International business transactions

There have been a rash of news stories on various constraints under which U.S. universities and other research institutions must labor to cooperate with foreign institutions and academics. This is a hot issue because the life blood of many U.S. institutions is cooperation with foreign institutions. The U.S. government has been keenly concerned about this cooperation because of the specter of espionage and intellectual property theft. Institutions of higher learning have countered that overzealous government oversight impedes academic freedom. Given this heightened scrutiny, researchers, colleges and universities need to understand the constraints that are imposed in cooperating with foreign institutions and researchers. There are three major laws today that are in the toolkit of prosecutors who are scrutinizing these relationships. These are the Foreign Agents Registration Act; export controls and the False Claims Act. This article focuses on the False Claims Act.

If you own a foreign company and are thinking of opening up for business in the United States then you should read this article. Despite the challenges, foreign businesses continue to flock to the United States. This article gives an overview of the major decisions that foreign businesses must make as they explore entering the U.S. market. They usually set up a subsidiary not a branch, and confront issues of where to form the new entity. They consider issues dealing with tax, immigration, CFIUS reviews, corporate structure and other issues as they enter the U.S. market.

Formulating policies and procedures is a critical step in building your business. These policies and procedures may be found in an employment manual or a compliance program. Every business and especially those doing business overseas should have an anti-corruption compliance program. This article provides an overview of anti-corruption compliance programs. Anti-corruption programs are quickly becoming part of the compliance landscape for U.S. companies, regardless of size and even those who have little foreign activity.

If you are a foreign company and have loads of money to purchase a U.S. business, the U.S. has generally welcomed your foreign cash. But there are limits regarding the kinds of businesses foreign companies are allowed to acquire. This article provides an overview of The Committee on Foreign Investment in the United States (CFIUS) and its role in reviewing transactions in which a foreign company is buying an interest in a U.S. company. The number of transactions that have to comply with CIFIUS’s notice requirements has increased significantly in recent years and the trend is expected to continue.

You are a business in the United States, and you are about to do business with a Russian company. Caution! Let’s say you find out that your erstwhile business partner is on the Specially Designated Nationals List (SDN List). Or you find out that your foreign business partner is owned by an individual or company on the SDN List. You need to consult with a sanctions attorney. This article reviews some of the options you have available to you and discusses possible consequences if you are caught violating the sanctions regime.

Sanctions against Russia have put a damper on the enthusiasm of working with Russian businesses. The costs of doing business with Russia may far exceed the benefits because of a web of challenges, including navigating the sanctions regime. In this article, we discuss sanctions against “sectors” of the Russian economy. This type of sanctions applies to companies and individuals in Russia’s financial, energy, and defense sectors. Unlike blanket sanctions against individuals and companies on the Specially Designated Nationals and Blocked Persons List (SDN List), sectoral sanctions are directed at certain sectors.

As businesses enter global markets, they may fail to recognize risks lurking beneath the surface. The U.S. government employs a range of tools to alter or deter what it views as objectionable behavior. The U.S. government targets not only foreign governments, but also individuals and businesses. We provide an overview of economic sanctions, especially as they affect doing business with Russia. We provide an overview of Russia sanctions against Specifically Designated Nationals known as SDNs.

Foreign markets offer the allure of 96% of the world’s consumers. Small businesses are keenly interested in export markets. If you are new to these markets, you should familiarize yourself with the resources provided by the Small Business Administration. For the uninitiated, legal dangers lurk under the surface. We have discussed the general regulatory scheme applicable to export controls. In this article, we discuss some common export mistakes that we see exporters make when they attempt to navigate the export controls regulatory landscape without proper guidance.

If your small business is exporting weapons or arms, then you will fall within the ambit of the International Traffic in Arms Regulations (ITAR). You will probably find your export on that list if it has anything to do with arms or weapons. If you find your intended export on that list, then you are subject to the strict requirements of the ITAR. If your intended export is not on the list then you still have to comply with the export control laws, but the less strict export administration regulations. This article provides a brief summary of the applicability of the export administration regulations and why every business, even a small business, should be concerned about the applicability of the regulations to your business.

Even a small business may have to be concerned about export control rules and regulations. This article covers International Traffic in Arms Regulations (ITAR), which deals with arms export controls. Not many small business owners are exporting weapons as such, but as we discuss in this article, even components that may be used in weapons may fall under the ITAR. ITAR regulates the export, reexport, retransfer, and brokering of ITAR-controlled defense articles (hardware), technical data (technology including software), and defense services. If hardware or technology is subject to the ITAR, their reexport from, or retransfer within, a foreign company is also subject to the ITAR restrictions.