Proposed U.S. Legislation Will Impose New Liabilities on Exporters to the USA

(Mondaq – Andrew Hudson and Dianna Gu, Hunt & Hunt)

According to press reports, the U.S. Congress is moving ahead with the Foreign Manufactured Legal Accountability Act (“Act”) and the Act is likely to be approved by the full Senate.

If passed, the Act would require foreign manufacturers of consumer goods imported into the United States to establish registered agents in the U.S. who are authorised to accept service of any documents regarding civil and regulatory actions (“Actions”) in the U.S. against such manufacturers. Consequently, the Act requires that the U.S. state where the registered agent is located to have a substantial connection to the importation, distribution, or sale of the relevant goods. A publicly accessible register of such agents would also be established.

In effect, the Act would require all foreign manufacturers of consumer goods to register U.S. agents or face a ban on the import of their goods to the U.S. Read more here.