Commissioners Briefed on PierPass and the Status of Hanjin Shipping - Federal Martime Commission
The Federal Maritime Commission this morning discussed two matters of interest to each of the five Commissioners and the broader shipping public: ongoing developments related to the Hanjin Shipping bankruptcy, and a third party review of the southern California-based PierPass program.
The two above items were considered in the closed session of a regularly scheduled Sunshine Act meeting. In the open session of the meeting briefings were provided on the TOC Americas 2016 Conference, the Consultative Shipping Group Meetings, proceedings at the International Maritime Organization, and the meeting of the European Maritime Law Organisation.
"As Hanjin Shipping and PierPass were taken up in closed session, I am limited in what I can say about either of them, but the briefings we received from staff were timely and informative," stated Mario Cordero, Chairman of the Federal Maritime Commission. "It was particularly instructive to receive the briefing on PierPass. It is important for the leaders and members of WCMTOA to understand that the way PierPass operates creates many valid questions that deserve meaningful answers. It remains to be seen if the current third party examination of PierPass’ operations will provide the transparency and accountability that its customers demand and the FMC is seeking. I hope that this work product will be an exercise in real disclosure, such a meaningful overture would go a long way toward repairing relations with customers and easing mounting concerns at the Commission about the way PierPass does business."
Hanjin Shipping, a Korea-based container shipping company was forced into receivership in late August. Its cessation of operations has impacted U.S.-based terminal operators, beneficial cargo owners (BCO’s), truckers, and many others in the supply chain. The Federal Maritime Commission is monitoring developments related to this matter carefully and on a continuous basis. The U.S. Bankruptcy Court for the District of New Jersey is overseeing how Hanjin Shipping unwinds their operations domestically.
PierPass, established in 2005, is a program that creates off-peak gate hours at cargo handling facilities located at the Ports of Los Angeles and Long Beach. Cargo moved off of a marine terminal during daylight hours requires payment of a Traffic Mitigation Fee surcharge that helps finance night operations at those same facilities. Containers that move at night do not require payment of a Traffic Mitigation Fee.
PierPass was formed, and operates, under authority of the West Coast Marine Terminal Operators Agreement (WCMTOA). This agreement is on file at the Federal Maritime Commission and as such, PierPass comes under the agency’s regulatory and enforcement jurisdiction.
The volume and tenor of complaints about PierPass reaching the Commission from truckers, beneficial cargo owners, and other leading supply chain executives have increased steadily and dramatically over the past two years. A common criticism of PierPass centers on the increased cost of the program and the service that is offered is neither dependable, nor does it improve with annual fee increases.
Recently, PierPass engaged an outside consulting group to provide an analysis of aspects of its operations. Commission staff traveled to Long Beach last week to meet with PierPass executives to learn more about the examination being undertaken. At today’s meeting, Commission staff briefed the Commission on conversations had last week as well as their conclusions as to whether the work PierPass has contracted to be completed reaches the benchmark of a true, third-party audit that Cordero called for in July of this year.
Initiation of Antidumping and Countervailing Duty Investigations: Steel Concrete Reinforcing Bar from Japan, Taiwan and the Republic of Turkey - U.S. Customs & Border Protection
On October 11, 2016, the Department of Commerce (Commerce) initiated its less-than-fair-value investigations on “Steel Concrete Reinforcing Bar from Japan, Taiwan and the Republic of Turkey” and a countervailing duty investigation on “Steel Concrete Reinforcing Bar from the Republic of Turkey” (Initiation Notices). These investigations have been assigned the following case numbers: A-588-876 (Japan), A-583-859 (Taiwan) and A-489-829 and C-489-830 (Turkey).
The Scope of Merchandise covered by these investigations reads as follows:
The merchandise subject to these investigations is steel concrete reinforcing bar imported in either straight length or coil form (rebar) regardless of metallurgy, length, diameter, or grade or lack thereof. Subject merchandise includes deformed steel wire with bar markings (e.g., mill mark, size, or grade) and which has been subjected to an elongation test.
The subject merchandise includes rebar that has been further processed in the subject country or a third country, including but not limited to cutting, grinding, galvanizing, painting, coating, or any other processing that would not otherwise remove the merchandise from the scope of the investigations if performed in the country of manufacture of the rebar.
Specifically excluded are plain rounds (i.e., nondeformed or smooth rebar). Also excluded from the scope is deformed steel wire meeting ASTM A1064/A1064M with no bar markings (e.g., mill mark, size, or grade) and without being subject to an elongation test.
At the time of the filing of the petition, there was an existing countervailing duty order on steel reinforcing bar from the Republic of Turkey. Steel Concrete Reinforcing Bar From the Republic of Turkey, 79 Fed. Reg. 65,926 (Dep’t Commerce Nov. 6, 2014) (2014 Turkey CVD Order). The scope of this countervailing duty investigation with regard to rebar from Turkey covers only rebar produced and/or exported by those companies that are excluded from the 2014 Turkey CVD Order. At the time of the issuance of the 2014 Turkey CVD Order, only Turkish rebar produced and exported by Habas Sinai ve Tibbi Gazlar Istihsal Endustrisi A.S. was excluded.
The subject merchandise is classifiable in the Harmonized Tariff Schedule of the United States (HTSUS) primarily under item numbers 7213.10.0000, 7214.20.0000, and 7228.30.8010. The subject merchandise may also enter under other HTSUS numbers including 7215.90.1000, 7215.90.5000, 7221.00.0017, 7221.00.0018, 7221.00.0030, 7221.00.0045, 7222.11.0001, 7222.11.0057, 7222.11.0059, 7222.30.0001, 7227.20.0080, 7227.90.6030, 7227.90.6035, 7227.90.6040, 7228.20.1000, and 7228.60.6000.
HTSUS numbers are provided for convenience and customs purposes; however, the written description of the scope remains dispositive.
Requirements For Submitting Comments On The Scope Of The Investigations: Please be sure to comply with all three requirements established below.
Deadline for Submitting Comments:
As announced in the Initiation Notices, Commerce is setting aside a period for interested parties to raise issues regarding product coverage (scope). The period for scope comments is intended to provide Commerce with ample opportunity to consider all comments and to consult with parties prior to the issuance of the preliminary determination, as appropriate. If scope comments include factual information (see 19 CFR 351.102(b)(21)), all such factual information should be limited to public information. Commerce requests that all such comments be filed by 5:00 PM Eastern Time (ET) on October 31, 2016, which is 20 calendar days from the signature date of this notice. Any rebuttal comments, which may include factual information, must be filed by 5:00 PM ET on November 10, 2016, which is 10 calendar days after the deadline for initial comments. Commerce requests that any factual information the parties consider relevant to the scope of the investigations be submitted during this time period. However, if a party subsequently finds that additional factual information pertaining to the scope of the investigations may be relevant, the party may contact Commerce and request permission to submit the additional information. All such comments must be filed on the records of each of the concurrent AD and CVD investigations identified above.
Required Entry of Appearance:
Parties wishing to participate in this segment and be included on the public service list must file a letter of appearance. Section 351.103(d)(1) of Commerce’s regulations states that “with the exception of a petitioner filing a petition in an investigation, to be included on the public service list for a particular segment, each interested party must file a letter of appearance.” The letter of appearance must be filed separately from any other document (with the exception of an application for APO access). Note, the letter of appearance must state how the party qualifies as an interested party (e.g., an exporter, producer, importer of the subject merchandise) and must include a point of contact, including address, telephone/fax number and email address.
All submissions to Commerce must be filed electronically using Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). An electronically-filed document must be received successfully in its entirety by the time, typically 5 p.m., and date when it is due. Documents excepted from the electronic submission requirements must be filed manually (i.e., in paper form) with Enforcement and Compliance’s APO/Dockets Unit, Room 18022, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230, and stamped with the date and time of receipt by the applicable deadlines.
DOT Bans All Samsung Galaxy Note7 Phones From Airplanes - Department of Transportation
WASHINGTON – The U.S. Department of Transportation (DOT), with the Federal Aviation Administration (FAA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA), today announced it is issuing an emergency order to ban all Samsung Galaxy Note7 smartphone devices from air transportation in the United States. Individuals who own or possess a Samsung Galaxy Note7 device may not transport the device on their person, in carry-on baggage, or in checked baggage on flights to, from, or within the United States. This prohibition includes all Samsung Galaxy Note7 devices. The phones also cannot be shipped as air cargo. The ban will be effective on Saturday, October 15, 2016, at noon ET.
“We recognize that banning these phones from airlines will inconvenience some passengers, but the safety of all those aboard an aircraft must take priority,” said Transportation Secretary Anthony Foxx. “We are taking this additional step because even one fire incident inflight poses a high risk of severe personal injury and puts many lives at risk.”
Device owners have experienced documented incidents of dangerous evolution of heat with both recalled and replacement Samsung Galaxy Note7 devices. Samsung and the U.S. Consumer Product Safety Commission (CPSC) acknowledged this imminent safety hazard with the company’s September 15, 2016 and October 13, 2016 recalls. Additionally, on October 11, 2016, Samsung suspended the manufacture and sale of the Samsung Galaxy Note7 device.
“The fire hazard with the original Note7 and with the replacement Note7 is simply too great for anyone to risk it and not respond to this official recall,” said CPSC Chairman Elliot F. Kaye. “I would like to remind consumers once again to take advantage of the remedies offered, including a full refund. It’s the right thing to do and the safest thing to do.”
What air travelers should know
- If passengers attempt to travel by air with their Samsung Galaxy Note7 devices, they will be denied boarding.
- Passengers who attempt to evade the ban by packing their phone in checked luggage are increasing the risk of a catastrophic incident. Anyone violating the ban may be subject to criminal prosecution in addition to fines.
- Passengers currently traveling with Samsung Galaxy Note7 phones should contact Samsung or their wireless carrier immediately to obtain information about how to return their phones and arrange for a refund or a replacement phone. Samsung has provided guidance for customers about refund and replacement options, as well as how to contact wireless carriers, at here. Samsung is also answering customers’ questions at 1-844-365-6197.
- If an airline representative observes that a passenger is in possession of a Samsung Note7 device prior to boarding an aircraft, the air carrier must deny boarding to the passenger unless and until the passenger divests themselves and their carry-on and checked baggage of the Samsung Galaxy Note7 device. Passengers absolutely should not pack the phones in their checked luggage.
- If a flight crew member identifies that a passenger is in possession of a Samsung Galaxy Note7 device while the aircraft is in flight, the crew member must instruct the passenger to power off the device, not use or charge the device while aboard the aircraft, protect the device from accidental activation, including disabling any features that may turn on the device, such as alarm clocks, and keep the device on their person and not in the overhead compartment, seat back pocket, nor in any carry-on baggage, for the duration of the flight.
The Samsung Galaxy Note7 device is considered a forbidden hazardous material under the Federal Hazardous Material Regulations (HMR; 49 CFR Parts 171-185), which forbid airline passengers or crew from traveling with lithium cells or batteries or portable electronic devices that are likely to generate a dangerous evolution of heat. PHMSA has issued a special permit to Samsung to facilitate commercial shipment of the recalled devices by ground transportation.
The Emergency Order will be on display in the Federal Register display on Friday, October 14, 2016, and the ban will be effective on Saturday, October 15, 2016, at noon ET.For additional information on the recall, visit the CPSC website at www.cpsc.gov.
For additional information on returning your recalled Galaxy Note7 device to the manufacturer, call 1-800-SAMSUNG or 1-800-726-7864 or visit the website: http://www.samsung.com/us/note7recall/[external link]
For additional information about safe travel with lithium batteries and other potentially hazardous materials, visit the DOT Safe Travel Website at http://phmsa.dot.gov/safetravel/batteries.
United States and Japan Commit to Improve and Advance Cross-Border Privacy and Data Flows - U.S. International Trade Administration
TOKYO – Today, U.S. Acting Assistant Secretary of Commerce for Industry and Analysis Ted Dean met with Secretary General Mari Sonoda of Japan’s Personal Information Protection Commission (PPC) to affirm their agencies' commitment to implement and expand the APEC Cross Border Privacy Rules system designed to protect privacy and increase confidence in cross border data flows. The CBPR system aims to facilitate trade and economic growth through enhancing electronic commerce and strengthening consumer privacy protections across the Asia Pacific region. The PPC’s recent decision to recognize the system as a mechanism for international data transfers in the implementing guidelines for Japan’s amended privacy law marks an important milestone for the development of the APEC CBPR system in Japan.
The Department of Commerce and PPC will meet regularly and work together with stakeholders from both countries to raise awareness of the CBPR and encourage other APEC member economies to participate.
“The CBPR system offers a tremendous opportunity across APEC to protect consumer privacy while facilitating data flows that are critical to trade and economic growth,” Acting Assistant Secretary Dean stated. “We look forward to continuing to work with the Government of Japan to implement and expand the APEC Cross Border Privacy Rules system.”
“The Commission has resolved to advocate for further cooperation with foreign counterparts to enable cross-border transfer of personal information while ensuring the protection thereof. The Commission will work strenuously to ensure the reciprocal and smooth transfer of data, including by promoting the APEC CBPR system. We look forward to continuing to cooperate with the Department of Commerce and the U.S. Government,” Secretary General Sonoda stated.
With Japan joining the United States as fully operational participants in the CBPR system, the continued expansion of the system across APEC countries will further enhance global trade and ensure that consumer privacy and data flows are protected throughout the APEC region. All 21 APEC economies committed to implement the CBPR system at the APEC Leaders’ Summit in Honolulu, Hawaii on November 13, 2011.
More information about the Cross Border Privacy Rules is available via the APEC CBPR website (www.cbprs.org) and APEC Electronic Commerce Steering Group website(http://apec.org/Groups/Committee-on-Trade-and-Investment/Electronic-Commerce-Steering-Group.aspx).
APEC Cross Border Privacy Rules (CBPR) System
The APEC Cross Border Privacy Rules (CBPR) system was developed by participating APEC economies after seeking the views of industry and civil society, to build consumer, business and regulator trust in cross border flows of personal information. The APEC CBPR system requires participating businesses to develop and implement data privacy policies consistent with the APEC Privacy Framework. These policies and practices must be assessed as compliant with the minimum program requirements of the APEC CBPR system by an Accountability Agent (an independent APEC CBPR system recognized public or private sector entity) and be enforceable by law.
Personal Information Protection Commission, Japan
The duties of the Personal Information Protection Commission (PPC) are to pursue securing the proper handling of personal information to protect an individual’s rights and interests while considering the utilization of personal information. The Commission, a collegial decision-making body comprising one chairperson and eight commissioners all of whom are appointed by the Prime Minister with the consent of both Houses of the Diet, decides on and proclaims the state-level intention and opinion on its own. The chairperson and eight commissioners exercise their official authorities independently.
CBP Seizes Over 220K Prescription Pills, Tablets - U.S. Customs & Border Protection
Two Illegally exported medication valued over $78,000
HOUSTON -- U.S. Customs and Border Protection officers working at the Houston Seaport seized prescription medication worth over $78,000 bound for Nigeria, Oct. 13.
CBP officers discovered the prescription medication concealed among common household goods.
A total of 229,992 tablets and pills including boxes of Amoxicillin, Lisinopril, Metformin, Amlodipine Besylate, Hydralazine and other controlled prescription drugs were all left off of the manifest; further complicating the matter was that the exporter did not have the required license to export these controlled items.
“We will take every opportunity to disrupt the illegal trafficking in prescription drugs,” said Houston CBP Port Director Roderick W. Hudson. “This is not a victimless crime because those profiting from the illegal exportation of prescription drugs are not only threatening the U.S. economy but are placing unwitting consumers abroad at risk as well.”
Medications for personal use are allowed to be exported, but there are limitations. Information is available and the permit for exporting controlled substance is available at Drug Enforcement Administration where an online application can be completed.
Medications can also be legally exported for humanitarian assistance, but require the exporter be registered with DEA.
In addition to the seizure of the prescription drugs, CBP initiated a penalty against the exporter for not making a proper declaration.