Information on current visa & immigration issues
Information on current visa & immigration issues
Geared towards aspiring entrepreneurs and individuals seeking a fresh start in the United States, Terik Hashmi's handbook provides invaluable insights into navigating the complexities of starting a business in America.
Attorney Terik Hashmi has written a new book with hands-on advice for those seeking to move to the USA, start a business and make a living. In fact, it is a book for those who truly want to succeed.
“Business Chance USA – How to make money in America” is, unlike Hashmi’s prior publications, a handbook for all those who want to come to the United States – young entrepreneurs who have the drive to start their own business; those who have special talents with which to succeed; and those who simply seek a new beginning.
In "Business Chance USA," Hashmi draws upon his extensive legal expertise to demystify the process of establishing a successful business venture in the land of opportunity. From obtaining the right visa to identifying lucrative market niches, Hashmi offers a comprehensive roadmap for achieving entrepreneurial success in the United States.
Key highlights of "Business Chance USA" include:
1. Navigating the Visa Process: Hashmi sheds light on the various visa options available to individuals looking to establish a business presence in the United States. With detailed guidance on visa categories such as the EB-2 NIW (National Interest Waiver) Green Card, readers will learn how to effectively leverage their skills and experience to gain entry into the American market.
2. Identifying Profitable Market Niches: Recognizing the importance of market research in entrepreneurial endeavors, Hashmi explores strategies for identifying and capitalizing on lucrative business opportunities. Whether in the fields of engineering, medicine, or beyond, readers will gain valuable insights into finding a niche that aligns with their interests and expertise.
3. Navigating Daily Living Challenges: Beyond business strategy, Hashmi addresses essential daily-living issues such as obtaining a Social Security Number and Driver's License. By providing practical guidance on these fundamental aspects of life in the United States, Hashmi equips readers with the knowledge needed to thrive in their new environment.
Commenting on the release of "Business Chance USA," Terik Hashmi remarked, "I'm thrilled to share my expertise and insights with aspiring entrepreneurs who are eager to pursue their dreams in America. Whether you're a seasoned professional or a fresh-faced newcomer, this book is designed to empower individuals from all walks of life to succeed in the dynamic landscape of American business."
"Business Chance USA - How to make money in America" is slated for release in the Fall and will be available for purchase on Amazon.
About Terik Hashmi
Mr. Terik Hashmi possesses over 25 years of experience in all aspects of US Immigration & International Law. He has dedicated his life’s path to become a true champion of both Human and Immigrants’ Rights, and has represented the entire spectrum of clients, from Individual to Business, to Investor, to Former Head of State. Mr. Hashmi has always been at the forefront of the field in terms of Education, Training and Experience.
Website: https://internationallawupdate.org/
The new book of Terik Hashmi, Esq. is a complete re-write of his previously published book “10 Steps for a successful job application in the USA” (published 2000 in Germany by TIA Publishers).
Practicing attorney Terik Hashmi announces the upcoming release of his latest book, a comprehensive guide titled "Unlocking Opportunities: Navigating the U.S. Job Market and Work Visa Process." Drawing on his extensive experience in immigration law and employment matters, Hashmi's book serves as an indispensable resource for individuals seeking employment opportunities in the United States.
In "Unlocking Opportunities," Hashmi provides invaluable insights and practical advice on every step of the job search and visa application process. A standout feature of the book is its detailed explanation of how to obtain a work visa, even without the sponsorship of a U.S. employer—a topic often shrouded in confusion and uncertainty. Hashmi's expertise demystifies this complex process, empowering readers to pursue their career aspirations with confidence.
Furthermore, the book addresses a pressing concern for job seekers in today's digital age: the increasing role of artificial intelligence (AI) in the hiring process. As Hashmi emphasizes, AI has revolutionized recruitment practices, with many employers utilizing sophisticated algorithms to screen and select candidates based on their resumes. Understanding how AI operates is crucial for job applicants aiming to stand out in a competitive job market—a topic thoroughly explored in "Unlocking Opportunities."
"Securing employment and navigating the U.S. visa system can be daunting tasks," says Hashmi. "With 'Unlocking Opportunities,' my goal is to equip individuals with the knowledge and strategies they need to navigate these challenges successfully. Whether you're a recent graduate, a seasoned professional, or an aspiring immigrant, this book will serve as your roadmap to unlocking new opportunities and achieving your career goals in the United States."
"Unlocking Opportunities: Navigating the U.S. Job Market and Work Visa Process" will be available shortly on Amazon in print and eBook formats, offering accessible guidance to individuals worldwide aspiring to pursue employment opportunities in the United States.
Attorney Terik Hashmi appointed Editor of the international law report “International Law Update”
Under the new leadership of Terik Hashmi, the publication will continue its online presence on LEXIS, WEST, and other information providers.
Practicing Attorney Terik Hashmi, based in Miami, Florida, is the new editor of “International Law Update,” which appears in several online information services such as LEXIS, WEST, and others. Since 1995, International Law Update has provided monthly briefings on the most significant domestic and foreign legal developments in the fields of public and private international law, and has been of particular value to US lawyers, judges and teachers. International Law Update has reported on recent international opinions of U.S. and leading foreign and internationals courts, on leading cases from the European Court of Justice and the European Court of Human Rights, and the World Trade Organization rulings. Frequent International Law Update subjects include applications of the Hague Evidence and Service Conventions, the contents of major intergovernmental commercial and trade agreements, cases dealing with sovereign immunity and enforcement of judgments, international jurisdiction, choice of law and the enforcement of judgments, and significant changes in public and private international law that may affect American interests at home and abroad. Thus far, the Update has reported on over 3,000 international issues.
Like many print publications, International Law Update was forced to change its approach as a result of the proliferation of the internet, and is now available through online providers. With a reorganization and Mr. Hashmi as editor, the publication will continue to provide its services to the legal and academic community.
Mr. Terik Hashmi is best known as the Attorney who represented Former President of Venezuela Carlos Andres Perez in his Application for Political Asylum in the US after the Coup D’état and overthrow of the Presidency by strongman Hugo Chavez.
“It’s a true honor and privilege to follow in the footsteps of the original publishers,” comments Mr. Hashmi. “It is a useful and easy-to-read digest of most recent international developments and has been cited in international court decisions.”
Mr. Hashmi is certainly the right person for the job based on his nearly three decades of law practice experience representing clients in international, diplomatic and political circles. He holds two University Degrees as well as two Law Degrees, a J.D. (Juris Doctorate) from Ohio and an LL.M. (Master of Laws) degree from the State of California where he specialized in Transnational Business Practice.
In next installment of “Law Instruction Series” immigration attorney Terik Hashmi publishes articles on E treaty visas
In the “Law Instruction Series,” Terik Hashmi explains issues of US immigration in easy-to-understand format. The newest issue discusses E-1 and E-2 visas. However, such information is not legal advice; legal advice requires a specific set of facts and law that should be reviewed and analyzed by a qualified attorney.
The newest article in the “Law Instruction Series” of immigration attorney Terik Hashmi is now available. Mr. Hashmi created the “Law Instruction Series” based on his decades of hands-on experience, including immigration litigation. It is published on his blog at https://terikhashmi.blog/
The “Law Instruction Series” explains fundamental issues of US immigration in easy-to-understand format, for practitioners as well as anybody interested in the subject. However, such information is not legal advice; legal advice requires a specific set of facts that should be reviewed and analyzed by a qualified attorney.
“E-1 and E-2 are fundamental to business relations with other countries, and open the doors to those who trade with the U.S. or invest here. Most importantly, the E-1 and E-2 avoid USCIS and instead process through the respective US consulates. Filing a petition at USCIS, such as for an L-1, can lead to delays or one of those dreaded ‘Requests for Evidence’ (RFE),” explains Terik Hashmi.
The E-2 Treaty Investor Visa, a non-immigrant visa classification, allows a national of a Treaty Country (a country with which the United States maintains a Treaty of Commerce and Navigation) to be admitted to the United States when investing a substantial amount of capital in a U.S. business. Certain employees of such a person or of a qualifying organization may also be eligible for this classification. See U.S. Department of State's Treaty Countries for a current list of countries with which the United States maintains a treaty of commerce and navigation.
To qualify for E-2 classification, the treaty investor must satisfy the following conditions:
- Be a national of a country with which the United States maintains a treaty of commerce and navigation
- Have invested, or be actively in the process of investing, a substantial amount of capital in a bona fide enterprise in the United States
- Be seeking to enter the United States solely to develop and direct the investment enterprise. This is established by showing at least 50% ownership of the enterprise or possession of operational control through a managerial position or other corporate device.
An investment is the treaty investor’s placing of capital, including funds and/or other assets, at risk in the commercial sense with the objective of generating a profit. The capital must be subject to partial or total loss if the investment fails. The treaty investor must show that the funds have not been obtained, directly or indirectly, from criminal activity. A substantial amount of capital is defined as:
- Substantial in relationship to the total cost of either purchasing an established enterprise or establishing a new one
- Sufficient to ensure the treaty investor’s financial commitment to the successful operation of the enterprise
Finally, Mr. Hashmi cautions readers that “such general guidance is not actionable legal advice in specific cases. For that, one must consult with an attorney qualified in such matters.”
About Terik Hashmi
Mr. Terik Hashmi possesses over 25 years of experience in all aspects of US Immigration & International Law. He has dedicated his life’s path to become a true champion of both Human and Immigrants’ Rights, and has represented the entire spectrum of clients, from Individual to Business, to Investor, to Former Head of State. Mr. Hashmi has always been at the forefront of the field in terms of Education, Training and Experience.
Website: https://internationallawupdate.org/
Long-time Immigration Attorney Terik Hashmi announces new “Law Instruction Series” on US Business & Investment Immigration
The “Law Instruction Series” articles explain fundamental issues of US immigration in easy-to-understand format, for practitioners as well as anybody interested in the subject. However, such information is not legal advice; legal advice requires a specific set of facts and law that should be reviewed and analyzed by a qualified attorney.
Terik Hashmi, an experienced immigration lawyer, is creating a “Law Instruction Series” based on his decades of hands-on experience, including immigration litigation. The Series will initially be published on his blog at https://terikhashmi.blog/
The “Law Instruction Series” explains fundamental issues of US immigration in easy-to-understand format, for practitioners as well as anybody interested in the subject. However, such information is not legal advice; legal advice requires a specific set of facts that should be reviewed and analyzed by a qualified attorney.
“The South Florida business marketplace is so dynamic, so international,” stated Attorney Terik Hashmi, “and therefore there needs to be corresponding international business and immigration services which can handle the complexity and sophistication of the international businessperson… which includes their desire to invest, work and build businesses in the United States.”
The series of legal articles entitled the “Law Instruction Series” will examine the latest developments in US Business Immigration & Investment Visas, such as E-1 Visas for “Treaty Traders” with the United States; E-2 Visas for “Treaty Investors;” L-1 Visas for Multinational Managers or Intra-Company Transferees; and the Immigrant Investor Program (a/k/a Million Dollar Visas or EB-5, allowing international investors to obtain Lawful Permanent Residence in the United States through Investment). The required investment amount depends on the location of the investment enterprise (Targeted Employment Areas (TEAs), or outside TEAs).
Mr. Hashmi added that “there are many areas and Counties within South Florida which specifically do qualify for this reduced investment under Department of Homeland Security guidelines. Therefore where one chooses to locate the investment project is of paramount importance and should not be made without analyzing many such factors through specific advice and guidance of experienced Counsel.” Mr. Hashmi will discuss this aspect of “Targeted Employment Areas” within the EB-5 context in an upcoming Issue of his Law Instructional Series Articles. As the next step, Mr. Hashmi is planning a video version of the “Law Instruction Series” that will be available on demand from an internet platform.
Finally, Mr. Hashmi cautions readers that such general guidance is not actionable legal advice in specific cases. For that, one must consult with an attorney qualified in such matters.
About Terik Hashmi
Mr. Terik Hashmi possesses over 25 years of experience in all aspects of US Immigration & International Law. He has dedicated his life’s path to become a true champion of both Human and Immigrants’ Rights, and has represented the entire spectrum of clients, from Individual to Business, to Investor, to Former Head of State. Mr. Hashmi has always been at the forefront of the field in terms of Education, Training and Experience.
Website: https://internationallawupdate.org/
Miami, Florida, immigration lawyer Terik Hashmi provides current visa & immigration info on Blog in easy-to-understand format
Terik Hashmi, Esq., with decades of hands-on experience in immigration, will through his blog address various issues of interest to people who are facing immigration issues and are looking for initial guidance. Of course, specific and accurate legal advice always requires a consultation and review with a qualified attorney.
Terik Hashmi, a lawyer with particular immigration experience as a practitioner and advocate, has started a publicly available Blog to provide easy-to-understand information about such matters to assist people looking for general, initial guidance.
The Blog is available at https://terikhashmi.blog/
In his Blog, Terik Hashmi is writing about issues he encounters in his trial and appeals practice and that he is most familiar with. His current practice is mostly business immigration and immigration court work.
Terik Hashmi explains that “nowadays it has become difficult to find trustworthy initial guidance on such legal issues. Information on the internet is often unreliable. So I thought if I just make my own research that I use for trial or appeals cases available to the public, it may assist some people who are looking for initial guidance on these matters. Of course, since immigration is largely a federal matter, most of my articles will refer to federal law. Also, I make sure to caution readers that such general guidance is not actionable legal advice in specific cases. For that, one must consult with an attorney qualified in such matters.”
One example is the “Exceptional and Extremely Unusual hardship” standard for the cancellation of removal. It is often the most difficult requirement to prove for individuals applying in Cancellation of Removal cases. It was originally born out of an old Deportation Defense remedy known as Suspension of Deportation. This old standard was governed under the prior Section of the Immigration & Nationality Act (INA) – Section 244(a)(2) which was required for Suspension of Deportation Applicants who had committed certain crimes. The INA also has a stricter standard, “Exceptional and Extremely Unusual Hardship.”
This stricter standard became more widespread after Congress passed the Illegal Immigration Reform and Immigrant Responsibility Act (IIRIRA) in 1996. IIRIRA effectively replaced Suspension of Deportation with “Cancellation of Removal for Certain Non-Permanent Residents” (Non-LPR Cancellation) under INA § 240A(b). The Applicant must show that Deportation/Removal will cause exceptional and extremely unusual hardship to a “Qualifying Relative” of the Applicant.
One important difference, however, was the application of this heightened hardship standard to all Cancellation of Removal applicants, not just those who have committed certain crimes. In addition to demanding a higher showing of hardship, non-LPR Cancellation also narrowed whose hardship matters. An applicant for this form of relief must establish that her removal would result in exceptional and extremely unusual hardship to her U.S. citizen or LPR spouse, child(ren), or parent(s) who shall remain in the USA after the Applicant’s Removal. Hardship to the applicant herself is technically irrelevant.
Explains Mr. Hashmi, “I hope to fill that initial information gap with explanatory articles that anybody can understand.”
About Terik Hashmi
Mr. Terik Hashmi possesses over 25 years of experience in all aspects of US Immigration & International Law. He has dedicated his life’s path to become a true champion of both Human and Immigrants’ Rights, and has represented the entire spectrum of clients, from Individual to Business, to Investor, to Former Head of State. Mr. Hashmi has always been at the forefront of the field in terms of Education, Training and Experience.
Website: https://internationallawupdate.org/
Detailed treaty between United States and Japan on mutual cooperation in the enforcement of their respective competition laws, regulations and policies has entered into force
On October 7, 1999, an Agreement between the Government of the United States and the Government of Japan Concerning Cooperation on Anticompetitive Activities entered into force. Both Japan and the United States realistically admit that, from time to time, differences may come up over whether and how to enforce their antitrust laws. The parties declare the importance of antitrust enforcement to their respective economies and affirm their commitment to carefully consider each other's important interests in applying their competition laws.
For purposes of this Treaty, Article I defines the "competition authorities" as including the U.S. Department of Justice and the Federal Trade Commission and the Japan Fair Trade Commission. On the U.S. side, the "competition laws" refer to the Sherman and Clayton Acts, the Wilson Tariff Act and the Federal Trade Commission Act and their implementing regulations. For Japan, it includes the Antimonopoly Law of April 1947 and its corresponding regulations.
There are a number of conflictual situations that the Treaty deals with. For example, one party's antitrust enforcement might involve a national or corporation of the other country. Moreover, it might pertain to anticompetitive activities (other than mergers or acquisitions) substantially carried out on the other party's territory.
The Treaty will also apply if one or more entities taking part in a merger or acquisition or a company controlling one or more parties to the transaction is a domestic company of the other party. Another instance is where the relief sought demands or bars conduct in the other party's territory. Finally, the Treaty will govern where the other party has required, encouraged or approved the conduct being investigated.
Since mutual notification that one of the above situations exist is key, the Treaty sets time limits for providing notice. The Treaty also requires each party to keep the other up to date on amendments to its competition statutes, as well as to the guidelines, regulations or policy statements relating to these statutes.
Under Article III, each party's competition authority is to help the other party's international enforcement efforts to the extent feasible and domestically lawful. This may include supplying information as to each one's enforcement directed at behavior that might adversely affect competition in the other party as well as relevant data asked for by the other party.
The Treaty sets out criteria in Article IV for deciding whether the parties can, and should, coordinate their antitrust efforts. These elements include cost-effectiveness, the relative abilities of the parties to obtain the needed information and the potential benefits of correlating relief. If one party believes that anticompetitive activity within the other party is adversely affecting the first party's economy, the former may, in appropriate cases, request the other under Article V to initiate anticompetitive measures. Each requested party agrees to give due consideration to these petitions and to keep the requesting party informed of any action taken.
The Treaty suggests a number of factors that each party should take into account where the enforcement activities of one party are likely to impair the other's important interests. In addition to assessing the relative impact of the activities on each other, Article VI mentions the presence or absence of the accused's intention to have an impact on the markets of the enforcing state, the degree to which the unlawful activities substantially lessen competition in each country's markets and the degree of harmony or dissonance between the enforcing measures and the laws or policies of the other country. Other Article VI factors include the possibility that both parties will make conflicting demands on the suspected entities or individuals, the location of relevant assets and suspects, and the impact of the enforcement activities of one party on sanctions sought by the other.
In general, this Treaty is without prejudice to using other bilateral or multilateral agreements involving Japan and the U.S. and is not intended to derogate from the requirements of domestic law or international agreements. Article XI (4) also provides that "Nothing in this Agreement shall be construed to prejudice the policy or legal position of either Party regarding any issue related to jurisdiction."
Citation: State Dept. No. 99-137, 1999 WL 1083830 (Treaty).
DECLARATORY JUDGMENTS
In litigation by American "whistle blower" seeking statutory award for assisting in prosecution of multi-million dollar Amway fraud on Canadian government, Ontario Court of Appeals issues declaratory judgment requiring Minister of National Revenue to personally consider and decide award question
Dorothy Edgar is a seventy-year-old resident of the United States who served as an executive secretary to Edward Engel, vice-president of finance at Amway Corporation between 1976 and 1979. In 1977, Engel found out that Amway and its Canadian subsidiary, Amway of Canada Ltd. (ACL), were cheating Canadian customs authorities out of millions of dollars, using a complex system of phony books and invoices.
In January of 1979, Engel and Edgar resigned from Amway and several months later the government learned about the fraud. Dwight St. Louis, the Regional Manager of Customs Investigations, phoned Engel and asked for his help but Engel turned him down. When contacted, however, Edgar cooperated by supplying crucial Amway documents showing the nature of the scheme and who was involved in it. A senior Canadian official wrote an internal memo acknowledging the vital nature of the Amway documents that Edgar had supplied.
When the RCMP became involved, both Engel and Edgar cooperated in the criminal prosecution of the Amway companies. After the two companies pleaded guilty, they had to pay $25 million in fines. The RCMP paid Edgar $31,000 for her aid and she released the RCMP from any further obligation to her.
Next the Minister of National Revenue (MNR) brought a civil action against the Amway companies but did not ask Edgar for her aid. Engel, however, signed a cooperation agreement with the Ministry and later received $320,000 for his help.
The Amway companies reached a $45 million settlement in September of 1989 of which the "net proceeds" the government actually received were a little more than $16 million. Regulations under both the Customs and the Excise Acts empowered the payment of an award out of net proceeds to a person who "contributed substantially to the detection of a violation of the customs laws or the Excise Act." The MNR has "sole discretion" in the matter and the decision is to be final. [Editorial Note: As we read the statute, the MNR could have awarded Edgar almost $1.6 million.]
In December 1986, Edgar had sent in a written request for the "maximum award" to Edward Sojonky, Q.C., a senior attorney in the Canadian Department of Justice. St. Louis supported her request. It also turned out that as early as 1980, St. Louis had written a confidential Investigator's Report to the Ministry in which he praised Edgar's role in the Amway investigation. After noting Edgar's important help in both the criminal and civil matters, St. Louis declared: "[i]n so doing, this person has suffered personal harassment and in light of the scope of this fraud it is recommended that the maximum Informant's Award be considered."
At the first level, the Customs department decided that Edgar was merely a conduit for Engel and rejected her claim for a separate award. Eventually, Edgar's claim reached a Deputy Minister who met with Edgar's attorney. The Minister later advised the attorney that the department would not pay Edgar's claim but she suggested that the presentation of additional information could lead to reconsideration.
In 1993, Edgar sued the Ministry on contract, breach of warranty, negligence and quantum meruit claims. After a late 1997 trial, the judge dismissed all of Edgar's claims. The judge found that there was no contract nor did St. Louis have authority to commit the Ministry to an award. Moreover, there was no negligence since the law authorized the Deputy Minister to decide this type of matter. Finally, the quantum meruit claim failed because there was no "unjust enrichment" where the government got back what was lawfully owing to it.
Edgar appealed the judgment, claiming error in the rejection of her negligence and quantum meruit claims. Central issues are whether the trial judge erred in reading the Award Payment Regulations as demanding that the Minister personally determine whether to grant plaintiff an award. If the answer is yes, then the Court must decide what is the legal consequence of having action taken by a Deputy.
According to the Interpretation Act, a minister can do authorized acts through his deputies "unless a contrary intention appears." In the Court's view, when the Award statute goes beyond the common phrase "the Minister may" and requires the Minister to act "in his sole discretion," it does express a contrary intention.
"Accordingly, on the first issue my conclusion is that the trial judge did err in finding that s. 3(1) of the Customs and Excise Award Payment Regulations did not require the Minister himself to authorize or refuse a payment to the appellant." [Slip op. 20]
Plaintiff argued that the Minister's failure to act in person was negligence, i.e., a breach of the duty to make sure that the right official decides. The Court disagrees.
"Throughout the 1980s and 1990s it appears that all parties were unaware of the relevant regulation. In fact it was repealed in 1986, long after the facts giving rise to Edgar's claim arose, but before her application for an award. Edgar and the Ministry placed the matter before various officials in government including, ultimately, the Deputy Minister of National Revenue. Edgar played a full and active role in this process. She did so without objection. In such circumstances, it would be wrong, in my view, to enunciate an absolute rule to the effect that a decision unintentionally made by the wrong person in a government department constitutes negligence." [Slip op. 23]
Finally, the Court discusses the relief options. It could dismiss the appeal but this would frustrate the twenty-year fight of an elderly woman by forcing her to start all over in a judicial review proceeding. Secondly, the Court could exercise its discretion and simply fix the amount of an award. This, however, would go against a statute that reposes that power solely in the Minister. It would also seem, in effect, to involve a judicial exercise of an unwarranted power to order the Crown to pay an award.
Plaintiff's alternative position was for the Court, in its discretion, to issue a declaratory judgment that the Minister must with due promptness personally consider and decide whether or not to hand down an award and, if so, in what amount. The Court finds this the most practical and equitable solution.
"The remedy is both useful and necessary in that it settles conclusively the crucial issue of who must make a decision respecting Edgar's claim. It informs everyone, including the Minister (who is a party to the action) that, under the Customs and Excise Award Payment Regulations, only he can decide the appellant's claim and that he has not in fact done so in the past. Thus, in my view, the issuance of the declaration is logically and legally defensible; it strikes a proper balance between the privileged position of a Minister of the Crown and the unusual, perhaps exceptional, facts of this appeal." [Slip op. 27]
Citation: Edgar v. Attorney General of Canada, 1999 Ont. C. A. Lexis 576 (December 2, 1999).
EXTRADITION
Second Circuit holds that, under U.S.-Canada Extradition Treaty, fact that sexual abuse offenses committed in Canada would be time barred under U.S. law does not preclude extradition to Canada where no limitations period applies to such offenses
As a result of an investigation by the Royal Newfoundland Constabulary, Canadian authorities charged John E. T. Murphy with felony charges stemming from the physical and sexual abuse of minors at the Mount Cashel Orphanage in that province between 1951 and 1960. Canadian law has no statute of limitations for these offenses.
After a considerable time, Canadian authorities found out that Murphy had fled to New York state. In November 1996, they petitioned for his extradition pursuant to the 1976 U.S.-Canada Treaty on Extradition [T.I.A.S. No. 8237] and the 1991 Amending Protocol [Sen. Treaty Doc. No. 101-17 (1990)]. U.S. authorities arrested Murphy in May 1998 on an extradition warrant.
The New York district court magistrate concluded that Murphy was extraditable under the Treaty. He found probable cause to believe that Murphy had committed the charged crimes and the case met the requirement of dual criminality. He rejected Murphy's argument that the running of the U.S. statutes of limitation on these offenses barred his delivery to Canada for trial. In his subsequent petition for habeas corpus, the district court agreed with the magistrate and denied the petition. Petitioner then appealed.
Describing the case as one of first impression in the Circuit, the U. S. Court of Appeals for the Second Circuit affirms.
The Court first points to the relatively narrow scope of its review powers. An appellate court can only determine whether the magistrate had jurisdiction, whether the offenses charged lay within the Treaty and whether any evidence showed reasonable grounds to believe in the petitioner's guilt. In sum, the court questions only the legality of the proceedings below. The wisdom of handing over a particular extraditable petitioner is for the executive branch.
Petitioner noted that the federal five-year limitation for these offenses runs from the victims' eighteenth birthday. Under New York law, a five-year limitations period runs from the eighteenth birthday of the victim or from the date of reporting to a law enforcement agency, whichever takes place earlier. Here, more than thirty years has elapsed since petitioner left the orphanage.
Petitioner admitted the absence of limitations in Canada on these charges but contended that to extradite him would violate the principle of dual criminality set forth in Article 2(1) of the Treaty. This provides that "Extradition shall be granted for conduct which constitutes an offense punishable by the laws of both Contracting Parties... " Presumably, therefore, the charges against him would no longer be "punishable" in the U.S.
In the Court's view, the dual criminality doctrine focuses on the nature of the conduct as criminalized in the requesting state and in the asylum state, not on the statute of limitations issue. Hence, it cannot agree with petitioner's position.
The Court stresses that the Treaty's limited reference to limitations periods undercuts petitioner's theory. "Article 4(1)(ii) of the Treaty provides that ... a fugitive may raise a statute of limitation defense to avoid extradition, but only one based on the statute of limitation of the requesting state." [602-03]
While Article 8 of the Treaty does guarantee the extraditee the right to use "all remedies and recourses" that the requested state's law provides, the precedents are clear that this does not apply to the asylum state's limitations periods. "One who commits a crime in a foreign country simply 'cannot complain if required to submit to such modes of trial ... as the laws of that country may prescribe for its own people, unless a different mode be provided for by treaty.' (Cits.)" [603]
Citation: Murphy v. United States, 199 F.3d 599 (2d Cir. 1999).
FORUM NON CONVENIENS
Where naturalized U.S. citizen from Colombia sued Colombian elevator company with Maine charter in Maine federal court for wrongful death of naturalized husband while visiting in Colombia, First Circuit upholds dismissal on forum non conveniens grounds
Originally from Colombia, the Iragorri family became U.S. citizens in 1989. In 1992, while the family was in Bogota, Colombia, Mr. Iragorri apparently fell to his death down an elevator shaft while he was visiting his mother who lived in a partially finished apartment building.
The evidence of what happened is in conflict. An elevator mechanic had looked at the elevator a few hours before the accident but had decided to shut it down until the repairs could be completed. The doorman testified that he found a screwdriver holding the elevator doors open on the fifth floor where Iragorri's mother lived. He also found Iragorri lying at the bottom of the elevator shaft. While the doorman initially declared that Iragorri was drunk, he later testified that Iragorri appeared normal.
International Elevator, Inc. (IEI) maintained the elevator at the apartment building. IEI began in 1924 as a Maine subsidiary of Otis Elevator. Though Otis sold it in 1988, the company kept its Maine charter and still distributes Otis elevators.
Iragorri's widow sued several parties for negligence, including IEI. The district court in Connecticut transferred the case to the federal court in Maine where IEI was subject to jurisdiction. Upon a defense motion, the Maine district court dismissed on forum non conveniens grounds. Plaintiff appealed but the U.S. Court of Appeals for the First Circuit affirms.
As for the applicable rules, the Court notes that when a defendant moves for dismissal on forum non conveniens grounds, it must show (a) that an adequate alternative forum exists and (b) that considerations of convenience and judicial efficiency strongly favor litigating in the alternative forum. The movant can usually satisfy the first requirement if it shows that the alternative forum can address the claim and that the defendant is amenable to service of process there. The second requirement demands an analysis of the traditional private and public interest factors, including the access to evidence and a possible need to view the premises.
As for the adequacy of the alternative forum, Iragorri argued that Colombia is a dangerous country. She produced a State Department travel advisory warning U.S. citizens who travel to Colombia, especially to the city of Cali, about the risk of violence. The district court, however, found this unconvincing. The travel advisory singled out the city of Cali and Iragorri was a native of Colombia presumably aware of its troubles and better able to negotiate its hazards. This was not an unreasonable conclusion, in the appellate Court's view.
Iragorri also argued that Colombian courts not grant adequate damages for pain and suffering (called "moral damages" in Colombia). In the court's view, this alone does not mean that Colombia falls short in being an adequate forum. "At worst, a plaintiff forced to litigate a wrongful death action in Colombia rather than in an American jurisdiction faces a downgrade in remedy, i.e., an institutional inhospitability [sic] to generous awards for non-economic losses. This circumstance, in and of itself, does not impugn the adequacy of the proposed alternative forum." [Slip op. 5] It is enough that Colombian courts accept wrongful death cases, that they grant pecuniary and "moral damages" in such actions, and that the statute of limitations had not run in Colombia.
As for the balancing of the relevant private and public interests, the district court noted that the court or the jury must assess the credibility of the two principal witnesses, the doorman and the elevator mechanic. Both were Spanish speakers whose attendance a Maine court could not compel. Assuming the Colombian courts would cooperate, the parties would have to take their depositions in Colombia and have them translated into English. Furthermore, IEI would be unable to implead other potentially responsible parties as it could do in Colombia.
In sum, the district court concluded that a Colombian forum could do better justice because of the relative ease of communicating the most important and most controversial testimony. As the U.S. Supreme Court has emphasized, where the lower court has considered all relevant public and private interest factors and the balancing is reasonable, its decision deserves substantial deference.
Citation: Iragorri v. International Elevator, Inc., No. 99-1188 (1st Cir. January 28, 2000).
FREEDOM OF PRESS
European Court of Human Rights holds that defamation award against Norwegian newspaper for publishing Norwegian Ministry of Fisheries report on conduct of seal hunting violated Convention Article 10 on freedom of expression
Bladet Tromso A/S is a limited liability company that publishes a newspaper of about 9,000 in circulation in northern Norway. Its editor is Pol Stensaas, a Norwegian national. During March and April of 1988, the Norwegian Ministry of Fisheries appointed a journalist named Lindberg as a seal-hunting inspector aboard the vessel M/S Harmoni. His June 30 report claimed several violations of the seal-hunting regulations, naming five crew members. Inter alia, the report alleged that some hunters had flayed seals alive.
Relying on the Public Access to Official Documents Act of 1970, the Ministry decided not to publish the Lindberg report because it alleged statutory violations. Mr. Lindberg then sent his report to the Bladet Tromso. The latter published some of its allegations on July 15 and the rest of the report (with names of crew members deleted) on July 19 and 20.
In May 1991, seventeen Harmoni crew members sued Bladet Tromso and Mr. Stensaas (applicants) for defamation. The following March, the Norwegian District Court found that six published statements were defamatory and not shown to be true and declared the statements null and void. One statement related to the skinning of seals alive and another implied that the seal hunters had criminally threatened Lindberg. Four statements claimed that unnamed hunters had killed four harp seals, illegal acts in 1988. The Norwegian court ordered the payment of damages totaling Nkr 27,000 plus costs. It also denied applicant's request for leave to appeal to the Supreme Court.
Applicants filed a case against Norway with the European Commission of Human Rights in December 1992. In September 1998, the Commission referred the matter to a seventeen-judge Grand Chamber of the new (as of November 1, 1998) European Court of Human Rights (ECHR). The ECHR concludes, 13 to 4, that Norway has not shown that its interference was "necessary in a democratic society." Accordingly, there was a violation of Convention Article 10.
Article 10(1) provides in part: "Everyone has the right to freedom of expression. This right shall include freedom to hold opinions and to receive and impart information and ideas without interference by public authority and regardless of frontiers." The parties did not dispute that the measures in question amounted to an "interference by a public authority" with the applicants' freedom of expression under Article 10(1).
Article 10(2) provides in relevant part that "the exercise of these freedoms, since it carries with it duties and responsibilities, may be subject to such formalities, conditions, restrictions or penalties as are prescribed by law and are necessary in a democratic society, ... for the protection of the reputation or rights of others..." In this case, there was no dispute on whether the inference was "prescribed by law" and aimed at a legitimate goal of "the protection of the reputation or rights of others." On these issues, the Court agrees with the parties.
The central dispute, however, is whether the governmental interference was "necessary in a democratic society." The applicants and the Commission argued that this condition had not been met whereas Norway took the opposite position. In analyzing the necessity test, the ECHR has to consider whether the interference conformed to a "pressing social need," whether it was proportionate to the legitimate aim pursued and whether the justifications provided by the national authorities were relevant and adequate.
While the national government is entitled to a "margin of appreciation," this power is not without bounds. It goes hand in hand with a European supervision by the Court. In this case, the Court has to have the last word on whether a restriction comports with the freedom of expression protected by Article 10.
An important factor in this case is the essential role of the press in a democratic society. Within proper bounds, its duty is to publish information and ideas on all matters of public interest. This might sometimes include a degree of exaggeration or even of provocation. The interest of democratic society in furthering this vital "watchdog" function limits the national appreciation margin.
The ECHR finds the factors considered by the Norwegian court relevant to protecting reputation. As to their adequacy under Article 10, however, the Court must take into account the context of the whole seal-hunting controversy during this period. The ECHR also notes that Article 10 applies not only to ordinary news but also to matters that may offend, shock or disturb the State or any segment of its people.
While the national court found sensationalist elements in the stories in question, the ECHR has to evaluate this style in the broader context of perennial seal-hunting issues. During the relevant period, applicant was publishing, in a balanced manner, its own opinions as well as those of the Ministry of Fisheries, Greenpeace and the seal hunters. Thus, the main thrust of these articles was not to accuse the hunters of wrongdoing but to call upon the government to take steps in light of the Lindberg report to improve the reputation of seal hunting.
As to the degree of defamation, the illegal hunting of harp seals was not particularly serious, in the Court's view. In addition, readers could understand that Bladet's reports may have somewhat embellished the alleged threats to hit Mr. Lindberg. The fact that the articles did not name the accused hunters also reduces their defamatory impact. The newspaper criticisms thus did not attack every, or any specific, crew member.
The Article 10 safeguards of press freedom require that the press act in good faith to put forth accurate and reliable information pursuant to journalistic ethics. Since the challenged articles set forth factual statements rather than opinions, the ECHR considers whether the paper's reliance on the Lindberg report released it from its usual duty to independently verify defamatory allegations of fact.
As to the reliability of the report, the Court points out that Mr. Lindberg was performing official duties assigned by the Ministry of Fisheries. The press should normally be able to rely in good faith on official reports without having to undertake independent research. This is so even if the Ministry itself had later expressed some doubts about the quality of the report. Thus, Norway failed to satisfy the necessity test.
Pursuant to the "just satisfaction" provisions of Convention Article 41, the Court unanimously orders Norway to compensate applicants within three months of the date of judgment. These sums include Nkr 323,342 (about $40,400) in pecuniary damages, Nkr 370,199 (about $46,200) for costs and expenses and Nkr 65,000 (about $8,000) for additional interest. Beyond the three-month period, Norway is to pay simple interest at an annual rate of 12% (the current Norwegian rate) until settlement.
Citation: Bladet Tromso and Stensaas v. Norway, 29 E.H.R.R. 125, 1999 WL 1142688 (ECHR).
MARITIME LAW
Fifth Circuit finds that Jones Act which does bar foreign plaintiffs from bringing U.S. law claims under Act does not prohibit foreign seaman from bringing suit under Act for maritime claims arising under foreign or international law
Section 688(b)(1) of the Jones Act provides that "[n]o action may be maintained under ... this section or under any other maritime law of the United States for maintenance and cure or for damages for the injury or death of a person who was not a U.S. citizen at the time of incident ..." Section 688(b)(2) creates an exception to this ban if there are no remedies in the country having jurisdiction or in the home country.
Warren Roy Jackson, a Honduran seaman not residing in the U.S., injured himself while working on a vessel off the coast of Mexico and sued the vessel's owner and operator (jointly "defendants") in a Louisiana federal court. He based his liability claims on negligence and unseaworthiness arising under (1) the Jones Act, (2) the tort laws of Mexico and Honduras and (3) the international lex maritima. He contended that, while the Jones Act may bar him from making American law claims, it does not expressly preclude foreign citizens from bringing foreign or international claims.
The district court dismissed on the grounds that the Jones Act barred foreign law claims by foreign seaman and this appeal ensued. The U.S. Court of Appeals for the Fifth Circuit agrees with the plaintiff and reverses.
In the Court's view, the plain meaning of Section 688(b)(1) merely prevents a foreign seaman from bringing a claim under U.S. law. Section 688(b)(2) creates an exception to this rule. Under it, a foreign seaman can bring an American maritime law case if he shows that there are no foreign law remedies available in other fora.
"It is true that this result arguably creates an anomaly whereby it will be easier for foreign seamen to get foreign law claims into U.S. courts than for them to get in maritime claims brought under United States law. The result also seems contrary to the legislative history of the Jones Act, which suggests that Congress did not intend for foreign seamen to be able to sue in American courts except where they would have no other available forum. Nonetheless, the plain text of the statute dictates this result. There is no ambiguity in Section 688(b)(1); it simply does not refer to foreign law claims. Accordingly, federal courts are not barred from hearing them." [Slip op. 2]
Citation: Jackson v. North Bank Towing Corp., No. 99-30030 (5th Cir. Jan. 31, 2000).
TRADE
Kazakhstan issues new rules for labeling of many specified products, requiring more detailed labels in both Kazakh and Russian and extending grace period for compliance
In January 2000, the Kazakh Government amended the labeling rules applicable to commercial products. Resolution Number 44 provides a newly revised list of commodities that have to carry Kazakh and Russian labels. The affected items include poultry products, dairy products, fats and oils, sweets, cereal products, liquor, animal feed, tobacco, paint, and electric household items. The Resolution exempts vitamins, pharmaceuticals, leather goods, fabrics, kitchen utensils, telephones, radios, and furniture.
The labels must bear (1) the product name, (2) the country of origin, (3) the manufacturer, (4) the date of manufacture, (5) the expiration date, (6) storage instructions, (7) usage instructions, and (8) nutritional information (for food products).
Resolution Number 121 amends the requirement published on August 31, 1999, which would have blocked the entry of non-complying products beginning February 1, 2000. The grace period for non-complying products will now expire on April 1, 2000.
[Editorial Note: The Harmonized System Tariff numbers are available upon request from the U.S. Commercial Service in Almaty, website: www.usis.kz. Please address specific questions directly to the Committee on Standardization, Metrology and Certification of the Ministry of Energy, Industry and Trade (Gosstandart), website: www.banknet.kz/gosstandart.]
Citation: Kazakhstani Government Resolutions Number 44 (Kazakhstanskaya Pravda of January 14, 2000) & Number 121 (Kazakhstanskaya Pravda of January 26, 2000). [Summary Report on these requirements by O. Chukreyeva of U.S. Commercial Service in Kazakhstan, along with English translation, is available through U.S. Department of Commerce, USA Trade Center, Phone: (202) 482-4522, or through BISNIS website www.bisnis.doc.gov.]
TRADEMARKS
In third round of litigation, English Court of Appeal dismisses appeals by Anheuser-Busch and Czech brewer from denial of their petitions to obtain exclusive use in United Kingdom of trade marks for "Budweiser" and "Bud" based on evidence of long-time honest parallel use of marks
In 1875, Anheuser-Busch, Inc.(AB), an American brewer of beer, took on the trade name of "Budweiser." It chose this name apparently out of admiration for the brewing methods used for centuries in the Bohemian town of Budweis, as it was known under the Austro-Hungarian empire.
The town is now in the Czech Republic and goes by its Czech name of Ceske Budejovice. An established brewing company in that town named Budejovicky Budvar N.P. (BB) also claims the right to the Budweiser name and other related marks. Litigation in the English courts has brought the matter to the English Court of Appeal for the third time.
In 1919, BB and another brewery in Budweis objected to AB's registration of the mark on grounds that the mark signified a geographical origin. Neither their settlement agreement or another one in 1939 specified whether either AB or BB was entitled to use BUDWEISER as a U.K. trade mark. Between 1920 and 1960, BB concentrated its labeling on the trade name, BUDVAR, or the brew (var) from BUDweis. In 1960, however, BB registered BUDWEISER as an international European mark. From then on it used both Budweiser and Budvar on its labels, sometimes emphasizing the one, sometimes the other.
BB registered "Budweiser Bier" and "Budweis Beer" as appellations d'origine with the International Bureau for the protection of intellectual property. The company began commercially delivering beer to Great Britain with labels that gave prominence to "Budweiser." It obtained its designation "Budweiser Budvar" in 1967. In 1971, BB registered the mark BUDWEISER BUDVAR disclaiming any exclusivity in the use of the word BUDWEISER. By midsummer of 1979, BB had sold more than 1,000,000 bottles in the U.K.
Between 1945 and 1973, AB sold its beer only in the U.S. Embassy and in PX stores selling to U.S. service personnel stationed in the U.K. Between 1962 and 1973, AB sold from 3,000,000 to 6,000,000 cans of its beer to American military. A substantial number of British citizens also learned about AB's beer from visits to the U.S. and from ads in American magazines circulating in Britain.
In the first round of litigation, the English Court of Appeal ruled that AB's "passing off" action lacked merit. Hence, both companies were entitled to use the name BUDWEISER in the U.K.
When BB applied in 1979 to register BUD as a trade mark, AB contested it in the second round. The courts, however, rebuffed AB's objection and allowed for concurrent use of BUD as a natural abbreviation in line with both companies' parallel use of BUDWEISER itself as authorized in the first round.
The third round of litigation stemmed from AB's efforts between 1979 and 1989 to register the mark BUDWEISER in various formats for beer, ale and porter. BB opposed these attempts. Over AB's objections, BB also sought to register the BUDWEISER mark for beer, ale and porter for malt drinks other than those sold in the U.S. Embassy and PX stores in the U.K.
Much time elapsed until the Registrar ruled on the applications in July of 1997. Though relying heavily on the records in the prior proceedings, the Registrar also received some additional evidence. For instance, since 1979, the U.K. trade of both companies had grown substantially. By 1992, for example, AB's sales totaled 53.5 million and BB's had reached over 5.5 million.
Evidence as to the appearance of each other's products showed a clear distinction between AB's bottles and cans and the bottles of BB. Moreover, on most products and promotional material, BB used both Budweiser and Budvar together. In several instances, however, material used to promote BB used the term BUDWEISER alone. Substantial evidence also showed that those in the beer trade and members of the public usually refer to BB's product as "Budweiser" or "Czech Budweiser" or "Bud" or "Czech Bud." The Registrar ultimately decided that both companies were entitled to use the mark in the U.K.
The reviewing Justice in the High Court (Chancery Division) held that there had been a long-time honest and concurrent use of the BUDWEISER mark by both companies in the U.K. Moreover, he agreed that traders and customers typically used "Budweiser" to refer to BB's product. Accordingly, he dismissed both AB's and BB's appeals. Both sides then went to the Court of Appeals.
After due consideration, a three-justice panel of that Court dismisses both appeals and refuses leave to appeal to the House of Lords.
The first Justice points to section 10 of the old statute that required a trade mark to distinguish goods of the mark owner from other goods. He also notes that Section 11 of the Act in part bars the registration as a trade mark of "any matter the use of which would, by reason of its being likely to deceive or cause confusion or otherwise, be disentitled to protection in a court of justice..." The latter phrase incorporates equitable principles in effect as of enactment of the first trade mark statute in 1875.
The Court of Chancery first recognized trade marks as a type of incorporeal property in the early 19th century. As of 1875, the case law had laid down the following principles. First, the right to enjoin an infringer did not depend on proving the latter's intention to deceive. Secondly, the proprietor of a distinctive trade mark could only acquire property in it by public use. Third, the main remedy to protect trade marks was the injunction to prevent a deception on the general public. The courts tried to accommodate this interest, however, to the traders' vested property in trademarks they had honestly adopted and whose public use had attracted a valuable goodwill. Finally, in cases of honest concurrent use, neither owner of the mark could restrain the other from using it.
The Justice notes also that, to refuse registration to BB, would seemingly involve much greater hardship than granting it would cause to AB or to the public convenience. He cautions against placing too much weight on the outcome of AB's earlier passing-off action. It did not succeed, despite proof of reputation, confusion and the risk of deception, simply because AB could not show that it possessed goodwill in the U.K. as of 1973-74.
Finally, Section 12(2) provides that the applicant for registration of a trade mark used by another must bring himself within either honest concurrent use or special circumstances or both. In light of all the circumstances, the Justice concludes that BB and AB have made concurrent use of the trade mark BUDWEISER. On this record (as in the passing off action) there is no sustainable suggestion that BB's use was other than honest. He also finds that the widespread trade and customer usage of "Bud" or "Budweiser" when referring to BB's beer provides "special circumstances" that justify overriding any objection under Section 11.
In the opinion of the second Justice, the decisive factor is that there is no way to impugn the lower court's exercise of its discretion under Section 12(2). That court focused on the practical realities of the U.K. market place in beer. Most customers will realize that there are two products bearing the name Budweiser, one American, the other Czech, and will make up their minds whether they prefer one over the other.
Correspondingly, the tradesman will either stock both brands or will carry the brand that his particular customers appear to prefer. If he stocks both brands and the customer asks for "Budweiser," he will typically ask the customer which brand he wants. To upset the long-standing concurrent marketing arrangement based on a fear that a few unwary customers might be confused or deceived would cause disproportionate hardship on one or the other of the parties here.
The third Justice concurs generally but differs with the court below in one respect. He holds that the Section 11 objection was valid in that a court of equity in 1875 would have barred the use of the competing terms because of the resulting confusion.
The Justice, therefore, sees the appeal as turning on the application of Section 12(2). The marks that AB and BB wish to register are identical as are the type of products. Only the power conferred by Section 12(2) authorizes the registration of both marks. Fortified by the conclusions of the courts in the passing off case as in the "Bud" case, the Justice is satisfied that there has been honest concurrent use of the disputed terms. Finally, the Justice also states his strong impression that "the circumstances are, by any standards, special" within Section 12(2). Thus, the High Court judge properly exercised its discretion under the Act.
Citation: Anheuser Busch, Inc. v. Budejovicky Budvar, N.P. 2000 WL 438 (CA)(Ct. App. Civ. Div.)(Smith Bernal Tr., 7 Feb. 2000).
WORLD TRADE ORGANIZATION
WTO Panel finds that United States breached Subsidies Agreement because of countervailing duties it imposed on formerly subsidized U.K. steel and may require U.S. to change countervailing duty practice with respect to foreign state-supported companies that later become privatized
A Dispute Settlement Panel of the World Trade Organization (WTO) has ruled in favor of the European Union (EU) in its dispute with the U.S. over countervailing duties imposed on certain steel originating in the United Kingdom (UK). Affected were certain hot-rolled lead and bismuth carbon steel products (leaded bars).
The EU filed this complaint on June 12, 1998, claiming that the U.S. countervailing duties violated Articles 1.1(b), 10, 14 and 19.4 of the WTO Agreement on Subsidies and Countervailing Duties ("SCM Agreement"). Brazil and Mexico were third parties to the dispute and submitted arguments.
In 1993, the U.S. Department of Commerce established a subsidy rate of 12.69 percent on steel imports from United Engineering Steels Ltd. (UES). The state-owned British Steel Corporation (BSC) had set up UES in 1986. British Steel plc took over the assets of BSC in 1988. The UK Government then privatized British Steel plc in 1988 and sold its shares at fair market value. In 1995, UES became an affiliate of British Steel plc and changed its name to British Steel Engineering Steels (BSES). British Steel plc (now Corus plc) had been getting government subsidies before the privatization, but received no subsidies afterwards.
The U.S. imposed the countervailing duties in March 1993 for the subsidies that BSC received before the privatization in the years 1977/78 - 1985/86. The U.S. Department of Commerce classified the subsidies as non-recurrent and spread them out over 18 years (which is considered the useful life of production assets in the steel industry). The rationale of the countervailing duties was that a portion of the prior subsidies "traveled with" state company assets.
At issue are the reviews of the U.S. Department of Commerce (DOC) of the years 1994, 1995 and 1996. In its review of 1994, DOC set a subsidy rate of 1.69 % on imports from UES. After it reviewed 1995, the DOC raised the subsidy rate to 2.4 % for UES and to 7.35 % for BSES. In the 1997 review, the DOC lowered the BSES subsidy rate to 5.28%.
The EU argued that because British Steel paid fair market price for BSC, British Steel did not benefit from the support granted to the previously state-owned company. The Panel finds that the DOC had misread the SCM Agreement. Thus, it failed to show what "benefit" UES and British Steel plc/BSES may have received through the pre-1985/86 "financial contributions" by the UK Government (paragraph 6.85).
As the Panel states: "[N]o countervailing duty may be imposed on an imported product if no (countervailable) subsidy has been bestowed directly or indirectly on inter alia the production of that imported product. As a result of the three administrative reviews at issue, the United States imposed countervailing duties on 1994, 1995 and 1996 imports of leaded bars, without showing that any subsidy had been bestowed directly or indirectly on the production of those imports. ... For this reason, the imposition of countervailing duties as a result of the ... administrative reviews constitutes a violation of the US obligation under Article 10 of the SCM Agreement to 'take all necessary steps' to ensure that its countervailing duties are 'in accordance with' Article VI:3 of the GATT 1994 and the terms of the SCM Agreement." (paragraph 6.86).
Finally, the Panel recommends that the U.S. revise its change-in-ownership methodology in countervailing duty cases (including
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