Scopelitis International eNewsletter: September 2018
Scopelitis International eNews – September 2018
FCPA - In spite of contrary predictions, robust FCPA enforcement continues. For supply chain participants, perhaps the most significant recent development is the tendency for shippers and upper tier transportation managers to include a comprehensive anti-corruption compliance clause in all downstream supply chain services contracts. While those provisions can appear to be boilerplate, they often have significant financial and liability consequences and may require the immediate implementation of specific, additional controls and procedures.
ANTI-BOYCOTT LAWS - Although these rules have been around for more than 40 years, scores of new violations are discovered or self-reported every year, including some involving very experienced exporters. If you don’t know about the requirement to file reports of prohibited requests with the Department of Commerce quarterly or to report to Treasury annually about operations in or with nine specific countries (or if your staff isn’t familiar with requests and conditions that are problems), it’s time to brush up on the law. Most reportable conditions or requests are fairly easy to spot because they reference Israel or the Arab Boycott. However, some are not so obvious (e.g., “vessel is permitted to enter Arab ports”).
GDPR - The EU’s Global Data Protection Regulation became effective May 25, 2018. Fines could reach into the millions of Euros (the greater of €20 million or 4% of annual sales), but none have yet been levied. Many companies outside the EU weren’t sure the GDPR applied to them but have now received data protection contract amendments from their supply chain partners. Anyone who works with an international shipper or service provider will likely see one of these at some point. It’s important to understand what these amendments require before signing them.
NEW FMC RULE FOR NVOCCS - On July 19, 2018, the FMC issued a Final Rule amending its regulations governing NVOCC Service Arrangements (NSAs) and Negotiated Rate Arrangements (NRAs), effective August 22, 2018. Among other practical effects, the Final Rule eliminates the requirement for filing of NSAs with the FMC. In addition, the Final Rule modernizes the use of NRAs to more closely mirror modern practices, such as by allowing a shipper's booking of cargo to constitute acceptance of an NRA, authorizing NRAs to be amended in certain circumstances, and permitting an NVOCC to invoice to an NRA shipper general rate increases (GRIs) and previously unspecified pass-through charges, but only to the extent the NVOCC actually incurs these charges (i.e. without markup).
FOREIGN COUNSEL - John Hove and Jake Fisher will be in Atlanta October 22-25 meeting with about 50 of the Firm’s foreign counsel colleagues. This is an excellent opportunity for our clients to have one on one meetings with knowledgeable foreign counsel to learn about local conditions, resources and developments in a specific country without the foreign travel expense. Call for an appointment as soon as possible as time will be limited, especially for high demand jurisdictions (e.g. China, Mexico, Brazil, Australia, U.K., Ireland, Japan, Korea, Nigeria, etc.).
For more information on the latest in international transportation law, contact a member of Scopelitis’ International Transportation & Logistics Law team - Nathaniel Saylor, Braden Core, John Hove, or Jake Fisher, or your Scopelitis contact.
Scopelitis practice area newsletters are intended as reports to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.
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