (CFIUS).
The new rule significantly increases the number of companies across a full range of industries which will be scrutinized by CFIUS and are subject to investigation for their technology transactions – in the fields of biotechnology, life sciences, pharmaceuticals, artificial intelligence, microprocessors, quantum computing, robotics and advanced surveillance technologies, among others.
Until the new rule became effective on October 15, 2020, mandatory filings with CFIUS were required for only two types of narrower transactions. The first such transaction occurs when a foreign government obtains a “substantial interest” in a US “Technology, Infrastructure or Data” (TID) business – based on a “foreign person” acquiring a 25 percent or greater voting interest directly or indirectly in a US business where the foreign government in turn holds a 49 percent or greater voting interest, directly or indirectly, in that foreign person.
The second type of transaction in which a mandatory CFIUS notification has been required is a foreign investment in companies that produce, design, test or manufacture “critical technologies” if the foreign investor obtains 1) “control” of the US business; 2) any significant governance rights; or 3) business information rights. However, this mandatory notification requirement is only triggered if the technology is used or designed for use in one of 27 specific industries.
The new rule announced on October 15, 2020 calls for mandatory notification to CFIUS of any investment in a US company involving the development, testing, production or use of any technology which needs a license to export. Importantly, foreign investors in this controlled technology must notify CFIUS if the foreign investment they seek meets or exceeds the 25 percent voting interest threshold.
The term “export”, for purposes of the rule, includes any sharing of information about the technology with a person who is not a US citizen or US permanent resident – regardless of whether the technology is ever actually transferred to another country.
The new Treasury approach is a mechanism for implementing two laws passed with broad bipartisan support to protect sensitive US technology from acquisition by potential adversaries: the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) and the Export Control Reform Act of 2018 (ECRA).
The final rule became effective on the same day the Trump administration released its “National Strategy for Critical and Emerging Technologies” which laid out a comprehensive approach for closely monitoring the possible transfer to other countries of cutting-edge technologies that have military or security applications while simultaneously protecting US global technological leadership in a variety of industries.
The Biden-Harris campaign laid out its stance on this issue when it pledged to “take aggressive trade enforcement actions” in a document titled The Biden Plan to Secure the Future is ‘Made in All of America’ by All of America’s Workers: “From cyberattacks to forced technology transfer to talent acquisition, American ingenuity and taxpayer investments are too often fueling the advances in other nations.”
For parties making investments in a US technology business, it is now essential to determine the export control status of all products, technology and software that are developed or manufactured by that US business. This entails a process of assessing the potential end-users of the technology, ascertaining the applicable licensing requirements, and conducting an export control review.
The assessment process must occur prior to 1) completing the investment transaction, 2) executing a binding written agreement which describes material terms of the transaction, 3) making a public offer to buy shares of a US business or 4) soliciting shareholder proxies for an election to the Board of Directors – whichever is earliest.
It is also necessary to check possible exceptions that would allow sharing information about critical technology with a foreign investor. Exceptions exist if the technology is encrypted, broadly available, or destined for certain allies of the United States – at present, Australia, Canada and the United Kingdom. If any of these exceptions apply, parties to the investment transaction are not subject to the mandatory CFIUS notice requirement.
The new Treasury rule clearly increases the burden on parties that are negotiating foreign investments in US “critical technology” to exercise the utmost due diligence to ensure they’re cognizant of whether the technology is controlled by the US Government.
Nearly all corporate transactions with foreign investors deserve to undergo CFIUS risk analysis to establish whether the transaction requires a mandatory CFIUS filing and whether CFIUS is likely to investigate.
Taking this prudent approach is far better than simply accepting a high degree of risk that CFIUS or other US export control agencies will impose serious penalties on companies for their violations. Criminal penalties can include up to 20 years of imprisonment and up to $1 million in fines for each violation. Civil monetary penalties can reach up to $300,000 per violation or twice the value of the transaction, whichever is greater. Violators can also suffer denial of their export privileges.
Donald Gross is managing partner of Donald Gross Law and special counsel to VCL Legal in Washington, DC. He provides expert legal advice and assistance to client companies seeking to comply with strict CFIUS, export control, sanctions, US Customs and FCPA regulations. He draws on decades of experience in private law practice as well as public service at the US State Department, US Arms Control and Disarmament Agency, and the White House national security council.
Irene Chen is special counsel at VCL Legal in Washington, DC. She represents and counsels foreign producers, exporters, and U.S. importers in international trade-related matters. Prior to entering private practice, Ms. Chen spent four years as an attorney in the Office of Chief Counsel for Trade Enforcement and Compliance at the U.S. Department of Commerce. While at Commerce, Ms. Chen served as a legal advisor to the Customs Liaison unit of the International Trade Administration, rendering legal advice on matters pertaining to Customs import rulings. Ms. Chen has also worked at the U.S. International Trade Commission as well as the law firms of Baker Donelson, LP, in Tennessee and Ding & Ding, in Taipei, Taiwan.
*Disclaimer: This Article is for informational purposes only and is not offered nor should be construed as legal advice.
What Can We Expect from Biden on Trade?
By Irene H. Chen and Danli Lan on January 26, 2021
Editor: Bin Hu Karg
Now that President Biden is officially in office, what will he do on trade? Below is our review and analysis.
Transition from President Trump’s Practices
During President Trump’s term, he implemented a series of trade policies aimed at protecting U.S. jobs. Trump’s major trade moves included applying broad tariffs on products from around the world, withdrawing from multilateral trade deals such as the Trans-Pacific Partnership (TPP), and renegotiating trade agreements with Mexico and Canada.
Trump also entered a trade war with China by imposing tariffs on hundreds of billions of dollars worth of Chinese imports and pressing Beijing to buy products from the U.S. to turn around the U.S. trade deficit with China.
Biden’s Signals on Trade
During his campaign, Biden had suggested that his trade policy would focus on helping American workers by ensuring trade agreements protect and enhance U.S. jobs.[1] One of Biden’s campaign visions is to ensure that “the future is ‘made in all of America’ by all of America’s Workers.”[2]
On December 10, 2020, President Biden nominated Katherine Tai to be the next United States Trade Representative. This nomination is waiting to be confirmed by the U.S. Senate. Tai will help Biden to implement a worker-centered trade policy. “What it means in practice is that U.S. trade policy must benefit regular Americans, communities and workers. And that starts with recognizing that people are not just consumers. They are also workers and wage earners.” Tai said in a speech to the National Foreign Trade Council, a business-advocacy group.[3]
Biden has also sent signals that the U.S. will remain tough on China from trade to technology. On trade with China, Biden clearly indicated that his government will not immediately remove Trump’s tariffs on China; however more exclusions from the tariffs may be available to U.S. importers.[4] Tai, after being nominated for U.S. Trade Representative, said that the new administration’s policy priorities will include confronting China over its trade practices. Tai, a top U.S. trade lawyer who is well-respected by her peers, is known for her experience in pursuing enforcement actions against China.[5]
It does not seem that Tai will take a vastly different approach on trade with China than the former United States Trade Representative Robert Lighthizer did. Lighthizer was the brain behind the hundreds of billions of dollars retaliatory tariffs enforced on the country.
Analysis and Conclusion
We do not expect an immediate change in trade practices under the Biden administration. Biden’s government is likely to take a protectionist trade policy similar to Trump. In the long run, a protectionist trade approach hurts Americans more than foreign producers, since U.S. companies and U.S. consumers, not foreign exporters, are paying for the extra duties.
We will keep a close watch on the Biden Administration’s new moves on tariffs, particular if there is any tariff exemption programs or policies.
If you have any questions regarding trade policies, Section 301 Antidumping/ Countervailing Investigations/Reviews, and Tariff Exemption programs, please reach out to us.
Irene Chen: ichen@vcllegal.com
Danli Lan: dlan@vcllegal.com
[1] https://www.wsj.com/articles/biden-trade-policy-to-center-on-workers-ustr-nominee-says-11610471141
[2] https://joebiden.com/made-in-america/
[3] https://www.wsj.com/articles/biden-trade-policy-to-center-on-workers-ustr-nominee-says-11610471141
[4] https://www.nytimes.com/2020/12/02/opinion/biden-interview-mcconnell-china-iran.html (interview with New York Times)
[5] https://www.cnbc.com/2020/12/10/biden-to-name-katherine-tai-us-trade-representative.html
The U.S. Delay Certain Tariff Increase on Chinese Imports 美国暂缓针对部分中国产品的征税
The Office of the U.S. Trade Representative announced that the U.S. will delay imposing tariffs on some imports included in the List 4 from China until December 15, 2019 because of “health, safety, national security and other factors.”
The products include mobile phones, laptops, video game consoles, some toys, computer monitors, and certain footwear and clothing. The delay was in part to avoid price increase for U.S. shoppers this Christmas.
As a remainder, the deadline for submitting tariff exclusion request for products under List 3 is September 30, 2019. If you need assistance to submit the exclusion request, please contact us.
美国商务代表处今天通知，美国将暂缓部分针对中国产品的第四轮征税。征税将从计划的2019年9月1日，暂缓到2019年12月15日。
这部分暂缓征税产品主要包括，手机，平板电脑，游戏机，玩具，电脑屏幕，和个别鞋子和衣服。川普总统提到，这次暂缓征税也是主要考虑到2019年圣诞消费季。
同时，针对第三批清单的关税免除申请，将会在2019年9月30日截止。
President Trump Confirmed to Tax $300 billions of Goods from China 川普总统确认对来自中国的商品增加10%的关税
On August 1, 2019, President Trump announced via Twitter that he would impose a 10% tariff on a further $300 billion (list 4) in Chinese imports. The new import taxes, which Trump later said could go “well beyond” 25%, will be imposed beginning September 1, 2019 on a long list of goods expected to include smartphones, laptop computers, and children’s clothing.
Here is a reminder to submit List 3 tariff exclusion requests. The deadline for submitting List 3 exclusion requests is September 30, 2019. The goods included on List 3 have an import value of approximately $200 billion. The 25% tariffs apply to List 3 goods exported from China on or after May 10, 2019. For a complete list of List 3 products, please click here.
If the list 3 exclusion request is granted, importers of affected goods will be able to apply for tariff refunds retroactive to September 24, 2018.
If you need help to submit your exclusion requests or have any questions, please contact us.
川普总统在2019年8月1日通过推特宣布，他会针对价值3000亿美元的第四批商品单增加10%的关税。川普总统还提到，新的增税有可能会增加到25%。这批新的增税将会在今年9月1日开始生效。第四批清单全面覆盖了中国向美国出口的产品，例如电脑，智能电话，儿童服装等等。
另外，针对第三批贸易清单的关税排除申请，将会在2019年9月1日截止。第三批清单在2019年5月10日生效。第三批清单覆盖价值2000亿美元的商品，包括食品类产品，石英，大理石，石油产品，天然气，橡胶，塑料，肥料，地毯，帽子，包，瓷砖，玻璃，钻石，黄金，铁，空调，冰箱，复印机，发动机，自行车，船只，椅子等等。第三品清单的全部产品，请点击此链接。
如果第三批清单的排除申请通过，中国进口商可以申请关税退款。
如果您有需求提交排除申请，请和我们联系。
Companies Can Start Filing For Section 301 List 3 Exclusion
June 24, 2019 - The United States Trade Representative (USTR) has formally announced the exclusion process for $200 billion of products (List 3) imported from China and subject to Section 301 tariffs since September of 2018. The USTR’s procedure for List 3 exclusion requests is more extensive than the process in place for the List 1 and 2 exclusions. USTR will evaluate each exclusion request on a case-by-case and rolling basis, evaluating factors including why the requester is seeking the exclusion, whether the requestor has provided a detailed description of the product, and whether granting the exclusion would undermine the objections of the Section 301 investigation. To view List 3, click here.
USTR will accept List 3 exclusion requests from June 30, 2019, to September 30, 2019. If granted, product exclusions will be effective for one year from the date that each exclusion is published in the Federal Register, and will be retroactive to September 24, 2018. If U.S. importers’ products are approved for exclusion, but imported prior to the product exclusion’s publication in the Federal Register, importers may file post-summary corrections (if entries have not yet liquidated) or protests (if entries have liquidated within the past six months).Companies that import the products identified in List 3 should consider filing exclusion requests to increase their chance of reducing future duty payments and receiving refunds on duties previously paid.
For more information on the Section 301 exclusion process, please contact us.
U.S. Releases a List of $325 Billion Worth of Chinese Goods on which the Trump Administration Intends to Levy Tariffs of up to 25 Percent
美国将针对中国价值 3000 亿美元的商品征收 25%的附加税
May 14, 2019
On May 13, 2019, after China retaliated in trade war by raising tariffs on $60 billion of US goods, the U.S. Trade Representative published a fourth list of Chinese goods that would be hit with new duties, ranging from artists’ brushes and paint rollers to clocks and watches. The list also includes a wide range of sporting goods including baseballs to fishing reels. Many agricultural products are also on the list, from livestock to dairy, plants, and vegetables. The whole list can be accessed here. 在中国反击贸易战，对美国 600 亿美元价值商品增加关税后，5 月 13 日，美国贸易代表处发表了一份针对中国 3250 亿美元商品征税的清单。如果清单通过，这将是针对中国的第四轮增税。该清单囊括了多项征税产品，从画笔 到粉刷滚筒，从钟表到运动器材，如棒球，钓鱼卷不等。多项农业产品也在清单中，包括各种肉类制品，奶制品， 植物和蔬菜等等。 整个清单内容，点击此链接。
USTR is seeking public comments and will hold a public hearing on the new round of tariffs on June 17, 2019. Specifically, interested parties must submit comments and responses in accordance with the following schedule: 美国贸易代表部已开始 向公共征集意见，在今年 6 月 17 日会举行公共听证会。 具体来说，相关利益群体需要根据如下时间表发布观点:
June 10, 2019: Due date for filing requests to appear and a summary of expected testimony at the public hearing.
在 2019 年 6 月 10 日提交参加听证会申请。
June 17, 2019: Due date for submission of written comments.
在2019年6月17日提交书面评论。
June 17, 2019: The Section 301 Committee will convene a public hearing at the ITC.
在 2019 年 6 月 17 日，301 关税委员会会召开公共听审会。
Seven days after the last day of the public hearing: Due date for submission of post-hearing rebuttal comments.
如果有反对意见，需在听审会结束 7 天之内提交。
If you have any questions, please contact us. 如果您有任何问题，欢迎联系我们。
USTR Approved the Fourth Batch of China Section 301 Product Exclusion
美国贸易代表处发布第四批关税排除名单
May 11th, 2019
On around May 10, 2019, the USTR released its fourth batch of products to be excluded from the Section 301 tariffs. The approved exclusions cover certain push-button switches; stereoscopic microscopes; certain remote control devices for model cars and aircraft, pet collars or garage doors, certain electric motors; machinery for mixing beverages; vibrating or roller conveyors; certain dust collection and air purification machinery and equipment; certain water filtering; purifying or distillation machinery; fork-lift trucks; certain pressure reducing vales, etc. 在大约今年 5 月 10 日，美国贸易代表处发布 了第四批 301 关税免除名单。排除的产品包括按钮开关，立体显微镜，飞机或汽车远程操控仪器，宠物链和宠物 门，特殊电动车，饮料搅拌器，滚筒输送机，空气和灰尘清洁器，清水过滤系统，蒸馏器械，叉车，减压阀，等 等。
Both importers and exporters should note that for every section 301 tariff list, there is a process to request exclusion from the list. The request has to address the following factors: 相关进口商和出口商都应该意识到，对所有的关税清单，都有申请 排除清单的机会。主要需要证明如下几点:
Whether the particular product only is available from China and specifically whether the particular product and/or a comparable product is available from sources in the United States and/or third countries. 产品是否只在中国生 产，在美国或第三国家有没有替代品或类似品。
Whether the imposition of additional duties on the particular product would cause severe economic harm to the requestor or other U.S. interests. 增加的关税是否会对申请人或者美国的利益造成伤害。
Whether the particular product is strategically important or related to “Made in China 2025” or other Chinese industrial programs. 产品是否直接和“中国制造 2025”相关。
If you have any questions, please contact us. 如果您有任何问题，欢迎联系我们。
New Antidumping and Countervailing Duty Petitions on Vertical Metal File Cabinets from China
美国针对中国的金属文件柜产品发起新的反补贴和反倾销调查
May 3rd, 2019
On April 30, 2019, Hirsh Industries, LLC filed antidumping (AD) and countervailing duty (CVD) petitions on imports of vertical metal file cabinets from the People’s Republic of China. The U.S. Department of Commerce will initiate the investigation on May 20, 2019. 就在今年4月30日，Hirsh Industries, LLC 发起了针对来自中国站立式金属文件柜的反补贴和反倾销调查。美国商务部会在今年5月20日具体展开相关调查。
Petitioner alleged dumping margins of 120.48% to 196.79%. The U.S. Department of Commerce generally assigns duties at these alleged dumping rates to exporters that fail to corporate with the investigation. 发起人提出的反垄断和反补贴税率从120.48% 到196.79%不等。美国商务部一般会对不参加调查的中国企业征收发起人建议的高税额。
The scope of this investigation covers freestanding vertical metal file cabinets containing extendable file storage elements, having a width of 25 inches or less and having a height that is greater than its width. 涉及调查产品的具体形容如下： 独立站立式金属柜，有可伸展的放文件抽屉，宽度在25英寸或小于25英寸，高度高于其宽度。
You can find a list of Chinese producers of the subject merchandise alleged by Petitioner here. 涉嫌调查的中国生产商名单, 请点击链接。
If you have any questions about the petitions, please contact us. 如果您有任何问题，欢迎联系我们。
New Antidumping and Countervailing Duty Petitions on Ceramic Tile Products from China
美国针对中国的瓷砖产品发起新的反补贴和反垄断调查
April 18th, 2019
On April 10, 2019, the Coalition for Fair Trade in Ceramic Tile filed antidumping (AD) and countervailing duty (CVD) petitions on imports of ceramic tile products from China. Petitioner alleges dumping margins of 178.22% to 428.58%. The U.S. Department of Commerce generally assigns duties at these alleged dumping rates to exporters that fail to corporate with the investigation. Petitioner identified hundreds of Chinese producers of the subject merchandise. You can find the list here. If you have any questions about the petitions, please contact us. 在今年4月10日，美国瓷砖公平交易委员会发起了针对来自中国瓷砖产品的反补贴和反垄断调查。发起人提出反垄断和反补贴税率从178.22%到428.58%不等。美国商务部一般会对不参加调查的中国企业征收发起人建议的高税额。发起人提出上百家中国企业涉嫌出口调查中的产品。名单请点击链接。如果您有任何问题，欢迎联系我们。
Commerce Adds 37 entities in China to the Unverified List
商务部在其“未经核实名单”上添加37家中国大陆企业
April 15th, 2019
The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has added 50 entities to its Unverified List (UVL), among which 37 newly listed entities are in China. Entities on the UVL are not subject to embargoes. However, it triggers additional due diligence duty on the U.S. and foreign persons who export, reexport, or transferring commodities, software, or technology to entities on the UVL. 美国商务部工业与安全部门近期把50多个企业加入其“未经核实名单”，其中有37家为中国大陆企业。名单上的企业并非被禁运，但是美国和其它在美外国企业如要向名单上的企业出口产品，必须担负更多的尽职调查责任。由于许多美国企业都不想承担多余的调查责任，导致名单上的企业将受到形同禁运的影响。
Alternatively, there is a process for entities on the UVL to be removed from the list. Basically, the entity must demonstrate in writing its bona fides to BIS enforcement officials, showing that it is a legitimate and reliable party to a transaction involving items subject to the U.S. Export Administration Regulations. 另一方面，名单上的企业可以主动和美国商务部申诉从名单上去名。美国法律有申诉程序。大致来说，申诉企业需要向美国商务部证明企业的合理和合法性，并且证明所有的相关交易都是符合美国出口管理规定的。
Please contact us for further information about the process to be removed from the Unverified List. 如对上诉申诉程序有更多问题，欢迎联系我们。