Customs Proposes to Revoke / Modify Sixty-Seven “Costume” Rulings
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP / http://www.gdlsk.com/home.html
In a Notice published in the Customs Bulletin of July 2, 2014, U.S. Customs and Border Protection (“CBP”) has proposed to revoke or modify sixty-seven rulings (issued from 2004 to 2009) in which a host of costumes had been held to be eligible for duty-free treatment by virtue of their classification within Heading 9505, HTS (covering “Festive, carnival or other entertainment articles, including magic tricks and practical joke articles”). Under the proposal, the items in question would be dutiable as ordinary apparel under Chapters 61 and 62, HTS). To illustrate, the Customs proposal would revoke rulings that extended duty-free treatment to various Cinderella and Snow White dresses and would instead subject them to a duty rate of 16%.
CBP will consider comments on its proposal until August 1, 2014. This proposal represents the latest effort by CBP to narrow the class of costumes that it considers eligible for duty-free entry.
Importers of costumes and similar articles are invited to contact us to discuss the potential impact of the CBP proposal. We are also available to assist in the drafting of comments in response to the proposal.
China Fails A Second Time in its Challenge to U.S. Countervailing Duty Law
Office of the U.S. Trade Representative / http://www.ustr.gov/about-us/press-office/press-releases/2014/July/China-Fails-Second-Time-in-its-Challenge-to-US-Countervailing-Duty-Law
Washington, D.C. – United States Trade Representative Michael Froman announced today that a second WTO report found that China failed to support its challenge under Article X:2 of the GATT 1994 to a U.S. trade remedy law, U.S. Public Law 112-99 (commonly referred to as the GPX legislation).
The GPX legislation was enacted on March 13, 2012, to confirm the Department of Commerce’s ability to apply the U.S. countervailing duty (CVD) law to subsidized imports from non-market economy (NME) countries, including China. As a result of today’s report, together with the May report from a WTO panel rejecting all of China’s claims under Article X of the GATT 1994, there are no WTO panel or Appellate Body findings that the GPX legislation breaches WTO rules.
“This is the second WTO report that has found that China has failed in its attack on our transparent and democratic process in enacting this law and applying countervailing duties to China,” said Ambassador Froman. “The Obama Administration will continue to vigorously defend any challenges to the application of our trade remedy laws to ensure that U.S. workers and businesses are not put at a disadvantage by Chinese or other subsidies. The United States acted within its WTO rights in enacting the GPX legislation to confirm that duties could be applied to counteract unfair Chinese subsidies.
“Today’s decision allows U.S. industries to continue to rely on U.S. trade laws to address unfair competition from their subsidized Chinese competitors. As we closely review the impact this decision may have, the Obama Administration and the Commerce Department remain committed to robustly enforcing the U.S. trade remedy laws that allow our producers and firms to compete on a level playing field,” said Secretary of Commerce Penny Pritzker.
China has been on notice since 2006 that the United States might apply countervailing duties to unfairly subsidized Chinese imports that cause injury to U.S. workers and businesses, just as the United States does to unfairly subsidized imports from other countries.
The Appellate Body also turned down a U.S. procedural challenge to the panel’s findings relating to 25 countervailing duty proceedings on Chinese imports. The panel report had followed a previous Appellate Body report and found that the United States breached WTO rules by failing to affirmatively investigate an alleged overlap with respect to 25 countervailing duty proceedings. A provision of the GPX legislation already directs the Department of Commerce to look at the issue of so-called “double remedies” and make any necessary adjustments in determinations.
Background
China initiated a WTO dispute settlement proceeding against the United States in November 2012. In this dispute, China alleged that the United States had acted inconsistently with the transparency, administration, and judicial review requirements in Article X of the GATT 1994 by specifying an effective date for Section 1 of the GPX legislation (November 20, 2006) that was prior to the enactment of the law (March 13, 2012). Section 1 of the GPX legislation confirmed Commerce’s longstanding authority to apply the U.S. countervailing duty law to NME countries, such as China. In March 2014, a WTO panel rejected all of China’s claims under Article X of the GATT 1994.
China also alleged that the Department of Commerce failed to investigate whether a possible overlap may have resulted from the simultaneous application of antidumping duties determined using an NME methodology and countervailing duties on the same products for proceedings initiated by the Department of Commerce from November 20, 2006, to March 13, 2012. China’s argument was based entirely on the findings of the WTO Appellate Body in the dispute U.S. – Definitive Anti-Dumping and Countervailing Duties on Certain Products from China (DS379) regarding a similar issue. In March 2014, the same WTO panel found that the United States breached Article 19.3 of the Agreement on Subsidies and Countervailing Measures (SCM Agreement) in 25 proceedings initiated between November 2006 and March 2012 because the United States did not affirmatively investigate the alleged overlap.
China appealed but failed to prevail on its Article X:2 claim concerning the GPX legislation before the Appellate Body. The United States will continue to address injurious Chinese government subsidization through the application of the U.S. CVD law in order to help level the playing field for American manufacturers and their workers.
The United States also appealed the panel’s findings that China’s panel request satisfied the pleading requirements of Article 6.2 of the Understanding on Rules and Procedures Governing the Settlement of Disputes. The Appellate Body did not agree with the U.S. appeal and upheld the panel’s findings with respect to 25 proceedings initiated between November 2006 and March 2012.
Gender Litigation for certain Footwear and Apparel Products
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP - Alan R. Klestadt, Robert B. Silverman, or Frances P. Hadfield / http://www.gdlsk.com/firm-news/315-gender-litigation-for-certain-footwear-and-apparel-products.html
In 2007, litigation was initiated in the Court of International Trade (CIT) alleging that gender and age tariff rate disparities on identical or substantially similar products were discriminatory and unconstitutional.
Cases were filed on behalf of numerous importers raising identical claims and a few test cases were selected (e.g.Totes-Isotoner Corp. v. United States, 569 F. Supp. 2d 1315 (2008) ("Totes")) and the rest of the cases were stayed pending the outcome of these cases . Unfortunately, the test cases were unsuccessful in the US Court of International Trade (CIT), and the U.S. Court of Appeals to the Federal Circuit. The U.S. Supreme Court declined to hear the last of these appeals in May 2014.
Accordingly, on May 30, 2014, the CIT ordered that, unless a motion was filed requesting otherwise (and a new case brought), the Clerk would dismiss all of the stayed cases relating to the gender and age issue at the end of June. No new case was filed and on July 1, 2014, all of the remaining gender and age discrimination cases were dismissed.
CBP - Inside Import Safety
U.S. Customs & Border Protection / http://www.cbp.gov/newsroom/video-gallery
CBP's efforts to stop dangerous imported goods. Watch Video
Travel Advisory – Personal Use Marijuana - Border-Crossing Policies Remain Unchanged
U.S. Customs & Border Protection / http://www.cbp.gov/newsroom/local-media-release/2014-07-07-000000/travel-advisory-%E2%80%93-personal-use-marijuana-border
BLAINE, Wash. - U.S. Customs and Border Protection (CBP) is reminding travelers crossing the border that possession of any amount of marijuana remains a violation under Federal law.
In enacting the Controlled Substances Act, Congress determined that marijuana is a Schedule I controlled substance and CBP’s enforcement of that Act remains unchanged irrespective of any changes in Washington State law. Whether arriving or exiting the United States, seizure and civil monetary penalties remain in effect for possession of any amount of marijuana.
Foreign visitors who are found to have violated any Federal or State law or regulation relating to a controlled substance risk additional consequences and may be deemed inadmissible to the United States under the Immigration and Nationality Act (INA) and barred from entry.
The United States has been and continues to be a welcoming nation. CBP is charged with securing our Nation’s borders and protecting the homeland while enforcing hundreds of U.S. laws and maintaining the effective flow of travel, trade and tourism at our airports, seaports and land borders.
CBP hopes you enjoy your summer travels, please visit the CBP website for additional information on how to become a “Ready Traveler” and avoid transporting contraband across the border.
ITA: Press Release
International Trade Administration / http://www.fws.gov/le/public-bulletin.html
07/07/2014 Commerce Finds Dumping and Countervailable Subsidization of Imports of Steel Threaded Rod from India
U.S. Secret Service Arrests One of the World's Most Prolific Traffickers of Stolen Financial Information
U.S. Department of Homeland Security/ http://www.dhs.gov/news/2014/07/07/us-secret-service-arrests-one-worlds-most-prolific-traffickers-stolen-financial
WASHINGTON— On July 5, 2014 the U.S. Secret Service arrested Roman Valerevich Seleznev. A Russian national, Seleznev was indicted in the Western District of Washington in March 2011 for hacking into point of sale systems at retailers throughout the United States between October 2009 and February 2011.
“This important arrest sends a clear message: despite the increasingly borderless nature of transitional organized crime, the long arm of justice – and this Department – will continue to disrupt and dismantle sophisticated criminal organizations,” said Secretary of Homeland Security Jeh Johnson. “This arrest reflects the hard work by the U.S. Secret Service and our interagency and international partners, and we must continue close collaboration with the law enforcement community to counter this ever evolving threat.”
According to the indictment, Seleznev hacked into point of sale systems throughout the United States and operated servers and international carding forum websites to facilitate the theft and sale of stolen credit card data. Seleznev, known as “Track2” in the criminal carding underground, remains in custody pending trial.
“Secret Service agents utilize state-of-the-art investigative techniques to identify and pursue cyber criminals around the world. This scheme involved multiple network intrusions and data thefts for illicit financial gain. The adverse impact this individual and other transnational organized criminal groups have on our nation's financial infrastructure is significant and should not be underestimated,” said Julia Pierson, Director of the U.S. Secret Service.
The charges in the indictment include five counts of bank fraud, eight counts of intentionally causing damage to a protected computer, eight counts of obtaining information from a protected computer, one count of possession of 15 or more unauthorized access devices, two counts of trafficking unauthorized access devices, and five counts of aggravated identity theft. The case remains under investigation by the U.S. Secret Service Electronic Crimes Task Force in Seattle and is being prosecuted by the U.S. Attorney’s Office for the Western District of Washington.
“Cyber crooks should take heed: you cannot hide behind distant keyboards. We will bring you to face justice,” said U.S. Attorney Jenny A. Durkan. “I want to thank the U.S. Secret Service for their work investigating this case and apprehending the defendant. I want to also acknowledge the work of the Seattle Electronic Crimes Task Force, the Seattle Police Department, the Department of Justice Office of International Affairs, and the U.S. Attorney in Guam.”
Seleznev is also charged in a separate indictment in the District of Nevada with participating in a racketeer influenced corrupt organization (RICO) and conspiracy to engage in a racketeer influenced corrupt organization as well as two counts of possession of 15 or more counterfeit and unauthorized access devices. Those charges carry maximum penalties of up to 20 years in prison for RICO and RICO conspiracy and up to 10 years in prison for possession of 15 or more counterfeit and unauthorized access devices.
The U.S. Secret Service has taken a lead role in mitigating the threat of financial crimes since the agency’s inception in 1865. As technology has evolved, the scope of the U.S. Secret Service’s mission has expanded from its original counterfeit currency investigations to also include emerging financial, electronic and cyber-crimes. As a component agency within the U.S. Department of Homeland Security, the U.S. Secret Service has established successful partnerships in both the law enforcement and business communities – across the country and around the world – in order to effectively combat financial crimes.