ECONOMIC AND TRADE AGREEMENT BETWEEN THE UNITED STATES OF AMERICA AND THE PEOPLE’S REPUBLIC OF CHINA

On January 15, 2020, the United States and China signed an historic and enforceable agreement on a Phase One trade deal that requires structural reforms and other changes to China’s economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange. The Phase One agreement also includes a commitment by China that it will make substantial additional purchases of U.S. goods and services in the coming years. Importantly, the agreement establishes a strong dispute resolution system that ensures prompt and effective implementation and enforcement. The United States has agreed to modify its Section 301 tariff actions in a significant way.

Information on specific chapters of the Phase One agreement is provided below:

• Intellectual Property: The Intellectual Property (IP) chapter addresses numerous longstanding concerns in the areas of trade secrets, pharmaceutical-related intellectual property, geographical indications, trademarks, and enforcement against pirated and counterfeit goods.

• Technology Transfer: The Technology Transfer chapter sets out binding and enforceable obligations to address several of the unfair technology transfer practices of China that were identified in USTR’s Section 301 investigation. For the first time in any trade agreement, China has agreed to end its long-standing practice of forcing or pressuring foreign companies to transfer their technology to Chinese companies as a condition for obtaining market access, administrative approvals, or receiving advantages from the government. China also commits to provide transparency, fairness, and due process in administrative proceedings and to have technology transfer and licensing take place on market terms. Separately, China further commits to refrain from directing or supporting outbound investments aimed at acquiring foreign technology pursuant to industrial plans that create distortion.

• Agriculture: The Agriculture chapter addresses structural barriers to trade and will support a dramatic expansion of U.S. food, agriculture and seafood product exports, increasing American farm and fishery income, generating more rural economic activity, and promoting job growth. A multitude of non-tariff barriers to U.S. agriculture and seafood products are addressed, including for meat, poultry, seafood, rice, dairy, infant formula, horticultural products, animal feed and feed additives, pet food, and products of agriculture biotechnology.

• Financial Services: The Financial Services chapter addresses a number of longstanding trade and investment barriers to U.S. providers of a wide range of financial services, including banking, insurance, securities, and credit rating services, among others. These barriers include foreign equity limitations and discriminatory regulatory requirements. Removal of these barriers should allow U.S. financial service providers to compete on a more level playing field and expand their services export offerings in the Chinese market. More →

https://ustr.gov/sites/default/files/files/agreements/phase%20one%20agreement/US_China_Agreement_Fact_Sheet.pdf

The new 2022 Edition of the Harmonized System has been accepted

HS 2022, which is the seventh edition of the Harmonized System (HS) nomenclature used for the uniform classification of goods traded internationally all over the world, has been accepted by the all Contracting Parties to the Harmonized System Convention.  It shall come into force on 1 January 2022.

The HS serves as the basis for Customs tariffs and for the compilation of international trade statistics in 211 economies (of which 158 are Contracting Parties to the HS Convention).  The new HS2022 edition makes some major changes to the Harmonized System with a total of 351 sets of amendments covering a wide range of goods moving across borders.  Here are some of the highlights:

Adaption to current trade through the recognition of new product streams and addressing environmental and social issues of global concern are the major features of the HS 2022 amendments.

Visibility will be introduced to a number of high profile product streams in the 2022 Edition to recognise the changing trade patterns.  Electrical and electronic waste, commonly referred to as e-waste, is one example of a product class which presents significant policy concerns as well as a high value of trade, hence HS 2022 includes specific provisions for its classification to assist countries in their work under the Basel Convention.  New provisions for novel tobacco and nicotine based products resulted from the difficulties of the classification of these products, lack of visibility in trade statistics and the very high monetary value of this trade.  Unmanned aerial vehicles (UAVs), commonly referred to as drones, also gain their own specific provisions to simplify the classification of these aircraft.  Smartphones will gain their own subheading and Note, which will also clarify and confirm the current heading classification of these multifunctional devices.

Major reconfigurations have been undertaken for the subheadings of heading 70.19 for glass fibres and articles thereof and for heading 84.62 for metal forming machinery.  These changes recognize that the current subheadings do not adequately represent the technological advances in these sectors, leaving a lack of trade statistics important to the industries and potential classification difficulties.

One area which is a focus for the future is the classification of multi-purpose intermediate assemblies.  However, one very important example of such a product has already been addressed in HS 2022.  Flat panel display modules will be classified as a product in their own right which will simplify classification of these modules by removing the need to identify final use.  Health and safety has also featured in the changes.  The recognition of the dangers of delays in the deployment of tools for the rapid diagnosis of infectious diseases in outbreaks has led to changes to the provisions for such diagnostic kits to simplify classification.  New provisions for placebos and clinical trial kits for medical research to enable classification without information on the ingredients in a placebos will assist in facilitating cross-border medical research.  Cell cultures and cell therapy are among the product classes that have gained new and specific provisions.  On a human security level, a number of new provisions specifically provide for various dual use items.  These range from toxins to laboratory equipment. More →

http://www.wcoomd.org/en/media/newsroom/2020/january/the-new-2022-edition-of-the-harmonized-system-has-been-accepted.aspx

Commerce Initiates Antidumping Duty and Countervailing Duty Investigations of Imports of Forged Steel Fluid End Blocks from Germany, India, and Italy; and...

COUNTERVAILING DUTY INVESTIGATION OF IMPORTS FROM CHINA

• On January 9, 2020, the Department of Commerce (Commerce) announced the initiation of antidumping duty (AD) and countervailing duty (CVD) investigations of imports of forged steel fluid end blocks from China (CVD only), Germany, India and Italy.

• The AD and CVD laws provide U.S. businesses and workers with a transparent, quasi-judicial, and internationally accepted mechanism to seek relief from the market-distorting effects caused by injurious dumping and unfair subsidization of imports into the United States, establishing an opportunity to compete on a level playing field.

• For the purpose of AD investigations, dumping occurs when a foreign company sells a product in the United States at less than its fair value. For the purpose of CVD investigations, a countervailable subsidy is financial assistance from a foreign government that benefits the production of goods from foreign companies and is limited to specific enterprises or industries or is contingent either upon export performance or upon the use of domestic goods over imported goods.

• The petitioners are the FEB Fair Trade Coalition (Cleveland, OH), Ellwood City Forge Company, Ellwood Quality Steels Company, and Ellwood National Steel Company (collectively, the Ellwood Group) (Ellwood City, PA), and A. Finkl & Sons (Finkl Steel) (Chicago, IL).

• The scope of these investigations is provided in Appendix I.

• The petitioners estimated that 2018 imports of forged steel fluid end blocks China, Germany, India, and Italy were valued at approximately $17.8 million, $23.3 million, $44.4 million, and $46.4 million, respectively.

• The Initiation Decision Checklists are on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at https://access.trade.gov, and to all parties in the Central Records Unit, Room B8024 of the main Department of Commerce building. Please refer to case numbers: A-428-847 and C-428-848 for the AD and CVD investigations for Germany, respectively; A-533-893 and C-533-894 for the AD and CVD investigations for India, respectively; A-475-840 and C-475-841 for the AD and CVD investigations for Italy, respectively; and C-570-116 for the CVD investigation for China. More →

https://enforcement.trade.gov/download/factsheets/factsheet-multiple-forged-steel-fluid-end-blocks-ad-cvd-initiation-010920.pdf

Updates to China Customs requirements

On November 15, 2019, the General Administration of Customs of the People’s Republic of China (GACC) issued Decree No.144, updating the mandatory data elements required for airfreight shipments destined to or transiting through mainland China on or after Nov. 15, 2019. Please note, Hong Kong is not in scope. The decree removes four of the six previously mandatory data elements, pictured in the table below:

Notice of Product Exclusions: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation

SUMMARY:

In September of 2018, the U.S. Trade Representative imposed additional duties on goods of China with an annual trade value of approximately $200 billion as part of the action in the Section 301 investigation of China's acts, policies, and practices related to technology transfer, intellectual property, and innovation. The U.S. Trade Representative initiated a product exclusion process in June 2019, and interested persons have submitted requests for the exclusion of specific products. This notice announces the U.S. Trade Representative's determination to grant certain exclusion requests, as specified in the Annex to this notice, and corrects a ministerial error in a previously announced exclusion.

DATES:

The product exclusions announced in this notice will apply as of the September 24, 2018, effective date of the $200 billion action, to August 7, 2020. The amendment announced in this notice is retroactive to the date the original exclusion was published.

FOR FURTHER INFORMATION CONTACT:

For general questions about this notice, contact Assistant General Counsels Philip Butler or Megan Grimball, or Director of Industrial Goods Justin Hoffmann at (202) 395-5725. For specific questions on customs classification or implementation of the product exclusions identified in the Annex to this notice, contact traderemedy@cbp.dhs.gov. More →

https://www.federalregister.gov/documents/2020/01/06/2019-28506/notice-of-product-exclusions-chinas-acts-policies-and-practices-related-to-technology-transfer

Additional Action Taken to Provide Relief to U.S. Washing Machine Manufacturers

Washington, DC –  U.S. Trade Representative Robert Lighthizer announced today that President Trump has approved recommendations by the USTR, in consultation with the interagency Trade Policy Staff Committee, to modify the safeguard measure on imported large residential washing machines that took effect on February 7, 2018.

The President’s action will shore up the effectiveness of the relief provided in 2018 to U.S. manufacturers injured by surging imports of large residential washers by allocating the annual tariff-rate quota of 1.2 million units by quarter beginning in February 2020.

President Donald Trump is continuing to fulfill a promise he made in June 2016 to take all necessary action under our trade laws to stand up for America’s workers and manufacturers. The President’s decision was based on developments in the U.S. washers industry since the tariff-rate quota went into effect, as recently noted by the independent, bipartisan U.S. International Trade Commission.  The President’s decision will make the safeguard more effective and will continue to create jobs and spur growth in the U.S. manufacturing sector.        

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https://ustr.gov/about-us/policy-offices/press-office/press-releases/2019/december/additional-action-taken-provide-relief-us-washing-machine-manufacturers

Fact Sheet: Japan Free Trade Agreement

The United States and Japan have achieved a trade agreement regarding market access for certain agricultural and industrial goods, with plans to pursue subsequent negotiations for an expanded free trade agreement.

Timeline

• On October 17, 2019, the United States and Japan reached an agreement on market access for certain agriculture and industrial goods. The Japanese Legislature approved the agreement on December 5, 2019.

• Presidential Proclamation 9974 was issued on December 26, 2019 establishing an entry into force date of January 1, 2020. On December 30, 2019 the Federal Register Notice (84 FR 72187) was issued to implement the Agreement.

Imports into the United States

• The United States will provide tariff elimination or reduction on 241 tariff lines. The affected agricultural products include perennial plants and cut flowers, persimmons, green tea, chewing gum, and soy sauce. The United States will also reduce or eliminate tariffs on certain industrial goods from Japan such as certain machine tools, fasteners, steam turbines, bicycles, bicycle parts, and musical instruments.

Import Compliance

• U.S. Customs and Border Protection (CBP) issued CSMS Message #41149692 on December 31, 2019. Additional compliance guidance will be made available as soon as possible.

Exports to Japan

• The U.S. – Japan Trade Agreement provides for significant proportions of U.S. food and agricultural products imported into Japan to either be duty free or receive preferential tariff access, and the reduction of other import restrictions. For more information on how treatment of U.S. exports to Japan will change, please contact the U.S. Department of Commerce at www.Export.gov. More →

  https://www.cbp.gov/sites/default/files/assets/documents/2019-Dec/U.S.%20-%20Japan%20Trade%20Agreement%20Factsheet%20%282019-12-30%29_0.pdf

CARBON AND ALLOY STEEL THREADED ROD FROM TAIWAN INJURES U.S. INDUSTRY, SAYS USITC

The United States International Trade Commission (USITC) today determined that a U.S. industry is materially injured by reason of imports of carbon and alloy steel threaded rod from Taiwan that the U.S. Department of Commerce (Commerce) has determined are sold in the United States at less than fair value.

Chairman David S. Johanson and Commissioners Rhonda K. Schmidtlein, Jason E. Kearns, Randolph J. Stayin, and Amy A. Karpel voted in the affirmative.

As a result of the USITC’s affirmative determination, Commerce will issue an antidumping duty order on imports of this product from Taiwan.

The Commission’s public report Carbon and Alloy Steel Threaded Rod from Taiwan (Inv. No. 731-TA-1443 (Final), USITC Publication 5013, January 2020) will contain the views of the Commission and information developed during the investigation.

The report will be available by February 13, 2020; when available, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.

UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436

FACTUAL HIGHLIGHTS

Carbon and Alloy Steel Threaded Rod from Taiwan
Investigation No. 731-TA-1443 (Final)

Product Description:  Threaded rod is generally threaded along its entire length and is produced from low carbon, medium carbon, or alloy steel wire rod or bar. It is used primarily in commercial (non-residential) construction to suspend electrical conduits; pipes for plumbing; heating, ventilation, and air-conditioning (HVAC) ductwork; and sprinkler systems for fire protection, among other applications. Threaded rod can also be used as a headless screw in general fastener applications or for bolting together pipe joints.

Status of Proceedings:

1.   Type of investigation:  Final phase antidumping duty investigation.
2.   Petitioner:  Vulcan Threaded Products, Inc., Pelham, AL.
3.   USITC Institution Date:  Thursday, February 21, 2019.
4.   USITC Hearing Date:  Tuesday, October 15, 2019.
5.   USITC Vote Date:  Friday, January 10, 2020.
6.   USITC Notification to Commerce Date:  Thursday, January 23, 2020.

More →

https://www.usitc.gov/press_room/news_release/2020/er0110ll1211.htm

USITC INSTITUTES SECTION 337 INVESTIGATION OF CERTAIN DISSOLVING MICRONEEDLE PATCHES FOR COSMETIC AND PHARMACEUTICAL USE

The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain dissolving microneedle patches for cosmetic and pharmaceutical use.  The products at issue in the investigation are described in the Commission’s notice of investigation.

The investigation is based on a second amended complaint filed by TheraJect, Inc., of Fremont, CA, on December 19, 2019.  The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain dissolving microneedle patches for cosmetic and pharmaceutical use that infringe a patent asserted by the complainant.  The complainant requests that the USITC issue a limited exclusion order and a cease and desist order.

The USITC has identified the following as respondent in this investigation:

Raphas Co., Ltd., of Seoul, Republic of Korea.

By instituting this investigation (337-TA-1189), the USITC has not yet made any decision on the merits of the case.  The USITC’s Chief Administrative Law Judge will assign the case to one of the USITC’s administrative law judges (ALJ), who will schedule and hold an evidentiary hearing.  The ALJ will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.

The USITC will make a final determination in the investigation at the earliest practicable time.  Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation.  USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.

# # #

https://www.usitc.gov/press_room/news_release/2020/er0110ll1212.htm

U.S.-Japan Trade Agreement: Information on Claiming Preferential Treatment

The US-Japan Trade Agreement (“Agreement”) will enter into force on January 1, 2020.  This message is to inform the trade community of the requirements for claiming preferential treatment under this new Agreement. 

In order to receive preferential treatment, a good must be originating and meet all the requirements of the U.S.-Japan Agreement. 

Annex II to the Agreement specifies the rules of origin used to determine if a good qualifies for preferential tariff treatment or “originates” under the Agreement.  The product-specific rules (Annex II to the Agreement) specify the level of change of tariff classification that non-originating materials must undergo.  General Note 36 will be added to the HTSUS and will include the requirements of the Agreement. The links to the US-Japan Trade Agreement text and related documents are below.

FILING INSTRUCTIONS:

• From January 1, 2020 through January 13, 2020, importers must pay duties on qualifying goods under the Agreement and request a preferential tariff retroactive claim by filing a post summary correction (PSC) to request the duty refund.  The Automated Commercial Environment (ACE) will accept the new special program indicator ‘JP’ as a prefix to the eligible tariff number on January 14, 2020.

• On or after January 14, 2020, ACE will accept the new special program indicator ‘JP’ as a prefix to the eligible tariff number. Importers claiming preferential treatment under the Agreement must include on the entry, the special program indicator “JP” as a prefix to the eligible tariff number for each qualifying good requesting such preference.

To claim preferential tariff treatment under the U.S.-Japan Trade Agreement, the following requirements must be met:

• Country of Origin must be ‘JP’

• Country of Export must be ‘JP’

• Once programmed in ACE, the Special Program indicator 'JP' must be placed before the eligible tariff number to make the claim. 

• Claims for preferential treatment under this Agreement are not exempt from the merchandise processing fee (class code 499 and class code 311).

• The tariff-rate quota allocation for beef from Japan is modified as follows:

  • The country specific Japan beef quota (200,000 kg) is eliminated and added to “other countries.” This updates the “other countries or areas” limit to 65,005,000 kg.

  • There is no change to the entry filing process. The ACE quota module will process eligible beef from Japan under the “Other countries or areas” quota. More →

    https://content.govdelivery.com/bulletins/gd/USDHSCBP-273e4fc?wgt_ref=USDHSCBP_WIDGET_2

Additional Action Taken to Provide Relief to U.S. Washing Machine Manufacturers

Washington, DC –  U.S. Trade Representative Robert Lighthizer announced today that President Trump has approved recommendations by the USTR, in consultation with the interagency Trade Policy Staff Committee, to modify the safeguard measure on imported large residential washing machines that took effect on February 7, 2018.

The President’s action will shore up the effectiveness of the relief provided in 2018 to U.S. manufacturers injured by surging imports of large residential washers by allocating the annual tariff-rate quota of 1.2 million units by quarter beginning in February 2020.

President Donald Trump is continuing to fulfill a promise he made in June 2016 to take all necessary action under our trade laws to stand up for America’s workers and manufacturers. The President’s decision was based on developments in the U.S. washers industry since the tariff-rate quota went into effect, as recently noted by the independent, bipartisan U.S. International Trade Commission.  The President’s decision will make the safeguard more effective and will continue to create jobs and spur growth in the U.S. manufacturing sector.

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To view full article, go to: https://ustr.gov/about-us/policy-offices/press-office/press-releases/2019/december/additional-action-taken-provide-relief-us-washing-machine-manufacturers

Request for Comments Concerning the Extension of Particular Exclusions Granted Under the March 2019 Product Exclusion Notice From the $34 Billion Action Pursuant to Section 301: China's Acts…

AGENCY:

Office of the United States Trade Representative.

ACTION:

Notice and request for comments.

SUMMARY:

Effective July 6, 2018, the U.S. Trade Representative imposed additional duties on goods of China with an annual trade value of approximately $34 billion as part of the action in the Section 301 investigation of China's acts, policies, and practices related to technology transfer, intellectual property, and innovation. The U.S. Trade Representative initiated the exclusion process in July 2018 and granted multiple sets of exclusions. The second set of exclusions was granted in March 2019, and are scheduled to expire on March 25, 2020. The U.S. Trade Representative has decided to consider a possible extension for up to 12 months of particular exclusions granted in March 2019. The Office of the U.S. Trade Representative (USTR) invites public comment on whether to extend particular exclusions.

DATES:

January 15, 2020 at 12:01 a.m. ET: The docket (USTR-2019-0024) will open for submitting comments on the possible extension of particular exclusions.

February 15, 2020 at 11:59 p.m. ET: To be assured of consideration, submit written comments by February 15, 2020. More →

https://www.federalregister.gov/documents/2019/12/30/2019-28088/request-for-comments-concerning-the-extension-of-particular-exclusions-granted-under-the-march-2019

INTERNATIONAL TRAFFIC ARMS REGULATIONS: CREATION OF DEFINITION OF ACTIVITIES THAT ARE NOT EXPORTS, REEXPORTS, RETRANSFERS, OR TEMPORARY IMPORTS; CREATION OF DEFINITION OF ACCESS INFORMATION

AGENCY:

Department of State.

ACTION:

Interim final rule; request for comment.

SUMMARY:

The Department of State amends the International Traffic in Arms Regulations (ITAR) to create a definition of “activities that are not exports, reexports, retransfers, or temporary imports” by combining existing text from the regulations with new text regarding secured unclassified technical data. The activities included in the new definition are: Launching items into space, providing technical data to U.S. persons within the United States or within a single country abroad, and moving a defense article between the states, possessions, and territories of the United States. The definition also clarifies that the electronic transmission and storage of properly secured unclassified technical data via foreign communications infrastructure does not constitute an export. Additionally, the Department amends the ITAR to create a definition of “access information” and revise the definition of “release” to address the provision of access information to an unauthorized foreign person. More →

https://www.federalregister.gov/documents/2019/12/26/2019-27438/international-traffic-in-arms-regulations-creation-of-definition-of-activities-that-are-not-exports

USITC INSTITUTES SECTION 337 INVESTIGATION OF CERTAIN PICK-UP TRUCK FOLDING BED COVER SYSTEMS AND COMPONENTS THEREOF

The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain pick-up truck folding bed cover systems and components thereof.  The products at issue in the investigation are described in the Commission’s notice of investigation.

The investigation is based on a complaint filed by Extang Corporation and Laurmark Enterprises, Inc. d/b/a BAK Industries, both of Ann Arbor, MI, on November 26, 2019.  The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain pick-up truck folding bed cover systems and components thereof that infringe patents asserted by the complainants.  The complainants request that the USITC issue a general exclusion order, or in the alternative, a limited exclusion order, and cease and desist orders.

The USITC has identified the following as respondents in this investigation:

Tyger Auto Inc. of Rialto, CA;
Cixi City Liyuan Auto Parts Co. Ltd. of Cixi City, Zhejiang Province, China; and
Hong Kong Car Start Industries Co. of Haishu District, Zhejian Province, China.

By instituting this investigation (337-TA-1188), the USITC has not yet made any decision on the merits of the case.  The USITC’s Chief Administrative Law Judge will assign the case to one of the USITC’s administrative law judges (ALJ), who will schedule and hold an evidentiary hearing.  The ALJ will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.

The USITC will make a final determination in the investigation at the earliest practicable time.  Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation.  USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.

https://www.usitc.gov/press_room/news_release/2019/er1220ll1205.htm

United States and China Reach Phase One Trade Agreement

Washington, DC –  The United States and China have reached an historic and enforceable agreement on a Phase One trade deal that requires structural reforms and other changes to China’s economic and trade regime in the areas of intellectual property, technology transfer, agriculture, financial services, and currency and foreign exchange.  The Phase One agreement also includes a commitment by China that it will make substantial additional purchases of U.S. goods and services in the coming years.  Importantly, the agreement establishes a strong dispute resolution system that ensures prompt and effective implementation and enforcement.  The United States has agreed to modify its Section 301 tariff actions in a significant way.

“President Trump has focused on concluding a Phase One agreement that achieves meaningful, fully-enforceable structural changes and begins rebalancing the U.S.-China trade relationship.  This unprecedented agreement accomplishes those very significant goals and would not have been possible without the President’s strong leadership,” said United States Trade Representative Robert Lighthizer.

“Today’s announcement of a Phase One agreement with China is another significant step forward in advancing President Trump’s economic agenda.  Thanks to the President’s leadership, this landmark agreement marks critical progress toward a more balanced trade relationship and a more level playing field for American workers and companies,” said Secretary of the Treasury Steven Mnuchin.

The United States first imposed tariffs on imports from China based on the findings of the Section 301 investigation on China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation.  The United States will be maintaining 25 percent tariffs on approximately $250 billion of Chinese imports, along with 7.5 percent tariffs on approximately $120 billion of Chinese imports.

Click here to view fact sheet.

https://ustr.gov/about-us/policy-offices/press-office/press-releases/2019/december/united-states-and-china-reach

Notice of Product Exclusions: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation

AGENCY:

Office of the United States Trade Representative.

ACTION:

Notice of product exclusions.

SUMMARY:

In September 2018, the U.S. Trade Representative imposed additional duties on goods of China with an annual trade value of approximately $200 billion as part of the action in the Section 301 investigation of China's acts, policies, and practices related to technology transfer, intellectual property, and innovation. The U.S. Trade Representative initiated a product exclusion process in June 2019, and interested persons have submitted requests for the exclusion of specific products. This notice announces the U.S. Trade Representative's determination to grant certain exclusion requests specified in the Annex to this notice.

—————————-Start Printed Page 65883—————————-

DATES:

The product exclusions announced in this notice will apply as of the September 24, 2018, effective date of the $200 billion action, to August 7, 2020.

FOR FURTHER INFORMATION CONTACT:

For general questions about this notice, contact Assistant General Counsels Philip Butler or Megan Grimball, or Director of Industrial Goods Justin Hoffmann at (202) 395-5725. For specific questions on customs classification or implementation of the product exclusions identified in the annex to this notice, contact traderemedy@cbp.dhs.gov. More →

https://www.federalregister.gov/documents/2019/11/29/2019-25820/notice-of-product-exclusions-chinas-acts-policies-and-practices-related-to-technology-transfer

United States Wins for the Sixth Time in Airbus Subsidies Dispute

12/02/2019

Panel Rejects EU’s Latest Claims that it Removed Illegal Subsidies

Washington, DC –  A World Trade Organization (WTO) compliance panel today rejected the European Union’s (EU) latest claims that it complied with WTO rules by making minor changes to its massive launch aid subsidies to Airbus.  The WTO recently valued the harm caused by these subsidies at $7.5 billion.  Today’s findings reaffirmed that the subsidies continue to cause adverse effects, and found further that European governments even extended the subsidies by renegotiating launch aid with Airbus.  Furthermore, the WTO panel found that this massive EU corporate welfare continues to cost American aerospace companies significant lost revenue.

“Today’s findings confirm that, despite losing in five previous WTO reports, Europe remains more focused on generating meritless litigation than it is in addressing the massive subsidies to Airbus that continue to harm the U.S. aerospace industry and its workers,” U.S. Trade Representative Robert Lighthizer said.  “The EU’s frivolous case proves that strong action is needed to convince the EU that its interests lie in eliminating these market-distorting subsidies now and in the future, so that our industries can compete on a level playing field.”  

Today’s report marks the sixth time that the WTO has found that EU subsidies to Airbus break WTO rules.  In this latest iteration, the EU tried yet again to show that minor changes to its Airbus subsidization package were enough to eliminate the WTO inconsistencies identified in the past.  The WTO panel again rejected all of these claims and instead found that European governments had extended the subsidies by renegotiating the launch aid in a way even more favorable to Airbus.  As a result, the panel found that the subsidies caused the Boeing 777, 787, and 747 aircraft to lose sales and market share to Airbus – sales that would have meant more revenue for U.S. producers and jobs for U.S. workers.

As a result of the EU’s failure to address these subsidies, on October 18, the United States imposed tariffs of 10 percent on large civil aircraft and 25 percent on agricultural and other products, with the bulk of these tariffs being applied to imports from France, Germany, Spain, and the United Kingdom – the four countries responsible for the illegal subsidies.  In light of today’s report and the lack of progress in efforts to resolve this dispute, the United States is initiating a process to assess increasing the tariff rates and subjecting additional EU products to the tariffs.  USTR will publish a Federal Register Notice regarding that process later this week.

Additional Background Information

In May 2011, the WTO Appellate Body confirmed that the EU and four of its member States (Germany, France, the UK, and Spain) conferred more than $18 billion in subsidized financing to Airbus, and that this caused Boeing to lose sales of more than 300 aircraft and significant market share throughout the world. On October 14, the WTO authorized the United States to apply $7.5 billion per year in countermeasures – nearly twice the largest previous award in WTO history.  Accordingly, the United States recently began applying tariffs on EU goods.  Click here to view the list of products that are subject to additional duties. More →

https://ustr.gov/about-us/policy-offices/press-office/press-releases/2019/december/united-states-wins-sixth-time

Utility Scale Wind Towers From Canada, Indonesia, the Republic of Korea, and the Socialist Republic of Vietnam: Postponement of Preliminary Determinations in the Less-Than-Fair-Value Investigations

DATES:

Applicable December 3, 2019.

FOR FURTHER INFORMATION CONTACT:

Michael J. Heaney at (202) 482-4475 (Canada); Brittany Bauer at (202) 482-3860 (Indonesia); Rebecca Janz at (202) 482-2972 (Republic of Korea (Korea)); and Joshua DeMoss at (202) 482-3362 (Socialist Republic of Vietnam (Vietnam)); AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

On July 29, 2019, the U.S. Department of Commerce (Commerce) initiated less-than-fair-value (LFTV) investigations of imports of utility scale wind towers from Canada, Indonesia, Korea, and Vietnam.[1] Currently, the preliminary determinations are due no later than December 16, 2019.

Postponement of Preliminary Determinations

Section 733(b)(1)(A) of the Tariff Act of 1930, as amended (the Act), requires Commerce to issue the preliminary determination in an LTFV investigation within 140 days after the date on which Commerce initiated the investigation. However, section 733(c)(1) of the Act permits Commerce to postpone the preliminary determination until no later than 190 days after the date on which Commerce initiated the investigation if: (A) The petitioner makes a timely request for a postponement; or (B) Commerce concludes that the parties concerned are cooperating, that the investigation is extraordinarily complicated, and that additional time is necessary to make a preliminary determination. Pursuant to 19 CFR 351.205(e), the petitioner must submit a request to postpone 25 days or more before the scheduled date of the preliminary determination and must state the reasons for postponement. Commerce will grant the request unless it finds compelling reasons to deny the request. See 19 CFR 351.205(e).

On November 19, 2019, the petitioner [2]submitted timely requests that Commerce postpone the preliminary determinations in these LTFV investigations.[3]The petitioner stated that the purpose of its requests is to provide Commerce with adequate time to solicit information from the respondents and to allow Commerce sufficient time to analyze the respondents' questionnaire responses.[4]In accordance with19 CFR 351.205(e), there are no compelling reasons to deny the request. Therefore, in accordance with section 733(c)(1)(A) of the Act and19 CFR 351.205(e), we are postponing the preliminary determinations in these LTFV investigations by 50 days (i.e.,190 days after the date on which these investigations were initiated). Accordingly, Commerce is postponing the deadline for the preliminary determinations to February 4, 2020. Pursuant to section 735(a)(1) of the Act and19 CFR 351.210(b)(1), the deadline for the final determinations of these investigations will continue to be 75 days after the date of the preliminary determinations, unless postponed. More →

https://www.federalregister.gov/documents/2019/12/03/2019-26139/utility-scale-wind-towers-from-canada-indonesia-the-republic-of-korea-and-the-socialist-republic-of

Certain Steel Threaded Rod From the People's Republic of China: Final Results of the Expedited Sunset Review of the Antidumping Duty Order

SUMMARY:

The Department of Commerce (Commerce) finds that revocation of the antidumping duty order on certain steel threaded rod (steel threaded rod) from the People's Republic of China (China) would be likely to lead to continuation or recurrence of dumping at the levels indicated in the “Final Results of Sunset Reviews” section of this notice.

DATES:

Applicable November 29, 2019.

FOR FURTHER INFORMATION CONTACT:

Benito Ballesteros, AD/CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-7425.

SUPPLEMENTARY INFORMATION:

Background

On July 1, 2019, Commerce published the Notice of Initiation of the five-year review of the antidumping duty order on steel threaded rod from China, pursuant to section 751(c) of the Tariff Act of 1930, as amended (the Act).[1] On July 9, 2019, Commerce received a Notice of Intent to Participate in this review from Vulcan Threaded Products, Inc. (the petitioner), within the deadline specified in 19 CFR 351.218(d)(1)(i). The petitioner claimed interested party status under section 771(9)(C) of the Act, as a manufacturer of a domestic like product in the United States. On July 31, 2019, the petitioner provided a complete substantive response for this review within the 30-day deadline specified in 19 CFR 351.218(d)(3)(i). We received no substantive responses from any other interested parties, nor was a hearing requested. As a result, pursuant to section 751(c)(3)(B) of the Act and 19 CFR 351.218(e)(1)(ii)(C)(2), Commerce conducted an expedited (120-day) sunset review of the order.

Scope of the Order

The merchandise covered by the order is steel threaded rod. For a full Start Printed Page 65781 description of the scope, see the Issues and Decision Memorandum.[2]

Analysis of Comments Received

All issues raised in this review, including the likelihood of continuation or recurrence of dumping in the event of revocation and the magnitude of the margins likely to prevail if the orders were revoked, are addressed in the accompanying Issues and Decision Memorandum. The Issues and Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at http://access.trade.gov, and to all parties in the Central Records Unit, room B8024 of the main Commerce building. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly on the internet at http://enforcement.trade.gov/​frn/​. The signed Issues and Decision Memorandum and the electronic version of the Issues and Decision Memorandum are identical in content. More →

https://www.federalregister.gov/documents/2019/11/29/2019-25888/certain-steel-threaded-rod-from-the-peoples-republic-of-china-final-results-of-the-expedited-sunset

Certain Hardwood Plywood Products From the People's Republic of China: Affirmative Final Determination of Circumvention of the Antidumping and Countervailing Duty Orders

AGENCY:

Enforcement and Compliance, International Trade Administration, Department of Commerce.

SUMMARY:

The Department of Commerce (Commerce) determines that certain plywood products with face and back veneers of radiata and/or agathis pine that: (1) Have a Toxic Substances Control Act (TSCA) or California Air Resources Board (CARB) label certifying that it is compliant with TSCA/CARB requirements; and (2) are made with a resin, the majority of which is comprised of one or more of three product types (urea formaldehyde, polyvinyl acetate, and/or soy), exported from the People's Republic of China (China), are circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on certain hardwood plywood products from China.

DATES:

Effective Date: Applicable November 29, 2019.

FOR FURTHER INFORMATION CONTACT:

Rachel Greenberg or Nicolas Mayora, AD/CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-0652 or (202) 482-3053, respectively.

SUPPLEMENTARY INFORMATION:

Background

Commerce published thePreliminary Determination on June 11, 2019.[1]A summary of the events that occurred since Commerce published thePreliminary Determination may be found in the Issues and Decision Memorandum.[2] More →

https://www.federalregister.gov/documents/2019/11/29/2019-25889/certain-hardwood-plywood-products-from-the-peoples-republic-of-china-affirmative-final-determination