Course Overview 
and Initial Syllabus
Law 3589, Fall 2004

INDEX

Click on any of the links below to jump directly to a specific topic or portion of this syllabus. Use the "Back" key or function on your Web Browser to return to this index.

(This page was last updated on 11/11/04.)

COURSE DESCRIPTION

COURSE REQUIREMENTS

Text and Required Materials
Scheduled Class Times
Cell Phones, Pagers, and Similar Devices
Classroom Participation
Electronic Mailing List
Grading
Computerized Self-Assessment and Sample Examination
Office Hours

SYLLABUS

Introduction
Tariffs and Non-Tariff Barriers to Trade
Domestic Responses to Import Competition
Trade Regulation & Int'l Economic Relations

USEFUL LINKS

 

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, 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, generally speaking this course focuses upon public (governmental) control of trade, whereas International Business Transactions emphasizes the issues associated with putting international transactions together. Thus, while "Trade Reg" and "IBT" are related offerings, neither course is a prerequisite for the other.

COURSE REQUIREMENTS

Text and Required Materials

Folsom, Gordon & Spanogle, International Business Transactions: A Problem Oriented Coursebook, (Seventh Edition, 2004) and the accompanying 2004 Documents Supplement are required. Additional material will be distributed via links in this syllabus or in handouts distributed at various times during the semester.

There is also a wealth of additional useful material available on the Internet - with a number of links specifically provided in this syllabus.  While no other materials are necessary or required for the course, those who would like an additional secondary text might want to consider Jerold A. Friedland, Understanding International Business and Financial Transactions (2002). 

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 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.

Scheduled Class Times

The class will meet from 3:00 p.m. to 4:20 p.m. on Tuesdays and Thursdays. 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. 

Please arrive on time. The class roll will be the "official" record of your presence or absence. Late arrivals may be treated as an "absence" and/or result in an an adverse "Classroom Participation" grade.

Cell Phones, Pagers, and Similar Devices

Please do not allow your cellular phones, pagers, palm pilots, or other devices to ring during class. If an anticipated emergency situation requires that you must be able to be contacted during class, let me know in advance, ensure that your phone or other device is silent, and leave the classroom to respond to the call. Also, refrain using the Internet or other network tools during class unless directed to do so.

Classroom Participation

Each class will be revolve around a hypothetical Problem from the Text, and its associated materials. 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.

We will ordinarily use two to three class periods to examine each Problem, but some Problems may 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 text, and treated as a single reading assignment. Please endeavor to stay at least one Problem ahead of the classroom discussion at all times.

Electronic Mailing List  

The International Trade Regulation "blog" tool we tried is not working satisfactorily, and I will discontinue using it immediately. Instead  I've created an "International Trade Regulation" course page on the Westlaw TWEN service. We'll use the Trade Discussion threaded email discussion forum on that course page to continue the discussion about the issues raised in the course outside of class. 

In order to access the TWEN course page you need to go to http://lawschool.westlaw.com/, and click on the button labeled "TWEN".  Then enter your password, and follow the on-screen instructions to add "International Trade Regulation" to your TWEN home page.

In addition to using the TWEN Trade Discussion forum for discussion of the issues raised during the course, we have an email distribution list (inttrreg@law.stetson.edu) that may also be used for administrative notices, changes in reading assignments, cancellations, etc.

You are deemed fully "on notice" of any administrative messages sent to the email distribution list under the College of Law Student Responsibilities Policy, so be sure to check your email frequently!

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.

Participation in the online discussion list is handled differently than classroom participation. Strong participation in the discussion list will be considered as if it were classroom participation for purposes of determining whether a you are entitled to a "check +" for participation credit. However, your level of usage of the discussion list will not adversely affect your participation credit.

The examination is scheduled to take three hours, and will be a mix of objective and essay questions. It will be an open book examination, and you will be permitted to bring your Text and Document Supplement with you to the exam, as well as handouts and any materials that you prepare, but no other commercial outlines or materials. 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.

Note that, under the current College of Law policy regarding the Use of Computers on Examinations, if you intend to use your computer to take the exam you must use a special word processing program during the examination. As this program essentially locks you out of all computer functions other than a simple word processor used for your responses to the exam questions, you will need to print out your course outline in advance and bring it with you to the examination. Otherwise, the program will prevent you from accessing the material on your computer during the exam itself.

Computerized Self-Assessment and Sample Examination

A computerized version of a previous final examination, with answers, is available for you to use as a study aid. Please note that this is only an aid and not a substitute for the current course materials. As an exam from 1999 the course coverage is not identical to what we will cover this year, and the answers have not been updated  to reflect current law. 

This online tool will run in your web browser, but it requires that the browser be version 4.0 or higher. If you need to update your browser, follow these links for either Netscape or Explorer. Additionally, when you are running the Self Assessment tool, remember that the pop-up windows may be resized and moved to make them easier to read! Click here to launch the Computerized Self-Assesment and Sample Examination.

Office Hours

I have an "open door policy." Please come by whenever you have questions, no appointments are necessary. However, try to avoid coming by immediately before 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, except when I am in class (11:00 a.m. -- 11:50 a.m., Tuesdays, Wednesdays, and Fridays: and 3:00 p.m. -- 4:20 p.m. Tuesdays and Thursdays). 

Additionally, feel free to call or use e-mail if you are unable to come by in person. 

Also remember that (once it is established) you can use the online discussion list to ask questions of your own, and to answer questions posed by others.

SYLLABUS

This syllabus is subject to change as the semester progresses. When the Problems being discussed make any reference to any statutory material or international agreements (whether or not specifically cited below), be sure to check the relevant provisions in the Document Supplement (DS) or on the Internet.

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
(Coursebook Chapters 1 & 2; DS pp.1-27)

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"

Skim US Customs & Border Protection Service, US Import Requirements  

World Trade Organization Problem 6.1
"Oxicorp Trades with Nonmarket/Transition Economies"

HTS General Note 3(a)&(b) (DS p. 679)
(Note: updated version of GN 3(b) may be found on page 6 of this download)

Trade Act of '74 §§ 401, 402 (19 USC 2431, 2432) 
(DS p. 632) 

Trade Act of '74 § 405 (19 USC 2435) 

GATT Arts. I, II, III, XXVIII (DS pp. 79, 82, 116)

GATT '94 (DS p. 138)

Skim WTO Dispute Settlement Understanding 
(DS p. 148)

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. 679); General Rules of Interpretation (DS p. 680); Additional US Rules of Interpretation (DS p. 681)

Uruguay Round Agreement Act §552 (19 USC 3552)

WTO Agreement on Rules of Origin (DS p. 176); Skim WTO Rules of Origin web pages

NAFTA, Chapter 4 (DS p. 340); NAFTA Art. 403

GATT Art VII (DS p. 88)

WTO Agreement on Implementation of Article VII of the GATT (DS p. 172)

Tariff Act of 1930 § 402 as amended (19 USC 1401a) (DS p. 435)

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 (December 1999) 

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, XXXVI - XXVIII (DS p. 79, 106, 119 -124)

GATT Art XXV(5)

GATT Enabling Clause Agreement

Marrakesh Agreement Establishing the WTO Arts. IX,  XI(2) (DS pp. 130, 133)

WTO Decision on Preferential Treatment for Least Developed Countries

Trade Act of '74 §§ 501 - 504 (19 USC 2461 - 2464) (DS pp. 636 - 645); §507 (19 USC 2467) 

African Growth and Opportunity Act of 2000 (19 USC 2466a, 2466b)

Trade Act of 2002 §4101 (19 USC 2465) 

Caribbean Basin Economic Recovery Act of 1983 as amended by Caribbean Trade Partnership Act of 2000 (19 USC 2701 - 2707) 

Skim UNCTAD GSP web pages

World Bank Country Classification web page

Skim USTR GSP web pages and GSP Handbook

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. 91, 112)

NAFTA, Art. 309, Chapter 4, Chapter 9, Arts. 2008, 2019 (DS pp. 337, 340 - 343, 354 - 359, 410, 413 ); NAFTA Arts. 402(8), 403

Treaty Establishing the European Community Arts. 28, 29, & 30

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. 91, 109)

Marrakesh Agreement Establishing the WTO Art. II, and List of Annexes (DS pp. 127, 136 -137)

SPS Agreement, Arts. 1 - 5, 7, 11, Annexes A & B (DS pp. 260 -  262, 263, 264, 266, 268)

TBT Agreement Arts. 1.5, 2, 14, Annex 3 (DS p. 194 - 196, 200, 203)  

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"

Omit the Vaughn Excerpt, pp. 543 - 546

Buy American Act of 1933 (41 USC 10a - 10d)(DS p. 783 - 784)

Executive Order 10582

ASIL Insight: US Supreme Court Knocks Down State Burma Law (June 2000)

NAFTA Chapter 10 (DS pp. 360 - 363), Annex1001.1a-2 Schedule for Mexico

GATT Arts. II, III, XVII (DS pp. 80, 82, 103)

GATS Art. XIII

WTO Agreement on Government Procurement Arts. I, III - VI, VIII, XVII, XX - XXIII, (DS pp. 182, 183 - 185, 186, 188, 190 - 193), Appendix 1 Threshold Summary 

Uruguay Round Agreements Act § 102 (19 USC 3512(b)) (DS p. 746)

Domestic Responses to Import Competition

Antidumping, Countervailing Duty, and Escape Clause Overview 
Problem 7.0

Skim WTO, Antidumping, Subsidies Safeguards, Contingencies, Etc, web page

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, Understanding 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.464-466, 469-472, 481-483, 486, 522-525)

GATT Arts. VI, XVI (DS pp. 85, 101)

WTO SCM Agreement, Arts. 1-8, 10, 19, Annex 1 (DS pp 206-213, 222, 227-228)

NAFTA Arts. 1902, 1904, Annex 1911  (DS pp. 399-401, 403-406)

NAFTA Arts. 1902(2)(d), 1903

19 USC 1516a(g)(4), (8) (DS pp. 455-456, 461)

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); 1677a ( a)-(f); 1677b (a)-(e); 1677e; 1677 (7), (15), (24), (34), (35);1677f-1(d) (DS pp. 464, 488, 490-491, 493-495; 525-529; 533; 536; 538; 540-549; 553; 562)

GATT Art. VI (6) (DS pp. 86-87)

WTO Agreement on the Application of Article VI, Art. 2.4.2 (DS pp. 235-236)

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. 584-589, 592-593, 595-600, 603, 607, 613, 615)

GATT Arts. XII, XVIII, XIX (DS pp. 93, 106, 108-109)

GATT Arts. XXV, XXVIII

NAFTA Arts. 801-802 (DS pp. 353-354)

NAFTA Arts. 801(2)(c)(i), 805

U.S.Trade Representative  Focus on Steel 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, whihc 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. State Department, Directorate of Defense Trade Controls web pages.

Export Administration Act, 50 U.S.C. App §2401 et seq (skim DS  pp. 785-795)

International Emergency Economic Powers Act 50 U.S.C. §1701 et seq  (skim)

U.S. Munitions List, 22 C.F.R. 121.1 (DS pp. 848-849)

Export Administration Regulations, 
15 C.F.R. ____

730.5 (DS pp. 805-806)
730 , Supp. 3
732.1 (DS p. 806)
732.2 (DS pp. 807)
732.3(a)-(d) (DS pp. 807-809)
732.4 (DS pp. 810-811)
734.2(a) (DS pp. 812-813)
734.3 (DS pp. 814-815)
734.7 (DS pp. 815- 816)
736.2 (DS pp. 816-817)
738 (skim DS pp. 817-823)
738 Supp. 1 (DS p. 823)
740.1 (DS pp. 823-824)
740.8 (skim DS pp. 824-826)
740.17 (skim DS pp. 826-828)
740 Supp. 1 (skim DS pp. 828-831)
742.15 (skim DS pp. 833-836)
742 Supp. 4 (skim DS pp. 836-837) 
764.2

Note: The regulatory policies and specific controls on encryption products have changed from those described in the text for Problem 8.1. We will work with the materials as presented in the text and the documents supplement - as the basic structure of the control system has not changed. However, click {here} for an overview of the current controls applied to products containing encryption. 

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.872-873)

Cuban-Liberty and Democratic Solidarity (LIBERTAD) Act 22 U.S.C 6021 et seq (skim DS pp. 857-871)

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.874-875)
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.875-876)
31 C.F.R. 515.559 note (p. 5 of this download)

 Canadian Foreign Extraterritorial Measures Act (1985)

Canadian FEMA Order (DS p. 1027)

U.K. Protection of Trading Interests Act (1980)

U.K. Protection of Trading Interests (US Cuban Assets Control Regulations) Order 1992 (DS pp. 1025-1026)

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. 795-800)

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. 846-847, 850-851)
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. 854-855)

Questionable Payments to Foreign Officials Problem 8.3
"Processed Foods in Nigeria"

Foreign Corrupt Practices Act (DS pp. 877-883)

OECD Convention on Combating Bribery (DS pp. 64-69)

UN Convention Against Corruption (DS pp. 59-63)

U.S. State Department Global Corruption 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"]

GOVERNMENTS