Category: Regulatory

Cybersecurity, Regulatory

New Revisions to the CCPA

Network security icon with graphic diagram on mobile screen.
Photo Credit: istock.com/COMiCZ

By Susan Kohn Ross

The California Consumer Privacy Act (“CCPA”) took effect on January 1, 2020. In October 2019, the California Attorney General (“CA AG”) published proposed regulations. In the lead up to January 1, 2020, the CA AG repeatedly made the point that those subject to the CCPA should plan for compliance with its broad principals by the first of the year, while admitting enforcement would not start until the regulations were final, meaning July 1, 2020. As part of this process, the CA AG advised he did not expect there to be significant changes to the regulations between October and July. However, upon receiving comments to those October proposed regulations, he changed his mind and on February 7, 2020 revised regulations were issued. A subsequent notice on February 10, 2020 corrected the earlier publication, which omitted certain updates.

To be clear, some of the changes were long awaited (such as what the “Do Not Sell My Personal Data” button looks like), while others were unexpected (such as the change to the training requirement by raising the level of records from four million to ten million). This Alert will summarize the key proposed changes. Continue reading “New Revisions to the CCPA”

Unknown's avatarmskllpLeave a comment
International Business, International Trade

New Executive Order Addresses E-Commerce and Counterfeit Goods

Close Up Of Woman At Home Looking Up Information About Medication Online Using Laptop
Photo Credit: istock.com/Daisy-Daisy

By Susan Kohn Ross

 

On January 31, 2020, President Trump issued Executive Order 13904 (“EO”) entitled “Ensuring Safe & Lawful E-Commerce for U.S. Consumers, Businesses, Government Supply Chains, and Intellectual Property Rights.” It begins by stating that e-commerce is “being exploited by traffickers to introduce contraband into the United States, and by foreign exporters and United States importers to avoid applicable customs duties, taxes and fees.” The types of malfeasance cited are counterfeit goods, narcotics (specifically synthetic opioids, such as fentanyl), and other contraband, plus, of course, protection of the revenue. The focus of the EO is on express consignment operators, carriers, hub facilities, international posts, customs brokers and e-commerce platform operations (the “Regulated Parties”). Anyone who participates in the “introduction or attempted introduction” of parcels containing contraband can be held accountable with accountability taking the form of both civil and criminal consequences, as appropriate. The EO goes on to state that CBP’s suspension and debarment procedure will form the framework through which these actions will be carried out. Suspension and debarment apply in the context of doing business with the government, such as government contracts, subcontracts, grants, loans and other assistance programs.

Continue reading “New Executive Order Addresses E-Commerce and Counterfeit Goods”

Unknown's avatarmskllpLeave a comment
International Business, International Trade

China – U.S. Phase 1 Deal: Is It Enough?

USA and Chinese flags on mountain signpost.
Photo credit: iStock.com/Darwel

By Susan Kohn Ross

China and the U.S. signed the so-called Phase 1 deal on January 15, 2020. Much has been said in the general press and elsewhere about this deal. What does it really accomplish for international traders?

First, there is nothing said about the tariffs imposed by either the U.S. or China. White House briefers did say the tariff on the goods on List 4A would be reduced soon, and a pre-publication version of the proposed Federal Register notice was published on January 16, 2020. It can be found here. Those tariffs will be reduced from 15% to 7.5% on February 14, 2020. When it came to the tariffs China has imposed, no one has any idea what specifically will happen, only that given the commitments made by China, those tariffs will have to come down. Exactly when is anyone’s guess. Continue reading “China – U.S. Phase 1 Deal: Is It Enough?”

Unknown's avatarmskllpLeave a comment
International Business, International Trade

Yikes to the Year End!

USA and China trade war. US of America and chinese flags crashed containers on sky at sunset background. 3d illustration
Photo credit: iStock.com/Rawf8

By Susan Kohn Ross

Clearly, there is more going on these days in Washington, D.C. than just the impeachment hearings, and activities this week made that point clear. In the span of only a few days, we saw progress on two key issues – the China 301 tariffs and the U.S.-Mexico-Canada Agreement (USMCA).

First, we saw an indefinite suspension of the List 4B 15% China tariff which was to take effect on December 15, 2019. The President tweeted about it, saying “The 25% Tariffs will remain as is with 7 1/2% put on much of the remainder…” (see here for the full text) and USTR issued a press release (see here). Regretfully, neither is very clear, beyond stating the tariff on goods on List 4B is suspended indefinitely. CBP confirmed the suspension later in the day at CSMS 40984510. There was also a Fact Sheet issued by USTR (see here), but it, too, failed to clear up the tariff impact. Continue reading “Yikes to the Year End!”

Unknown's avatarmskllpLeave a comment
Cybersecurity, Regulatory

California Consumer Privacy Act: Are You Ready? (Part 2)

Data Security system Shield Protection Verification
Photo Credit: istock.com/Rawpixel

By Susan Kohn Ross

In Part 1, we summarized the recent legislative changes regarding the California Consumer Privacy Act (“CCPA”). Bearing in mind the CCPA takes effect on January 1, 2020 and the Attorney General is required to issue regulations by July 1, 2020, these regulations both meet that time frame, but also seek to provide much-needed guidance to industry.

Most of the legislative changes focused on narrowing the definition of personal information, clarified the time frame which applies when a consumer demands information the business possesses about him or her, and also confirmed the CCPA applies to businesses, not non-profits or government entities. In this Alert, we summarize the regulations which were recently issued. However, even in the regulatory context, the starting point remains the same. Companies should begin by asking the following questions: Continue reading “California Consumer Privacy Act: Are You Ready? (Part 2)”

Unknown's avatarmskllpLeave a comment
Cybersecurity, Regulatory

California Consumer Privacy Act: Are You Ready? (Part 1)

CCPA California Consumer Privacy Act Lock Orange and Gold
Photo Credit: istock.com/Torrey

By Susan Kohn Ross

In the last few weeks we have seen both regulatory and legislative action that has helped to clarify the scope and impact of the California Consumer Privacy Act (“CCPA”). By way of a refresher, the CCPA seeks to protect the personal information of California consumers by giving them greater knowledge about the nature and extent of the data collected about them, how it is used (sold or shared) by those who possess it, and how the individual consumer can control the use of his/her personal data. The CCPA applies to companies, regardless of where they are located, which:

  • Have annual gross revenues in excess of $25 million;
  • Alone or in conjunction with others annually buy, sell, receive or share for commercial purposes, the personal information of 50,000 or more consumers, households, or devices; or
  • Derive 50% or more of their annual revenues from selling consumer personal information.

This framework leaves companies to ask some very basic questions before deciding next steps:

  • What is our annual gross revenue (not limited to California income)?
  • Do we have the personal information of at least 50,000 consumers, households or devices located in California?
  • Do we sell the personal data we have of those California consumers, households or devices? If so, do we derive 50% or more of our annual revenues from those sales?
  • Even if we do not sell that personal data, do we disclose any portion of it to any third parties?

If you answered more than $25 million to the first question or yes to any of the remaining questions, you could be subject to the CCPA, but there is more to the analysis. The next important question is: do you hold personal data belonging to any California consumers, households or devices? If you answered no, you can breathe a sigh of relief. If not, get ready for the year-end push! Continue reading “California Consumer Privacy Act: Are You Ready? (Part 1)”

Unknown's avatarmskllpLeave a comment
International Business, International Trade, Regulatory

Tariff Turmoil Gets Hotter!

birds eye view photo of freight containers
Photo by Tom Fisk on Pexels.com

By Susan Kohn Ross

As has been widely reported, on Friday, first President Trump announced and then USTR Lighthizer confirmed the 301 tariffs on goods out of China will increase. Specifically, the tariffs on the goods on Lists 1, 2 and 3 will rise from 25% to 30% starting October 1, 2019, while the tariffs on the List 4 products will start at 15% on September 1, 2019 or December 15, 2019, rather than the original 10%, depending on whether your product is on List 4A or List 4B. USTR also acknowledged there will be a notice and comment period provided in the Federal Register notice to follow. While no doubt many American traders hope the possibility exists to remove products from any of the lists, that seems highly unlikely. While this upheaval continues, companies should also keep in mind the ability to seek exclusions for goods on List 3 expires on September 30, 2019. The exclusion process for goods on List 4 has still not been published. Continue reading “Tariff Turmoil Gets Hotter!”

Unknown's avatarmskllpLeave a comment
International Business, International Trade, Regulatory

China Tariff Update: List 4, Next Steps

Truck in port
Photo credit: iStock.com/nightman1965

By Susan Kohn Ross

While the Federal Register notice containing all the relevant details has yet to be published, today, the U.S. Trade Representative published an announcement confirming that certain unidentified products were removed from List 4 for health, safety, national security and similar reasons, and those remaining would be rolled out on two different lists with two different effective dates. List 4A will be effective September 1, 2019 and can be found here. List 4B can be found here, and will be effective on December 15, 2019. USTR notes the products on List 4B include “cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing.” Given the contents of List 4B, one is left to wonder whether USTR was trying to avoid making Christmas too grim for American consumers! Continue reading “China Tariff Update: List 4, Next Steps”

Unknown's avatarmskllpLeave a comment
International Business, International Trade, Regulatory

The Trade War Wages On

Economic trade war between USA and China
Photo credit: iStock.com/cybrain

By Susan Kohn Ross

As has been repeatedly mentioned in the general press, President Trump tweeted on August 1st that the U.S. “will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country.” There are lots of questions about what that short message actually means, and right now, no answers. So far, there is no official notice from the U.S. Trade Representative (USTR) for publication in the Federal Register. There is nothing new posted on the USTR website. We know the President said he picked September 1st because there are goods on the water, but we do not know whether September 1st is the date by which the goods must arrive in the U.S., or must be exported from China. Will the products on List 4 change from those originally published? Whatever goods are on the final version of List 4, will at least some of the products be listed to the 10-digit level? Right now, all products are listed to the eight-digit level, but the descriptions assigned to those classifications, in some cases, do not include all the products encompassed by the very different products classified under that eight-digit number. This is typically the case due to either the type of good or its constituent material. Continue reading “The Trade War Wages On”

Unknown's avatarmskllpLeave a comment