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Section 301 tariffs

Section 301 Tariffs are levied under the Trade Act of 1974 which grants the Office of the United States Trade Representative (USTR) authority to investigate and take action to protect U.S. rights from trade agreements and respond to foreign trade practices. Section 301 of the Trade Act of 1974 provides statutory means allowing the United States to impose sanctions on foreign countries violating U.S. trade agreements or engaging in acts that are “unjustifiable” or “unreasonable” and burdensome to U.S. commerce. Prior to 1995, the U.S. frequently used Section 301 to eliminate trade barriers and pressure other countries to open markets to U.S. goods.

The founding of the World Trade Organization in 1995 created an enforceable dispute settlement mechanism, reducing U.S. use of Section 301. The Trump administration began using Section 301 in 2018 to unilaterally enforce tariffs on countries and industries it deemed unfair to U.S. industries. The Trump administration adopted the policy shift to close what it deemed a persistent "trade gap" between the U.S. and foreign governments that it said disadvantaged U.S. firms. Additionally, it pointed to alleged weaknesses in the WTO trade dispute settlement process to justify many of its tariff actions -- particularly against China. The administration also cited failures in previous trade agreements to enhance foreign market access for U.S. firms and workers.

The Trump Administration launched a Section 301 investigation into Chinese trade policies in August 2017. Following the investigation, President Trump ordered the USTR to take five tariff actions between 2018 and 2019. Subsequent rounds of Section 301 actions against China have continued since. The Office of the U.S. Trade Representative administers Section 301 tariffs, and has also created an exclusion process for importers to seek exemptions from the tariffs.

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Man Who Owned Two US Companies Pleads Guilty to FCPA Charges
December 21, 2020 |FCPA

A New Jersey man who owned two U.S. companies involved in supplying naval goods and services, pleaded guilty to violating the Foreign Corrupt Practices Act after he bribed a South Korean government official, the Justice Department said Dec. 17. The agency said Deck Won Kang paid $100,000 in bribes to a Korean official to obtain and retain contracts with South Korea’s Defense Acquisition Program Administration (DAPA), a state-owned and -controlled defense agency.

Topics:Foreign Corrupt Practices Act
Energy Trader Fined More Than $150 Million for FCPA Violations
December 7, 2020 |Penalties and Courts

The U.S. affiliate of one of the world’s largest energy trading firms will pay more than $150 million in fines after it violated the Foreign Corrupt Practices Act, the Justice Department said Dec. 3. The company, Vitol Inc., paid millions of dollars in bribes to Brazilian officials and conspired to bribe officials in Ecuador and Mexico, the Justice Department said. The schemes involved fake consulting agreements, shell companies and more than $8 million in bribes.

Topics:Foreign Corrupt Practices Act
Ex-President of Maryland Transportation Company Sentenced to Prison for FCPA Violations
October 30, 2020 |FCPA

The former president of a Maryland transportation company was sentenced to four years in prison for violating the Foreign Corrupt Practices Act after bribing an official at Russia’s State Atomic Energy Corporation, the Justice Department said Oct. 28. Mark Lambert, who headed Transportation Logistics International, which provided transportation services for nuclear materials, pleaded guilty to the charges last year (see 1911250025). Lambert was also sentenced to three years of supervised release and ordered to pay a $20,000 fine.

Topics:Foreign Corrupt Practices Act
Chicago Company Fined $19.6 Million After FCPA Violations
October 29, 2020 |FCPA

A Chicago beverage company agreed to pay more than $19.6 million after it violated the Foreign Corrupt Practices Act, the Justice Department said Oct. 27. Beam Suntory Inc. allegedly tried to bribe an Indian government official to gain approval for a license “to bottle a line of products” that the company wanted to sell in India, Justice said. The company also violated records and book-keeping laws by ignoring “improper activities and practices” by third-parties engaged by Beam in India that led to corruption risks.

Topics:Foreign Corrupt Practices Act
Brazilian Company Pleads Guilty, Fined for FCPA Violations
October 16, 2020 |FCPA

A Brazilian investment company was fined more than $256 million after pleading guilty to paying millions of dollars in bribes to government officials for contracts, the Justice Department said Oct. 14. J&F Investimentos S.A. pleaded guilty to conspiracy to violate the Foreign Corrupt Practices Act when it worked with others to bribe “high-level” Brazilian officials, including an executive at Banco Nacional de Desenvolvimento Economico e Social (BNDES), Brazil’s state-owned bank.

Topics:Foreign Corrupt Practices Act
US Resident Charged With FCPA Violations Involving Oil in Ecuador
September 24, 2020 |FCPA

A Mexican citizen who lives in the U.S. was charged with conspiracy to violate the Foreign Corrupt Practices Act for his alleged involvement in an international bribery and money laundering scheme. Javier Aguilar, a trader at the U.S. subsidiary of a multinational oil distributor, allegedly paid $870,000 worth of bribes to Ecuadorian officials, the Justice Department said Sept. 22.

Topics:Foreign Corrupt Practices Act
US Company Pleads Guilty, Fined for FCPA Violations
September 24, 2020 |FCPA

A U.S. asphalt company agreed to pay a criminal fine of $16.6 million after pleading guilty to charges of conspiracy to commit anti-bribery violations, the Justice Department said Sept. 22. The agency said Sargeant Marine Inc. conspired to violate the Foreign Corrupt Practices Act when it schemed to bribe foreign officials in Brazil, Venezuela and Ecuador to obtain asphalt contracts.

Topics:Foreign Corrupt Practices Act