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Statement by U.S. Trade Representative Michael Froman on Expiration of The Generalized System of Preference Program
Office of the U.S. Trade Representaive /
http://www.ustr.gov/STATEMENT-BY-USTR-MICHAEL-FROMAN-ON-EXPIRATION-OF-THE-GSP-PROGRAM

Washington, D.C. – United States Trade Representative Michael Froman issued the following statement today regarding the July 31, 2013 expiration of the Generalized System of Preferences (GSP) program.  GSP is a 37-year-old trade preference program designed to promote economic growth in the developing world by providing preferential, duty-free entry for up to 5,000 products when imported from one of 127 designated beneficiary countries and territories.   

GSP also supports U.S. jobs: U.S. businesses imported $19.9 billion worth of products under the program in 2012, including many raw materials, parts or components,  and machinery and equipment used by U.S. companies to manufacture goods in the United States for domestic consumption or for export.  The program also helps to support American jobs associated with moving GSP imports from the docks to farmers, manufacturers, and retail shelves.

“Beginning August 1, U.S. businesses and consumers will pay more for thousands of goods imported under the GSP program, including many inputs for U.S. manufacturing,” said Ambassador Froman.  “The Obama Administration urges Congress to extend this important trade program, which increases U.S. competitiveness, keeps costs low for U.S. consumers, and benefits some of the world’s poorest countries. “

For more information on the GSP program, including answers to Frequently Asked Questions about the expiration of the program, visit the GSP page on the USTR Web site.


U.S. Trade Representative Initiates 2013 GSP Review – Petition Due Dates
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
/ http://www.gdlsk.com/knowledge/289-us-trade-representative-initiates-2013-gsp-review--petition-due-dates.html

In Monday’s Federal Register (July 29, 2013), the U.S. Trade Representative (USTR) announced the initiation of its annual review of the products and countries subject to the Generalized System of Preferences (GSP).  (NOTE: The review will proceed even if the GSP Program expires on July 31 and is renewed at a later date.)  As part of the 2013 Annual Review, the USTR will review:

  • Possible addition of or re-designations of products to GSP;
  • Possible revocation of GSP benefits for products and countries where the imports exceed a Competitive Need Limit (CNL);
  • Requests for Waivers of the CNL’s
  • Requests for De Minimis Waivers of CNL
  • Revocation of the Existing CNLs; and
  • Country practices (market access, worker rights, IPR, etc.) which affect the countries’ eligibility for GSP Benefits. 

The GSP program sets the Competitive Need Limit (CNL) for imports of the products subject to GSP.  These limits “graduate” countries or products from the GSP program where the limits are exceeded.  Where imports of a product from a country imported under GSP exceed a certain value and/or percentage of imports, the President should remove GSP benefits because it exceeds the CNL.  (The statistics for which products and countries have exceeded the CNLs will be published later this year.)  However, interested parties can petition the USTR to recommend the President to issue a CNL waiver.  Grounds for granting a CNL include evidence that a product  is not made in the United States, total U.S. imports of it are low (i.e., de minimis waivers), or it is imported from a designated GSP least developed country.  The CNL waiver allows the continuation of GSP benefits for the products and countries generally for an additional five years.  After five years, if the products under a CNL exceed a certain threshold, the President can revoke the CNL.  Current CNLs are available at http://www.ustr.gov/sites/default/files/Current%20CNL%20waivers%20as%20of%20July%202012.pdf   

The Federal Register Notice sets the petitioning time schedule.  Upon completion of the review, the USTR will make recommendations to the President for changes in the GSP Program, which changes will be put into effect by Presidential Proclamation on July 1, 2014.


U.S., China Announce Results of First Joint Intellectual Property Operation
 U.S. Customs & Border Protection/  http://www.cbp.gov/xp/cgov/newsroom/news_releases/national/07312013_7.xml

Washington – U.S. Customs and Border Protection and the General Administration of Customs, People’s Republic of China (GACC) today announce the results of a joint intellectual property rights (IPR) enforcement operation, the first ever of its kind between the two customs agencies. The month-long operation resulted in the seizure of over 243,000 counterfeit consumer electronics products including popular trademarks such as Apple, Beats by Dr. Dre, Blackberry, Samsung, Sony, and UL.

“The theft of intellectual property is a global problem and cross-border efforts are needed to fight it. CBP looks forward to a continued partnership with the People’s Republic of China General Administration of Customs in confronting this critical trade issue,” said CBP Acting Commissioner Thomas S. Winkowski. “Robust enforcement of intellectual property rights allows innovators and creators – whether in a small start-up or an international corporation – to profit from their efforts, and gives consumers confidence in the products they buy.”

“The success of this joint operation fully proves that earnest and effective cooperation cross the border is needed to curb the movement of counterfeit products”, said Zou Zhiwu, Vice Minister of the General Administration of China Customs (GACC). “IPR infringement is a global issue involving not only the process of production and export, but also that of import and circulation. It not only harms the order of global trade, but also threatens the health and safety of consumers. Enforcement agencies around the world should work more closely to crack down these illegal activities. China Customs has been making unremitting efforts to promote international cooperation in this field. The results of this joint operation are very inspiring and have consolidated our confidence and resolve to jointly fight against IPR violations under the framework of Memorandum of Cooperation on Strengthened Cooperation in Border Protection Enforcement of IPR between GACC and CBP.”

“The fight against criminal counterfeiters overseas presents a great deal of challenges to U.S. law enforcement,” said Daniel Ragsdale, Deputy Director of U.S. Immigration and Customs Enforcement “But it is a fight we are committed to and, through the international partnerships we forge with foreign customs and law enforcement agencies, we are making an impact. We will find, arrest, and prosecute these criminals whenever possible to keep them from taking advantage of unsuspecting consumers.”

The operation also resulted in an arrest by local law enforcement in the New Orleans area of a U.S. citizen who repeatedly imported counterfeit Beats by Dr. Dre headphones, which he then sold on Craigslist. The arrest followed a GACC referral of information to CBP and U.S. Immigration and Customs Enforcement-Homeland Security Investigations, which coordinated with the Jefferson Parish Sheriff’s Office on the arrest.

The operation fulfilled a commitment between CBP and GACC to cooperatively produce tangible IPR enforcement results by the Fifth Strategic & Economic Dialogue. At the S&ED last week, CBP and GACC committed to further cooperation on IPR enforcement, including additional joint operations.


FDA Issues Two Proposed Rules under FSMA to Strengthen the Oversight of Imported Foods
Food & Drug Administration / http://www.fda.gov/Food/NewsEvents/ConstituentUpdates/ucm362532.htm

July 26, 2013

Today, FDA issued two proposed rules under the Food Safety Modernization Act (FSMA) aimed at strengthening assurances that imported food meets the same safety standards as food produced domestically. These new measures respond to the challenges of food safety in today’s global food system, in which imported food comes into the U.S. from about 150 different countries and accounts for about 15 percent of the U.S. food supply. They are part of the effort mandated by Congress to modernize the food safety system and focus on preventing food safety problems, rather than relying primarily on responding to problems after they have occurred.

Under the proposed rule for Foreign Supplier Verification Programs (FSVP), importers would need to verify that their suppliers are meeting the same U.S. safety standards required of domestic producers. Requirements for verification activities would be primarily based on the type of food, nature of the hazard identified and on who—such as the foreign supplier, the importer, or the importer’s customer—is best able to control the hazard.

Under the proposed rule for Accreditation of Third Party Auditors, FDA would recognize accreditation bodies based on certain criteria such as competency and impartiality. The accreditation bodies, which could be foreign government agencies or private companies, would in turn accredit third party auditors to audit and issue certifications for foreign food facilities.

The two proposed rules work together with the standards proposed in January 2013 for produce safety and preventive controls in facilities that produce food for humans. The two proposed rules publish in the Federal Register on July 29, 2013. Comments on the two new proposed rules on the safety of imported food are due by 120 days from the publication date.


Baltimore CBP Finds Destructive Pest in Cumin Seed Shipment
 U.S. Customs & Border Protection / http://www.cbp.gov/xp/cgov/newsroom/news_releases/local/07312013_4.xml

Baltimore – U.S. Customs and Border Protection (CBP) agriculture specialists at the port of Baltimore discovered that a shipment of cumin seed from India was infested with Khapra Beetle Friday. The CBP agriculture specialists did not find any live insects but immediately collected specimens of the dead insects and sealed the container.

The specimens were forwarded to a U.S. Department of Agriculture (USDA) entomologist who confirmed them as Trogoderma granarium, commonly known as Khapra Beetle. The importer was issued an Emergency Action Notice requiring the 500 bag, 55,000 pound shipment of cumin seed to be re-exported or destroyed. The importer chose to have the shipment re-exported.

The Khapra Beetle is considered one of the world’s most destructive insect pests of grains, cereals and stored foods and remains the only insect in which CBP takes regulatory action against even while in a dead state.

“Khapra Beetle is one of the most invasive insects CBP agriculture specialists encounter,” said Sheryl Monette, Assistant Port Director for the Port of Baltimore. “And we take our mission to intercept these destructive pests and protecting America’s agricultural industry very seriously.”

The Khapra Beetle is labeled a ‘dirty feeder’ because it damages more grain than it consumes, and because it contaminates grain with body parts and hairs. These contaminants may cause gastrointestinal irritation in adults and especially sickens infants. Khapra Beetles can also tolerate insecticides and fumigants, and can survive for long periods of time without food.

According to the USDA Animal and Plant Health Inspection Service (APHIS), previous infestations of Khapra Beetle have resulted in massive, long term-control and eradication efforts at great cost to the American taxpayer.

California implemented extensive eradication measures following a Khapra Beetle infestation discovered there in 1953. The effort was deemed successful, but at a cost of approximately $11 million. Calculated in today’s dollars, that would be about $90 million.

Related information:

USDA Restricts the Importation of Commercial and Noncommercial Quantities of Rice from Countries Where Khapra Beetle Is Known to Occur.  ( USDA )

CBP agriculture specialists have extensive training and experience in the biological sciences and agricultural inspection. On a typical day, they inspect tens of thousands of international air passengers, and air and sea cargoes nationally being imported to the United States and seize 4,919 prohibited meat, plant materials or animal products, including 476 insect pests.
CBP Not Playing Around with Excessive Lead
U.S. Customs & Border Protection / http://www.cbp.gov/xp/cgov/newsroom/highlights/cpsc_lead.xml

U.S. Customs and Border Protection's (CBP) Office of Field Operations (OFO) at the port of Detroit, in a joint effort with the Consumer Product Safety Commission (CPSC), targeted and seized two shipments of playground equipment and accessories after lab analysis found that they contained high levels of lead.

The first shipment, of playground accessories, originated from China with a final destination of Minneapolis, Minn. CBP in Detroit placed a “hold” on the container to determine if the toys were safe under CPSC regulations. The container arrived via railway and was examined at the Centralized Examination Station (CES). Samples from the shipment were sent to CPSC for chemical analysis where they were ruled unsafe for the American consumer market. The playground accessories contained an excessive amount of lead that violates federal safety standards. The total declared value for the playground accessories is $1,550.

The second shipment, manifested as playground systems, also originated in China, and was destined for Canton, Mich. Similar to the above shipment, CBP in Detroit placed the container on “hold,” which arrived via railway for examination at the CES. The vinyl playground equipment was seized by CBP as CPSC deemed the shipment unsafe for the American consumer market. The total declared value is $4,691.

The concerted targeting efforts of CPSC and the vigilance of CBP officers at our ports of entry ensure that toys are safe for children,” said Roderick Blanchard, port director for the port of Detroit. “Ensuring the safety of imported merchandise is a priority for CBP.”

The Consumer Product Safety Improvement Act of 2008 requires importers to test and certify that imports of children’s products are in compliance with CPSC requirements. It is unlawful to import into the U.S. any children’s product that contains more than 90 parts per million of lead paint or more than 100 parts per million of total lead content. These are some of the lowest lead limits in the world.


CPSC, CTIA Remind Consumers to “Shop Safely” When Choosing Replacement Mobile Device Batteries
U.S. Consumer Product Safetly Commission / http://www.cpsc.gov/en/Newsroom/News-Releases/2013/CPSC-CTIA-Remind-Consumers-to-Shop-Safely-When-Choosing-Replacement-Mobile-Device-Batteries--/

WASHINGTON, D.C. – We carry them with us all day, constantly checking e-mails, sending texts, talking to friends, and searching for an outlet to power up.  We are talking about wireless mobile devices, of course.  The U.S. Consumer Product Safety Commission (CPSC) and CTIA-The Wireless Association® are once again joining forces to help users stay connected and out of harm’s way while using wireless mobile devices, batteries, and chargers.

Wireless mobile devices now outnumber the number of Americans, with billions of calls made each year in the United States.  While recent years have brought advances in the safety of wireless devices and components, it is still important for consumers to follow manufacturer guidelines for the maintenance of wireless mobile devices and batteries, in order to reduce the risk of an incident.

Lithium-ion (Li-ion) batteries, which are commonly used in mobile phones and smartphones, hold a lot of energy in a small package.  These batteries offer numerous advantages over other varieties of batteries, including the capacity to hold their charge longer and the ability to be recharged numerous times.  Yet, Li-ion batteries are more sensitive to physical stress than alkaline batteries found in toys and flashlights and need to be treated with more care.

CPSC and CTIA recommend the following safety steps for consumers:

1)      Do not use batteries and chargers that are incompatible with your mobile device.  Some websites and secondhand dealers not associated with reputable manufacturers and carriers have been found to be selling incompatible, counterfeit, or poorly manufactured batteries and chargers.  Consumers should purchase manufacturer or carrier recommended products and accessories.  If unsure about whether a replacement battery or charger is compatible with your mobile device, contact the original equipment manufacturer.  

2)      Do not let a loose battery come in contact with metal objects, such as coins, keys, or jewelry.  Metal objects can cross the electrical connections and cause an incident.

3)      Do not crush, puncture or put a high degree of pressure on the battery, as this can cause an internal short-circuit, resulting in overheating.

4)      Do not place the phone or batteries in areas that may get very hot, such as on or near a cooking surface, cooking appliance, iron, or radiator.

5)      Avoid dropping the mobile device.  Dropping it, especially on a hard surface, can potentially cause damage to the device and battery.  If you suspect damage to the device or battery, take it to a service center for inspection.

6)      Do not let your mobile device or battery get wet.  Even though the device will dry and appear to operate normally, the battery contacts or circuitry could slowly corrode and pose a safety hazard.

7)      Follow battery usage, storage, and charging guidelines found in the user’s guide.  

In 2005, CPSC, CTIA, and the IEEE, a prominent technical-standard setting organization, collaborated on the formation of a mobile phone battery safety standard.  This industry-wide standard for battery design and performance has contributed to a reduction in product recalls and an increase in independent laboratories testing batteries to the standards to certify compliance.

Since March 2011, when CPSC first launched the open government, consumer product incident reporting site SaferProducts.gov, 61 consumer reports related to wireless mobile devices and their accessories have been posted for the public to view.  CPSC continues to encourage consumers who experience an incident with their wireless mobile device or accessories to log on to SaferProducts.gov and report the incident.

CPSC and CTIA also urge consumers to properly dispose of their old batteries and equipment.  There are many programs around the country that recycle wireless devices and equipment: wireless carriers and retailers, electronics manufacturers, charitable organizations, and state and local waste authorities all offer ways to donate or recycle wireless mobile devices and equipment. For more information, go to www.gowirelessgogreen.org/what-you-can-do/recycling-wireless-devices.aspx.   
 
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