USTR Soliciting Comments on the Removal of China Sec. 301 Duties from Additional Medical-Care Products - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
In a March 23, 2020 notice, the Office of the United States Trade Representative (“USTR”) has solicited comments identifying additional medical-care items that should be excluded from China Section 301 tariffs in light of the ongoing COVID-19 outbreak.
The comment period will remain open at least until June 25, 2020 (subject to potential extensions as deemed appropriate). There is also a mechanism for parties to file responses to comments.
Independent of the current action, the USTR has already approved approximately 200 separate exclusions covering personal protective equipment and other medical-care related products. In the current action, the USTR is seeking input as to whether there are additional items that are needed to respond to the COVID-19 outbreak that should be excluded.
Any comment must identify the particular product of concern and explain precisely how the product relates to the response to the COVID-19 outbreak (e.g., whether a product is directly used to treat COVID-19, to limit the outbreak, and/or is used in the production of needed medical-care products). Comments may be submitted even if there has been a previous request on the item that is either pending or has been denied. Specific filing requirements are provided.
If we can be of assistance in seeking China Section 301 tariff relief for products imported by your company, please do not hesitate to contact us.
Petitions for the Imposition of Antidumping and Countervailing Duties on Certain Vertical Shaft Engines Between 99CC and up to 225CC and Parts Thereof - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
I. Type of Action: Antidumping Duty (“AD”): China; Countervailing Duty (“CVD”): China
II. Product: The merchandise covered by this investigation consists of spark ignited, non-road, vertical shaft engines, whether finished or unfinished, whether assembled or unassembled, whether mounted or unmounted, primarily for walk-behind lawn mowers. Engines meeting this physical description may also be for other non-handheld outdoor power equipment, including but not limited to, pressure washers. The subject engines are spark ignition, single cylinder, air cooled, internal combustion engines with vertical power take off shafts with a minimum displacement of 99 cubic centimeters (“cc”) and a maximum displacement of up to 225cc. Typically, engines with displacements of this size generate gross power of between 1.95 kilowatts (“kw”) to 4.75 kw.
Engines covered by this scope normally must comply with and be certified under Environmental Protection Agency (EPA) air pollution controls title 40, chapter I, subchapter U, part 1054 of the Code of Federal Regulations standards for small non-road spark ignition engines and equipment. Engines that otherwise meet the physical description of the scope but are not certified under 40 CFR part 1054 and are not certified under other parts of subchapter U of the EPA air pollution controls are not excluded from the scope of this proceeding. Engines that may be certified under both 40 CFR part 1054 as well as other parts of subchapter U remain subject to the scope of this proceeding.
Certain small vertical shaft engines, whether or not mounted on non-hand-held outdoor power equipment, including but not limited to walk-behind lawn mowers and pressure washers, are included in the scope. However, if a subject engine is imported mounted on such equipment, only the engine is covered by the scope. Subject merchandise includes certain small vertical shaft engines produced in the subject country whether mounted on outdoor power equipment in the subject country or in a third country. Subject engines are covered whether or not they are accompanied by other parts.
For purposes of this investigation, an unfinished engine covers at a minimum a sub-assembly comprised of, but not limited to, the following components: crankcase, crankshaft, camshaft, pistons(s), and connecting rod(s). Importation of these components together, whether assembled or unassembled, and whether or not accompanied by additional components such as a sump, carburetor spacer, cylinder head(s), valve train, or valve cover(s), constitutes an unfinished engine for purposes of this investigation. The inclusion of other products such as spark plugs fitted into the cylinder head or electrical devices (e.g., ignition coils) for synchronizing with the engine to supply tension current does not remove the product from the scope. The inclusion of any other components not identified as comprising the unfinished engine subassembly in a third-country does not remove the engine from the scope.
III. HTS classifications: The engines subject to this investigation are predominantly classified in the Harmonized Tariff Schedule of the United States (HTSUS) at subheading 8407.90.1010. The engine subassemblies that are subject to this investigation enter under HTSUS 8409.91.9990. The mounted engines that are subject to this investigation enter under HTSUS 8433.11.0050, 8433.11.0060, and 8424.30.9000. Engines subject to this investigation may also enter under HTSUS 8407.90.1020, 8407.90.9040, and 8407.90.9060.
IV. Date of Filing: March 18, 2020
V. Petitioners: Briggs & Stratton Corporation
VI. Foreign Producers/Exporters: Please contact our office for a list filed with the petition.
VII. US Importers named: Please contact our office for a list filed with the petition.
VIII. Alleged Dumping Margins (No CVD Margins Listed): China: 324.73-637.73%
IX. Comments:
A. Projected date of ITC Preliminary Conference: April 8, 2020.
B. The earliest theoretical date for retroactive suspension of liquidation for the AD is May 27, 2020; CVD is April 7, 2020.
Please contact our office for a complete projected schedule for the AD/CVD investigations.
C. Volume and Value of Imports: Please contact our office for a summary of the data filed with the petition.
D. List of Alleged Subsidy Programs: Please contact our office for a list of alleged subsidy programs.
If you have questions regarding how this investigation may impact future imports of scope merchandise or whether a particular product is within the scope of the investigation, please contact one of our attorneys.
GDLSK Secures ITC Negatives Determination in Fabricated Structural Steel from China, Canada and Mexico - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
Today (3/20/20) the International Trade Commission (ITC) published notice of its 3 – 2 vote on February 22, 2020, determining that the domestic fabricated structural steel industry was neither materially injured nor threatened with material injury by imports of Fabricated Structural Steel (FSS) from China, Canada, and Mexico: https://www.govinfo.gov/content/pkg/FR-2020-03-20/pdf/2020-05845.pdf
GDLSK attorneys represented Chinese producers and exporters of FSS, as well as American importers. Working together with counsel for Canada and Mexico, and an economic expert shared by all three countries, GDLSK demonstrated through witness testimony and extensive evidentiary submissions that any problems experienced by the domestic FSS industry were not related to imports. In particular, GDLSK established that its clients’ bids for FSS projects in the United States – including sports stadiums and petrochemical plants – were won or lost based on factors totally unrelated to the cost of FSS.
As a result of this ITC vote, antidumping duty (ADD) and countervailing duty (CVD) orders will not be issued on FSS from China, Canada, or Mexico. Customs and Border Protection (CBP) will no longer require ADD/CVD cash deposits for FSS from these countries and ADD/CVD cash deposits collected by CBP since July 2019 (as high as 140%) will be refunded.
The ITC’s negative determination on FSS shows the importance of fighting ADD/CVD Petitions at the ITC, with experienced counsel and economists. Even after the Department of Commerce has determined that prohibitive ADD/CVD duties will be assessed, ADD/CVD liability was avoided by convincing the ITC that the dumped and subsidized imports are not injurious to domestic manufacturers. In this protectionist environment where significant retaliatory duties have become the norm, the ITC has retained its independence and has been willing to render negative determinations when persuasive evidence is presented to support the conclusion that imports are not the cause of injury or threat of injury.
This recent ITC victory is one of several significant ITC victories achieved by GDLSK in recent years. Other victories include Polytetrafluoroethylene Resin from China, Hydrofluorocarbon Components from China, and Tapered Roller Bearings from Korea. If you would like more information about the FSS matter or seek assistance with products subject to ADD/CVD investigations, please contact GDLSK.
Federal Register Notices:
Port of NY & NJ Maintains A Strong Supply Chain Amidst COVID-19 - Port of NY & NJ/Breaking Waves
Thanks to the hardworking men and women of the Port of New York and New Jersey, over 53,000 containers were delivered to the Port’s customers last week. Critical store shelves are being restocked daily and we expect another strong week.
Keeping the Port of New York and New Jersey fully operational is a shared priority of both our public and private sector partners. While efforts are being made across the country to help stop the spread of the Coronavirus, both the Federal Government through the Department of Homeland Security as well as the Governor’s of New York and New Jersey have affirmed that the maritime transportation and supply chain distribution systems are Essential Critical Infrastructure functions and therefore are able to continue operating during this challenging time. Read More
CBP Revokes Withhold Release Order on Disposable Rubber Gloves - U.S. Customs & Border Protection
WASHINGTON— U.S. Customs and Border Protection revoked the Withhold Release Order for rubber gloves imported by WRP Asia Pacific Sdn. Bhd. yesterday.
Effective March 23, 2020, disposable rubber gloves manufactured by WRP Asia Pacific Sdn. Bhd after March 16, 2020 will be admissible at all U.S. ports of entry
The WRO, which was initially levied against the company in September 2019, was revoked based on recent information obtained by CBP showing the company is no longer producing the rubber gloves under forced labor conditions.
The process for revoking this WRO is a result of close, continuous communication between CBP and WRP Asia Pacific Sdn. Bhd to address concerns over working conditions and adherence to the International Labor Organization’s labor standards. CBP provided feedback to the company to adjust their manufacturing and labor practices and ensure that their supplies are compliant with U.S. and international labor standards.
“This is an example of the mutually beneficial and positive results that occur when importers and manufacturers work with CBP to achieve common goals,” according to CBP’s Executive Assistant Commissioner for the Office of Trade Brenda Smith. “We are very pleased that this effort successfully mitigated a significant supply chain risk and resulted in better working conditions and more compliant trade.”
Under 19 U.S.C. § 1307, goods made, in whole or in part, by forced labor, including convict labor, forced child labor, and indentured labor may not be imported into the United States. CBP issues withhold release orders when information available reasonably indicates that merchandise that is imported, or is likely to be imported, is in violation of this statute.
CBP Officers in El Paso Seize Large Shipment of Altered and Prohibited Household Cleaning Products - U.S. Customs & Border Protection
EL PASO, Texas – Smuggling can be a dirty business even when it involves cleaning supplies.
CBP officers working at the Bridge of the Americas commercial import facility at the El Paso port of entry, learned this when they encountered a large shipment of what appeared to be cleaning supplies arriving from Mexico on March 16. The products appeared to be tampered with and prohibited for sale in the U.S.
“In the current environment it is reprehensible that someone would attempt a scheme like this to prey upon the concerns and fears of our community, likely for financial gain,” said CBP El Paso Director of Field Operations Hector Mancha. “Our officers remain focused and attentive to all threats they may encounter.”
During the inspection, the driver of a box truck presented CBP officers with a manifest showing the shipment included cleaning supplies and toilet paper. CBP officers selected the shipment for inspection and found that it contained 168 boxes of Clorox bleach (127 oz.), 75 boxes of Pinol cleaner (33.81 oz.), 28 boxes of Fabuloso cleaner (169 oz.), 23 boxes of Pinol cleaner (27.99 oz.), 9 boxes of Clorox cleaner (31.44 oz.), and 20 boxes of Adorable brand toilet paper.
During a dock exam of the products inspection, CBP officers and National Guard soldiers noted that many of the bottles had no safety seals and appeared to have been tampered with. Bottles containing bleach also lacked the familiar bleach scent.
Initial field-testing showed that the products contained water. Further CBP laboratory testing indicated that the primary ingredient in many of the items sampled was only water and not what labeling suggested. A representative from the Clorox Company also advised CBP that the Spanish labeled product was not permitted for sale in the U.S. and importation is a violation.
All products were seized pending further investigation