Non-Preferential Origin Determinations for Merchandise Imported From Canada or Mexico for Implementation of the Agreement Between the United States of America, ...

the United Mexican States, and Canada (USMCA)

AGENCY:

U.S. Customs and Border Protection, Department of Homeland Security; Department of the Treasury.

ACTION:

Notice of proposed rulemaking; request for comments.

SUMMARY:

This document proposes to amend the U.S. Customs and Border Protection (CBP) regulations regarding non-preferential origin determinations for merchandise imported from Canada or Mexico. Specifically, this document proposes that CBP will apply certain tariff-based rules of origin in the CBP regulations for all non-preferential determinations made by CBP, specifically, to determine when a good imported from Canada or Mexico has been substantially transformed resulting in an article with a new name, character, or use. For consistency, this document also proposes to modify the CBP regulations for certain country of origin determinations for government procurement. Collectively, the proposed amendments in this notice of proposed rulemaking (NPRM) are intended to reduce administrative burdens and inconsistency for non-preferential origin determinations for merchandise imported from Canada or Mexico for purposes of the implementation of the Agreement Between the United States of America, the United Mexican States, and Canada (USMCA). Elsewhere in this issue of the Federal Register, CBP is publishing an interim final rule to amend various regulations to implement the USMCA for preferential tariff treatment claims. The interim final rule amends the CBP regulations,inter alia,to apply certain tariff-based rules of origin for determining the country of origin for the marking of goods imported from Canada or Mexico. Read More→

APHIS Will Continue To Accept Electronic Phytosanitary Certificates and Forms through December 31, 2021

To help facilitate the clearance of imported plants and plant products during the COVID-19 emergency, APHIS and U.S. Customs and Border Protection (CBP) will accept electronically produced versions of phytosanitary certificates, through December 31, 2021. Acceptable phytosanitary certificates include scanned copies of original certificates, electronic certificates created through a participating country’s ePhyto system, or signed paper forms. Certificates should be legible and include APHIS-required statements. Click for details.

Plant Protection and Quarantine (PPQ) regulates the importation of plants and plant products under the authority of the Plant Protection Act. PPQ maintains its import program to safeguard U.S. agriculture and natural resources from the risks associated with the entry, establishment, or spread of animal and plant pests and noxious weeds.

https://www.aphis.usda.gov/aphis/ourfocus/planthealth/import-information

Implementation of Sewing Thread Chapter Rule requirement for apparel goods of Chapters 61 and 62 of the Harmonized Tariff Schedule of the United States

Effective July 1, 2021, the United States-Mexico-Canada Free Trade Agreement (USMCA) will implement the sewing thread requirement.

Sewing thread of headings 5204, 5401, 5508, or yarn of heading 5402 (used as sewing thread) and used in apparel products of Chapters 61 and 62 of the Harmonized Tariff Schedule of the United States, will only be considered originating if the thread is both formed and finished in the territory of one or more USMCA parties.

Sewing thread is considered formed and finished in one or more USMCA countries, if all production processes and finishing operations, starting with the extrusion of filaments, strips, film or sheets, and including slitting of a film or sheet into strips, or the spinning of all fibers into yarn, or both, and ending with the finished single or plied thread ready for use for sewing without further processing. (Non- originating fiber maybe used in the production of sewing thread of headings 5204, 5401 or 5508, or yarn of heading 5402 used as sewing thread.)

See General note 11(o), Chapter 61, Rule 3 and Chapter 62, Rule 4 of the HTSUS at the link below:

USITC | United States International Trade Commission

If additional information is needed, please contact Anita Harris, Textile Policy Branch at anita.s.harris@cbp.dhs.gov.

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https://content.govdelivery.com/bulletins/gd/USDHSCBP-2e67d54?wgt_ref=USDHSCBP_WIDGET_2

USITC MAKES DETERMINATION IN FIVE-YEAR (SUNSET) REVIEWS CONCERNING POTASSIUM PHOSPHATE SALTS FROM CHINA

The U.S. International Trade Commission (USITC) today determined that revoking the existing antidumping and countervailing duty orders on imports of potassium phosphate salts from China would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time. 

As a result of the Commission’s affirmative determinations, the existing orders on imports of this product from China will remain in place. 

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

Today’s action comes under the five-year (sunset) review process required by the Uruguay Round Agreements Act.  See the attached page for background on these five-year (sunset) reviews.

The Commission’s public report Potassium Phosphate Salts China (Inv. Nos. 701-TA-473 and 731-TA-1173 (Second Review), USITC Publication 5208, June 2021) will contain the views of the Commission and information developed during the reviews.

The report will be available by July 21, 2021; when available, it may be accessed on the USITC website at: https://www.usitc.gov/commission_publications_library.

BACKGROUND

The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the USITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies (Commerce) and of material injury (USITC) within a reasonably foreseeable time.

The Commission’s institution notice in five-year reviews requests that interested parties file responses with the Commission concerning the likely effects of revoking the order under review as well as other information.  Generally within 95 days from institution, the Commission will determine whether the responses it has received reflect an adequate or inadequate level of interest in a full review.  If responses to the USITC’s notice of institution are adequate, or if other circumstances warrant a full review, the Commission conducts a full review, which includes a public hearing and issuance of questionnaires.

The Commission generally does not hold a hearing or conduct further investigative activities in expedited reviews.  Commissioners base their injury determination in expedited reviews on the facts available, including the Commission’s prior injury and review determinations, responses received to its notice of institution, data collected by staff in connection with the review, and information provided by the Department of Commerce.

The five-year (sunset) reviews concerning Potassium Phosphate Salts from China were instituted on November 2, 2020.

On February 5, 2021, the Commission voted to conduct expedited reviews. Commissioners David S. Johanson, Rhonda K. Schmidtlein, Jason E. Kearns, Randolph J. Stayin, and Amy A. Karpel concluded that the domestic group response was adequate and the respondent group responses were inadequate and voted for expedited reviews. 

A record of the Commission’s vote to conduct expedited reviews is available from the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.  Requests may be made by telephone by calling 202-205-1802.

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https://www.usitc.gov/press_room/news_release/2021/er0615ll1781.htm

METHIONINE FROM FRANCE 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 methionine from France that the U.S. Department of Commerce (Commerce) has determined are sold in the United States at less than fair value.

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

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

The Commission also made negative critical circumstances findings with regard to imports of this product from France.  As a result, these imports will not be subject to retroactive antidumping duties.

The Commission’s public report Methionine from France (Inv. Nos. 731-TA-1534 (Final), USITC Publication 5206, June 2021) will contain the views of the Commission and information developed during the investigation.

The report will be available by July 15, 2021; 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

Methionine from France
Investigation No. 731-TA-1534 (Final)

Product Description:  Methionine (an organic amino acid) is primarily used in animal feed and aquaculture. 

Status of Proceedings:

1.   Type of investigation:  Final antidumping duty investigations.
2.   Petitioner:  Novus International, Inc., St. Charles, MO.
3.   USITC Institution Date:  Wednesday, July 29, 2020.
4.   USITC Hearing Date:  Tuesday, May 11, 2021.
5.   USITC Vote Date:  Thursday, June 10, 2021.
6.   USITC Notification to Commerce Date:  Thursday, June 29, 2021.

U.S. Industry in 2020:

1.   Number of U.S. producers:  2.
2.   Location of producers’ plants:  Alabama, Arkansas, and Texas.
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 2020:

1.   Subject imports:  $126 million.
2.   Nonsubject imports:  $13 million.
3.   Leading import sources:  Spain, Japan, France, and Malaysia.

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

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https://www.usitc.gov/press_room/news_release/2021/er0610ll1780.htm

U.S. International Trade in Goods and Services, April 2021

The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced today that the goods and services deficit was $68.9 billion in April, down $6.1 billion from $75.0 billion in March, revised.

US INTERNATIONAL TRADE IN GOODS AND SERVICES, APRIL 2021.JPG

COVID-19 Impact on International Trade in Goods and Services

The global pandemic and the economic recovery continued to impact international trade in April 2021. The full economic effects of the pandemic cannot be quantified in the statistics because the impacts are generally embedded in source data and cannot be separately identified.

Exports, Imports, and Balance (exhibit 1)

April exports were $205.0 billion, $2.3 billion more than March exports. April imports were $273.9 billion, $3.8 billion less than March imports.

The April decrease in the goods and services deficit reflected a decrease in the goods deficit of $6.2 billion to $86.7 billion and a decrease in the services surplus of $0.1 billion to $17.8 billion.

Year-to-date, the goods and services deficit increased $94.5 billion, or 50.5 percent, from the same period in 2020. Exports increased $42.0 billion or 5.6 percent. Imports increased $136.4 billion or 14.6 percent.

Three-Month Moving Averages (exhibit 2)

The average goods and services deficit increased $0.6 billion to $71.5 billion for the three months ending in April.

  • Average exports increased $3.9 billion to $198.7 billion in April.

  • Average imports increased $4.5 billion to $270.3 billion in April.

Year-over-year, the average goods and services deficit increased $24.3 billion from the three months ending in April 2020.

  • Average exports increased $17.9 billion from April 2020.

  • Average imports increased $42.2 billion from April 2020. Read More→

https://www.bea.gov/news/2021/us-international-trade-goods-and-services-april-2021

USTR Announces, and Immediately Suspends, Tariffs in Section 301 Digital Services Taxes Investigations

06/02/2021

USTR announced suspended tariffs on goods from six trading partners while broader international tax negotiations continue

WASHINGTON –United States Trade Representative Katherine Tai today announced the conclusion of the one-year Section 301 investigations of Digital Service Taxes (DSTs) adopted by Austria, India, Italy, Spain, Turkey, and the United Kingdom.  The final determination in those investigations is to impose additional tariffs on certain goods from these countries, while suspending the tariffs for up to 180 days to provide additional time to complete the ongoing multilateral negotiations on international taxation at the OECD and in the G20 process.  

“The United States is focused on finding a multilateral solution to a range of key issues related to international taxation, including our concerns with digital services taxes,” said Ambassador Katherine Tai.  “The United States remains committed to reaching a consensus on international tax issues through the OECD and G20 processes. Today’s actions provide time for those negotiations to continue to make progress while maintaining the option of imposing tariffs under Section 301 if warranted in the future.”

Federal Register notices announcing  and suspending the trade actions in the six investigations may be found at https://ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-digital-services-taxes.

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Background
On June 2, 2020, USTR initiated investigations into DSTs adopted or under consideration in ten jurisdictions:  Austria, Brazil, the Czech Republic, the European Union, India, Indonesia, Italy, Spain, Turkey, and the United Kingdom.  

In January 2021, following comprehensive investigations USTR determined that the DSTs adopted by Austria, India, Italy, Spain, Turkey, and the United Kingdom discriminated against U.S. digital companies, were inconsistent with principles of international taxation, and burdened U.S. companies.  Detailed reports on the findings in the investigations may be found at https://ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-digital-services-taxes.  

In March 2021, USTR announced proposed trade actions in these six investigations, and undertook a public notice and comment process, during which it collected hundreds of public comments and held seven public hearings.  USTR also terminated the remaining four investigations (of Brazil, the Czech Republic, the European Union, and Indonesia) because those jurisdictions had not implemented the DSTs under consideration. Read More→

https://ustr.gov/about-us/policy-offices/press-office/press-releases/2021/june/ustr-announces-and-immediately-suspends-tariffs-section-301-digital-services-taxes-investigations

USITC VOTES TO CONTINUE INVESTIGATIONS CONCERNING RAW HONEY FROM ARGENTINA, BRAZIL, INDIA, UKRAINE, AND VIETNAM

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 raw honey from Argentina, Brazil, India, Ukraine, and Vietnam that are allegedly sold in the United States at less than fair value.

Chair Jason E. Kearns, Vice Chair Randolph J. Stayin, and Commissioners David S. Johanson, Rhonda K. Schmidtlein, 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 its investigations of imports of raw honey from Argentina, Brazil, India, Ukraine, and Vietnam, with its preliminary antidumping duty determinations due on or about September 28, 2021.

The Commission’s public report Raw Honey from Argentina, Brazil, India, Ukraine, and Vietnam (Inv. Nos. 731-TA-1560-1564 (Preliminary), USITC Publication 5204, June 2021) will contain the views of the Commission and information developed during the investigations.

The report will be available after July 6, 2021; 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

Raw Honey from Argentina, Brazil, India, Ukraine, and Vietnam
Investigation Nos. 731-TA-1560-1564 (Preliminary)

Product Description:  Honey is a sweet, viscous fluid produced from the nectar of plants and flowers which is collected by honeybees, transformed and combined with substances of their own, and stored and left in honeycombs to mature and ripen. Raw honey is honey as it exists in the beehive or as obtained by extraction, settling and skimming, or straining. Raw honey has not been filtered to a level that results in the removal of most or all of the pollen.  Raw honey includes all grades, floral sources, and colors, and also includes organic raw honey.

Status of Proceedings:

1.   Type of investigation:  Preliminary antidumping duty investigations.
2.   Petitioners:  American Honey Producers Association ("AHPA"), Bruce, SD, and Sioux Honey Association ("SHA"), Sioux City, IA.
3.   USITC Institution Date:  April 21, 2021.
4.   USITC Conference Date:  May 12, 2021.
5.   USITC Vote Date:  June 04, 2021.
6.   USITC Notification to Commerce Date:  June 07, 2021.

U.S. Industry in 2020:

1.   Number of U.S. producers:  approximately 30,000-60,000.
2.   Location of producers’ plants:  North Dakota, South Dakota, California, Texas, Montana, Florida, Minnesota, and Michigan.
3.   Production and related workers:  24,000 (apiary workers).
4.   U.S. producers’ U.S. shipments:  $291 million.
5.   Apparent U.S. consumption:  $680 million.
6.   Ratio of subject imports to apparent U.S. consumption:  47.3 percent by value.

U.S. Imports in 2020:

1.   Subject imports:  $321 million.
2.   Nonsubject imports:  $74 million.
3.   Leading import sources:  Argentina, Brazil, India, Ukraine, Vietnam, and Canada.

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https://www.usitc.gov/press_room/news_release/2021/er0604ll1778.htm

USITC MAKES DETERMINATIONS IN FIVE-YEAR (SUNSET) REVIEWS CONCERNING CUT-TO-LENGTH CARBON STEEL PLATE FROM CHINA, RUSSIA, AND UKRAINE

The U.S. International Trade Commission (USITC) today determined that revoking the existing antidumping duty orders on imports of cut-to-length carbon steel plate from China, Russia, and Ukraine would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time. 

As a result of the Commission’s affirmative determinations, the existing orders on imports of this product from China, Russia, and Ukraine will remain in place. 

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

Today’s action comes under the five-year (sunset) review process required by the Uruguay Round Agreements Act.  See the attached page for background on these five-year (sunset) reviews.

The Commission’s public report Cut-to-Length Carbon Steel Plate from China, Russia, and Ukraine (Inv. Nos. 731-TA-753, 754, and 756 (Fourth Review), USITC Publication 5205, June 2021) will contain the views of the Commission and information developed during the reviews.

The report will be available by July 9, 2021; when available, it may be accessed on the USITC website at: https://www.usitc.gov/commission_publications_library.

BACKGROUND

The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the USITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies (Commerce) and of material injury (USITC) within a reasonably foreseeable time.

The Commission’s institution notice in five-year reviews requests that interested parties file responses with the Commission concerning the likely effects of revoking the order under review as well as other information.  Generally within 95 days from institution, the Commission will determine whether the responses it has received reflect an adequate or inadequate level of interest in a full review.  If responses to the USITC’s notice of institution are adequate, or if other circumstances warrant a full review, the Commission conducts a full review, which includes a public hearing and issuance of questionnaires.

The Commission generally does not hold a hearing or conduct further investigative activities in expedited reviews.  Commissioners base their injury determination in expedited reviews on the facts available, including the Commission’s prior injury and review determinations, responses received to its notice of institution, data collected by staff in connection with the review, and information provided by the Department of Commerce.

The five-year (sunset) reviews concerning Cut-to-Length Carbon Steel Plate from China, Russia, and Ukraine were instituted on November 2, 2020.

On February 5, 2021, the Commission voted to conduct expedited reviews. Commissioners David S. Johanson, Rhonda K. Schmidtlein, Jason E. Kearns, Randolph J. Stayin, and Amy A. Karpel concluded that the domestic group response was adequate and the respondent group responses were inadequate and voted for expedited reviews. 

A record of the Commission’s vote to conduct expedited reviews is available from the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.  Requests may be made by telephone by calling 202-205-1802.

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https://www.usitc.gov/press_room/news_release/2021/er0607ll1779.htm

USITC VOTES TO CONTINUE INVESTIGATIONS CONCERNING RAW HONEY FROM ARGENTINA, BRAZIL, INDIA, UKRAINE, AND VIETNAM

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 raw honey from Argentina, Brazil, India, Ukraine, and Vietnam that are allegedly sold in the United States at less than fair value.

Chair Jason E. Kearns, Vice Chair Randolph J. Stayin, and Commissioners David S. Johanson, Rhonda K. Schmidtlein, 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 its investigations of imports of raw honey from Argentina, Brazil, India, Ukraine, and Vietnam, with its preliminary antidumping duty determinations due on or about September 28, 2021.

The Commission’s public report Raw Honey from Argentina, Brazil, India, Ukraine, and Vietnam (Inv. Nos. 731-TA-1560-1564 (Preliminary), USITC Publication 5204, June 2021) will contain the views of the Commission and information developed during the investigations.

The report will be available after July 6, 2021; 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

Raw Honey from Argentina, Brazil, India, Ukraine, and Vietnam
Investigation Nos. 731-TA-1560-1564 (Preliminary)

Product Description:  Honey is a sweet, viscous fluid produced from the nectar of plants and flowers which is collected by honeybees, transformed and combined with substances of their own, and stored and left in honeycombs to mature and ripen. Raw honey is honey as it exists in the beehive or as obtained by extraction, settling and skimming, or straining. Raw honey has not been filtered to a level that results in the removal of most or all of the pollen.  Raw honey includes all grades, floral sources, and colors, and also includes organic raw honey. Read More→

https://www.usitc.gov/press_room/news_release/2021/er0604ll1778.htm

United States Urges WTO Members to Address Forced Labor on Fishing Vessels in Ongoing Fisheries Subsidies Negotiations

WASHINGTON – The Office of the United States Trade Representative (USTR) today submitted a proposal to the World Trade Organization (WTO) bringing attention to the use of forced labor on fishing vessels.  The proposal urges WTO Members to help address this global problem in the ongoing negotiations to curb harmful subsidies to fishing activities that may be associated with the use of forced labor, such as illegal, unreported, and unregulated (IUU) fishing. 

“Forced labor harms the lives and well-being of fishers and workers around the world and it must be eliminated,” said Ambassador Katherine Tai. “The Biden-Harris Administration is committed to fighting forced labor wherever it occurs. We will continue to work closely with our partners and allies to promote a fair international trading system that addresses the sustainability of fisheries resources, and benefits workers and citizens around the world.”  

In addition to the human cost, forced labor gives fishing vessels who engage in the practice an unfair cost advantage. It also exacerbates overfishing and the depletion of the world’s oceans. Recognizing the link between forced labor and the harmful subsidies that may also go to these vessels is an important step in tackling this pervasive problem.

“The WTO has an opportunity to address this issue with a meaningful agreement that increases transparency and accountability in global supply chains,” added Ambassador Tai. “I urge WTO Members to consider the full range of trade tools at our disposal to combat forced labor and other exploitative labor conditions.”

The U.S. proposal also calls for WTO Members’ explicit recognition of the forced labor problem and the need to address it, and proposes additional transparency with respect to those vessels or operators that use forced labor. For several years, WTO Members have been engaged in multilateral negotiations to prohibit harmful fisheries subsidies, including subsidies that contribute to overcapacity and overfishing and subsidies to vessels engaged in IUU fishing.  The United States has played a leadership role in seeking a meaningful outcome, both in effective disciplines on harmful subsidies to protect our oceans and fisheries resources, and supporting our fishers and workers.

A copy of the U.S. proposal is available here.

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https://ustr.gov/about-us/policy-offices/press-office/press-releases/2021/may/united-states-urges-wto-members-address-forced-labor-fishing-vessels-ongoing-fisheries-subsidies

U.S. DEPARTMENT OF COMMERCE ISSUES FIRST ANALYSIS OF CURRENCY UNDERVALUATION AS A COUNTERVAILABLE SUBSIDY

WASHINGTON – Today, the U.S. Department of Commerce announced affirmative final determinations in the antidumping duty (AD) investigations of passenger vehicle and light truck (PVLT) tires from South Korea, Taiwan, Thailand, and Vietnam; and the countervailing duty (CVD) investigation of PVLT tires from Vietnam.

In the AD investigations, Commerce determined that exporters have dumped PVLT in the United States at the following rates:

  • 14.72 to 27.05 percent for South Korea;

  • 20.04 to 101.84 percent for Taiwan;

  • 14.62 to 21.09 percent for Thailand, and;

  • 0.00 to 22.30 percent for Vietnam

In the CVD investigation, Commerce determined that exporters from Vietnam received countervailable subsides. This finding includes Commerce’s first affirmative findings regarding a currency-related subsidy involving the conversion of U.S. dollars into Vietnamese dong at an undervalued exchange rate. This is the second CVD investigation and first affirmative final determination involving the Currency Rule, which Commerce issued in February 2020. The Currency Rule sets out the approach that Commerce takes when investigating an allegation that an undervalued foreign currency provides a countervailable subsidy to foreign producers and exporters in a CVD proceeding. As part of its analysis of such an allegation, Commerce relies on the Department of Treasury’s evaluation and conclusion as to whether government action on the exchange rate has contributed to currency undervaluation. The company-specific countervailing duty rates calculated for Vietnamese respondents in this investigation, which includes this currency-related program, range from 6.23 percent to 7.89 percent. The Currency Rule applies to all CVD proceedings initiated after April 6, 2020.

The petitioner for these investigations is the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC (Pittsburgh, PA).
    
The U.S. International Trade Commission (ITC) is currently scheduled to make its final injury determinations on or about July 5, 2021. If the ITC makes affirmative final injury determinations, Commerce will issue AD and/or CVD orders. If the ITC makes negative final determinations of injury, the investigations will be terminated, and no orders will be issued.

In 2020, U.S. imports of PVLT were valued at approximately $1.2 billion, $373 million, $2 billion, and $470 million, for South Korea, Taiwan, Thailand, and Vietnam, respectively. 

Read the fact sheet on today’s decision(s).

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https://www.trade.gov/press-release/us-department-commerce-issues-first-analysis-currency-undervaluation-countervailable

United States Advances First USMCA Dispute Panel To Enforce Canada’s Dairy Commitments

WASHINGTON – Ambassador Katherine Tai today announced that the United States has requested and established a dispute settlement panel under the United States-Mexico-Canada Agreement (USMCA) to review measures adopted by the Government of Canada that undermine the ability of American dairy exporters to sell a wide range of products to Canadian consumers. The United States is challenging Canada’s allocation of dairy tariff-rate quotas (TRQs), specifically the set-aside of a percentage of each dairy TRQ exclusively for Canadian processors.  These measures deny the ability of U.S. dairy farmers, workers, and exporters to utilize the TRQs and realize the full benefit of the USMCA.  

“A top priority for the Biden-Harris Administration is fully enforcing the USMCA and ensuring that it benefits American workers,” said Ambassador Tai.  “Launching the first panel request under the agreement will ensure our dairy industry and its workers can seize new opportunities under the USMCA to market and sell U.S. products to Canadian consumers.”

A tariff-rate quota applies a preferential rate of duty to an “in-quota” quantity of imports and a different rate to imports above that in-quota quantity.  Under the USMCA, Canada has the right to maintain 14 TRQs on dairy products: milk, cream, skim milk powder, butter and cream powder, industrial cheeses, cheeses of all types, milk powders, concentrated or condensed milk, yogurt and buttermilk, powdered buttermilk, whey powder, products consisting of natural milk constituents, ice cream and ice cream mixes, and other dairy.

In notices to importers that Canada published in June and October 2020 and May 2021 for dairy TRQs, Canada sets aside and reserves a percentage of the quota for processors and for so-called “further processors”, contrary to Canada’s USMCA commitments.  This restriction undermines the value of Canada’s dairy TRQs for U.S. farmers and exporters by limiting their access to in-quota quantities negotiated under the USMCA.  

The United States requested consultations with Canada on December 9, 2020.  The Parties held consultations on December 21, 2020, but did not resolve the dispute.  This is the first panel request ever filed under Chapter 31 (Dispute Settlement) of the USMCA, specifically Article 31.6.1.  Under the USMCA’s revised dispute settlement procedures, the panel is established upon delivery of the request (Article 31.6.4).  Under the timeline provided in the USMCA, the panel is expected to issue a report later this year. Read More→   

https://ustr.gov/about-us/policy-offices/press-office/press-releases/2021/may/united-states-advances-first-usmca-dispute-panel-enforce-canadas-dairy-commitments

Final Determinations in the Antidumping and Countervailing Duty Investigations of Passenger Vehicle and Light Truck Tires from South Korea, Taiwan, Thailand, and Vietnam

On May 24, 2021, the Department of Commerce (Commerce) announced its affirmative final determinations in the antidumping duty (AD) investigations of Passenger Vehicle and Light Truck Tires (PVLT) from South Korea, Taiwan, Thailand, and Vietnam, and affirmative final determination in the countervailing duty (CVD) investigation of PVLT from Vietnam.

Final Rates

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Aluminum Import Monitoring and Analysis System: Effective Date and Response to Comments

AGENCY:

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

ACTION:

Final rule; response to comments.

SUMMARY:

The U.S. Department of Commerce (Commerce) is confirming the stay of the regulations entitled “Aluminum Import Monitoring and Analysis System” will be lifted on June 28, 2021. Commerce is also addressing the additional public comments received regarding the final rule. Finally, Commerce is also confirming that compliance with its regulations regarding the Aluminum Import Monitoring and Analysis (AIM) system, except for certain sections, will take effect on June 28, 2021 and is extending the temporary delay for compliance with the remaining sections its regulations from December 23, 2021 to June 28, 2022.

DATES:

Effective date: This document is effective on June 28, 2021.

Compliance dates:Compliance with19 CFR part 361(except for § 361.103(c)(3)(i)(C) and (c)(3)(ii)(C)) is required on June 28, 2021.Seethe SUPPLEMENTARY INFORMATION for more information. Section 361.103(c)(3)(i)(C) and (c)(3)(ii)(C) allow filers to state “unknown” for certain fields on the license application on a temporary basis through June 28, 2022. As of June 29, 2022, filers will no longer be able to state “unknown” and will be required to provide the requested information for these fields. Read More→

https://www.federalregister.gov/documents/2021/05/21/2021-10747/aluminum-import-monitoring-and-analysis-system-effective-date-and-response-to-comments

USITC INSTITUTES SECTION 337 INVESTIGATION OF CERTAIN WEARABLE ELECTRONIC DEVICES WITH ECG FUNCTIONALITY AND COMPONENTS THEREOF

The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain wearable electronic devices with ECG functionality 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 AliveCor, Inc., of Mountain View, CA, on April 20, 2021.  The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain wearable electronic devices with ECG functionality and components thereof that infringe patents 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 Apple Inc. of Cupertino, CA, as the respondent in this investigation.

By instituting this investigation (337-TA-1266), 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.

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https://www.usitc.gov/press_room/news_release/2021/er0520ll1776.htm

USITC MAKES DETERMINATIONS IN FIVE-YEAR (SUNSET) REVIEW CONCERNING BARIUM CHLORIDE FROM CHINA

The U.S. International Trade Commission (USITC) today determined that revoking the existing antidumping duty order on imports of barium chloride from China would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time. 

As a result of the Commission’s affirmative determination, the existing order on imports of this product from China will remain in place. 

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

Today’s action comes under the five-year (sunset) review process required by the Uruguay Round Agreements Act.  See the attached page for background on this five-year (sunset) review.

The Commission’s public report Barium Chloride from China (Inv. No. 731-TA-149 (Fifth Review), USITC Publication 5203, June 2021) will contain the views of the Commission and information developed during the review.

The report will be available by June 22, 2021; when available, it may be accessed on the USITC website at: https://www.usitc.gov/commission_publications_library.

BACKGROUND

The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the USITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies (Commerce) and of material injury (USITC) within a reasonably foreseeable time.

The Commission’s institution notice in five-year reviews requests that interested parties file responses with the Commission concerning the likely effects of revoking the order under review as well as other information.  Generally within 95 days from institution, the Commission will determine whether the responses it has received reflect an adequate or inadequate level of interest in a full review.  If responses to the USITC’s notice of institution are adequate, or if other circumstances warrant a full review, the Commission conducts a full review, which includes a public hearing and issuance of questionnaires. Read More→

https://www.usitc.gov/press_room/news_release/2021/er0519ll1775.htm

United States Seeks Mexico's Review of Alleged Worker's Rights Denial at Auto Manufacturing Facility

WASHINGTON – United States Trade Representative Katherine Tai today announced that the United States has asked Mexico to review whether workers at a General Motors (GM) facility are being denied the right of free association and collective bargaining. The request is the first time any country has used the novel Rapid Response Labor Mechanism in the United States-Mexico-Canada Agreement (USMCA). USTR and the Department of Labor received information appearing to indicate serious violations of these workers’ rights in Silao, State of Guanajuato in connection with a recent worker vote, organized by the existing union, to approve their collective bargaining agreement.

“Today’s action shows the Biden-Harris Administration’s serious commitment to workers and a worker-centered trade policy.” said Ambassador Katherine Tai announcing the action. “Using USMCA to help protect freedom of association and collective bargaining rights in Mexico helps workers both at home and in Mexico, by stopping a race to the bottom. It also supports Mexico’s efforts to implement its recent labor law reforms. I commend the Mexican government for stepping in to suspend the vote when it became aware of voting irregularities. Today’s action will complement Mexico’s efforts to ensure that these workers can fully exercise their collective bargaining rights.”

“All workers – in Mexico, the United States, and around the world – deserve a genuine, democratic voice at work,” said U.S. Secretary of Labor Marty Walsh. “The Department of Labor is committed to working with our counterparts in Mexico to support compliance with the labor commitments of USMCA and legitimate collective bargaining supported by workers. In requesting this review, the United States clearly sends the message that worker rights must be respected.”

In connection with the U.S. request, Ambassador Tai has directed the Secretary of the Treasury to suspend the final settlement of customs accounts related to entries of goods from GM’s Silao facility. Under USMCA Article 31-A.4.3, liquidation will resume once there is an agreement by the Parties that there is no Denial of Rights or a finding by a panel that there is no Denial of Rights. Read More→

https://ustr.gov/about-us/policy-offices/press-office/press-releases/2021/may/united-states-seeks-mexicos-review-alleged-workers-rights-denial-auto-manufacturing-facility-0

Joint United States-European Union Statement on Addressing Global Steel and Aluminum Excess Capacity

United States Trade Representative Katherine Tai, U.S. Secretary of Commerce Gina M. Raimondo, and European Commission Executive Vice President Valdis Dombrovskis today announced the start of discussions to address global steel and aluminum excess capacity. During a virtual meeting last week, the leaders acknowledged the need for effective solutions that preserve our critical industries, and agreed to chart a path that ends the WTO disputes following the U.S. application of tariffs on imports from the EU under section 232.

Ambassador Tai, Secretary Raimondo, and Executive Vice President Dombrovskis acknowledged the impact on their industries stemming from global excess capacity driven largely by third parties.  The distortions that result from this excess capacity pose a serious threat to the market-oriented EU and U.S. steel and aluminum industries and the workers in those industries.  They agreed that, as the United States and EU Member States are allies and partners, sharing similar national security interests as democratic, market economies, they can partner to promote high standards, address shared concerns, and hold countries like China that support trade-distorting policies to account.  

They agreed to enter into discussions on the mutual resolution of concerns in this area that addresses steel and aluminum excess capacity and the deployment of effective solutions, including appropriate trade measures, to preserve our critical industries.  To ensure the most constructive environment for these joint efforts, they agreed to avoid changes on these issues that negatively affect bilateral trade.   They committed to engaging in these discussions expeditiously to find solutions before the end of the year that will demonstrate how the U.S. and EU can address excess capacity, ensure the long-term viability of our steel and aluminum industries, and strengthen our democratic alliance.

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https://ustr.gov/about-us/policy-offices/press-office/press-releases/2021/may/joint-united-states-european-union-statement-addressing-global-steel-and-aluminum-excess-capacity