Our International Trade team regularly works with clients in addressing cybersecurity concerns that intersect with their digital trade business.
Foreign Investment Review. In reviewing a transaction for national security risks, the Committee on Foreign Investment in the United States (CFIUS) requires the parties to provide information about their cybersecurity and technology controls. Department of Defense (DOD) also reviews these issues for U.S. cleared companies that come under Foreign Ownership, Control or Influence (FOCI). We have steered both U.S. businesses and foreign acquirers through these proceedings, advising on mitigation of national security risks through appropriate cybersecurity and technology control plans.
Sanctions. Office of Foreign Assets Control (OFAC) is authorized to issue trade sanctions for cyberespionage and other cyber-enabled activities threatening national security. We have a large sanctions practice and can help companies navigate this new sanctions program as it evolves.
Export Controls. Three specific export control topics where we regularly work with clients on the intersection of digital trade and cybersecurity issues include:
Controls on Cybersecurity Tools. Bureau of Industry and Security (BIS) controls intrusion software, surveillance systems and related equipment. These controls impact companies in the internet, telecommunications, IT infrastructure, software development and cybersecurity sectors. We have substantial rulemaking experience and advise tech companies in their engagement with regulators.
Encryption. We routinely work with multinational companies to navigate the U.S. and international regulations governing encryption.
Cloud services. Cloud services are widely used, and they are a point of vulnerability for cyber threats. Companies both supplying and receiving cloud services need to know their responsibilities and be sure that contractual provisions take into account the rapidly changing government regulations. We help companies protect their interests and those of their customers.
Hughes Hubbard’s Customs team advises clients on all aspects of U.S. customs law and practice, including classification, valuation, entry requirements, country of origin issues, and AES reporting. We also provide advice under the trade preference regimes of NAFTA and other bilateral U.S. Free Trade Agreements. We assist clients in navigating the full range of compliance issues from responding to CF-28s and CF-29s from Customs and Border Protection to prior disclosures and protests, and we have extensive litigation experience with customs issues before the courts.
Our team helps clients with the day-to-day compliance activities, including the establishment and monitoring of internal compliance controls, particularly with regard to multilateral sourcing operations. We assist clients in connection with regular and ongoing NAFTA origin advice and regional value content requirements under complex tariff shift rules. We also assist with internal auditing and accounting activities to confirm and improve overall compliance, particularly in the context of the sourcing and movement of parts, materials, components, and finished goods across various borders, as well as related inventory, tracking, and management issues.
For more information about the Digital Trade & Customs team, please contact: