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Legislative Update: CTPAT, Huawei, Trade Agreements, Foreign Manufacturers, Exports

Tuesday, July 23, 2019
Sandler, Travis & Rosenberg Trade Report

CTPAT. The Customs Trade Partnership Against Terrorism Reauthorization Act (H.R. 3719, introduced July 12) is a bipartisan bill that would make the following reforms to CTPAT.

- reflect current industry practices and threats to the international supply chain

- expand eligibility to importers, exporters, customs brokers, forwarders, and sea, air, and land carriers and allow expansion to other entities in the international supply chain as necessary

- require U.S. Customs and Border Protection to consult with industry when implementing new or updated security criteria

- ensure that participants receive quantifiable benefits such as shorter wait times and fewer inspections at ports of entry

- expand tangible and specific benefits to all participants at various stages of the CBP vetting and site visit validation process

- provide CBP with a mechanism to suspend or remove participants for failing to meet minimum security criteria, providing false or misleading information, failing to comply with the law, or posing a threat to national security

- provide protections for industry when appealing a suspension or removal to mitigate economic hardships

- codify a process for recurring recertification and revalidation of security practices by CBP

- allow CBP to accept a site visit conducted by a cleared foreign government under a mutual recognition agreement for continued participation in CTPAT

Huawei. The bipartisan Defending America’s 5G Future Act (H.R. 3759 and S. 2118) would (a) codify an executive order under which Huawei Technologies Co. Ltd. was placed on the Entity List and (b) give Congress the ability to block waivers provided to companies looking to engage in business with Huawei. The Trump administration has reportedly been considering easing controls on exports to Huawei as part of a broader trade agreement with China, but Sen. Mark Warner, R-Va., said this issue “shouldn’t be used as a bargaining chip in a larger trade negotiation.”

The Huawei Prohibition Act (S. 2117, introduced July 15 by Sen. Romney, R-Utah) would prohibit Huawei from being removed from the Entity List until after the Department of Commerce certifies that the company (a) has not engaged in actions in violation of U.S. or United Nations sanctions in the previous five years, (b) has not engaged in the theft of U.S. intellectual property during that period, (c) does not pose an ongoing threat to U.S. telecommunications systems or critical infrastructure, and (d) does not pose a threat to the critical infrastructure of U.S. allies.

Trade agreements. The Independent Labor Secretariat for Fair Trade Deals Act (H.R. 3807, introduced July 17 by Rep. Kaptur, D-Ohio) would establish an independent labor secretariat with the authority to address transnational issues relating to labor, monitor and enforce labor-related provisions in trade agreements, and provide research relating to the effects of trade agreements on jobs and communities in partner countries.

Foreign manufacturers. H.R. 3737 (introduced July 12 by Rep. Cartwright, D-Pa.) would require foreign manufacturers of products imported into the U.S. to establish registered agents in the U.S. who are authorized to accept service of process against such manufacturers.

Energy exports. H.R. 3829 and S. 2167, both introduced July 18, would require a certain percentage of natural gas and crude oil exports be transported on U.S.-built and U.S.-flag vessels.

For more information on pursuing trade policy interests through the legislative process, please contact trade consultant Nicole Bivens Collinson at (202) 730-4956.

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