overview of international business legal issues

Practicing Law in a Flat WorldPracticing Law in a Flat World

Presented by

Jim ChesterJim ChesterJ.D. / LL.M. / CHBJ.D. / LL.M. / CHB

A Discussion of Common International Legal Issues

Why is the World Why is the World ““FlatFlat””??

•• Every person and business is affectedEvery person and business is affectedby globalizationby globalization

•• Technology & Globalization haveTechnology & Globalization haveleveled the international leveled the international ““playing fieldplaying field””•• Increased competitionIncreased competition

•• Outsourcing of servicesOutsourcing of services, including legal, including legalservicesservices

The The ““MythMyth”” of of Private International LawPrivate International Law

•• Law - Law - a rule of conduct or action prescribed or formallya rule of conduct or action prescribed or formallyrecognized as binding or enforced by a controlling authorityrecognized as binding or enforced by a controlling authority(Webster(Webster’’s Dictionary)s Dictionary)

•• No No ““supra-nationalsupra-national”” court or police force court or police force

•• Does Exist, but not in any one sourceDoes Exist, but not in any one source•• As codified in national lawsAs codified in national laws•• Via contract between partiesVia contract between parties•• Industry standards andIndustry standards and customscustoms

Private InternationalPrivate International LawLaw

Three Main Elements:Three Main Elements:1.1. International Business Transactions (IBT)International Business Transactions (IBT)

2.2. International Trade Law (ITL)International Trade Law (ITL)

3.3. International Civil Litigation (ICL)International Civil Litigation (ICL)

IBT ICLWeeks/Months Years/Decades

Private InternationalPrivate International LawLaw

International Business Transactions (IBT)International Business Transactions (IBT)

95% - Domestic law 95% - Domestic law - - (e.g., contract)(e.g., contract)

5% - International5% - InternationalSpecial ConsiderationsSpecial Considerations

PracticalPractical

Currency Risk, etc.Currency Risk, etc.

Legal - ContractingLegal - Contracting

Jurisdiction, Translations, etc.Jurisdiction, Translations, etc.

Effect of foreign lawsEffect of foreign laws

CISGCISGUCC v. INCOterms2000UCC v. INCOterms2000

International Business Transactions (IBT)International Business Transactions (IBT)

International ContractsInternational Contracts

Distribution AgreementsDistribution Agreements

Joint VenturesJoint Ventures

Setting up Foreign CompaniesSetting up Foreign Companies

Setting up U.S. SubsidiariesSetting up U.S. Subsidiaries

Examples of IBT Legal MattersExamples of IBT Legal Matters

International Civil Litigation (ICL)International Civil Litigation (ICL)

95% - Domestic law (US or other)95% - Domestic law (US or other) 5% - International Aspects5% - International Aspects

Special Legal IssuesSpecial Legal IssuesJurisdiction, etc.Jurisdiction, etc.Deposing Foreigners - Deposing Foreigners - ““comitycomity”” or local law or local law

International ConventionsInternational ConventionsHague ConventionsHague Conventions

Service of ProcessService of Process Taking Evidence Abroad (depositions, etc.)Taking Evidence Abroad (depositions, etc.)

IntInt’’l Enforcement of Judgmentsl Enforcement of Judgments

International Civil Litigation (ICL)International Civil Litigation (ICL)

Suing ThereSuing ThereJurisdiction IssuesJurisdiction Issues International Procedural RulesInternational Procedural RulesSupervising IntSupervising Int’’l Counsell Counsel

Suing HereSuing HereJurisdiction IssuesJurisdiction IssuesCollecting Foreign JudgmentsCollecting Foreign JudgmentsObtaining Evidence from Foreign PartiesObtaining Evidence from Foreign Parties

Examples of ICL Legal MattersExamples of ICL Legal Matters

International Trade Law (ITL)International Trade Law (ITL)

99% Domestic Law - U.S. or other99% Domestic Law - U.S. or other Key ElementsKey Elements

Customs & Import LawCustoms & Import LawExport Control & Trade SanctionsExport Control & Trade SanctionsTrade Agreements & Preference ProgramsTrade Agreements & Preference ProgramsTrade RegulationTrade Regulation


Customs and Import LawCustoms and Import LawProtestsProtestsRuling RequestsRuling Requests Import Compliance ProgramsImport Compliance ProgramsFines & PenaltiesFines & PenaltiesLiquidated DamagesLiquidated DamagesSeizures & ForfeituresSeizures & Forfeitures Internal Audits & Compliance AssessmentsInternal Audits & Compliance AssessmentsCargo Security (C-TPAT, etc.)Cargo Security (C-TPAT, etc.)Foreign-Trade ZonesForeign-Trade Zones

Examples of ITL Legal MattersExamples of ITL Legal Matters


Export Control & Trade SanctionsExport Control & Trade SanctionsExport LicensingExport LicensingExport Compliance ProgramsExport Compliance ProgramsSanctions & EmbargoesSanctions & EmbargoesInternal Audits & ComplianceInternal Audits & Compliance

AssessmentsAssessments



Trade Agreements & Preference ProgramsTrade Agreements & Preference ProgramsNAFTANAFTAWTO/GATTWTO/GATTFTAAFTAAGeneralized System of Preferences (GSP)Generalized System of Preferences (GSP)Bi-Lateral Free Trade AgreementsBi-Lateral Free Trade Agreements

(Singapore, Australia, Jordan, Israel, etc.)(Singapore, Australia, Jordan, Israel, etc.)



Trade RegulationTrade RegulationQuotasQuotasAntidumpingAntidumpingCountervailing Duties/SubsidiesCountervailing Duties/SubsidiesSafeguards (§201, §301, etc.)Safeguards (§201, §301, etc.)Foreign Corrupt Practices ActForeign Corrupt Practices ActAntiboycottAntiboycottITARITAR


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