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INTERNATIONAL PRACTICE SERIES
GUIDE TO INTERNATIONAL COMMERCE LAW
1994 Cumulative Supplement to Volume 1 Current through June 15, 1994
Paul H. Vishny DIAncona & Pflaum Chicago, Illinois Member of the Illinois Bar
Shepard'sIMcGraw-Hill, Inc. P.O. Box 35300 Colorado Springs, Colorado 80935-3530
December, 1994
New sections and titles appearing in this supplement to Volume 1
U.N. Convention on Contracts for the International Sale of Goods -Applicability of the U.N. Convention -Exclusions under the U.N. Convention -1CC Uniform Rules for Demand Guarantees --''FreeU Terms; F.C.A., F.A.S. (New Title) -C.I.F. Variations; C. & F. (or CFR) (New Title) -The North American Free Trade Agreement-
NAFTA -The EEC Directive on Self-Employed Commercial
Agents -Bribes and Other Corrupt Practices Common Market Directive on Commercial Agents -Remuneration -Termination of Agency Contracts -Franchising and Common Market Competition Law -United States-European Communities: Agreement
on Antitrust Interest Payments-Earnings Strippings Branch Profits Tax -Special Exceptions: De Minimis and High Foreign
Tax Jurisdictions -Income from Unrecognized and Other Countries -Excess Passive Assets
@ McGraw-Hill, Inc
NEW SECTIONS iii
Passive Foreign Investment Companies (PFIC) -PFIC: Tax Effects -PFIC: Excess Distributions -Qualified Electing Fund (QEF) -Interest Charges Foreign Sales Corporations (FSC) -Formation and Qualification -Foreign Trading Gross Receipts -Foreign Management -Foreign Economic Processing -Transfer Pricing Rules -Exempt Foreign Trade Income; Deductions; Foreign
Tax Credit -FSC Shareholders -Small FSC -Blocked Payments and 5482 -Transfer Pricing Penalties -Stock, Securities, and Intangibles
December, 1994
Acknowledgments
I deeply appreciate the help and encouragement I received during the preparation of this work.
My research would not have been possible without access to library facilities and staff. The work was aided by capable coopera- tion from the Cook County Law Library and its International and Foreign Law Department staff. A special expression of gratitude is due to the Library of the School of Law, Northwestern University, for granting me the privilege to use its superb international col- lection throughout my work.
Robert M. Cordon prepared the tables and index with diligence and skill. My secretary, Kathleen M. Bacom, devoted countless hours to typing the entire manuscript with unusual dedication. During manuscript preparation, I benefited greatly from the en- couragement and advice of several editors at Shepard1s/McCraw- Hill.
Lorin S. Weisenfeld's reading of the manuscript was helpful and encouraging, and I am grateful.
Above all, I acknowledge with love the understanding, patience and encouragement of my wife, Michele.
Paul H. Vishny September 15, 1981
December, 1981
Contents
Summary
Volume 1
Acknowledgments
Short Reference List
1 Introduction
2 Export-Import: The International Sale of Goods
3 Export-Import: Licensing of Technology and Intellec- tual Property
4 Agents, Distributors, and Other Representatives
5 Wholly-Owned International Operations
6 Foreign Business Entities
7 Joint Venture Participation
8 United States Taxation of International and Foreign Operations
August, 1984 C- 1
C-2 CONTENTS
Supplement
Volume 2
9 Foreign Taxation
10 Treaties and Other International Agreements
11 Regulation of Foreign Investment and Multinational Enterprises
12 Foreign Governments: Dispute Resolution
13 Financing, Incentives, and Transaction Risks
Supplement
Sample Agreement Forms
Tables
Index
Detaiied
Voiume 1
Acknowledgments
Short Reference List
1 Introduction
§1.01 International' Commerce
McCraw-Hill, Inc.
2 $ CONTENTS C-3
, -And the Law
The United States and Foreign Commerce
-International Commerce Abroad
Commerce, Law and Change
2 Export-Import: The International Sale of Goods
52.01
52.02
52.03
52.04
52.05
52.06
52.07
52.08
52.09
52.10
52.11
52.12
52.13
52.14
52.15
92.16
52.17
August, 1984
. . -7 , ' !;:,
' .j: ,Ji : ., >..r.. . ..
. I : . .:> : r:.,
.. , < . .. . , ' . r.. ,'
,. . , ', . ,, . + . '... , ' .,. - :\ , . .c. ,?.. . ...
, ,':. ' .<;'- . . y; .
The International Merchant: An Introduction
Forming the Contract
-Form of Contracts
-Consideration
-Acceptance of Offer
-Preliminary Negotiations
-The Battle of the Forms
Price and Payment
-Currency and Price Fluctuations
-Methods of Payment
-Guarantees and Standby Letters of Credit
Documentary Letters of Credit
-The Documentary Credit Cycle
-Contents of the Letter of Credit
-Documents under Letters of Credit
-Revocable and Irrevocable Credits
-Special Forms
C-4 CONTENTS
-Strict Compliance
-Doctrine of Independence
-Letters of Credit and Purchase Contracts
Trade Terms
-"FreeM Terms; F.A.S.
- F.O.B.
-F.O.B. Variations; Free Carrier; F.O.B. Airport
-C.I.F.: Introduction
-Loading and Transportation
-Other Documents
-Insurance; Other Requirements
- C.I.F. Variations; C.&F.
-Freight o r Carriage (And Insurance) Paid
-Ex Terms
Transportation
-Freight Fowarders and Other Agents
-Inland Carriage
-Charter Parties
-Common Carriage
-Bills of Lading
-Liability of Carriers and Statutory Enactments
-Containerization
-Air Freight' 0 McCraw-Hill, Inc.
CONTENTS C-5
December, 1987
Insurance
-Perils
-Average Clauses; Claims
Trade Barriers
lmportation into the United
States-Customs and Tariffs
-Temporary Importation
-Bonded Warehouses and Free Trade
Zones
-Classification
-Evaluation and Duty
-Judicial Review
-Penalties
Unfair Competition and Defensive Measures
-Antidumping Laws
-Countervailing Duties
-Section 337 of the Tariff Act
-Foreign Import Restrictions and Subsidies
-Import Relief
-Adjustment Assistance
Nontariff Barriers
State Action
Regulation of Exportation
-Export Administration Act of 1979
C-6 CONTENTS
52.63 -Export Licensing
52.64 Performance and Dispute Management
52.65 Express and Implied Warranties
92.66 Products Liability
92.67 Penalty and Liquidated Damage Clauses
92.68 Frustration and Force Majeure in General
52.69 --Operative Events and Consequences
aw and Forum and ~ r b i t r a t i o n
92.72 The Search for Uniformity
92.73 -Model and Standard Contracts
t 92.74 -The lnternational Institute for the Unification of Private Law (UNI
92.75 -The Hague Conferences 7
92.76 -The Hague Conference on Private lnternational Law
@7 -United Nations Commission on lnternational Trade Law (UNCITRAL)
92.78 -Other Agencies
Appendix 2-1 United Nations Convention on Contracts For The lnternational Sale of Goods
3 Export-Import: Licensing o f Technology and Intellectual Property
93.01 Technology Transfer and Licensing
53.02 The License as Contract
53.03 The Decision t o License
@ McGraw-Hill, Inc.
CONTENTS C-7
-Licensing t o Acquire Technology or Rights
-Licensing t o Penetrate Markets
-Licensing to Meet Local Requirements
-Licensing for Income
-Balancing Disadvantages
The Subject Matter of Licenses
-National Character of Patents and Trade- marks
Paris Convention
-Proposed Revisions t o the Paris Convention
Inter-American Conventions, Nordic Patent System, African System
Patent Cooperation Treaty, European Patent Convention, Community Patent Convention
53.19 Madrid Agreement, Trademark Registration ... L:
Treaty . i ,,.
.,i! 53.20 Tlw Content of License Agreements :A t +.
, i t s3.21 -Licensed Subject Matter 4,
.3 .-, k .
53.22 -Technical Assistance and Training ta : i
.$ 53.23 -Improvements
August, 1984
C-8 CONTENTS
-Exclusivity
-Antitrust Considerations and Exclusivity
-Sublicenses and Assignments
-Warranties of Licensor
-Exploitation of the Licensed Rights
-Quality Control, Products Liability
-Infringement
-Invalidity
-Duration
-Effect of Termination
-Fees and Expenses
-Maintenance of Rights
-Lump Sum Payments
-Periodic Royalties and Royalty Products
-Net Selling Price Royalties and Controlled Pricing
-Minimum Royalties, Remittances
-Taxes
-Most Favored Licensee Clauses
Contractual Restrictions
-Patent Misuse and Antitrust Violations
-Specific Subject Matter and Free Movement of Goods in the European Economic Com- munity
@ McCraw-Hill, Inc.
CONTENTS C-9
53.45
53.46
53.47
53.48
53.49
53.50
53.51
53.52
53.53
53.54
53.55
53.56
53.57
53.58
53.59
53.60
53.61
53.62
53.63
53.64
August, 1984
-No Contest Clauses
- Grant-Back Clauses
-Field of Use Restrictions
-Territorial Manufacturing Limitations P
-Territorial Sale Restrictions and the Exhaus- tion Doctrine
i
4;
< "
-Process Patents
-Resale Price Restrictions I
-Postexpiration Royalties
-Total Sales Royalties, Discriminatory or Op- pressive Rates
Tying
-Package Licensing
-Other Miscellaneous Restrictions
-Cross-Licenses and Patent Pools
Justice Department's Antitrust Guide for Inter- national Operations ..* ,.:
I . . +
Protective National Legislation .. $. ,
United Nations Conference on Trade and De- P j
velopment Proposed Code of Conduct , ,
f 4,. . United States Trade Barriers and Technology
I Transfer: Export Control
-Trademark Protection
C-10 CONTENTS
53.65 Tax Aspects of Licensing
53.66 -Income Received from Licensing, Sales or Exchanges
53.68 -Sections 1221 and 1231
53.69 -Qualifying Property
53.70 -All Substantial Rights
53.71 -Imputed Interest
53.72 -Transfers t o Controlled Corporations
53.73 -Technical Assistance
53.74 -Foreign Taxes
53.75 -United States Income Taxes on Payments to Foreign Licensors
4 Agents, Distributors, and Other Representatives
54.01 Intermediaries and International Trade
of Agency
54.06 -The Independent Commercial Agent
54.07 -The Commission Agent
54.08 - Del Credere Agents, Brokers
54.09 Some Aspects of Agency and Distribution Agreements, Territory
McCraw-Hill, Inc.
,i, $1
54.10 -Resale Prohibitions in General and United C . t. States Law B
.d . 5' k. :
54.11 -Territorial Restrictions in the European Eco- 3: y . nomic Community .j .*
54.12 -Restrictions on Supplier, Exclusivity
54.13 -Authority
54.14 -Taxation and Agent's Authority
54.15 -Acceptance of Orders
54.16 -Products Liability and Warranties :;,>., .c:: .
54.17 -Payment of Expenses . . $‘!. :. . i t ? .4.
54.18 -Sales Aids, Advertising, and Technical Assis- .I\ y, tance Y. :
* 1, b.
54.19 -Best Efforts and ,Sales Goals
54.20 -Restraints on Competition
54.21 -Selective Distribution Contracts, Refusal to . Lr. Deal ....
.a P
54.22 -Pricing, Agency Contracts %sf .:-. il
54.23 -Resale Price Maintenance, Suggested Prices 3r t,?
8 -
C-12 CONTENTS
54.29 -Termination Provisions in Contracts: Fixed Term and Renewals
54.30 -Other Termination Clauses
54.31 -Antitrust and Termination
54.32 Protective Legislation
54.33 -Protecting Agents and Distributors
54.34 -Right to Terminate, Notice Provisions
54.35 -Goodwill Compensation
54.36 -Other Penalties
54.37 -Citizenship of Agents
54.38 Preventive Contract Procedures
54.39 -Clarification of Status and Obligations, Rea- sonableness
54.40 -Choice of Law
54.41 Franchising: Federal and State Regulation
54.42 -Franchising Outside the United States
54.43 -The Problem of Definition
54.44 Contract Formalities
5 Wholly-Owned International Opera ns
i--~- 55.01 --\ Direct Invest A b r o J
55.02 Direct Investment Motivation
55.03 -Meeting Competition
0 McCraw-Hill, Inc.
CONTENTS C-13 1 i , ,-. I ;
,tC - ., . 1'1
55.04 -Access t o Raw Materials; Exchange Rates; It
Customer Considerations 8 I .. - . ..I
55.05 -Labor and Trade Unions I\ q
I-. 55.06 -Labor Laws . . . .. ., -
55.07 -Restrictive Trade Policies ,( _ i
55.10 Investment by Acquisition
55.1 1 -Asset Acquisitions -.. . c* .
:?
55.12 -Stock Acquisitions
55.13 -Tax Aspects of Acquisitions
55.14 Antitrust Considerations 'P
55.15 -Applicable United States Laws t*: - . i
55.17
55.18
55.19
55.20
55.21
55.22
55.23
55.24
55.25
August, 1984
-Premerger Notification under United States h,
Law ... -European Antitrust Laws . .
?
Subsidiary or Branch Operations 7 :C.
j-. -Tax Considerations ir , ,!4
. '.# -Tax Deferral $:I+
gj,
-Consolidation and Losses .,.$ - 8
-Planning for Deductions . {i . -Repatriation of Earnings \
-Intercompany Transactions 6 .
-Sale or Liquidation .+ .'+ iI .
C-14 CONTENTS
-Permanent Establishments
Nontax Considerations
-Local Restrictions or Encouragement
-Simplification and Costs
-Avoidance of Local Company Laws
-Local Incentives and Sentiment
-Access t o Regional Markets and Associa- tions
-Avoidance of Disclosure
Liability and Litigation: Piercing the Corporate Veil
-Penetrating Corporate Personality: General Considerations
-United States Law
-Foreign Law
- One-Person Companies
-The Enterprise or Economic Unit
-Special Aspects
-Preventive Measures
Express Assumptions of Liability: Letters of Responsibility
United States Subsidiaries
Base Site Selection
-Tax jurisdiction, Rates and Treaties 0 McGraw-Hill, Inc.
55.46 -Notional Agreements
CONTENTS C-15
55.47 -Disclosure Rules
55.48 -Legal Systems
55.49 -Regional Associations
55.50 -Accounting Practices
55.51 Nationality of Corporations in International Law
55.52 -The Incorporation Theory
55.53 -The Seat Theory
55.54 -The Application of Theory
55.55 -Recognition
55.56 -Governing Law
55.57 -Taxation
55.58 -Incentive and Benefit Programs
55.59 -Alien and Enemy Laws
55.60 -Jurisdiction and Process
55.61 -Diplomatic Protection
6 Foreign Business Entities
56.01 The Company
56.02 Stock or Limited Liability Company
56.03 Formation
56.04 -Founding Documents
56.05 -Capitalization
August, 1984
2 .
, >
, .
! C-16 CONTENTS
-Authorized Shares
-Consideration for Shares
-Impairment of Capital
-Simultaneous and Staged Incorporation
-Formation Completion; Interim Contracts
-Defective Incorporation
Shares and Shareholders
-Nominee Arrangements
-Equity and Debt
-Preferred Stock
-Stockholder Meetings
-Cumulative Voting and Special Voting Pro- visions, Proxies
-Quorums
-Super Majorities
-Class Voting
-Dividends and Reserves
-Compelling Dividends
-Conflict Potential and Dividend Policy
-Preemptive Rights
-Information
-Stock Redemptions
-Stock Transfers
@ McCraw-Hill, Inc.
CONTENTS C-17
56.28 -Restrictions o n Transfer C' :I & '!
56.29 Stockholder Agreements-Defining Control ;r.
56.30 -Agreement Enforcement: General Consid- :! '; erations , :FI .
$. 56.31 -Voting Trusts and Proxies ,a %
?*:
. * 56.32 -Partnerships, Holding Companies, and Vot- i(
ing Syndicates i.,.
2 5
56.33 -Contractual Arrangements i, -, I . , ,. -,, &
56.34 -Enforcement Problems r'
56.35 -Miscellaneous Minority Rights
56.36 Management . .$
56.37 - One-Tier Management Systems ... .tl . ' r!!.
56.38 -Two-Tier Systems
56.39 -Employees in Management
56.40 -Board Qualifications
56.41 -Share Ownership, Corporations as Direc- tors, Age and Other Requirements
56.43 -Management Authority
56.44 -Statutory Auditors
56.45 Fundamental Changes
56.46 Other Foreign Forms of Business
56.47 -General Partnership * !,,$
56.48 -Limited Partnership . B c , ,!L - . August, 1984
C-18 CONTENTS
56.49 -Limited Partnership with Corporate General Partner
56.50 -Partnership Limited by the Shares
56.51 -Participation Companies: Silent Partnerships
56.52 -Miscellaneous Forms and Partnership Ques- tions
56.53 -Corporations as Partners
56.54 -Leonine Clauses
56.55 -Form
56.56 Harmonizing Company Laws, European Eco- nomic Community, Inter-American Conven- tion
7 Joint Venture Participation
57.01 The Meaning of Joint Venture
57.02 The Importance of Form
57.03 Joint Venture Entrance
57.04 -Mandatory Local Participation
57.05 -Access to Raw Materials and Technology; Risk Reduction
57.06 -Need for Local Participation
57.07 Avoiding or Resolving Conflicts
57.08 -Control or Minority Position
57.09 -Minority Protection by Local Law
57.10 -Other protective Devices
@ McGraw-Hill, Inc.
CONTENTS C-19 ,J
57.18
57.19
57.20
57.21
57.22
57.23
57.24
57.25
57.26
57.27
57.28
57.29
57.30
57.31
57.32
August, 1984
-De Facto Control: Management and Other Contracts
. ., -Fifty-Fifty Companies: Deadlocks . ;.: ..
1. ' -Swing-Vote Directors
, I .
-Put-Sell Options, Dissolution, Arbitration !. .: ,
-Miscellaneous Contract Restrictions ?;s
. - Validity of Stockholder Agreements
;4 -Effect of Contract Violation, Remedies for " .
Breach . . t - . .
Miscellaneous Contract Provisions ,
-Capital Requirements ?
$ 4 '
-Technology
-Dividends and Other Distributions
-Intercompany Transactions ... -:>. ...-
-Share Transfers '
. '. , .'4!.,.._ ..:. #
-Effect of Termination .$<. . , . . .. . ..., ... .:, . ii.. .. . . ,
Antitrust Considerations in Joint Ventures . . . -,,. ! . ,. -.,. ,.; '
-The Sherman Act ..I.. ;.: b %*,
-The Clayton Act ;,'I
-Federal Trade Commission Act
-Foreign Statutes -
(7
: t':, ' -Threshold Inquiries I,:?.
.:+< 1f..
-Joint Venture Creation ..a,
. .'?.. -Collateral Agreements and Spill-Over Effects . ~ , &, , .
. ,
C-20 CONTENTS
57.33 -Bottlenecks
57.34 -Some Practical Conclusions
57.35 -Prevention of Unlawful Effects
57.36 -Notification Under the 1976 Act
8 United States Taxation of International and Foreign Operations
Taxation: Policy and Jurisdiction
-United States Residents and Citizens
-Foreign Corporations, Nonresident Aliens
Interest lncome
Dividend lncome
Fixed or Determinable lncome
Trade or Business Determination
Effectively Connected lncome
Classification of Businesses
-Consequences of Classification
-Foreign Entities
Disregarding the Foreign Entity: Controlled Foreign Corporations
-Defined
-United States Shareholder Defined
-Constructive and Indirect Ownership
-Measuring Dates @ McCraw-Hill, Inc.
CONTENTS C-21
38.31
58.32
58.33
58.34
58.35
August, 1984
-Categories of lncome Taxed to Shareholders
-The 10 Per cent-70 Per cent Rules
-Foreign Personal Holding Company lncome
-Foreign Base Company Sales lncome
-Branch Rule
-Foreign Base Company Services lncome
-Income Attributable to International Boycott Participation and Illegal Conduct
-Increase in Investment in United States Prop- erty
-Section 1248: CFC Stock Transactions and Liquidations
Disregarding the Entity: Foreign Personal Holding Companies (FPHC)
Domestic International Sales Corporations (DISC)
-Formation, Qualification, and Administra- tion
-Gross Receipts Test
-Assets Test
-Producer's Loans
-Intercompany Pricing
-Taxation of DISC lncome to Shareholders
C-22 CONTENTS
-Taxation of DISC Income, Aggregating Base Periods
-Disqualification, Disposition of Stock, and Distributions
Foreign International Sales Corporations (FISC) and Related Companies
United States Possessions Corporations
Other Special Corporations
The Foreign Tax Credit
-Creditability: Taxes Eligible
-The Deemed-Paid Credit for Corporations
-Limitation on Credit
-Carryback and Carryover
-Recapture of Foreign Losses
Intercompany Transfers, Pricing and Alloca- tions: 5482
-Loans and Advances
-Intercompany Services
-Use of Tangible Property
-Transfer or Use of Intangible Property
-Sales of Tangible Property
-Section 482 Allocations and Incidental Relief
Taxing the Tax-Free: 5367
-Formations and Other Capital Contributions
@ McGraw-Hill, Inc.
Supplement
Volume 2
9 Foreign Taxation
59.01 Introduction
lncome Taxation
59.02 -Global and Schedular Systems
59.03 Jurisdiction-Citizenship
59.04 -Residence
59.05 Source of lncome
59.06 Measuring Income, Applicable Rates
59.07 Taxpaying Entities
December, 1987
C-24 CONTENTS
Distributions: Shareholder Integration and Imputation Systems-Tax Credits
-Gross-Up and Excess Credits
-Foreign Income and Shareholders, Tax Credits
-Intercompany Dividends, Consolidations
-Germany, France, the United Kingdom
lntercompany Issues
59.1 3 lntercompany Transfers and Pricing
59.14 -General Legal Principles
59.15 -Legislation and Administrative Guidelines
Miscellaneous Issues
59.16 Liquidations, Mergers, and Reorganizations
59.1 7 Accumulations
59.1 8 Tax Avoidance Through Foreign Holdings
59.19 Value Added Taxation (VAT)
59.20 Other Taxes
Appendix 9-1 Corporate and Branch Tax Rates i n Fifty Countries
10 Treaties and Othe r lnternat ional Agreements ,
S10.01 Treaty Law and lnternational Trade: An Introduction
510.02 Terminology and Treaties
510.03 Executive ,and Other International Agreements
@ McGraw-Hill, Inc.
: .'i . - I . ' & . C ,.' !;I-
;?. . ..\' ! ;I! .; . ..
,.c. . .. . ? ( I .
CONTENTS C-25 ,.':'. r; "
: I . . "., ..'i ,,.- . . .CT . ,,,: .... .,, , ..
Cj10.04 Treaties as Domestic Law in United States Prac- 2:) . * . ., . .r. 1. I
tice . , .,2 -
J .. P,
510.05 United States Treaty Making Procedures , i; P
I I '
Cj10.06 -Full Powers .t i . n I J -
Cj10.07 -Bilateral and Multilateral Agreements: Ne- gotiation and Signing
,i P.
Cj10.08 -Ratification and Entry into Force f-y-) *::
Cj10.09 The Law of Treaties: The Vienna Convention *, d
F'
CjlO.10 Treaties of Friendship, Commerce and Navi- +,'
gation % i ,
- 3 ,
510.11 -FCN Treaty Contents . %;:
Cj10.12 -FCN Treaties and Some Recent Issues I .
m . ,:
, . t-.
Cj 10.13 Totalization Agreements .5' 3; .
Cj10.14 Other Treaties and International Trade / ?; . >,
Cj 10.15 Tax Treaties- Introduction - ?. ,. . 1:
Cj10.16 -Policy Issues < . ,.,
Cj10.17 -Tax Sparing Credits
Cj10.18 -Integration Systems
Cj10.19 -Policy Issues: State Taxation a b i ?
Cj10.20 Model Income Tax Conventions: United ('7 '. .
States and OECD l'! 8 :
510.21 -Scope, Taxes, and Application - ,
Cj10.22 -Business Profits and Permanent Establish- ments
August, 1984
C-26 CONTENTS
510.23 -Permanent Establishments: Attributable Profits
510.24 --Intercompany Pricing and Transfers
510.25 -Real Property and Capital Gains
510.26 -Investment Income: Dividends
510.27 -Investment Income: Interest
510.28 -Investment Income: Royalties
510.29 -Personal Services
510.30 -Other Income and Tax on Capital
510.31 -Dealing with Double Taxation
510.32 -Nondi~crimination
510.33 -Administrative Practice: Competent Authority
510.34 -Administrative Practice: Exchange of lnfor- mation and Assistance
Appendix 10-1 Withholding of Tax on Nonresident Aliens and Foreign Corporations
Regulation of Foreign Investment and Multinational Enterprises
511.01 Foreign Business and Host
51 1.02 -Legislative Reactions
§11.03 -Regulatory Patterns; Sanctions
511.04 -Host Country Goals
5 11.05 -Investment Applications 0 McCraw-Hill, Inc.
CONTENTS C-27
August, 1984
-Administrative Discretion
Prohibited Industries
Limitations on Foreign Equity
Capital Investment a@-
-Profit Repatriation - -Financing Restrictions
-0ECD'S Code of Liberalization of Capital Movements
Registration and Approval-A General View
-Screening and Investor Commitments
-Extraterritorial Transfers
Foreign Management and Personnel
Technology Transfer
Local Capital Markets
Regulation and International Agencies
-0ECD'S Guidelines for Multinational Enter- prises
- OECD Guidelines- Reviews
-UN'S Multilaterally Agreed Equitable Princi- ples and Rules for the Control of Restrictive Business Practices
UN'S Code of Conduct on Transnational Cor- porations
-UN Conference on International Code of Conduct on the Transfer of Technology
-UN Draft International Agreement on Illicit Payments
-Private Law Effects
-Other Private, Legal Effects
Illicit Payments-The United States Response
-Applicable Laws: A General Review
-Tax Reform A d of 1976
-FCPA Accounting Provisions
-Accounting Provisions: Interpretation Prob- lems; Systems
- FCPA Illegal Payments Provisions
-Grease Payments and Other FCPA Excep- tions
-Foreign Subsidiaries
-Other FCPA Issues and Suggested Amend- ments
United States Law
Participation
-Reporting Requirements: General
-Participation or Cooperation
-Reporting Compliance
-Operations; Nonlisted Countries 0 McCraw-Hill. Inc.
CONTENTS C-29
511.45 -Agreements t o Participate or Cooperate
511.46 -Letters of Credit; Permitted Practices; Ship- ping and Insurance
51 1.47 Export Administration Act
511.48 -United States Person
€j 11.49 -Commerce Requirement
511.50 -Intent
fj11.51 -Prohibited Actions: Refusal t o D o Business
5 11.52 -Discriminatory Actions
51 1.53 -Other Information
511.54 -Letters of Credit
5 11.55 Exceptions to Prohibitions
51 1.56 Reporting Requirements
511.57 Other Applicable Laws
511.58 Foreign Investment in the United States: Non- Tax Reporting Requirem-
12 Foreign G o u e r n m e n t ~ R e s o I ~ o n
512.01 Protecting MU- usiness- General Observations
512.02 Overview of Sovereign Immunity
512.03 The Foreign Sovereign Immunities Act
512.04 -Foreign States, Agencies, and Instrumental- ities
512.05 -Waiver of Immunity
August, 1984
C-30 CONTENTS
512.06 -Implicit Waivers
512.07 -Commercial Activity
Effect
512.12 -Maritime Liens
512.13 -Extent of Liability
512.14 -Procedural Matters: Service on Foreign States
512.15 -Service on Agencies or Instrumentalities
512.16 -Answers: Default Judgments A/-- I - / j m e n t of Property: FOS-S
512.18 -Agencies or Instrumentalities
512.19 -Prejudgment Attachments
512.20 -Property Immune from Execution
512.22 -Jury Trials
-Choice of Law Issues . /'.' 512.24 Forum Non Conveniens
.A-
@ McGraw-Hill, Inc.
CONTENTS C-31 I
: I& ir
512.30 -Within Its Own Territory
512.31 ea5y 5 12.32 - Bernstein Exception; Counterclaims
512.33 -Commercial Activities ,? 512.34 -Int@ht~onal Law Exception
512.35 e h 3 e r Amendment *.t ,:. a - ,?
512.36 Other lnternational Organizations %+ :' I
512.37 Arbitration; International Centre for Settle- r )
ment of Investment Disputes
5 12.38 - ICSID Jurisdiction; Applicable Law
.n 6 12.39 -Tribunal; Place of Arbitration
. . 513.01 Financing, Incentives, and lnternational Com-
merce +
1'
513.02 Sources of Financing t '
513.03 -Time Drafts and Bankers' Acceptances
513.04 -Selling Receivables: A Forfait; Factoring I ,
513.05 Countertrade . + . .-. 513.06 -Countertrade Contracting \ <
513.07 Export Credits Arrangement August, 1984
I . : C-32 CONTENTS
United States Government and Government- Assisted Programs-Export-Import Bank of the United States
-Foreign Credit lnsurance Association
-Policies
-Requirements; Loan Agreement Implications I > -
;), ? - . *.
A . . . 513.14 -Investment Insurance
+:: . './"
'r 513.16 -Letter of Credit Guarantee Insurance
513.17 -Commodity Credit Corporation and Small Business Administration
- I
/ 7
. ) _ 513.18 Private Sector Export Credit Insurance
, s 513.19 Foreign Export Credit Assistance
- ., . . , . . 513.21 -Federal Republic of Germany
5 13.23 -Japan . ,. _
513.24 -The Netherlands
513.25 -The United Kingdom
513.26 Development Banks
513.27 -World Bank Group
5 13.28 - Inter-American Development Bank
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CONTENTS C-33
513.29 -Asian Development Bank
513.30 -European lnvestment Bank
513.31 Other Export Assistance in the United States
513.32 -United States Government Assistance
513.33 -Local Government Assistance
513.34 - Webb-Pomerene Associations
513.35 Export Trading Company Act of 1982
513.36 -Banking Participation
513.37 -Antitrust Certificates of Review
513.38 -Effect of Certificate of Review
513.39 -Sherman Act and Federal Trade Commission Act Modifications
513.40 Direct lnvestment Incentives
513.41 -Forms of Incentive
513.42 -Procedures and Limitations
513.43 Financing Documentation
513.44 -Credit Agreements
513.45 -Default; Setoff
513.46 -Security Interests
513.47 -Promissory Notes
513.48 -Drafts or Bills of Exchange
513.49 -Legal Opinions
513.50 Money in International Transactions
August, 1984
C-34 CONTENTS
s13.51 -Nominalism: A Dollar Is a Dollar
s13.52 -Money of Account; Money and Place of Payment
s13.53 -Foreign Currency Obligations
s13.54 -Maintenance of Value
513.55 -Currency Basket Loans
913.58 -SDRs in Private Transactions
s13.59 Eurocurrency Financing
s13.60 -Loan Clauses
s13.61 Exchange Control, Exchange Arrangements, and Private Commerce
s13.62 -Contractual Violation of Exchange Control Laws
s13.63 United States Tax Aspects of Foreign Currency Transactions
s13.64 -Forward Contracts in Foreign Currency
Supplement
Sample Agreement Forms Form 1 License and Technical Assistance
Agreement
Form 2 Development and Distribution Agreement
Form 3 Distribution Agreement A. Nonexclusive Agreement
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CONTENTS C-35 -d . .<. .
B. Alternate Clauses for Exclusive ,: , r ?
Agreement J .
Form 4 Sales Representation Agreement A. Nonexclusive Agreement B. Alternate Clauses for Exclusive
Agreement Form 5 Formation Agreement Form 6 Currency Agreements
A. Typical Eurocurrency Loan Agreement
B. Provisions for Multicur- rency Currency Option
Form 7 Syndicated Dollar Loan Agreement
Table of Cases
United States
Foreign
Table of United States Statutes 1,
Internal Revenue Code .,. ,
December, 1985
United States Constitution
United States Code
Sherman Antitrust Act
Clayton Antitrust Act
Tariff Act of 1930
Public Laws, Common Statutes at Large
State Statutes
Table of Regulations
Code of Federal Regulations
C-36 CONTENTS
Treasury Regulations
Federal Register
Table of Revenue Rulings
Revenue Procedures
Private Letter Rulings
Table of Foreign Statutes and Regulations
Table of Treaties
Warsaw Convention
European Patent Convention
Paris Convention
Treaty of Rome
Vienna Convention
Table of Model Statutes
Table of Model Treaties, Uniform Laws and Uniform Customs
OECD Model
U N Model
US Model
Uniform Customs
l ndex
@ McGraw-Hill, Inc.