International Trade Overview

US companies engage in more than $7 trillion in international trade annually, with more than 275,000 companies importing and just under 280,000 companies exporting goods alone. Given the stakes involved, it is not surprising that the US Government has broad authority to regulate these international trade transactions, powers that are enshrined in the US Constitution; delineated in federal statutes and regulations; administered by the President and a wide range of US Government agencies; and, subjected to judicial review.

Those agencies, which include the Office of the US Trade Representative, the Departments of Commerce, Treasury, State, Agriculture, Homeland Security and Defense, and the independent International Trade Commission, have a wide array of trade-related weapons. This arsenal includes negotiating trade agreements, which must be approved by Congress if they require changes in US law; imposing tariffs or quotas to address foreign dumping, subsidies or unfair trade practices; providing temporary relief to US industries being injured by increased imports; limiting imports when overreliance on them threatens national security; imposing fines, penalties, forfeiture or liquidated damages for US Customs violations; forbidding US exporters from selling military or dual-use products or technology to certain countries, entities or persons under US export control laws; fining or imprisoning those that violate those laws; disbarring companies from participating in government contracts; or, prohibiting US persons from doing business with individuals, groups or entities appearing on lists of “Specially Designated Nationals” compiled by the Treasury Department.

Given the range and complexity of the legal processes that can lead to these trade remedies, it is critical for US and foreign companies engaged in international trade to understand importing and exporting requirements and the impact that governmental policies can have on their businesses. This applies to companies specifically named as parties in trade cases such as antidumping investigations or more broadly in other trade cases such as safeguards or national security investigations, but also to those affected further downstream. This includes US manufacturers that consume, as inputs, products subject to US tariffs; US exporters hurt by foreign retaliatory tariffs; and importers that could be liable for millions of dollars in antidumping duties for products they purchased long before a final Commerce Department ruling, to name just a few examples.

This article is designed to walk you through the laws, regulations, policies and issues inhabiting this multi-jurisdictional landscape and the possible impact what might seem like a distant international trade issue could have on your business.