USTR Announces Formation of Bilateral Evaluation and Dispute Resolution Office Pursuant to U.S.-China Phase One Agreement

02/14/2020

Washington, DC –  The Office of the United States Trade Representative today announced the formation of a new Bilateral Evaluation and Dispute Resolution Office, as envisioned by Article 7.2.2 of the Phase One economic and trade agreement signed by the United States and China on January 15, 2020.  This office will monitor China’s implementation of its commitments under the Phase One agreement and will be responsible for working with China’s corresponding Bilateral Evaluation and Dispute Resolution Office to address disputes that arise over implementation matters. 

Ambassador Jeffrey Gerrish will serve as the “designated Deputy United States Trade Representative” heading the new Bilateral Evaluation and Dispute Resolution Office in accordance with Article 7.2.2(a) of the Phase One agreement.  Interested parties may raise their concerns about implementation matters under the Phase One agreement by calling 202-395-3900. 

Background Information:

Chapter 7 of the U.S.-China Phase One economic and trade agreement sets forth an arrangement to ensure the effective implementation of the agreement and to allow the parties to resolve disputes in a fair and expeditious manner. 

This arrangement requires regular bilateral meetings to discuss implementation matters, with the parties meeting on a monthly basis at the “designated official” level, on a quarterly basis at the Deputy United States Trade Representative-Vice Minister level, and on a semi-annual basis at the United States Trade Representative-Vice Premier level. 

Separately, the arrangement also establishes strong procedures for addressing disputes related to the agreement.  A party can formally initiate a dispute by submitting an “Appeal” to the other party’s Bilateral Evaluation and Dispute Resolution Office.  Consultations then take place in an attempt to resolve the dispute, first at the “designated official” level and then, if needed, at the Deputy United States Trade Representative-Vice Minister level and finally at the United States Trade Representative-Vice Premier level.  If the dispute is not resolved through these consultations, the complaining party is allowed to take proportionate responsive action that it deems appropriate after providing advance notice to the party complained against.  The entire dispute resolution process will take approximately 90 days.  In addition, it has been expressly agreed that the complaining party in a dispute is not required to include information that could identify any company at issue or confidential business information.

The Phase One agreement enters into effect today, February 14, 2020.  The text of that agreement can be found here.  

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https://ustr.gov/about-us/policy-offices/press-office/press-releases/2020/february/ustr-announces-formation-bilateral-evaluation-and-dispute-resolution-office-pursuant-us-china-phase

USTR Revises $7.5 Billion Award Implementation Against EU in Airbus Case

02/14/2020

Washington, DC – Under President’s Trump leadership, the United States won the largest award in WTO history on October 2, 2019 when it was authorized to take countermeasures on $7.5 billion in goods after a victory in its unfair trade practices case against the European Union, France, Germany, Spain, and the United Kingdom.  Pursuant to U.S. statute, the United States Trade Representative is now issuing a Notice in the Federal Register making adjustments to its WTO-authorized retaliation action, which was implemented on October 18, 2019. The United States is increasing the additional duty rate imposed on aircraft imported from the EU to 15% from 10%, effective March 18, 2020, and making certain other minor modifications. 

To read the Notice, click here.

For additional background, click here.

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https://ustr.gov/about-us/policy-offices/press-office/press-releases/2020/february/ustr-revises-75-billion-award-implementation-against-eu-airbus-case

Commerce Initiates Antidumping Duty Investigation of Imports of Difluoromethane (R-32) from China

FACT SHEET

• On February 13, 2020, the Department of Commerce (Commerce) announced the initiation of an antidumping duty (AD) investigation of imports of difluoromethane (R-32) from China.

• The AD law provides 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.

• The petitioner is Arkema, Inc. (King of Prussia, PA).

• The scope of this investigation is provided in Appendix I.

• The petitioner estimated that 2018 imports of R-32 from China were valued at approximately $21.5 million.

• The Initiation Decision Checklist 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 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 number A570-121. NEXT STEPS

• The U.S. International Trade Commission (ITC) is scheduled to make its preliminary injury determination on or before March 9, 2020. More →

https://enforcement.trade.gov/download/factsheets/factsheet-prc-difluoromethane-ad-initiation-021320.pdf

ACE Truck Manifest QR Code Specifications Guide

On February 29, 2020, U.S. Customs and Border Protection (CBP) will begin supporting an optional Quick Response (QR) Code in the Automated Commercial Environment (ACE) Truck Portal. To use the QR Code, users will need to print it on the Truck Manifest Cover Sheet.

While QR codes are optional, the benefits of using them include:

  1. Uniquely identify the electronically filed manifest information associated with a conveyance.

  2. Minimize actions required of a driver.

  3. Maximize match probability.

For more information on how to participate using the QR Code on the Truck Manifest Cover Sheet, please see the QR specifications listed below. For any questions, please contact Linda Olsen at linda.m.olsen@cbp.dhs.gov. QR Specifications: The set of information that is desirable to store in either radio-frequency identification (RFID) or QR includes:

  1. Data layout version number (3 characters)

  2. Shipper (or agent) defined Trip ID (25 characters)

  3. Estimated date of arrival. (8 characters (yyyymmdd))

  4. 4. Tractor license plate id 1 (12 characters, including ISO country code (2), administrative unit code (3), and plate number (7).

  5. 5. Tractor license plate id 2 (12 characters)

The case not covered is where there are more than two license plates.

The total data load is, therefore, 3+25+8+12+12 = 60 characters. With a single-character delimiter between the data elements, this would require 64 characters.

Our recommendations are as follow:

  1. Both RFID user memory and QR code issued should use the same data content and layout.

  2. Both should use alphanumeric character sets (possibly including a delimiter or fill….More →

https://www.cbp.gov/sites/default/files/assets/documents/2020-Feb/Truck%20Manifest%20QR%20Specifications%20Document%20%281%29.pdf

USTR Announces Reallocation of Unused Fiscal Year 2020 WTO Tariff-Rate Quota Volume for Raw Cane Sugar

Washington, D.C. – The Office of the U.S. Trade Representative today announced the reallocation of the unused country-specific quota allocations under the tariff-rate quotas (TRQs) on imported raw cane sugar for Fiscal Year (FY) 2020 (October 1, 2019 through September 30, 2020).

TRQs allow countries to export specified quantities of a product to the United States at a relatively low tariff, but subject all imports of the product above a pre-determined threshold to a higher tariff.

On June 27, 2019, the Department of Agriculture (USDA) announced the establishment of the in-quota quantity for raw cane sugar for FY 2020.  The in-quota quantity for the TRQ on raw cane sugar FY 2020 is 1,117,195 metric tons raw value (MTRV), which is the minimum amount to which the United States is committed under the World Trade Organization (WTO Agreement).  On July 15, 2019, USTR provided notice of country-by-country allocations of the FY 2020 in-quota quantity of the WTO TRQ for imported raw cane sugar.  Based on consultation with quota holders, USTR has determined to reallocate 78,071 MTRV of the original TRQ quantity from those countries that have stated they do not plan to fill their FY 2020 allocated raw cane sugar quantities.  USTR is allocating the 78,071 MTRV to the following countries in the amounts specified below:

Country FY 2020 Raw Sugar Unused Reallocation (MTRV)

Argentina 4006

Australia 7,733

Barbados 652

Belize 1,025

Bolivia 745

Brazil 13,509

Colombia 2,236

Costa Rica 1,397

Dominican Republic 16,397

Ecuador 1,025

El Salvador 2,422

Eswatini (Swaziland) 1,490

Fiji 838

Guatemala 4,472

Guyana 1,118

Honduras 932

India 745

Jamaica 1,025

Malawi 932

Mauritius 1,118

Mozambique 1,211

Nicaragua 1,956

Panama 2,702

Peru 3,820

South Africa 2,143

Thailand 1,304

Zimbabwe 1,118

These allocations are based on the countries’ historical shipments to the United States. The allocations of the raw cane sugar WTO TRQ to countries that are net importers of sugar are conditioned on receipt of the appropriate verifications of origin and certificates for quota eligibility must accompany imports from any country for which an allocation has been provided.

Conversion factor: 1 metric ton = 1.10231125 short tons.

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https://ustr.gov/about-us/policy-offices/press-office/press-releases/2020/february/ustr-announces-reallocation-unused-fiscal-year-2020-wto-tariff-rate-quota-volume-raw-cane-sugar

Notice of Product Exclusions and Amendments: 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 and amendments.

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's determination included a decision to establish a product exclusion process. The U.S. Trade Representative initiated the exclusion process in July 2018, and stakeholders have submitted requests for the exclusion of specific products. In December 2018, and March, April, May, June, July, September, October, and December 2019, the U.S. Trade Representative granted exclusion requests. This notice announces the U.S. Trade Representative's determination to grant additional exclusions, as specified in the Annex to this notice, and makes amendments to certain notes in the Harmonized Tariff Schedule of the United States (HTSUS). The U.S. Trade Representative will continue to issue decisions as necessary. More →

https://www.federalregister.gov/documents/2020/02/11/2020-02684/notice-of-product-exclusions-and-amendments-chinas-acts-policies-and-practices-related-to-technology

Commerce Preliminarily Finds Dumping of Imports of Utility Scale Wind Towers from Canada, Indonesia, Korea, and Vietnam

FACT SHEET

• On February 5, 2020, the Department of Commerce (Commerce) announced its affirmative preliminary determinations in the antidumping duty (AD) investigation of imports of Utility Scale Wind Towers from Canada, Indonesia, the Republic of Korea (Korea), and the Socialist Republic of Vietnam (Vietnam).

• The AD law provides 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 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 an imported product in the United States at less than fair value. • In the Canada investigation, Commerce calculated a preliminary dumping rate of 5.04 percent for sole mandatory respondent Marmen Inc./Marmen Énergie Inc. Commerce assigned a preliminary dumping margin of 5.04 percent for all other producers/exporters in Canada.

• In the Indonesia investigation, Commerce calculated a preliminary dumping rate of 6.38 percent for sole mandatory respondent PT Kenertec Power System. Commerce assigned a preliminary dumping margin of 6.38 percent for all other producers/exporters in Indonesia.

• In the Korea investigation, Commerce calculated a preliminary dumping rate of 5.98 percent for mandatory respondent Dongkuk S&C Co., Ltd. Commerce assigned a preliminary dumping margin of 5.98 percent for all other producers/exporters in Korea.

• In the Vietnam investigation, Commerce assigned a preliminary dumping rate of 65.96 percent, based on total adverse facts available, to mandatory respondent CS Wind Vietnam Co., Ltd. There is already an existing AD order on utility scale wind towers from Vietnam; the petition was filed with respect to one company that was excluded from the existing order. As noted below, the scope language for the investigations specifically excludes utility scale wind towers already subject to the existing order.

• As a result of the preliminary affirmative determinations, Commerce will instruct U.S. Customs and Border Protection (CBP) to require cash deposits for Utility Scale Wind Towers from Canada, Indonesia, Korea, and Vietnam based on these preliminary rates. More →

https://enforcement.trade.gov/download/factsheets/factsheet-multiple-utility-scale-wind-towers-ad-prelim-020520.pdf

Fresh Tomatoes From Mexico: Notification of Implementation of Inspection Program

AGENCY:

Enforcement and Compliance, International Trade Administration, Department of Commerce

DATES:

Applicable February 4, 2020.

SUMMARY:

The Department of Commerce (Commerce) hereby notifies the public and members of the trade community of the implementation of the inspection program established by Section VII.C of the 2019 Agreement Suspending the Antidumping Duty Investigation on Fresh Tomatoes from Mexico (2019 Suspension Agreement). Implementation of the Section VII.C inspection program will begin 60 days from the date of publication of this notice. Beginning 60 days from the date of publication of this notice, certain fresh tomatoes from Mexico shall be subject to a United States Department of Agriculture (USDA) inspection for quality and condition defects.

FOR FURTHER INFORMATION CONTACT:

Sally C. Gannon or David Cordell at (202) 482-0162 or (202) 482-0408, respectively; Bilateral Agreements Unit, Office of Policy, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

On September 19, 2019, Commerce and signatory producers/exporters accounting for substantially all imports of fresh tomatoes from Mexico signed the 2019 Suspension Agreement.[1] Section VII.C of the 2019 Suspension Agreement states: “Beginning approximately (and no less than) six months from the Effective Date of the Agreement, all loads of subject merchandise, as specified in paragraph 2 of this section, shall be subject to a USDA inspection for quality and condition defects near the border after entering the United States. Commerce will consult with USDA on the development and implementation of the inspection program. The trade community will have at least 60 days' Start Printed Page 6144 advance notice prior to implementation of the inspection program.” [2] More →

https://www.federalregister.gov/documents/2020/02/04/2020-02166/fresh-tomatoes-from-mexico-notification-of-implementation-of-inspection-program

Commerce Initiates Antidumping Duty Investigations of Imports of Wood Mouldings and Millwork Products from Brazil and China and a Countervailing Duty Investigation of Imports from China

• On January 29, 2020, the Department of Commerce (Commerce) announced the initiation of antidumping duty (AD) and a countervailing duty (CVD) investigations of imports of wood mouldings and millwork products from Brazil (AD only) and China.

• The AD and CVD laws provide U.S. businesses and workers with a transparent, quasi-judicial, and internationally accepted mechanism to seek relief from 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 petitioner is the Coalition of American Millwork Producers, whose members are Bright Wood Corporation (Madras, OR), Cascade Wood Products, Inc. (White City, OR), Endura Products, Inc. (Colfax, NC), Sierra Pacific Industries (Red Bluff, CA), Sunset Moulding (Live Oak, CA), Woodgrain Millwork, Inc. (Fruitland, ID), and Yuba River Moulding (Yuba City, CA). • The scope of these investigations is provided in Appendix I.

• In 2018, imports of wood mouldings and millwork products from Brazil and China were valued at an estimated $291.8 million and $208.4 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-570-117 and C-570-118 for the China AD and CVD investigations, respectively; and A-351-853 for the Brazil AD investigation.

NEXT STEPS

• The U.S. International Trade Commission (ITC) is scheduled to make its preliminary injury determinations on or before February 24, 2020.

• If the ITC determines that there is a reasonable indication that imports of wood mouldings and millwork products from Brazil and/or China materially injure, or threaten material injury to, the domestic industry, the investigations will continue and Commerce will be scheduled to announce its preliminary CVD determination on April 3, 2020, and its preliminary AD determinations on June 17, U.S. Department of Commerce | International Trade Administration | Enforcement and Compliance 2020, although these dates may be extended. If the ITC’s determinations are negative, the investigations will be terminated. More →

https://enforcement.trade.gov/download/factsheets/factsheet-multiple-wood-mouldings-millwork-products-ad-cvd-initiation-012920.pdf

Addition of the Philippines to the List of Regions Affected With African Swine Fever

SUMMARY:

We are advising the public that we have added the Philippines to the list of regions that the Animal and Plant Health Inspection Service considers to be affected with African swine fever (ASF). We have taken this action because of confirmation of ASF in the Philippines.

DATES:

The Philippines was added to the APHIS list of regions considered affected with ASF on September 17, 2019.

FOR FURTHER INFORMATION CONTACT:

Dr. Ingrid Kotowski, Regionalization Evaluation Services, Veterinary Services, APHIS, 920 Main Campus Drive, Suite 200, Raleigh, NC 27606; Phone: (919) 855-7732; email: Ingrid.kotowski@usda.gov.

SUPPLEMENTARY INFORMATION:

The regulations in 9 CFR part 94 (referred to below as the regulations) govern the importation of specified animals andStart Printed Page 5612animal products to prevent the introduction into the United States of various animal diseases, including African swine fever (ASF). ASF is a highly contagious disease of wild and domestic swine that can spread rapidly in swine populations with extremely high rates of morbidity and mortality. A list of regions where ASF exists or is reasonably believed to exist is maintained on the Animal and Plant Health Inspection Service (APHIS) website at https://www.aphis.usda.gov/​aphis/​ourfocus/​animalhealth/​animal-and-animal-product-import-information/​animal-health-status-of-regions/​. This list is referenced in § 94.8(a)(2) of the regulations.

Section 94.8(a)(3) of the regulations states that APHIS will add a region to the list referenced in § 94.8(a)(2) upon determining ASF exists in the region, based on reports APHIS receives of outbreaks of the disease from veterinary officials of the exporting country, from the World Organization for Animal Health (OIE), or from other sources the Administrator determines to be reliable, or upon determining that there is reason to believe the disease exists in the region. Section 94.8(a)(1) of the regulations specifies the criteria on which the Administrator bases the reason to believe ASF exists in a region. Section 94.8(b) prohibits the importation of pork and pork products from regions listed in accordance with § 94.8 except if processed and treated in accordance with the provisions specified in that section or consigned to an APHIS-approved establishment for further processing. Section 96.2 restricts the importation of swine casings that originated in or were processed in a region where ASF exists, as listed under § 94.8(a).

On September 9, 2019, the veterinary authorities of the Philippines reported to the OIE the occurrence of ASF in that country. Therefore, in response to this outbreak, on September 17, 2019, APHIS added the Philippines to the list of regions where ASF exists or is reasonably believed to exist. This notice serves as an official record and public notification of that action. More →

https://www.federalregister.gov/documents/2020/01/31/2020-01836/addition-of-the-philippines-to-the-list-of-regions-affected-with-african-swine-fever

Ensuring Safe & Lawful E-Commerce for US Consumers, Businesses, Government Supply Chains, and Intellectual Property Rights

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered as follows:

Section 1.  Policy.    E-commerce, including transactions involving smaller express-carrier or international mail packages, is being exploited by traffickers to introduce contraband into the United States, and by foreign exporters and United States importers to avoid applicable customs duties, taxes, and fees.

It is the policy of the United States Government to protect consumers, intellectual property rights holders, businesses, and workers from counterfeit goods, narcotics (including synthetic opioids such as fentanyl), and other contraband now being introduced into the United States as a result of the recent growth in e-commerce.  The United States Government must also protect the revenue of the United States from individuals and entities who evade customs duties, taxes, and fees.

It is the policy of the United States Government that any person who knowingly, or with gross negligence, imports, or facilitates the importation of, merchandise into the United States in material violation of Federal law evidences conduct of so serious and compelling a nature that it should be referred to U.S. Customs and Border Protection (CBP) of the Department of Homeland Security for a determination whether such conduct affects that person’s present responsibility to participate in transactions with the Federal Government.

It is the policy of the United States Government, as reflected in Executive Order 12549 of February 18, 1986 (Debarment and Suspension), and elsewhere, to protect the public interest and ensure the integrity of Federal programs by transacting only with presently responsible persons.  In furtherance of this policy, the nonprocurement debarment and suspension system enables executive departments and agencies to exclude from Federal programs persons who are not presently responsible.  CBP implements this system by suspending and debarring persons who flout the customs laws, among other persons who lack present responsibility.  To achieve the policy goals stated herein, the United States Government shall consider all appropriate actions that it can take to ensure that persons that CBP suspends or debars are excluded from participating in the importation of merchandise into the United States.

It is the policy of the United States Government that express consignment operators, carriers, hub facilities, international posts, customs brokers, and other entities, including e-commerce platform operators, should not facilitate importation involving persons who are suspended or debarred by CBP.

It is the policy of the United States Government to ensure that parcels containing contraband be kept outside of the United States to the greatest extent possible and that all parties who participate in the introduction or attempted introduction of such parcels into the United States be held accountable under the laws of the United States.

Sec. 2.  Criteria for the Importer of Record Program, Including Exclusion of Trade Violators.    (a)  The Secretary of Homeland Security shall issue a notice of proposed rulemaking to establish criteria importers must meet in order to obtain an importer of record number. More →

https://www.whitehouse.gov/presidential-actions/ensuring-safe-lawful-e-commerce-us-consumers-businesses-government-supply-chains-intellectual-property-rights/

CBP processed $2.7 trillion of imports, 410 million travelers in FY 2019

WASHINGTON — U.S. Customs and Border Protection released its annual Fiscal Year (FY) 2019 trade and travel report today. According to the report, CBP personnel processed $2.7 trillion of imports and 410 million travelers in FY 2019.

The “Trade and Travel Fiscal Year 2019 Report” describes CBP’s essential role in promoting economic growth and ensuring that the United States maintains its place as the world’s top destination for tourism and business travel. CBP leveraged innovative technologies and programs to further streamline lawful trade and travel while enhancing security.

“CBP continues to make lawful trade and travel more efficient and convenient while protecting the American people and our domestic industries” said Acting CBP Commissioner Mark Morgan. “We could not accomplish this critical mission without the 31,000 dedicated CBP officers, specialists and mission support staff who work hard every day to make our nation safer and more prosperous.”

In FY 2019, CBP further reduced import processing times by modernizing the Automated Commercial Environment, an electronic import-export system, and by expanding the use of non-intrusive inspection technology (NII). The use of NII generates up to $17.5 billion in economic benefits for the trade community and up to $1 billion in government cost savings every year.

CBP simultaneously took decisive action to safeguard America’s domestic industries against unfair competition and to protect American consumers from counterfeit and unsafe imports. In FY 2019, CBP:

  • Collected $80.7 billion in duties, taxes, and other fees. That figure included $71.9 billion in duties, a 73 percent annual increase;

  • Began enforcing 33 new anti-dumping/countervailing duty orders while recovering more than $121 million in duties owed, a nearly 86% annual increase;

  • Initiated 36 Enforce and Protect Act investigations into allegations of large-scale, highly-coordinated duty evasion schemes; and

  • Launched an innovative e-commerce data pilot with industry partners to secure low-value shipments bound for the United States.

CBP is also responsible for identifying and containing emerging and rapidly-evolving biological threats to American agriculture and consumers. CBP agriculture specialists intercepted more than 56,000 harmful pests and more than 1.75 million prohibited plant materials, meats and animal byproducts during import and traveler inspections last year.

In addition to fulfilling its trade mission, CBP continued to facilitate lawful travel while maintaining the highest possible security standards. CBP processed 135.7 million international air travelers in FY 2019, representing a 32.8% increase over the past six years. Over the same period of time, CBP reduced average wait times at the nation’s top 25 international airports by 17.8%.

CBP and its partners also continued to implement biometric facial comparison technology at air, land and sea ports of entry. This technology enables CBP to fulfill Congressional mandates while enhancing security, facilitating lawful travel and protecting the privacy of all travelers. More →

https://www.cbp.gov/newsroom/national-media-release/cbp-processed-27-trillion-imports-410-million-travelers-fy-2019

USITC VOTES TO CONTINUE INVESTIGATIONS CONCERNING FLUID END BLOCKS FROM CHINA, GERMANY, INDIA, AND ITALY

The United States International Trade Commission (USITC) today determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of fluid end blocks from Germany, India, and Italy that are allegedly sold in the United States at less than fair value and subsidized by the governments of China, Germany, India, and Italy. 

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 Commission’s affirmative determinations, the U.S. Department of Commerce will continue with its antidumping and countervailing duty investigations concerning imports of this product from China, Germany, India, and Italy, with its preliminary countervailing duty determinations due on or about March 13, 2020, and its preliminary antidumping duty determinations due on or about May 27, 2020.

The Commission’s public report Fluid End Blocks from China, Germany, India, and Italy (Inv. Nos. 701-TA-632-635 and 731-TA-1466-1468 (Preliminary), USITC Publication 5017, February 2020) will contain the views of the Commission and information developed during the investigations.

The report will be available after March 12, 2020; when available, it may be accessed on the USITC website at:  httsps://www.usitc.gov/commission_publications_library.

UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436

FACTUAL HIGHLIGHTS

Fluid End Blocks from China, Germany, India, and Italy
Investigation Nos. 701-632-635 and 731-TA-1466-1468 (Preliminary)

Product Description:  Fluid end blocks are steel forgings of a particular chemistry and certain dimensional ranges that are an essential part of a well service pump. Fluid end blocks are incorporated into a fluid end module, which is used in well stimulation processes and are responsible for pressurizing the pumped fluid into the well. Pumps incorporating fluid end blocks are primarily used for drilling or hydraulic fracturing in the oil and gas industry. Some fluid end blocks are incorporated into mud pumps, which use lower pressures and primarily pump water or a mud mixture. Most fluid end blocks are made from stainless steel or non-stainless alloy steel, and many fluid end block producers experiment with different steel chemistries in an effort to improve fluid end block hardness, toughness, strength, and machinability. 

Status of Proceedings:

1.   Type of investigation:  Preliminary phase antidumping and countervailing duty investigations.
2.   Petitioner:  Ellwood City Forge Company, Ellwood Quality Steels Company, and Ellwood National Steel Company, Ellwood City, PA; A. Finkl & Sons, Chicago, IL; and FEB Fair Trade Coalition, Cleveland, OH.
3.   USITC Institution Date:  Thursday, December 19, 2019.
4.   USITC Conference Date:  Thursday, January 9, 2020.
5.   USITC Vote Date:  Friday, January 31, 2020.
6.   USITC Views to Commerce Date:  Monday, February 10, 2020.

U.S. Industry in 2018:

1.   Number of U.S. producers:  10.
2.   Location of producers’ plants:  Illinois, Michigan, Pennsylvania, Texas, Wisconsin.
3.   Production and related workers:  [1]
4.   U.S. producers’ U.S. shipments:  1 
5.   Apparent U.S. consumption:  1 
6.   Ratio of subject imports to apparent U.S. consumption:  1  

U.S. Imports in 2018:

1.   Subject imports:  $256.4 million.
2.   Nonsubject imports:  1 
3.   Leading import sources:  China, Germany, India, and Italy.

[1] Withheld to avoid disclosure of business proprietary information.

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https://www.usitc.gov/press_room/news_release/2020/er0131ll1248.htm

USITC VOTES TO CONTINUE INVESTIGATION CONCERNING 4TH TIER CIGARETTES FROM KOREA

The United States International Trade Commission (USITC) today determined that there is a reasonable indication that a U.S. industry is threatened with material injury by reason of imports of 4th tier cigarettes from Korea that are allegedly 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 Commission’s affirmative determination, the U.S. Department of Commerce will continue with its antidumping duty investigation concerning imports of this product from Korea, with its preliminary antidumping duty determination due on or about February 10, 2020.

The Commission’s public report 4th Tier Cigarettes from Korea (Inv. No. 731-TA-1465 (Preliminary), USITC Publication 5016, February 2020) will contain the views of the Commission and information developed during the investigation.

The report will be available after March 3, 2020; when available, it may be accessed on the USITC website at:  https://www.usitc.gov/commission_publications_library.

UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436

FACTUAL HIGHLIGHTS

4th Tier Cigarettes from Korea
Investigation No. 731-TA-1465 (Preliminary)

Product Description:  Cigarettes are combustible tobacco products rolled in paper and delivering nicotine. They may or may not have a filter and are sold in packs of 20 cigarettes in either 100's (100mm) or King's (85mm) lengths. The packaging and lengths are regulated by the U.S. Food and Drug Administration ("FDA"). While there is no single definition for a fourth tier cigarette, there is a consensus that fourth tier cigarettes are deeply discounted products. Fourth tier cigarettes may contain a higher percentage of tobacco stems, consisting of 10 to 40 percent tobacco stems compared with non-fourth tier cigarettes which typically contain less than 10 percent stems. Additionally, fourth tier cigarettes typically use a single-component filter while non-fourth tier cigarettes may use multi-segmented filters.

Status of Proceedings:

1.   Type of investigation:  Preliminary phase antidumping duty investigation.
2.   Petitioners:  Xcaliber, Pryor, OK; Cheyenne International, Grover, NC.
3.   USITC Institution Date:  Wednesday, December 18, 2019.
4.   USITC Conference Date:  Wednesday, January 8, 2020.
5.   USITC Vote Date:  Friday, January 31, 2020.
6.   USITC Notification to Commerce Date:  Monday, February 3, 2020.

U.S. Industry in 2018:

1.   Number of U.S. producers:  4.
2.   Location of producers’ plants:  Florida, New York, North Carolina, and Oklahoma.
3.   Production and related workers:  [1]
4.   U.S. producers’ U.S. shipments:  1
5.   Apparent U.S. consumption:  1
6.   Ratio of subject imports to apparent U.S. consumption:  1

U.S. Imports in 2018:

1.   Subject imports:  1
2.   Nonsubject imports:  1
3.   Leading import sources:  Canada, Korea.

[1] Withheld to avoid disclosure of business proprietary information.

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https://www.usitc.gov/press_room/news_release/2020/er0131ll1247.htm

Proclamation on Adjusting Imports of Derivative Aluminum Articles and Derivative Steel Articles into the United States

1.  On January 11, 2018, the Secretary of Commerce (Secretary) transmitted to me a report on his investigation into the effect of imports of steel articles on the national security of the United States, and on January 19, 2018, the Secretary transmitted to me a report on his investigation into the effect of imports of aluminum articles on the national security of the United States.  Both reports were issued pursuant to section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862).

2.  In Proclamation 9704 of March 8, 2018 (Adjusting Imports of Aluminum Into the United States), and Proclamation 9705 of March 8, 2018 (Adjusting Imports of Steel Into the United States), I concurred in the Secretary’s findings that aluminum articles and steel articles were being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States.  I therefore decided to adjust the imports of aluminum articles, as defined in clause 1 of Proclamation 9704, as amended, by imposing a 10 percent ad valorem tariff on such articles imported from most countries, beginning March 23, 2018.  I also decided to adjust the imports of steel articles, as defined in clause 1 of Proclamation 9705, as amended, by imposing a 25 percent ad valorem tariff on such articles imported from most countries, beginning March 23, 2018.

3.  In Proclamation 9758 of May 31, 2018 (Adjusting Imports of Aluminum Into the United States), I decided to further adjust imports of aluminum articles by imposing quotas on such articles from the Argentine Republic (Argentina).  In Proclamation 9740 of April 30, 2018 (Adjusting Imports of Steel Into the United States), I decided to adjust imports of steel articles by imposing quotas on such articles from the Republic of Korea (South Korea), and in Proclamation 9759 of May 31, 2018 (Adjusting Imports of Steel Into the United States), I decided to adjust imports of steel articles by imposing quotas on such articles from Argentina and the Republic of Brazil (Brazil).

4.  In Proclamation 9704 and Proclamation 9705, I directed the Secretary to monitor imports of aluminum articles and steel articles, respectively, and inform me of any circumstances that in the Secretary’s opinion might indicate the need for further action under section 232 of the Trade Expansion Act of 1962, as amended.

5.  The Secretary has informed me that domestic steel producers’ capacity utilization has not stabilized for an extended period of time at or above the 80 percent capacity utilization level identified in his report as necessary to remove the threatened impairment of the national security.  Stabilizing at that level is important to provide the industry with a reasonable expectation that market conditions will prevail long enough to justify the investment necessary to ramp up production to a sustainable and profitable level.  Capacity utilization in the aluminum industry has improved, but it is still below the target capacity utilization that the Secretary recommended in his report.  Although imports of aluminum articles and steel articles have declined since the imposition of the tariffs and quotas, the Secretary has informed me that imports of certain derivatives of aluminum articles and imports of certain derivatives of steel articles have significantly increased since the imposition of the tariffs and quotas. The net effect of the increase of imports of these derivatives has been to erode the customer base for U.S. producers of aluminum and steel and undermine the purpose of the proclamations adjusting imports of aluminum and steel articles to remove the threatened impairment of the national security.

6.  The derivative articles the Secretary identified are described in Annex I (aluminum) and Annex II (steel) to this proclamation.  For purposes of this proclamation, the Secretary determined that an article is “derivative” of an aluminum article or steel article if all of the following conditions are present:  (a) the aluminum article or steel article represents, on average, two-thirds or more of the total cost of materials of the derivative article; (b) import volumes of such derivative article increased year-to-year since June 1, 2018, following the imposition of the tariffs in Proclamation 9704 and Proclamation 9705, as amended by Proclamation 9739 and Proclamation 9740, respectively, in comparison to import volumes of such derivative article during the 2 preceding years; and (c) import volumes of such derivative article following the imposition of the tariffs exceeded the 4 percent average increase in the total volume of goods imported into the United States during the same period since June 1, 2018.  The modifications to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States described in Annex I (aluminum) and Annex II (steel) to this proclamation implement the Secretary’s determinations in this regard. More →

https://www.whitehouse.gov/presidential-actions/proclamation-adjusting-imports-derivative-aluminum-articles-derivative-steel-articles-united-states/

Economic and Trade Agreement Between the Government of the United States and the Government of the People’s Republic of China

DRIED TART CHERRIES FROM TURKEY DO NOT INJURE U.S. INDUSTRY, SAYS USITC

The United States International Trade Commission (USITC) today determined that a U.S. industry is not materially injured or threatened with material injury by reason of imports of dried tart cherries from Turkey that the U.S. Department of Commerce (Commerce) has determined are subsidized and 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 negative.

As a result of the USITC’s negative determinations, no antidumping and countervailing duty orders will be issued.

The Commission’s public report Dried Tart Cherries from Turkey (Inv. Nos. 701-TA-622 and 731-TA-1448 (Final), USITC Publication 5014, January 2020) will contain the views of the Commission and information developed during the investigations.

The report will be available by February 18, 2020; when available, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp. More → 

https://www.usitc.gov/press_room/news_release/2020/er0114ll1214.htm

DHS Issues Strategy to Combat Human Trafficking, the Importation of Goods Produced with Forced Labor, and Child Sexual Exploitation

WASHINGTON – Today, the Department of Homeland Security (DHS) is publishing its first Strategy to Combat Human Trafficking, the Importation of Goods Produced with Forced Labor, and Child Sexual Exploitation.

“After years of work and close coordination within the Administration, I’m pleased to announce that the Department of Homeland Security has developed a first-of-its-kind strategy to leverage all our authorities and resources in this fight,” said Acting Secretary of Homeland Security Chad F. Wolf. “Let me be clear: this strategy isn’t just about leveraging resources, it’s about ending human trafficking. DHS’s Strategy to Combat Human Trafficking, the Importation of Goods Produced with Forced Labor, and Child Sexual Exploitation is our formal recognition of this issue as a Departmental priority. This strategy is a framework to communicate the Department’s priorities, ensure resources are allocated, and to monitor progress, so that we can save more lives and bring criminals to justice.”

The Strategy articulates the Department’s priorities over the next five years to combat the growing threat of human trafficking, the importation of goods produced with forced labor, and child sexual exploitation by focusing on:

  • Preventing exploitative crimes;

  • Protecting victims;

  • Investigating and prosecuting perpetrators;

  • Partnering with the homeland security enterprise; and

  • Enabling DHS through organizational improvements to combat these illicit activities.

Developing this strategy involved assessing the Department’s initiatives and aims to harmonize efforts and leverage the Department’s authorities and resources in a comprehensive and cohesive manner to more effectively combat human trafficking, the importation of goods produced with forced labor, and child sexual exploitation.

Our understanding of the threat from these horrible crimes has improved, but sadly it is also proving to be greater than previously known. In 2018, the U.S. National Human Trafficking Hotline was contacted 41,088 times and reported 10,949 cases of human trafficking, a number that has grown each year. In 2018, the National Center for Missing and Exploited Children’s CyberTipline received over 18.4 million reports of suspected child sexual exploitation and abuse, an all-time high that grows exponentially each year. Combatting these threats demands a coordinated, comprehensive approach.

The strategy can be found here.

In 180 days, the Department will publish an implementation plan that includes specific deliverables, timelines, and metrics for key results.

https://www.dhs.gov/news/2020/01/15/dhs-issues-strategy-combat-human-trafficking-importation-goods-produced-forced-labor

USITC TO INVESTIGATE EXTENT OF ILLEGAL, UNREPORTED, AND UNREGULATED SEAFOOD IMPORTS AND IMPACT ON U.S. COMMERCIAL FISHERMEN

The U.S. International Trade Commission (USITC) is seeking input for an investigation of the extent to which seafood products obtained from illegal, unreported, and unregulated (IUU) fishing are imported into the United States and the potential economic effects on U.S. fishermen of competition with such imports.  IUU seafood includes products obtained in contravention of fisheries management regulations or in violation of labor laws.

The investigation, Seafood Obtained via Illegal, Unreported, and Unregulated Fishing: U.S. Imports and Economic Impact on U.S. Commercial Fisheries, was requested by the House Committee on Ways and Means in a letter received on December 19, 2019.

As requested, the USITC, an independent, nonpartisan, factfinding federal agency, will:

  • provide a review of the existing data and literature on the prevalence of IUU products in the U.S. import market, and an overview of international mechanisms for monitoring and enforcement to address IUU fishing;

  • provide a description of the size and structure of the U.S. commercial fishing industry;

  • provide a description of the major global producers of IUU products, including but not limited to China, and country practices related to IUU production and exports;

  • provide an analysis of the extent to which IUU product is imported into the United States, as well as major U.S. import sources and the global supply chains of such products; and

  • provide a quantitative analysis of the economic impact of IUU imports on U.S. commercial fishermen and U.S. commercial fishing production, trade, and prices.

The USITC expects to deliver the report to the Committee by December 21, 2020. More →

https://www.usitc.gov/press_room/news_release/2020/er0127ll1215.htm

2020 BOAT SHOW SCHEDULE

Here are some of the 2020 Boat Shows. If you need assistance Importing / Exporting / Transporting your boat, give us a call.

Baltimore Boat Show

January 23rd-26th

https://www.baltimoreboatshow.com/

 

Seattle Boat Show

January 24th- February 1ST

www.seattleboatshow.com

 

Vancouver Boat Show

February 5th-9th

https://www.vancouverboatshow.ca/

 

Miami Boat Show

February 13th-17th

https://www.miamiboatshow.com/

 

Newport Boat Show

April 23rd-26th

https://www.sandiegointernationalboatshow.com/

 

Anacortes Boat Show

May 14th-17th

https://anacortesboatandyachtshow.com/

 

San Diego Boat Show

June 11th-14th

https://www.sandiegointernationalboatshow.com/

 

Fort Lauderdale Boat Show

October 28-November 1st

https://www.flibs.com/en/home.html