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STETSON UNIVERSITY COLLEGE OF LAW
INTERNATIONAL TRADE REGULATION
Law 3589
Spring 2009
INDEX
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COURSE DESCRIPTION
COURSE REQUIREMENTS
Text and Required Materials
Using Westlaw TWEN Service
Scheduled Class Times
Cell Phones Pagers, and Similar Devices
Classroom Participation and Preparation
Grading
Sample Examination
Office Hours
SYLLABUS
Introduction
Tariffs and Non-Tariff Barriers to Trade
Domestic Responses to Import Competition
Trade Regulation and International Economic Relations
COURSE DESCRIPTION
This course will address some of the issues associated with the governmental
regulation of international trade, through a problem oriented approach. At least
two regulatory systems will be considered in almost every problem, one being the
regulatory regime embodied in the domestic law of the country of import or export
(typically the United States), and the other being the system of international
agreements (such as WTO/GATT and NAFTA) that are intended to limit the
actions which may be taken by individual governments. The impact of
"globalization" within this framework will also be considered.
Three major areas will be explored (1) tariffs and non-tariff barriers to trade, (2)
domestic responses to import competition, and (3) trade regulation and
international economic relations. These are topics which potentially concern any
business dealing internationally, from global multinational corporations to small
start-up ventures desiring to expand abroad.
The laws regulating international trade build upon concepts and principles which
are studied in greater detail in a broad number of other courses, such as
Administrative Law, Antitrust, Comparative Law, Conflicts, International
Arbitration/Dispute Resolution, and International Law. While none of these are
required as prerequisites, students may find it helpful to consult the standard
treatises as questions arise, particularly in International Law and International
Economic Law. Additionally, International Trade Regulation and International
Business Transactions should be regarded as complimentary course offerings.
Although it is sometimes difficult to separate public and private law issues when
dealing with international business, this course generally focuses upon the issues
associated with governmental controls on trade, whereas International Business
Transactions emphasizes the problems encountered by private parties putting
international transactions together. Thus, while "ITR" and "IBT" are related
offerings, neither course is a prerequisite for the other. (Note: Students may not
take both this course and the International Trade and the Environment course.)
COURSE REQUIREMENTS
As law students you are members of the legal profession, and professional
behavior is expected with respect to your conduct in the class, and all activities
and assignments related to the course, in accordance with the Code of Student
Professionalism and Conduct and the Academic Honor Code. Even though the
law school environment looks deceptively like U.S. undergraduate school or the
schooling you may have received in another country, as a professional school a
high level of behavior, preparation, and attention to detail, is required in all that
you do. Accordingly, beyond adhering to the formal standards of these Codes, it
may also be helpful to develop the habit of treating your classes and related work
as if they were court proceedings, assignments from a law firm partner, a
meeting with a client, or other similar professional activities.
Text and Required Materials
Folsom, Gordon, Spanogle, & Fitzgerald, International Business Transactions: A
Problem Oriented Coursebook, (Ninth Edition, 2006) and the accompanying
2006 Documents Supplement are required. Earlier editions are not acceptable.
Additional material will be distributed via links in this syllabus, email, or in
handouts distributed at various times during the semester.
There is also a wealth of additional useful material available on the Internet.
While no other materials are necessary or required for the course, those who
would like an additional secondary text might want to consider either Jerold A.
Friedland, Understanding International Business and Financial Transactions
(Second Edition, 2005), or Folsom, Gordon, and Spanogle’s International
Business Transactions, Trade & Economic Relations in a Nutshell (West 4th
Edition 2009).
Moreover, you will find that all the major news media will run stories concerning
the issues addressed in this course on a weekly, if not daily, basis. Following
these stories will provide added background and context for many of the topics
we will be considering.
While we will not be specifically using these materials in class, those interested in
the broader general debates over "globalization" may wish to read some of the
current literature on this increasingly popular topic, including Thomas L.
Friedman's The World Is Flat: A Brief History of the Twenty-first Century, or his
earlier book The Lexus and the Olive Tree; Harold James' The End of
Globalization : Lessons from the Great Depression; or Amartya Sen's
Development As Freedom, for example.
Using the Westlaw TWEN Service
You must both register your Westlaw password on the TWEN service and add
this ITR course to your Westlaw TWEN home page in order to have full access to
the online materials and course listserv:
-To register your password, go to http://lawschool.westlaw.com, click on
the link for TWEN, and follow the registration prompts,
-To add the course to your TWEN home page, log into TWEN and follow
the prompts to add/drop a course. Even if you were in the IBT class last
semester, as this is a separate course you will still need to re-register this
course to add ITR to your TWEN home page,
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http://west.thomson.com/store/product.aspx?product_id=RM157045, or
use the Westlaw help function (online or 1-800-850-WEST), or email
west.support@thomson.com.
Scheduled Class Times
The class will meet from 3:10 p.m. to 4:35 p.m. on Mondays and Wednesdays in
Classroom E.
A seating chart will be distributed at the beginning of each semester, and you
should identify the seat you will use for the duration of that semester on the chart.
In accordance with the College of Law Attendance Policy, failure to attend 80%
of the scheduled classes (i.e. six or more absences for any reason) will result in
automatic exclusion from the examination and loss of all credit for the course. A
class roll will be circulated to document your attendance, please remember to
sign the roll for each class when it is circulated, and sign only your own name.
The class roll will be the only "official" record of your presence or absence, and a
failure to properly sign the roll on the day it is circulated is an "absence" for that
day irrespective of whether you were actually present or not. Please arrive on
time. Arriving late or leaving while class is in session may be treated as an
"absence" and/or result in an adverse "class participation" grade.
Cell Phones, Pagers, and Similar Devices
Please do not allow your cellular phones, pagers, palm pilots, computer, or other
devices to ring or beep during class. If a potential emergency situation requires
that you must be able to be contacted during class, try to let me know in
advance, ensure that your phone or other device is silent, and leave the
classroom to respond to the call.
Also, please refrain from using the Internet or other network tools during class
unless directed to do so, listening to iPods or similar devices, or engaging in
behavior that might be distracting to others.
Classroom Participation and Preparation
Each class will revolve around a hypothetical Problem from the Text, and its
associated materials. Your active involvement in the classroom, whether in
response to being called upon or by volunteering to join the discussion by raising
your hand, is both expected and required. Continuing the discussions begun in
class among your classmates using the “ITR Discussion” email list (accessible
from the TWEN menu to the left) is also encouraged.
Your participation in the classroom discussion and analysis of these Problems is
important, and required. If you feel uniquely disadvantaged by a grading system
which takes class participation into account, please discuss this with me before
the end of the add/drop period.
Additionally, all students are expected to be fully prepared for each class. We will
ordinarily use two class periods to examine each Problem, but some Problems
will be addressed in fewer classes. Additionally, the short introductory sections
which the text also labels as "Problems" (i.e. 6.0, 7.0, 8.0) should be combined
with whatever Problem follows them in the syllabus, and treated as a single
reading assignment.
In preparing for class, it is advisable to skim through the entire Chapter prior to
our consideration of any particular Problem to get an overview of the issues, and
then review the material again as we go though our classroom discussions.
When the Problems make any reference to statutory material or international
agreements, be sure to check the Documents Supplement for the applicable
material and to become familiar with the pertinent provisions. Additionally, your
analysis of each Problem should begin with determining what are the possible
national, regional, and international sources of legal rules that might apply to the
facts, and locating the pertinent provisions in the Documents Supplement,
whether or not they are specifically referenced in the readings.
The initial syllabus provided below will change during the course of the semester
once we see how the class progresses. When these changes occur they will be
announced in class, and posted to the ITR Discussion List. You are deemed to
be fully “on notice” of any material distributed to you by email, and this includes
messages on the TWEN ITR Discussion List, so be sure to check your email
accounts and these course pages regularly.
You are allowed one “free pass” each semester, where you will not be adversely
affected for being unprepared. In order to use the “free pass,” give me a written
note with your name on it at the beginning of class requesting that you not be
called upon that day. You may not invoke the “free pass” if you are called upon in
class, but failed to provide the note in advance.
Grading
The grade in this course will be based upon both classroom participation and an
examination.
Your participation in the classroom will be graded as a "check ", "check +", or
"check -". Strong, high quality, sustained participation in the classroom will
receive a "check +", and raise the final grade by one quarter of one point (e.g.
raising a 3.0 to 3.25). A failure to meaningfully contribute to the classroom
discussions will receive a "check -", and lower the final grade by one quarter of
one point (e.g. lowering a 3.0 to 2.75). Average participation will receive a "check
" and neither raise nor lower the final grade.
The examination is scheduled for Wednesday, May 6, 2009. It will be a three
hour exam, and may include objective (i.e. multiple choice, true/false, or short
answer) questions and/or one or more essay questions. It will be an open book
examination, and you will be permitted to bring the NINTH EDITION of the Text,
Document Supplement, and any material distributed in class with you to the
exam. You may also bring any class outlines which you prepare, but no other
books, materials, nutshells, or commercial or other outlines. You are encouraged
to annotate your Text and Document Supplement as we proceed through the
course, but please do not abuse this privilege by attempting the wholesale
incorporation of commercial or other outlines into your materials. Additionally, I
will conduct an informal "question and answer" session (outside of normal class
time) prior to the examination at the end of the semester.
Note that, under the College of Law policy, if you intend to use your computer to
take the exam you must use special software which essentially locks you out of
all computer functions other than a simple word processor used for your
responses to the exam questions. Accordingly, you will need to print out your
course outline in advance and bring it with you to the examination. Otherwise,
you will be unable to access the materials you have on your computer during the
exam itself.
Sample Examination
A previous final examination, with answers, will be made available for you to use
as a study aid sometime later during the semester. To bolster your exam taking
skills, I also recommend the Center for Computer-Assisted Legal Instruction
(CALI) program Writing Better Law School Exams: The Importance of Structure.
This computerized instruction program on examination skills takes approximately
1 1/2 hours to complete, and is available either on Stetson's computer network or
direct from CALI.
Office Hours
Please come by whenever you have questions!
I have an "open door policy," no appointments are necessary. However, please
try to avoid coming by immediately before a class if possible, as Professors do
last minute class prep just like students!
I am usually in my office Monday through Friday from 9:00 to 5:00 (or later),
except when I am in class (10:40 a.m. -- 12:05 p.m., and 3:10 p.m. – 4:35 p.m.
Mondays; 3:10 p.m. – 4:35 p.m. Wednesdays; and 10:40 a.m. -- 12:05 p.m on
Thursdays).
Additionally, feel free to call or use e-mail if you are unable to come by in
person. Also remember that you can use the online discussion list both to ask
questions of your own, and to answer questions posed by others.
A special note: an older Golden Retriever named "Hamish" shares the office with
me. He is a certified therapy dog and very calm, extremely friendly, and loves
visitors! However, if you would like to meet with me and have allergies or
otherwise would simply prefer not to deal with Hamish, just let me know and we
can make appropriate alternate arrangements.
SYLLABUS
Updates And Notices During The Semester
There will be changes, updates, and additional assignments that occur from time
to time during the course of the semester.
Please remember to disable all cell phones, pagers, and computer sound
cards/devices prior to each class!
Introduction
Introduction to Basic Principles, Terms, and Organizations
Chapters 1-2 & Doc. Supp. Glossaries (skim)
Browse the "Understanding the WTO" pages of the World Trade
Organization
Tariffs and Non-Tariff Barriers to Trade
Customs Clearance Overview, Problem 6.0 "Introduction"
World Trade Organization Problem 6.1
"Oxicorp Trades with Nonmarket/Transition Economies"
HTS General Note 3(a)&(b) (DS p. 723)
Trade Act of '74 §§ 401, 402 (19 USC 2431, 2432)
(DS p. 674-675)
Trade Act of '74 § 405 (19 USC 2435)
GATT Arts. I, II, III, XXVIIIbis (DS pp. 103, 104, 106, 143)
GATT '94 (DS p. 165)
Skim WTO Dispute Settlement Understanding
(DS p. 175)
WTO Agreements: Overview: A Navigational Guide
Skim WTO Legal Texts Home Page
Skim "10 Benefits of the WTO Trading System"
and "10 Misunderstandings About the WTO"
Customs Classification and Valuation Problem 6.2
"Peanut Butter and Jelly Swirl from China"
Skim US International Trade Commission Harmonized Tariff
Schedule web page
HTS General Note 3(a)&(b) (DS p. 723); General Rules of
Interpretation (DS p. 723); Additional US Rules of Interpretation
(DS p. 725)
Uruguay Round Agreement Act §552 (19 USC 3552)
WTO Agreement on Rules of Origin (DS p. 203); Skim WTO Rules
of Origin web pages
NAFTA, Chapter 4 (DS p. 367)
GATT Art VII (DS p. 112)
WTO Agreement on Implementation of Article VII of the GATT (DS
p. 199)
Tariff Act of 1930 § 402 as amended (19 USC 1401a) (DS p. 477)
US Customs & Border Protection Service, What Every Member of
the Trade Community Should Know About: Tariff Classification
(May 2004)
US Customs Service, What Every Member of the Trade Community
Should Know About: Customs Value (July 2006)
US Customs & Border Protection Service, What Are Ruling Letters?
Preferences for Developing Nations Problem 6.5
"Import World and Leather Goods"
GATT Arts. I, XVIII, XXIV, XXV, XXXVI - XXXVIII (DS p. 103, 130,
136, 140, 146-151)
Marrakesh Agreement Establishing the WTO Arts. IX, XI(2) (DS
pp. 157, 162)
WTO Decision on Preferential Treatment for Least Developed
Countries
Trade Act of '74 §§ 501 - 504 (19 USC 2461 - 2464) (DS pp. 678 687); §507 (19 USC 2467)
African Growth and Opportunity Act of 2000 (19 USC 2466a,
2466b) (DS pp. 987-988); AGOA Acceleration Act of 2004 (DS
pp.979-987)
Caribbean Basin Economic Recovery Act of 1983 as amended by
Caribbean Trade Partnership Act of 2000 (19 USC 2701 2707) (DS pp. 846-870)
Skim UNCTAD GSP web pages
World Bank Country Classification web page
Skim USTR GSP web pages and 2006 GSP Guidebook
Skim USTR Caribbean Basin Initiative, AGOA, Andean Community
web pages
HTS General Note 3(c)(i) list of Special Tariff Treatment Programs
(on page 7 of this download)
HTS 9801 & 9802 (i.e. only the first 15 pages of this download)
Free Trade Areas and Customs Unions Problem 6.4
"Japan's Perspective"
GATT Arts. XI, XXIV (DS pp. 115, 136)
NAFTA, Art. 309; Chapter 4; Chapter 9; Arts. 2008, 2019 (DS pp.
364, 367-378, 395-401, 451, 454 )
US Customs & Border Protection Service, What Every Member of
the Trade Community Should Know About: US Rules of Origin Preferential and Non-preferential Rules of Origin (May 2004)
Skim USTR Free Trade Area of the Americas web pages
Non-Tariff Trade Barriers Problem 6.3
"Shrimp from India; Beef from Europe"
GATT Art X, GATT Arts. XI, XX (DS pp. 115, 134)
Marrakesh Agreement Establishing the WTO Art. II, and List of
Annexes (DS pp. 154, 163 -164)
SPS Agreement, Arts. 1 - 5, 7, 11, Annexes A & B (DS pp. 287290, 291, 293-295)
TBT Agreement Arts. 1.5, 2, 14, Annex 3 (DS p. 221-223, 227,
230)
Skim Codex Alimentarius and Joint FAO/WHO Expert Committee
on Food Additives web pages
Skim International Office of Epizootics BSE web page
Local Procurement Preferences Problem 6.6
"Government Procurement of Photocopiers"
Buy American Act of 1933 (41 USC 10a - 10d)(DS p. 871-872)
Executive Order 10582
ASIL Insight: US Supreme Court Knocks Down State Burma Law
(June 2000)
NAFTA Chapter 10 (DS pp. 401-405), Annex 1001.1a-2 Schedule
for Mexico
GATT Arts. II, III, XIII, XVII (DS pp. 104, 106, 127)
GATS Art. XIII (DS p. 304)
WTO Agreement on Government Procurement Arts. I, III - VI, VIII,
XVII, XX - XXIII, (DS pp. 209, 210-213, 215, 217-220), Appendix 1
Threshold Summary
Uruguay Round Agreements Act § 102 (19 USC 3512(b)) (DS p.
830)
Domestic Responses to Import Competition
Antidumping, Countervailing Duty, and Escape Clause Overview
Problem 7.0
Skim WTO, Antidumping, Subsidies Safeguards, Contingencies,
Etc, web pages
Subsidies and Countervailing Duties Problem 7.1
"Tires From Canada"
U.S. Department of Commerce, International Trade Administration,
Introduction to Trade Remedies
Skim, U.S. Department of Commerce, International Trade
Administration, AD/CVD Petition Counseling and Analysis Unit
home page and Trade Remedies Overview, and Electronic
Subsidies Enforcement Library web pages
Skim, U.S. International Trade Commission, Trade Remedy
Assistance Office web pages, Antidumping and Countervailing Duty
Investigations web pages and Timetable for Antidumping and
Countervailing Duty Investigations
Skim, U.S.Trade Representative Subsidies Enforcement web
pages
Tariff Act of 1930, Subtitle IV (19 USC 1671(a)-(c); 1671a (a), (b);
1671b (a), (d); 1677(5),(5A),(5B))(DS pp. 506-509, 511-512, 514515, 563-567 )
GATT Arts. VI, XVI (DS pp. 109,125)
WTO SCM Agreement, Arts. 1-8, 10, 19, Annex 1 (DS pp. 233-240,
249-250, 254-256)
NAFTA Arts. 1902, 1904, Annex 1911 (DS pp. 440-442, 444-447)
NAFTA Arts. 1902(2)(d), 1903
19 USC 1516a(g)(4), (8) (DS pp. 497-499, 501)
Antidumping Duties Problem 7.2
"Supercomputers to the U.S."
U.S. Department of Commerce, International Trade Administration,
AD/CVD Petition Counseling and Analysis Unit, Evidence of
Material Injury and Causation Summary web page
19 USC 1671; 1673 (2); 1673a (c); 1673b (b), (d); 1677 (7), (15),
(24), (34), (35); 1677a (a)-(f); 1677b (a)-(e); 1677e; 1677f-1(d) (DS
pp. 506, 530, 531-533, 535-536, 537-538, 567-573, 575, 578-579,
580, 582-592, 595, 604)
GATT Art. VI (6) (DS pp. 110-111)
WTO Agreement on the Application of Article VI, Art. 2.4.2 (DS pp.
263)
Escape Clause & Safeguards Actions Problem 7.3
"Sneakers from Indonesia"
Trade Act of 1974, §§201-203, 221, 224, 236, 251, 264 (19 USC
2251; 2252 (a)-(c), (e); 2253 (a), (e); 2271; 2274; 2296; 2341;
2354) (DS pp. 626-643, 645-646, 648-653, 655-657)
GATT Arts. XII, XVIII, XIX, XXV, XXVIII (DS pp. 117, 130, 132, 140,
141)
NAFTA Arts. 801-802, 805 (DS pp. 388-391, 394-395)
U.S.Trade Representative Steel Initiative web page
Skim U.S. Department of Commerce, International Trade
Administration, Import Administration and Economic Development
Administration web pages
Skim Trade Adjustment Assistance for Firms web pages
Skim U.S. Department of Labor Trade Adjustment Reform Act of
2002 and TAA / ATAA web pages
Trade Regulation and International Economic Relations
Controlling/Promoting Exports Overview Problem 8.0
Note that the U.S. Commerce agency that is responsible for export
control, which used to be called the Bureau of Export
Administration, was renamed the Bureau of Industry and Security
following the events of 9/11.
Licensing Exports from the U.S. Problem 8.1
"ATMs to China"
Browse U.S. Department of Commerce, Bureau of Industry and
Security, Export Control Basics web pages.
Browse U.S. Department of Commerce, Bureau of Industry and
Security, Summary of U.S. Export Controls on Iraq and FAQs
Browse U.S. Department of Commerce, Bureau of Industry and
Security, Implementation of the Syria Accountability Act and FAQs
Browse U.S. State Department, Directorate of Defense Trade
Controls web pages.
Export Administration Act, 50 U.S.C. App §2401 et seq (skim DS
pp. 876-894)
International Emergency Economic Powers Act 50 U.S.C. §1701 et
seq (skim)
Export Administration Regulations,
15 C.F.R. ____
732 (DS pp.886-898)
Skim, 732 Supp. No. 3 (DS pp. 898-901)
734 (DS pp. 901-905)
Skim, 734 Supp. No. 1 (Pages 14-23 of this download)
736.2 (DS pp.906-907)
738 (DS pp.907-913)
738 Supp. No. 1 (DS p. 913)
740.3 (DS p. 914)
740.6 (DS p.914-915)
740 Supp. No. 1 (DS pp. 916-919)
744 (DS p.920-923)
744 Supp. No. 4 (DS pp. 923-924)
746.3 (Pages 5-8 of this download)
747
764.3 (DS p 935-936)
772.1(DS p.936); 774, ECCN 2A001 (DS pp. 937-938)
774, ECCN 2E001 (DS pp. 938-939)
International Economic Boycotts Problem 8.2
"Machine Lathes to Cuba and Qatar"
Trading with the Enemy Act
50 U.S.C. App. 5 et seq. (skim)
International Emergency Economic Powers Act 50 U.S.C. §1701 et
seq (skim)
United Nations Participation Act
22 U.S.C. 287c et seq (skim)
Cuban Democracy Act
22 U.S.C. 6001 et seq (DS pp.955-956)
Cuban-Liberty and Democratic Solidarity (LIBERTAD) Act 22 U.S.C
6021 et seq (skim DS pp. 940-954)
OFAC Cuba Sanctions Program Summary (skim)
Cuban Asset Control Regulations
31 C.F.R. 515.201 (pp. 3-4 of this download)
31 C.F.R. 515.305 -515.306 (DS pp. 957-958)
31 C.F.R. 515.329 (p. 12 of this download)
31 C.F.R. 515.332 (pp. 12-13 of this download)
31 C.F.R. 515.559(b) (DS pp. 958-959)
31 C.F.R. 515.559 note (p. 5 of this download)
Canadian Foreign Extraterritorial Measures Act (1985)
Canadian FEMA Order (DS p. 1145)
U.K. Protection of Trading Interests Act (1980)
U.K. Protection of Trading Interests (US Cuban Assets Control
Regulations) Order 1992 (DS pp. 1143)
U.K. Extraterritorial US Legislation (Sanctions Against Cuba, Iran,
and Libya) (Protection of Trading Interests) Order 1996 (skim)
E.U. Regulation No. 2271/96
U.S. Department of Commerce Bureau of Industry and Security
Office of Anti-Boycott Control web page (skim)
Export Administration Act, 50 U.S.C. App §§2407, 2410 (skim DS
pp. 878-883)
Antiboycott (Restrictive Practices) Section of Export Administration
Regulations
15 C.F. R. 760.1(b) (p. 2 of this download)
15 C.F. R. 760.2(a)(1) & (4); Ex. (xiii), (xiv) (DS pp. 924-925, 927-
928)
15 C.F. R. 760.2(b)(1); Ex. (iii),(iv) (pp. 21, 22 of this download)
15 C.F. R. 760.2(d); Ex. (ii),(iii), (viii) (DS pp. 931-933)
Questionable Payments to Foreign Officials Problem 8.3
"Processed Foods in Nigeria"
Foreign Corrupt Practices Act (DS pp. 960-966)
OECD Convention on Combating Bribery (DS pp. 64-69)
UN Convention Against Corruption (DS pp. 59-63)
U.S. State Department Corruption and Bribery web pages (skim)
U.S. Justice Department FCPA web pages (skim)
OECD Corruption web pages (skim)
Transparency International web pages (skim)
Trade in Services and Retaliation under Sec. 301 Problem 8.4
"The GATS and U.S. Insurance Exports" [Time Permitting]