Legal News for Businesses Worldwide: October 2026

The state of legislation and legislative proposals is captured as of October 14, 2026. This edition covers developments since September 17, 2026, i.e., from the date of publication of the previous edition inclusive.

What is happening globally

The past month did not bring a new wave of tariffs, but rather an accumulation of deadlines into a single quarter. The Chinese postponement regarding rare earths, the return of the US rule on affiliated persons of listed entities, and the end of the Sino-US arrangement all fall within the period from November to January. Meanwhile, formal regulations still work with November dates, while both governments have announced an extension of the arrangement until January 10, 2027 – meaning companies are planning against two dates.

The second line is the formalization of cash and document flows. India has introduced a reporting obligation for the export of services, the UAE is finalizing electronic invoicing, and Brazil is expanding mandatory data on tax documents. For a Prague-based company, this means that the risk is no longer just in the tariff rate, but in whether you are allowed to deliver and when you will receive your money.

Americas

Selected Canadian goods will not pass into the US from September 29, and tariffs will not solve it

The measures we announced in the September edition have entered into force. For a Prague-based company, they are essential if you deliver to the US through a Canadian subsidiary, distributor, or warehouse, or if you purchase Canadian inputs for the US market.

Three proclamations of September 8 prohibit the import of selected goods that are products of Canada from September 29, 2026: beer, wine, spirits, and other alcoholic beverages (for many items only in consumer packaging), whey, molasses, non-alcoholic beer, and motorcycles with an engine capacity exceeding 800 cc. The affected items are determined by the US tariff schedule codes in the annexes.

The difference compared to a tariff is fundamental. A tariff can be reflected in the price or split between the parties, but an import ban cannot. For the affected items, the only options left are finding another source, an actual change in production or processing that changes the origin under US rules, or suspending deliveries. Goods imported before September 29 but not yet released into free circulation remain subject to the existing 50% tariff instead of the ban.

Who is not affected: mere transit through Canada, storage in a Canadian warehouse, or resale through a Canadian distributor without relevant processing does not change the origin of the goods. European goods that only pass through Canada are not subject to the ban. Conversely, Canadian goods cannot escape it by being rerouted through another country – such rerouting may create a separate risk.

In practice, this means that purchasing and customs departments should immediately compare the tariff codes of deliveries to the US that go through a Canadian entity with the annexes of the proclamations, and add a regulatory change clause to contracts with Canadian suppliers.

Asia

Chinese licenses may also be required for magnets and targets manufactured in Europe

This is the most significant change in this edition. It will affect both manufacturers and buyers who previously assumed that Chinese export controls did not apply to them because they do not manufacture in China.

Since April 2025, the Chinese Ministry of Commerce has required an export license for seven medium and heavy rare earths – samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium – and products made from them. This part of the regime applies continuously and has not been suspended. In October 2025, China announced in Notice No. 61 an expansion with extraterritorial reach, which was to apply from December 2025. Following negotiations in Busan, Joint Notice No. 70 of the Ministry of Commerce and the Customs Administration suspended it before it could be practically implemented.

The expansion does not affect just any product with a magnet. It only concerns items in Part 2 of the annex: samarium-cobalt magnets, neodymium magnets containing terbium or dysprosium, parts, components, and assemblies containing these magnets, and sputtering targets made of the listed rare earths and their alloys.

Only for such items is the share calculated. The licensing obligation arises if controlled rare earths of Chinese origin from Part 1 of the annex constitute 0.1% or more of the item's value – an item at exactly 0.1% already falls under the regime. The share is calculated by value, not by weight. A separate trigger is the manufacture of items from the annex abroad using Chinese technologies for mining, separation, metallurgy, magnet production, or recycling.

A caveat is necessary regarding the end date of the postponement. Notice No. 70 states November 10, 2026. The Chinese Ministry of Commerce officially stated on September 28 that China and the US agreed to extend the joint Kuala Lumpur arrangement until January 10, 2027; however, it does not explicitly name rare earths or Notice No. 70. A regulation that would formally change the November 10 date was not published by the deadline. If the postponement is not legally extended, the expanded regime will begin to apply for the first time after it ends.

One mitigating circumstance: during negotiations with the European Commission on October 8 and 9 in Beijing, China committed to further facilitating the issuance of export licenses for rare earths and permanent magnets to the European Union through a so-called green corridor. This is a political promise, not a regulatory change – the licensing obligation remains, but the processing time may be shortened.

Start with a list, not a calculator. Technologists and purchasing departments should review purchased and supplied items by the end of October to determine whether they include samarium-cobalt magnets, neodymium magnets with terbium or dysprosium, assemblies containing them, or sputtering targets. Only then should you calculate the value share.

Request written confirmation of material origin, information on the export license, and the postponement end date they are working with from Chinese suppliers. For deliveries from November to January, consider stockpiling and add a clause on the impact of export restrictions on delivery times to purchase contracts – without it, the liability for delay will remain with you.

Also check alternative sources: neodymium magnets without terbium and dysprosium do not fall under either the April or the expanded regime. However, verify the composition using the material data sheet, as many common types do contain heavy rare earths.

Do you need to assess whether your items fall under the Chinese licensing regime and address this in supplier contracts? Write to consultation@arws.cz – the Czech legal team at ARROWS will guide you through the assessment and contractual implications.

Indian subsidiary must report service exports from October 1, or risk financial penalties

For Prague-based groups with an Indian entity that invoices services to a parent or sister company, it is essential that service exports are coming under a formal reporting obligation for the first time. The Reserve Bank of India introduced this via new foreign exchange rules for the export and import of goods and services (Notification No. FEMA 23(R)/2026-RB of January 13, 2026), effective from October 1, 2026. These replace the 2015 regulations.

The obligation lies with the Indian exporter of services. The Export Declaration Form must be submitted within 30 days of the end of the month in which the invoice was issued – to an authorized bank, or to the local authority in special economic zones. For October invoices, the first submission is due by November 30, 2026. One summary declaration is sufficient for all customers in a given month.

By an amendment of September 22, 2026, the deadlines for the collection of export receivables were shortened from October 1: for services, including software, it is nine months from the invoice date instead of the previous fifteen, and twelve months instead of eighteen if the export is invoiced or settled in Indian Rupees.

In practice, this means three steps for a CFO with an Indian accounting department, ideally immediately: determine whether the Indian entity invoices services abroad, including intercompany invoices; agree with the bank on the submission format and add the monthly deadline to the invoicing calendar; and set intercompany invoice maturities to fit within the nine-month limit.

Australia and Oceania

In Australia, you must describe automated decision-making from December 10

This applies to Prague-based groups whose Australian subsidiary or branch is subject to the Australian Privacy Act. From December 10, 2026, its privacy policy must describe what personal data computer programs use and what decisions are made with their help.

This does not apply to every algorithm. The obligation applies where a program makes a decision or does something substantially and directly related to a decision, processes personal data in doing so, and the decision can significantly affect a person's rights or interests. It applies to decisions made after this date, even if the system has been running longer. Therefore, map the tools of the Australian entity and add a specific description to the policy, rather than a general sentence about technology.

Middle East

In the UAE, your deadline to select an e-invoicing provider ends on October 30

This applies to Prague-based groups with a UAE subsidiary or branch and, according to Ministry of Finance guidelines, also to non-resident persons in the UAE who are required to issue tax invoices under the UAE VAT law. Entities with revenues equal to or exceeding AED 50 million must appoint an accredited e-invoicing provider by October 30, 2026, and launch the system on January 1, 2027. The Ministry states there will be no further extensions.

Without a provider, you cannot launch the mandatory regime. Select one based on compatibility with your accounting system and, in parallel, clean up the customer master data required for e-invoicing.

Africa

In the monitored African jurisdictions, we did not identify any new developments with sufficient cross-border impact on Czech companies between September 17 and October 14, 2026.

Other changes in brief

US and China: The Chinese Ministry of Commerce confirmed on September 28 an agreement to extend the joint arrangement until January 10, 2027, and to seek a further solution by the end of the year. This is a postponement, not a final agreement. Anyone with a Chinese input in their supply chain destined for the US market has about three months to prepare a backup scenario.

US, export controls: The suspension of the rule expanding US export restrictions to affiliated persons of entities on the Department of Commerce list ends on November 9, 2026, according to the Federal Register, and the rule returns on November 10. A formal extension was not published by the deadline. Map the ownership structures of your buyers while the licensing obligation is not yet in effect.

US, solar components: A proclamation of August 6 introduces two layers starting December 4, 2026. Ingots and selected polysilicon derivatives are subject to an additional 15% tariff; furthermore, polysilicon and derivatives are subject to minimum import prices, with modules at USD 0.38 per watt. For goods from the European Union, the additional and standard tariffs are capped at 15% combined, but minimum prices will still apply. Significantly inaccurate pricing documentation can lead to a permanent import ban for the importer and its affiliated persons.

US, small shipments: From October 22, 2026, the new simplified postal procedure cannot be used, among other things, for goods with a preference under a free trade agreement, goods under Chapters 98 and 99 of the US tariff schedule, and goods supervised by other federal agencies. Such shipments must go through a different type of declaration – voluntary electronic Entry Type 13, or a formal customs declaration.

Thailand: Contributions to the employee benefits fund, 0.25% of wages for both employer and employee, were scheduled to begin on October 1, 2026, under the current regulation. On October 14, the government approved in principle a proposal to postpone the start to January 1, 2027, but a new regulation has not yet been promulgated. Until then, have the status for your Thai subsidiary confirmed by a local advisor.

Brazil: From December 1, 2026, the obligation to fill in the fields for the new CBS and IBS taxes is expanded to other documents, including documents for digital platform services. From January 1, 2027, import declarations and import documents will follow. The automatic rejection of documents without these fields is currently suspended, but the obligation and schedule remain in place.

Deadlines for companies to watch in the next 90 days

Final summary

An immediate response is required for the UAE e-invoicing provider by October 30 and setting up the Indian declarations, as the first submission for October is due on November 30. For Canadian goods to the US, the ban is already in effect.

Preparation before entry into force is needed for the Chinese licensing regime with its November date, the US tariff on polysilicon derivatives from December 4, and the Australian description of automated decision-making from December 10. For the Chinese regime, the first step is inexpensive and independent of the date: determine whether your items belong on the list at all.

For now, only monitoring is required for the shifting of Chinese and US deadlines to January and the Thai postponement of contributions – until a regulation is published, the existing text remains valid. Request local verification for the classification of a specific item under the Chinese annex, where technical specifications are decisive, for the origin of goods delivered to the US via Canada, and for the status of Thai contributions.

That is why we regularly prepare Global Legal News for Businesses. Without unnecessary legal theory. With an emphasis on what the change means for your business and what needs to be done. For the same month, we also publish Legal News for Businesses in the Czech Republic: October 2026 and Legal News for Businesses in Europe: October 2026.

Are you dealing with export controls, supplier contracts, a subsidiary, or a cross-border acquisition? Write to us at consultation@arws.cz. The Czech legal team at ARROWS will assess your situation, and for projects in multiple countries, we coordinate individual jurisdictions through the ARROWS International network. The ARROWS law firm is insured for professional liability with a limit of CZK 350,000,000.