How to Comply with Complex Foreign, Dual and Third Country National Rules

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How to Comply with Complex Foreign, Dual and Third Country National Rules How to Comply with Complex Foreign, Dual and Third Country National Rules Nelson G. Dong Olga King Partner Global Trade Compliance Manager Dorsey & Whitney LLP Esterline Corporation Seattle, Washington Bellevue, Washington #ACIITAR U.S IMMIGRATION AND THE U.S. TECHNOLOGY WORKFORCE by Nelson G. Dong Dorsey & Whitney LLP Seattle, Washington #ACIITAR PROFESSIONAL BACKGROUND • Seattle partner in 550-attorney international law firm • Head of Dorsey & Whitney’s National Security Law Group and co-head of its Asian Law Group • International technology lawyer with >30 years experience in global business • Export control adviser to many technology companies, universities, engineering societies • Frequent speaker, writer, commentator on U.S. export control laws and export control policy advisor to U.S. Commerce Department; member of PECSEA • White House Fellow, former Justice Department official and federal prosecutor #ACIITAR AMERICA’S GLOBALIZED WORKFORCE AND CONTRIBUTIONS MADE BY IMMIGRANTS #ACIITAR IMMIGRANTS & AMERICAN MAJOR LEAGUE SPORTS (2012) • Major League Soccer: 184 of 487 players are foreign born from 57 countries (38% of all players) • Major League Baseball: 272 of 1,029 players are foreign born from 18 countries (26% of all players) • National Hockey League: 193 of 764 players are foreign born from 19 countries (25% of all players) • National Basketball Association: 87 of 434 players are foreign born from 40 countries (20% of all players) Source: Elias Sports Bureau, in July 15, 2012 Seattle Times #ACIITAR A LOCAL CASE STUDY: THE SEATTLE SOUNDERS SOCCER TEAM (2013) • Current Sounders first team roster of 29 players includes 10 players from 10 other nations • Americas: Brazil, Costa Rica, Guatemala • Caribbean: Cuba, Grenada, Jamaica • Europe: England, France, Switzerland, • Africa: Nigeria Source: SoundersFC.com #ACIITAR IMMIGRANTS AND ATOMIC ENERGY Hans Bethe Felix Bloch Albert Einstein Enrico Fermi Otto Frisch George Kistiakowsky Leo Szilard Edward Teller Theodore John Eugene Wigner von Kármán von Neumann #ACIITAR IMMIGRANTS AND MISSILE TECHNOLOGY Operation Paperclip Fort Bliss, TX (1945-46) Dr. Wernher von Braun and 125 others #ACIITAR IMMIGRANTS & MODERN U.S. INDUSTRY ANDREW S. GROVE (1936 - ) (Hungary) – Developer of basic semiconductor technologies – Co-founder of Intel Corporation IGOR SIKORSKY (1889-1972) (Russia) – Designer of first four-engine airplane, modern helicopter – Founded Sikorsky Aircraft Corporation (now part of UTC) TSU WONG (1893-1965) (China) – 1916 engineering graduate of MIT – Hired as Boeing’s first Chief Engineer; designed its first Model C training seaplane sold to U.S. Navy #ACIITAR IMMIGRANTS & U.S. INNOVATION • June 2011 study by Partnership for New American Economy entitled The “New American” Fortune 500: • More than 40% of 2010 Fortune 500 companies founded by immigrants or children of immigrants • Almost 20% of newest Fortune 500 companies (i.e., founded since 1985) founded by an immigrant • Fortune 500 companies founded by immigrants or children of immigrants employ > 10 million workers worldwide, with those founded by immigrants employing 3.6 million • Fortune 500 companies founded by immigrants or children of immigrants had combined revenues of US$4.2 trillion, which is more than GDP of every country in world except U.S., China and Japan • Familiar corporate names: AT&T, Boeing, Ford, GE, Google, Heinz, Hertz, Home Depot, Kraft, Mattel, McDonald’s, P&G #ACIITAR IMMIGRANTS & U.S. INNOVATION • Aug. 2007 study by scholars at Duke, NYU and Harvard (V. Wadhwa, et al.): • Immigrant inventors produced 72% of Qualcomm’s patents, 65% of Merck’s patents, 64% of GE’s patents and 41% of U.S. Government worker patents • Sept. 2008 study by economists at McGill University and Princeton University (NBER Working Paper 14312): • Immigrants obtain U.S. patents at double the rate that native born Americans do because immigrants disproportionately represented in science, technology, engineering and math (STEM) fields in U.S. • Projection: each 1% increase in immigrant college graduates will yield 15% increase in patents per capita #ACIITAR IMMIGRANTS & U.S. INNOVATION • June 2012 study by Partnership for New American Economy entitled Patent Pending: How Immigrants are Reinventing America: • 76% of 1,466 patents issued in 2011 to top 10 U.S. research universities (ranked by patent activity) had at least one foreign born inventor (faculty member, staff or student) • Foreign born inventors involved in 87% of semiconductor manufacturing, 84% of information technology, 83% of pulse or digital communications, 79% of pharmaceutical and drug and 77% of optics inventions covered by issued patents • Foreign born inventors within 1,466 issued U.S. patents came from 88 different countries around the world • 10 universities surveyed in PNEA study: California*, Stanford, MIT, Wisconsin (Madison campus), Texas*, Cal Tech, Illinois*, Michigan*, Cornell, Georgia Tech * State university system as a whole #ACIITAR AMERICA’S PIPELINE OF FUTURE SCIENTISTS AND ENGINEERS #ACIITAR U.S. COLLEGES AND UNIVERSITIES AND FOREIGN STUDENTS • In 2012-13 academic year, more foreign students attended U.S. universities than ever before: • 819,644 foreign students studied at U.S. universities • Foreign student enrollment in U.S. grew 7% over the prior year • Top countries sending foreign students in U.S.: • China: 237,697 (29%) • India: 98,357 (12%) • South Korea: 73,768 (9%) • Saudi Arabia: 40,982 (5%) • Canada: 24,589 (3%) • 49% of international students come from China, India, and South Korea. Source: Institute of International Education (2014) #ACIITAR U.S. COLLEGES AND UNIVERSITIES AND FOREIGN STUDENTS (cont.) • Top three states for foreign student enrollment: California, New York, Texas • Top 5 fields of study by foreign students in U.S. (2012-13 data): • Business and management (22%) • Engineering (19%) • Mathematics and computer science (10%) • Social sciences (9%) • Physical and life sciences (8%) Source: Institute of International Education (2014) #ACIITAR FOREIGN-BORN STEM STUDENTS #ACIITAR U.S. IMMIGRATION LAWS & COMMONLY AVAILABLE VISAS #ACIITAR H-1B VISA OVERVIEW • Temporary work visa for professionals • Most widely used visa for non-immigrant scientists, engineers, technical personnel • 6-year maximum term • May be renewed • U.S. Government agencies involved in assessment • US Citizenship & Immigration Services (USCIS) within U.S. Department of Homeland Security • U.S. Department of Labor • U.S. Department of State at consulates around world • Job must require a bachelor’s degree or equivalent as a minimum for entry into field of employment • Employee must have required degree(s) or equivalent and any required licenses • Job must relate directly to academic degree(s) held #ACIITAR H-1B WAGE REQUIREMENTS • Employer must pay “prevailing” or “actual” wage, whichever is higher • Prevailing wage: average wage paid to similar workers in same geographical area • Actual wage: actual wage paid by particular employer to similar employee, if any • Employer must also offer same employment benefits to H-1B employee as to U.S. workers • Health, dental, life insurance • Holidays • Maternity/paternity benefits • Eligibility for bonus plans #ACIITAR AVAILABILITY OF H-1B VISAS • 65,000 “new” H-1B visas each fiscal year under current law • First 20,000 applications with U.S. master’s or Ph.D. degree exempt from 65,000 cap, so, effectively 85,000 visa/year • Average applications (2001-11): 311,889/year • Each fiscal year is October 1 - September 30 • File by April 1 for October 1 start date (if subject to cap) • Next new H-1B availability: October 1, 2014 • Currently exempt employers/employees from caps: • Colleges and universities or “affiliated” organizations • Non-profit research institutions • Government research institutions • Already in H-1B visa status with a different U.S. employer #ACIITAR TN VISA OVERVIEW • Professionals who are eligible under North American Free Trade Agreement (NAFTA) • Certain qualified Canadian, Mexican citizens for temporary work in U.S. in a professional field • No quota and always available • Initial term of up to 3 years • Easier, faster processing than H-1B, L-1 or E visas • Job must be temporary in nature, so a TN visa may be difficult to extend with same employer • Could potentially roll into H-1B visa if longer term needed #ACIITAR TN VISA REQUIREMENTS • Limited only to qualified Canadian or Mexican citizens • Has a profession listed in USCIS regulations (accountant, physician, engineer, etc.) • Note: NOT ALL NORMAL PROFESSIONS ARE INCLUDED • Has a job offer from a U.S. company/organization in that profession • Application process: • Canadian: May apply directly to US-Canada border office without need to apply for a visa or file a petition with USCIS. Instant adjudication. • Mexican: Must obtain a TN visa at a U.S. embassy/consulate in Mexico or elsewhere first but no need to file a petition with USCIS • Application documents: (1) Canadian/Mexican passport; (2) offer letter from U.S. employer detailing prospective employment; and (3) copy of college diploma, licenses and job experience letters (if relevant) #ACIITAR U.S. EXPORT CONTROL LAWS & FOREIGN PERSONS #ACIITAR “U.S. PERSON” & “FOREIGN PERSON” • “U.S. person” as defined in ITAR § 120.15: • [U.S. citizen] (not expressly stated but implied) • U.S. lawful permanent resident (so-called “green card” holder) • Person in the United States who is bona fide refugee or asylum seeker • Organization (e.g., corporation, partnership, trust, etc.) formed under
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