INTERNATIONAL TRADE: U.S.-Cuban Relations in the 21st Century.

INTERNATIONAL TRADE: U.S.-Cuban Relations in the 21st Century.: President Obama Delivered a Statement on Cuba "We are separated by 90 miles of water, but are brought together through shared r...

U.S.-Cuban Relations in the 21st Century.

President Obama Delivered a Statement on Cuba

"We are separated by 90 miles of water, but are brought together through shared relationships and the desire to promote a democratic, prosperous, and stable Cuba. President Obama is taking action to cut loose the anchor of failed policies of the past, and to chart a new course in U.S. relations with Cuba that will engage and empower the Cuban people.

A Failed Approach

Decades of U.S. isolation of Cuba have failed to accomplish our objective of empowering Cubans to build an open and democratic country. At times, longstanding U.S. policy towards Cuba has isolated the United States from regional and international partners, constrained our ability to influence outcomes throughout the Western Hemisphere, and impaired the use of the full range of tools available to the United States to promote positive change in Cuba. Though this policy has been rooted in the best of intentions, it has had little effect – today, as in 1961, Cuba is governed by the Castros and the Communist party.

We cannot keep doing the same thing and expect a different result. It does not serve America’s interests, or the Cuban people, to try to push Cuba toward collapse. We know from hard-learned experience that it is better to encourage and support reform than to impose policies that will render a country a failed state. We should not allow U.S. sanctions to add to the burden of Cuban citizens we seek to help.

Next Steps, New Course

Since the President took office in 2009, he has taken steps to support the ability of the Cuban people to gain greater control over their own lives and determine their country’s future.

Now, the President is taking the next steps to renew our leadership in the Americas, end our outdated approach on Cuba, and promote more effective change that supports the Cuban people and our national security interests."

DOING BUSINESS IN AFRICA CAMPAIGN

The White House  Press Secretary 

Release

August 05, 2014

FACT SHEET: The Doing Business in Africa Campaign

Through the Doing Business in Africa (DBIA) Campaign, the U.S. government is strengthening its commercial relationship with the continent of Africa, a diverse region that offers substantial trade and investment opportunities across national and regional markets.  With a 5.4 percent growth rate predicted for 2014, Africa is outpacing global growth.  U.S. goods and services exports to Africa reached a record high of $50.2 billion in 2013, up 40 percent since 2009.  These exports supported 250,000 U.S. jobs. 

New Commitments to Significantly Expand the DBIA Campaign

At today’s U.S.-Africa Business Forum, President Obama announced $7 billion in new financing to promote U.S. exports to and investments in Africa under the DBIA Campaign.  U.S. companies announced new deals in clean energy, aviation, banking, and construction worth more than $14 billion, in addition to $12 billion in new commitments under the President’s Power Africa initiative from private sector partners, the World Bank, and the government of Sweden.  Taken together, these new commitments amount to more than $33 billion, supporting economic growth across Africa and tens of thousands of U.S. jobs.

The DBIA Campaign encourages U.S. commercial engagement in Africa by harnessing the resources of the U.S. government to assist businesses in identifying and seizing opportunities and to engage with members of the African Diaspora in the United States.  The DBIA Campaign, which was launched in November 2012, has four main objectives:

• Connect American Businesses with African Partners
• Support Existing and New American Investment in Africa
• Expand Access for American Businesses to Finance Their Exports to Africa
• Reduce Barriers to Trade and Investment in Africa

The U.S. government’s newly announced two-year commitments to support the DBIA Campaign are provided below. 

An Executive Order to Create a President’s Advisory Council on Doing Business in Africa

Today the President signed an Executive Order (E.O.) to promote broad-based economic growth in the United States and in Africa by encouraging U.S. companies to trade with and invest in Africa. 

The E.O. directs the Secretary of Commerce to establish a President’s Advisory Council on Doing Business in Africa that will be comprised of not more than 15 members from the private sector, including small business.  The Advisory Council will provide information, analysis, and recommendations to the President, through the Secretary of Commerce, including on developing strategies for creating jobs in the United States and Africa through trade and investment; developing strategies by which the U.S. private sector can identify and take advantage of trade and investment opportunities in Africa; and building lasting commercial partnerships between the U.S. and African private sectors.

New U.S. Government Resources to Support U.S. Exports and Investment in Africa

Interagency Initiatives

• The Principals of the Export-Import Bank of the United States (Ex-Im Bank), the Millennium Challenge Corporation (MCC), the Overseas Private Investment Corporation (OPIC), the U.S. Agency for International Development (USAID), and the U.S. Trade and Development Agency (USTDA) will mobilize private capital for Africa’s infrastructure through a series of at least three outcome-oriented roundtables in Africa that will advance project- and sector-specific investment opportunities and needed regulatory reforms.  These agencies will implement the initiative in coordination with DBIA Campaign agencies, African governments, and the U.S. and African private sectors.
• 
  
• The U.S. Department of Commerce and USTDA launched the 20x20 Initiative to support a total of 20 trade and reverse trade missions by 2020, to promote U.S. industry engagement in Africa.  Working with federal, state, and local government partners, these missions will foster U.S. business partnerships with key African stakeholders.
• 
  
• The Small Business Administration (SBA) and Ex-Im Bank will collectively support 50 DBIA Campaign-themed activities and outreach sessions over the next two years to facilitate U.S. trade finance, provide counseling and training on their programs, and conduct business development to support U.S. exporters, particularly small- and medium-sized enterprises.

U.S. Export-Import Bank

• Ex-Im Bank will commit up to $3 billion in financing to support U.S. exports to Africa over the next two years.  This is in addition to Ex-Im Bank’s existing commitments of $5 billion for Power Africa and a planned commitment of $1 billion to support U.S. exports in connection with new and ongoing Angolan infrastructure projects (through the Angolan Ministry of Finance).
• 
  
• Ex-Im Bank will commit $563 million in financing to support the sale of General Electric locomotives to Transnet, South Africa’s largest integrated freight transport company. Major components of the locomotives will be manufactured at GE’s facilities in Erie, PA and Grove City, PA supporting an estimated 2,500 American jobs.

Millennium Challenge Corporation

• MCC will commit up to $2 billion in funding for new compacts in Africa that facilitate private sector-led economic growth and poverty reduction, creating potential opportunities for U.S. companies.  This commitment includes $498 million over the next five years to support the turnaround of Ghana’s electricity sector and stimulate private investment.  This Compact represents an example of the catalytic impact of Power Africa interventions which will help create the enabling environment to catalyze billions of dollars of private investment in Ghana.
• 
  
• MCC will also lead its first ever investment mission to Africa to introduce U.S. businesses to the opportunities for investing in and around its Compacts.  In addition, MCC will hold at least eight Procurement Promotion sessions with U.S. companies to promote Compact contracting opportunities and developing five Trade and Investment Prospectuses, one for each new Compact in Africa, that outline the specific business opportunities that are expected to arise from MCC’s investments. 

Overseas Private Investment Corporation

• OPIC will commit up to $1 billion in financing and insurance support to catalyze private sector investments in Africa.  This is in addition to OPIC’s existing $1.5 billion Power Africa commitment.  OPIC reaffirmed its plan to place personnel on the ground in sub-Saharan Africa to help facilitate increased U.S. trade and investment and will support an investment mission to the region, with a focus on the power sector.
• 
  
• OPIC will coordinate approximately a dozen U.S. government meetings on August 6, 2014, for U.S. and African private sector investors and project developers to discuss discrete transactions for financing support consideration to OPIC, as well as other DBIA investment agencies.

U.S. Trade and Development Agency (USTDA)

• USTDA, in cooperation with the U.S. Department of Energy and U.S. Department of Transportation, hostedtwo African Leaders Visits in association with the U.S.-Africa Leaders Summit.  These reverse trade missions highlighted the United States’ experience fostering economic growth through strategic infrastructure investments in the energy and transportation sectors. 
• 
  
• USTDA announced it will partner with the Air Traffic and Navigation Services Company of South Africa to evaluate satellite-based automatic dependent surveillance-broadcast across the African continent, the implementation of which will improve air traffic safety and create over $100 million in U.S. export opportunities.
• 
  
• USTDA reaffirmed its plan to have local representation in Nigeria for the first time.

U.S. Department of Agriculture (USDA)

• USDA’s Commodity Credit Corporation will make available up to $1 billion in financing guarantees available for agricultural exports to Africa over the next two years.  USDA also will conduct outreach seminars to Africa in 2015 to promote the use of its credit guarantee program for the export of U.S. agricultural products.

U.S. Department of State

• The U.S. Department of State intends to commit $10 million toward the expansion of the U.S.-Africa Clean Energy Finance Initiative (US-ACEF), which aligns USTDA’s project planning expertise and OPIC’sfinancing and risk mitigation tools in new ways, to support private sector investment and increase support for U.S. businesses and exports in sub-Saharan Africa’s clean energy sector.
• 
  
• The U.S. Department of State will sponsor a medical technology trade mission to sub-Saharan Africa led by a senior State Department official.

U.S. Department of Commerce

• The U.S. Department of Commerce reiterated its commitment to double its presence in sub-Saharan Africa by opening new offices in Angola, Tanzania, Ethiopia, and Mozambique, while expanding its operations in Ghana, and re-establishing a position at the African Development Bank.
•  
• The U.S. Department of Commerce will host its next Trade Winds Conference and Mission in Africa in 2015.  The Trade Winds program brings hundreds of U.S. companies to a region to hear about opportunities, meet one-on-one with Africa businesses, and get counseling from U.S. Commercial Service officers.  Past Trade Winds have been held in Asia and Latin America and resulted in over $100 million in deals at each event.
• 
  
• The U.S. Department of Commerce launched a One-Stop-Shop website (www.trade.gov/DBIA) to offer American businesses and entrepreneurs a convenient instant access to critical African market information, financing tools available to them, projects to consider, key contacts, and much more.
• 
  
• To celebrate the second anniversary of the DBIA Campaign, the U.S. Department of Commerce will host a “Discover Sub-Saharan Africa” conference in Atlanta on November 4-6, 2014.  Its Minority Business Development Agency (MBDA) will join the Constituency for Africa in hosting a “Doing Business in Africa” workshop in October to promote business and trade opportunities in Africa and resources for reaching the African marketplace.  MBDA also committed to host a U.S.-Africa Investors Forum on August 6, 2014, in association with the U.S.-Africa Leaders Summit.
• 
  
• Through its Global City Teams Program, the National Institute of Standards and Technology, in partnership with the U.S. private sector, will target at least 25 African metropolitan areas to join their counterparts worldwide in an interactive platform to accelerate smart city and smart grid goals.

U.S. Agency for International Development (USAID)

• USAID will commit to a bond guarantee through its Development Credit Authority that will allow Dakar, Senegal, to issue the first ever non-sovereign backed municipal bond in sub-Saharan Africa outside of South Africa (with technical assistance support from the Bill & Melinda Gates Foundation).  The guarantee will enable the city to raise $41.8 million on the regional stock exchange.  In addition, USAID guaranteed transactions are expected to mobilize $381 million in new private sector lending to small and medium enterprises across the continent. 
• 
  
• USAID will launch the Africa Private Capital Group – a platform in South Africa to mobilize U.S., South African, and international private sector investment in key sectors to development, including agriculture, energy, trade, infrastructure, and health.
• 
  
• USAID will upgrade its existing African Trade Hubs into “U.S.-African Trade and Investment Hubs” that will now create new opportunities for U.S. investment in and exports to Africa.  These hubs are located in Accra, Ghana, Nairobi, Kenya, and Gabarone, Botswana, and cover the West Africa, East Africa, and Southern Africa regions, respectively. 
• 
  
• USAID will roll out its Benchmarking the Business of Agriculture (BBA) project this fall, to assesses the ease of doing business and investing in Africa’s agriculture. The BBA provides businesses worldwide with objective information on a country’s ease of doing business in agriculture.

U.S. Department of Transportation

• The U.S. Department of Transportation announced that Secretary Anthony Foxx will lead a transportation mission to Africa in early 2015, to discuss opportunities for improving regional connectivity, promoting safety and efficiency, and sharing best practices on increasing investment in transportation infrastructure.
• 
  
• The U.S. Department of Transportation launched its Tomorrow’s Transportation Leaders initiative, which will include up to five workshops over the next two years to engage 100 young African transportation professionals on adopting U.S. best practices.  The workshops will address transportation policies and regulatory framework, transportation investment planning, and the efficient management of transportation systems.

• The U.S. Department of Transportation intends to direct $1 million toward strengthening civil aviation safety through the Safe Skies for Africa program.

U.S. Department of Energy

• The U.S. Department of Energy will support the “Clean Energy Solutions Center,” a multilateral initiative of the Clean Energy Ministerial to connect policymakers in Africa with clean energy experts and best practice resources.  The Clean Energy Solutions Center is a web-based resource that draws on knowledge from global experts to help governments design and adopt policies and programs that support the deployment of clean energy technologies.  Through the partnership, the Solutions Center will provide expert policy consultations free of charge to Power Africa countries in response to requests received.

Office of the United States Trade Representative

• On August 5, USTR signed at its headquarters a new Trade and Investment Framework Agreement with the Economic Community of West African States (ECOWAS) to provide a coordinated mechanism for engaging on trade and investment issues with the 15 West African countries that are part of ECOWAS.

INTERNATIONAL TRADE: SANCTIONS AGAINST RUSSIA AND RUSSIA'S RETALIATORY ...

INTERNATIONAL TRADE: SANCTIONS AGAINST RUSSIA AND RUSSIA'S RETALIATORY ...: Posted by Attorney Norka M. Schell                     http://www.lawschell.com/International_Business.html This is an article publishe...

SANCTIONS AGAINST RUSSIA AND RUSSIA'S RETALIATORY TRADE ACTIONS AGAINST THE U.S.

Posted by Attorney Norka M. Schell                    http://www.lawschell.com/International_Business.html

This is an article published on the Department of Commerce and OFAC website yesterday.            "On August 6, the U.S. Department of Commerce (the “Commerce Department”) issued new regulations, implementing additional sanctions against Russia and introducing new restrictions on exports for its energy sector. These new regulations closely follow recently-imposed sanctions promulgated by the Treasury Department’s Office of Foreign Assets Control (“OFAC”), which prohibit the issuance of new medium- and long-term debt and, in some cases, new equity by U.S. Persons to designated Russia-related persons in the energy and financial sectors. Further, OFAC has continued to expand the Ukraine-related sanctions by adding various persons and entities to its Specially Designated Nationals (“SDN”) List. As a result of these sanctions, Russia is now taking certain retaliatory trade actions against the United States.

New Energy Sector Export License Requirements/Presumption of Denial

The new Commerce Department regulations: (i) add another Russian company (United Shipbuilding Corporation) to the Entity List; (ii) remove Russia’s favorable license review treatment under national security reasons for control; and (iii) institute a new license requirement for exports, reexports or in-country transfers of certain items subject to U.S. export controls for use in certain segments of Russia’s energy sector, with a presumption of denial for applications for such licenses. The license application requirements apply to the specified items where the (re)exporter knows or is informed by the Commerce Department that they will be used, directly or indirectly, in exploration or production of oil or gas from deepwater (greater than 500 feet) or Arctic offshore locations, or shale formations in Russia, or where the (re)exporter is unable to determine whether the item will be used in such projects.1

These specified items include a broad variety of oil/gas exploration or production equipment (identified by specific Schedule B Nos.) and the items identified in new ECCNs 0A998 and 8D999, and in previously-existing ECCNs 1C992, 3A229, 3A232, 6A991, and 8A992. Covered items include:

• Drilling rigs, parts for horizontal drilling, drilling and completion equipment, subsea processing equipment, Arctic-capable marine equipment, wireline and down hole motors and equipment, drill pipe and casing, software for hydraulic fracturing, high pressure pumps, seismic acquisition equipment, remotely operated vehicles, compressors, expanders, valves, and risers;
• Oil and gas exploration software and data;
• Software specifically designed for the operation of unmanned submersible vessels used in the Russian oil and gas industry;
• Commercial charges and devices containing energetic materials and nitrogen trifluoride in a gaseous state;
• Firing sets and equivalent high-current pulse generators;
• Certain neutron generator systems, including tubes;
• Detonators and multipoint initiation systems;
• Marine or terrestrial acoustic equipment capable of detecting underwater objects or positioning surface/underwater vessels, and specially designed parts and components; and
• Certain vessels, marine systems or equipment, and specially designed parts and components.

New Entity List Designations by Commerce Department

The addition of United Shipbuilding Corporation (a defense technology company) to the Entity List follows the addition of 11 other Russia-related entities to that List in July. Those entities included Joint-Stock Company Concern Almaz-Antey, state-owned enterprise Bazalt, Kalashnikov Concern, Joint-Stock Company Concern Radio-Electronic Technologies, and Feodosiya Enterprise.

These Entity List designations impose a license requirement for the export, reexport or foreign transfer of items subject to the Export Administration Regulations to the designated entities, with a presumption of denial.

OFAC Prohibitions on Issuance of New Debt and Equity to Identified Persons

On July 16, 2014, OFAC issued Directives 1 and 2 pursuant to Executive Order 13662 (“E.O. 13662”). The Directives apply to the persons identified on the new Sectoral Sanctions Identifications List (“SSI List”).

Directive 1 of E.O. 13662 prohibits U.S. persons from transacting in, providing financing for, or otherwise dealing in new debt with a maturity of longer than 90 days or new equity (“new debt” or “new equity”) for persons operating in Russia’s financial sector identified on the SSI List, their property, or their interests in property. Entities designated under Directive 1 encompass several Russian banks, including Bank for Development and Foreign Economic Affairs (Vnesheconombank), VTB Bank, Bank of Moscow, Gazprombank, and Russian Agricultural Bank.

Directive 2 of E.O. 13662 separately prohibits U.S. Persons from transacting in, providing financing for, or otherwise dealing in new debt of longer than 90 days maturity for persons operating in Russia’s energy sector identified on the SSI List, their property, or their interests in property. Russian oil giant Rosneft and financial investment company Novatek have been designated under Directive 2. Neither entity appears on OFAC’s SDN List. However, Rosneft’s CEO, Igor Sechin, has been designated as an SDN. As such, U.S. Persons should be careful not to engage in any discussions or transactions with him (or any other SDN) when engaging in permitted transactions with an SSI entity.

While Directives 1 and 2 prohibit issuing new debt/new equity to the entities on the SSI List, other transactions with such entities by U.S. Persons are allowed, provided they do not involve SDNs.

New SDN OFAC Designations

In addition to publishing the SSI List and implementing Directives 1 and 2, OFAC has recently also added numerous individuals and entities to its SDN List, including Joint-Stock Company Concern Almaz-Antey, state-owned enterprise Bazalt, Kalashnikov Concern, Joint-Stock Company Concern Radio-Electronic Technologies, Feodosiya Enterprise, and United Shipbuilding Corporation, consistent with sanctions imposed by the Commerce Department. U.S. Persons are prohibited from engaging in any transactions with them or with any entity in which they hold a 50 percent, or more, ownership interest.

Putin Imposes Retaliatory Trade Sanctions

On August 6, Russia’s President Vladimir Putin issued a Presidential decree, ordering retaliatory sanctions on countries that have imposed restrictions on Russia. The Russian sanctions will implement a one-year ban on certain food, agricultural products, and raw materials. While the decree did not specify precisely which items will be restricted, additional sources indicate that these items may include cheese, fish, beef, pork, chicken, fruit, vegetables and dairy products from the U.S., the E.U., and other countries that have imposed sanctions against Russia. A final list is expected to be released shortly.

Best Practices

In light of the above, at this time, it is vital that, to the extent applicable, all companies impacted by the Russian sanctions:

• Abstain from engaging in any transactions with entities designated as SDNs by OFAC;
• Abstain from issuing covered new debt or equity to relevant entities identified on OFAC’s SSI List;
• Abstain from (re)exporting to Russia those goods which are set forth in the newest Commerce Department regulations for problematic end uses, unless they obtain proper licenses (which will almost always be denied);
• Ensure that all transactions are screened to identify whether an SDN, Entity List, or SSI List company is involved in the transaction; and
• Institute and maintain adequate procedures to prevent all potential violations".

Published In: Baker Hostetler, General Business Updates, Elections & Politics Updates,Energy & Utilities Updates,  and International Trade Updates.

INTERNATIONAL TRADE: NORTH AMERICAN FREE TRADE AGREEMENT ("NAFTA")

INTERNATIONAL TRADE: NORTH AMERICAN FREE TRADE AGREEMENT ("NAFTA"): By Norka M. Schell International Law Lawyer Law Offices of Norka M. Schell, LLC Tel. (212)564-1589 In a global economy, the movement of...

NORTH AMERICAN FREE TRADE AGREEMENT ("NAFTA")

By Norka M. Schell
International Law Lawyer
Law Offices of Norka M. Schell, LLC
Tel. (212)564-1589

In a global economy, the movement of persons across the borders is critical to the movement of goods and facilitation of investments. The United States-Canada Free Trade Agreement ("FTA"), implemented on January 1, 1989, provided for the freer movement not only of goods but also of business persons. With the North American Free Trade Agreement ("NAFTA"), implemented on January 1, 1994, the United States and Canada included Mexico in their preferential trading relationship. The goal of NAFTA is to eliminate all customs duties on all goods originating in Canada, Mexico, or the United States over a transition period. 

The purpose of NAFTA is to eliminate all customs duties on all goods originating in Canada, Mexico, or the United States over a transition period. 

As of January 1, 2008, all tariffs and quotas were eliminated on U.S. exports to Mexico and Canada under the NAFTA. 

The NAFTA provides coverage to services with the exception of aviation transport, maritime, and basic communications. The agreement also provide intellectual property rights protection in patent, trademark, and copyrighted material.

With regard to the movement of persons, the purpose of NAFTA is not to harmonize immigration regimes or create a common labor market or a passport union among the United States, Canada, and Mexico. Rather, each of the three countries intends to maintain its sovereignty over immigration to protect its domestic labor market. The NAFTA provisions affect only four categories of the business persons: (1) business visitors - admitted as 
B-1s; (2) traders and investors - admitted as E-1s and E-2s; (3) intra-company transferees - admitted as L-1s; and (4) professional - admitted as TNs.  

For more information on NAFTA, please contact our firm to speak with a lawyer. 

INTERNATIONAL TRADE: DON'T LET YOUR BUSINESS IMPORT TROUBLE

INTERNATIONAL TRADE: DON'T LET YOUR BUSINESS IMPORT TROUBLE: By:  Norka M. Schell        NYC International Lawyer        Law Offices of Norka M. Schell, LLC        11 Broadway, Suite 615        New...

DON'T LET YOUR BUSINESS IMPORT TROUBLE

By:  Norka M. Schell
       NYC International Lawyer
       Law Offices of Norka M. Schell, LLC
       11 Broadway, Suite 615
       New York, NY 10004
       Tel. (212)564-1589
       www.lawschell.com

With very few exceptions, all goods imported into the United States must be declared with the United States Customs Service and are subject to duties under the Harmonized Tariff Schedule of the United States (HTSUS). Duties vary with the type of merchandise, its value, its origin, and a number of other factors. Penalties for violating Customs laws or procedures can be quite substantial.

Despite the very high duties (which may be higher than the corporate tax rate), few importers give Customs law questions the same thought spent on tax planning or other issues. This is a mistake. The reality for any importer is that duties and fines imposed for Customs law violations add an extra layer of cost to the item imported and correspondingly reduce the item's competitive worth in the domestic marketplace.

The combination of GATT, NAFTA, and the Customs Modernization Act has made some of the most substantial changes in Customs law in years; and new regulations with substantial changes in Customs procedures are coming out almost daily.

If you do any significant volume of importing business, the Law Offices of Norka M. Schell, LLC can assist you. Our lawyers are creative and resourceful. Contact our Firm at (212)564-1589 to schedule a consultation with a lawyer.

FORMER RABOBANK TRADER PLEADS GUILTY FOR SCHEME TO MANIPULATE YEN LIBOR

Posted by NYC Attorney Norka M. Schell

FOR IMMEDIATE RELEASE CRM

TUESDAY, JUNE 10, 2014 (202) 514-2007 

WWW.JUSTICE.GOV 

FORMER RABOBANK TRADER PLEADS GUILTY

FOR SCHEME TO MANIPULATE YEN LIBOR

WASHINGTON – A former Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) Japanese Yen derivatives trader pleaded guilty today for his role in a conspiracy to commit wire and bank fraud by manipulating Rabobank’s Yen London InterBank Offered Rate (LIBOR) submissions to benefit his trading positions.

Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of theJustice Department’s Criminal Division, Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.

Today, a criminal information was filed in the Southern District of New York charging Takayuki Yagami, a Japanese national, with one count of conspiracy to commit wire fraud and bank fraud. Yagami pleaded guilty to the information before United States District Judge Jed S. Rakoff in the Southern District of New York.

“With this guilty plea, we take another significant step to hold accountable those who fraudulently manipulated the world’s cornerstone benchmark interest rate for financial gain,” said Attorney General Eric Holder. “This conduct distorted transactions and financial products around the world. Manipulating LIBOR effectively rigs the global financial system, compromising the fairness of world markets. This plea demonstrates that the Justice Department will never waver, and we will never rest, in our determination to ensure the integrity of the marketplace and protect it from fraud.”

Today, a criminal information was filed in the Southern District of New York charging Takayuki Yagami, a Japanese national, with one count of conspiracy to commit wire fraud and bank fraud. Yagami pleaded guilty to the information before United States District Judge Jed S. Rakoff in the Southern District of New York.

“With this guilty plea, we take another significant step to hold accountable those who fraudulently manipulated the world’s cornerstone benchmark interest rate for financial gain,” said Attorney General Eric Holder. “This conduct distorted transactions and financial products around the world. Manipulating LIBOR effectively rigs the global financial system, compromising the fairness of world markets. This plea demonstrates that the Justice Department will never waver, and we will never rest, in our determination to ensure the integrity of the marketplace and protect it from fraud.”

“Manipulating financial trading markets to create an unfair advantage is against the law,” said Assistant Director in Charge Parlave. “Today’s guilty plea further underscores the FBI’s ability to investigate complex international financial crimes and bring the perpetrators to justice.

The Washington Field Office has committed significant time and resources including the expertise of Special Agents, forensic accountants and analysts to investigate this case along with our Department of Justice colleagues. Their efforts send a clear message to anyone contemplating financial crimes: think twice or you will face the consequences.”  See release here.

INTERNATIONAL TRADE: Import duty & taxes when importing into the United...

INTERNATIONAL TRADE: Import duty & taxes when importing into the United...: Posted by: Norka M. Schell,  International Lawyer Law Offices Of Norka M. Schell, LLC www.lawschell.com Import duty and taxes are ...

Import duty & taxes when importing into the United States

Posted by: Norka M. Schell, International Lawyer

Law Offices Of Norka M. Schell, LLC

www.lawschell.com

Import duty and taxes are due when importing goods into the United States whether by a private individual or a business entity.  The valuation method is FOB (Free on Board), which means that the import duty and taxes payable are calculated exclusively on the value of the imported goods.  However, some duties may be based part in value and part in quantity. In addition to duty, imports may be subject to a Merchandise Processing Fee, and in some cases to sales tax, and Federal Excise Tax.

Duty Rates vary from 0% to 37.5%, with the average duty rate being 5.63%. 

 Preferential duty rates - United States has signed Free Trade Agreements ("FTA") with a number of countries. To be entitled to preferential tariff treatment, a good must meet the "originating" criteria as set out on the Rules of Origin of individual FTAs.  A Certificate of Origin (COO) is required upon importation for preferential duty rates to apply. 

Sales tax is not automatically charged on imported goods.  However, Customs and Border Protection (CBP) declarations are made available to state tax representatives that may occasionally claim state taxes from the importer. 

Minimum thresholds - Duty is not charged if the value of the imported goods is up to US$200.

Other taxes and custom fees - Customs and Border Patrol (CPB) collects federal taxes and fees on behalf of other federal agencies, like the Internal Revenue Service, depending on the commodity being imported.  User fees depend on the type of entry and mode of transportation.

* Federal Excise tax is imposed on imports of alcoholic beverages and tobacco.

* Merchandise Processing Fee (MPF) is charged on formal and informal entries:

- MPF on informal entries is US $2, US$6, or US$9 per shipment, depending on whether the entry release is manual or automated, and whether it is prepared by CBP personnel.

- MPF on formal entries (for imports of goods valued over US$2500) is set at 0.3464% of the value of the goods with a minimum charge of US$25 and a maximum of US$485.

Finally, in case of overpayment of duty or returns of imported products to the seller, the importer might be entitled to a duty refund.  

More information on import duty and taxes when importing into the United States, please contact the Law Offices Of Norka M. Schell, LLC at (212)564-1589.