In September the American-Danish Business Council had the pleasure of co-hosting a webinar on Cross Border Disputes and Litigation Risks together with ADBC-member and international law firm King & Spalding.
Cross border disputes differs from domestic disputes and therefore it is important for companies to be able to pre- vent and resolve it efficiently. This requires careful planning and knowledge about the judicial system in the U.S.
The U.S. is characterized by a system of “Dual Sovereignty”. This means that each state has its own law and provides much of the basic law that governs business. State law differs from one state to another making it important for companies considering investing in the U.S. to consider state as well as federal law.
Another issue that has faced companies in the past is importing goods into the U.S. When bringing goods to the U.S. it is important to be aware of topics like tariff classification, valuation and country of origin. High volumes of goods are crossing the U.S. boarder everyday and the burden is on the importer and shipper to have their papers in order. Having your papers in order means escaping the chance of goods being held back at the border.
It can be an advantage to check whether or not the country of origin of a product, the country where the most of the good was manufactured, complies with U.S. sanctions. The U.S. applies sanctions that can either be comprehensive or selective, blocking assets or placing trade restrictions on certain countries. This prohibits “US persons” from engaging in transactions with a target country.
A U.S. person can be a U.S. citizen or permanent resident (Green Card Holders) wherever they are located, any person or company present in the United State and U.S.-incorporated entities and their foreign branches.
There are strict intellectual property rights in U.S. and in certain sectors U.S. restricts foreign direct investments, these includes Energy Re- sources, Coastal And Domestic Shipping, And Air Transport.
Although no party enters into a contractual relationship with a foreign counter-party expecting a dispute, every company with cross-border agreements and operations is exposed to substantial risk. Thus, a failure to identify and address key cross-border litigation and arbitration risks early makes dispute resolution more protracted, expensive and uncertain when the dispute arises.
ADBC are already planning a webinar with a similar focus so make sure to stay updated To download the presentation on Cross Border Disputes and Minimizing Litigation Risks please use the link below:
Doing Business in the US Presentation
As part of our focus on Dispute Resolution, King & Spalding have written an article on the importance of Conducting Antitrust Audits. You can read more about antitrust audits and what you should be aware of by following the link below:
ADBC article: Antitrust Audits by King & Spalding