USTR Initiates 301 Investigation on China’s Policies Targeting the Maritime, Logistics, and Shipbuilding Industries - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
On April 17, 2024, the United States Trade Representative (USTR) announced that it has initiated an investigation under Section 301 of the Trade Act of 1974 to review China’s acts, policies, and practices targeting the maritime, logistics, and shipbuilding sectors. The investigation is in response to a petition filed by a coalition of U.S. labor unions alleging that China is using unfair practices to dominate these industries. In the event that the investigation concludes that China’s practices are unfair and have a significant adverse impact on U.S. domestic industry, USTR is empowered to take actions that include imposing additional tariffs.
USTR is now accepting comments regarding the investigation. Comments may be submitted though June 5, 2024, but USTR has indicated that comments should be filed by May 22, 2024, to be assured of consideration. USTR will also conduct a public hearing on May 29, 2024, in Washington, DC. Requests to testify at the hearing must be filed by May 22, 2024.
GDLSK has extensive experience in assisting interested parties with both submitting comments to USTR and testifying before the agency, having represented a wide range of companies that participated in the Section 301 investigation into China’s forced technology transfer policies and practices that was initiated in 2017.
Should you have any questions regarding this investigation or if you require assistance in submitting comments or appearing at the public hearing, please contact Joseph Spraragen or any of our attorneys.
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USTR Initiates Section 301 Investigation of China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance - U.S. Trade Representative
WASHINGTON – The United States Trade Representative announced today (4/17/24) that after review of a petition filed with the Office of the U.S. Trade Representative (USTR) by five national labor unions, USTR is initiating an investigation of acts, policies, and practices of the People’s Republic of China (PRC) targeting the maritime, logistics, and shipbuilding sectors for dominance.
“The petition presents serious and concerning allegations of the PRC’s longstanding efforts to dominate the maritime, logistics, and shipbuilding sectors, cataloguing the PRC’s use of unfair, non-market policies and practices to achieve those goals. The allegations reflect what we have already seen across other sectors, where the PRC utilizes a wide range of non-market policies and practices to undermine fair competition and dominate the market, both in China and globally,” said Ambassador Katherine Tai. “I pledge to undertake a full and thorough investigation into the unions’ concerns.”
As explained in a formal notice, USTR is seeking public comments and will hold a public hearing in connection with this investigation.
Background
Section 301 of the Trade Act of 1974, as amended, (Trade Act) is designed to address unfair foreign practices affecting U.S. commerce. Section 301 may be used to respond to unjustifiable, unreasonable, or discriminatory foreign government practices that burden or restrict U.S. commerce. The Section 301 provisions of the Trade Act provide a domestic procedure through which interested persons may petition the U.S. Trade Representative to investigate a foreign government act, policy, or practice and take appropriate action.
On March 12, 2024, five national labor unions filed a petition requesting an investigation into the acts, policies, and practices of the PRC targeting the maritime, logistics, and shipbuilding sectors for dominance. The five petitioner unions are:
• the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO CLC (“USW”);
• the International Association of Machinists and Aerospace Workers (“IAM”);
• the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers, AFL-CIO/CLC (“IBB”);
• the International Brotherhood of Electrical Workers (“IBEW”); and
• the Maritime Trades Department, AFL-CIO (“MTD”).
The petition was filed pursuant to Section 302(a)(1) of the Trade Act (19 U.S.C. § 2412(a)(1)), requesting action pursuant to Section 301(b) (19 U.S.C. § 2411(b)). A Section 301(b) investigation examines whether the acts, policies, or practices are unreasonable or discriminatory and burden or restrict U.S. commerce. After consideration of the petition and on the advice of the Section 301 Committee, the United States Trade Representative has initiated an investigation. The U.S. Trade Representative must seek consultations with the foreign government whose acts, policies, or practices are under investigation. USTR has requested consultations with the People’s Republic of China in connection with the investigation.
A copy of the petition is available here.
A docket for requests to appear at the public hearing to be held in connection with this investigation will be available here.
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Procedures for Debarring Vessels from Entering U.S. Ports - Federal Register/U.S. Customs & Border Protection
AGENCY: U.S. Customs and Border Protection, Department of Homeland Security.
ACTION: Final rule.
SUMMARY: This final rule amends Department of Homeland Security (DHS) regulations by adding procedures regarding DHS's authority to debar from entering U.S. ports vessels owned or chartered by an entity found to be in violation of certain laws and regulations relating to the performance of longshore work by nonimmigrant crew members. The new procedures govern how U.S. Customs and Border Protection (CBP) provides notice to a vessel owner or operator of a debarment and how the owner or operator may request mitigation. The new procedures will ensure that the vessel debarment process is consistent, fair, and transparent.
DATES: This final rule is effective on May 6, 2024.
FOR FURTHER INFORMATION CONTACT:
Lisa Santana Fox, Director, Fines, Penalties and Forfeitures Division, Office of Field Operations, U.S. Customs and Border Protection, at 202-344-2730 or Lisa.K.SanatanaFox@cbp.dhs.gov.
SUPPLEMENTARY INFORMATION:
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Federal Register Notices:
• Rescission of Antidumping and Countervailing Duty Administrative Reviews
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Initiation of Five-Year (Sunset) Reviews; Correction
• Aluminum Lithographic Printing Plates From the People's Republic of China: Preliminary Determination of Critical Circumstances, in Part, in the Countervailing Duty Investigation; Correction
• Certain Lined Paper Products From India: Final Results of Antidumping Duty Administrative Review and Final Determination of No Shipments; 2021-2022
• Xanthan Gum From the People's Republic of China: Continuation of Antidumping Duty Order
• Certain Passenger Vehicle and Light Truck Tires From the People's Republic of China: Amended Final Results of Antidumping Duty Administrative Review; 2021-2022
• Aluminum Extrusions From Mexico: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination; Correction and Retraction
• Investigations; Determinations, Modifications, and Rulings, etc.: Steel Concrete Reinforcing Bar (Rebar) From Belarus, China, Indonesia, Latvia, Moldova, Poland, and Ukraine; Scheduling of a Full Five-Year Reviews
• Certain Fitness Devices, Streaming Components Thereof, and Systems Containing Same Institution of Rescission Proceeding; Issuance of Order Rescinding Remedial Orders as to Certain Respondents; Termination of Rescission Proceeding
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Clad Steel Plate From Japan: Continuation of Antidumping Duty Order
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Common Alloy Aluminum Sheet From Germany: Final Results of Changed Circumstances Review and Revocation of the Antidumping Duty Order, in Part
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Self-Balancing Electric Skateboards and Components Thereof; Notice of a Commission Determination Not To Review an Initial Determination Finding the Only Remaining Respondent in Default; Request for Written Submissions on Remedy, the Public Interest, and Bonding
• Certain Smart Wearable Devices, Systems, and Components Thereof; Notice of Institution of Investigation
• 2,4-Dichlorophenoxyacetic Acid (“2,4-D”) From China and India; Revised Schedule for the Subject Investigations
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Polyester Textured Yarn From India: Final Results of Antidumping Duty Administrative Review; 2022
• Melamine From Germany, India, Qatar, and Trinidad and Tobago: Postponement of Preliminary Determinations in the Countervailing Duty Investigations
• Applications for Duty-Free Entry of Scientific Instruments: University of Chicago; Application(s) for Duty-Free Entry of Scientific Instruments
• Sales at Less Than Fair Value; Determinations, Investigations, etc.: Boltless Steel Shelving Units Prepackaged for Sale From Malaysia: Final Affirmative Determination of Sales at Less-Than-Fair Value
• Boltless Steel Shelving Units Prepackaged for Sale From Thailand: Final Affirmative Determination of Sales at Less Than Fair Value
• Boltless Steel Shelving Units Prepackaged for Sale From Taiwan: Final Affirmative Determination of Sales at Less Than Fair Value
• Boltless Steel Shelving Units Prepackaged for Sale From the Socialist Republic of Vietnam: Final Affirmative Determination of Sales at Less-Than-Fair-Value
• Boltless Steel Shelving Units Prepackaged for Sale From India: Final Negative Determination of Sales at Less Than Fair Value
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CBP Trade Summit in Philadelphia Highlights the Importance of Partnership - U.S. Customs & Border Protection
At a time when the U.S. economy is thriving, a standing-room-only crowd packed the halls of U.S. Customs and Border Protection’s Trade Facilitation and Cargo Security Summit on March 26-28 in Philadelphia. The three-day conference, which attracted 1,200 on-site and 3,000 virtual participants, focused on the critical need for strong communication and partnership.
“CBP remains committed to our partnership with you and the broader trade community. The Summit is an excellent opportunity for us to provide you with critical updates on our efforts, explore areas of shared interest, and hear from you on your priorities,” said Troy A. Miller, CBP’s Senior Official Performing the Duties of the Commissioner, who gave the opening address.
Miller spoke about the progress CBP has made. “We recently launched the Green Trade Incentives Analysis, a comprehensive research initiative, to identify meaningful incentives to minimize environmental harms and maximize environmental benefits of trade,” he said. On the intellectual property front, Miller shared that during fiscal year 2023, “CBP seized 19,522 shipments, containing nearly 23 million items in violation of intellectual property rights. The total estimated manufacturer’s suggested retail price of the seized goods, had they been genuine, is nearly $2.5 billion.”
In terms of forced labor, Miller reported that “CBP’s aggressive enforcement actions over the last four years have improved the working and living conditions for thousands of workers around the world. This enforcement has resulted in the repayment of over $62 million in withheld wages and recruitment fees to workers trapped in debt bondage. We are also seeing companies adjust their supply chains and enhance their due diligence. That is your impact,” said Miller. “Partnerships protecting the security, health, and economic vitality of the American people requires intense work and collaboration with everyone in this room.”
“Our partnerships make us stronger, more adaptable, and better prepared to meet the challenges of today and tomorrow,” Miller continued, citing Customs Trade Partnership Against Terrorism, CTPAT, as a prime example. “For over 20 years, the CTPAT program has been at the forefront of robust public-private partnerships to secure all of our supply chains. The program continues to play an integral part in our multi-layered cargo enforcement strategy, enabling CBP to prioritize the facilitation of secure and compliant trade.”
Leveraging technology
One of the major outcomes of partnership that Miller discussed is innovation. “The trade environment is constantly evolving and expanding. At the same time, we are continuously seeking to leverage technology to become more efficient and effective in our mission,” said Miller, noting that in fiscal year 2023, CBP processed over $5 trillion in combined imports and exports and collected more than $92 billion in duties, taxes, and other fees on behalf of the U.S. government. “Investing in technology innovation can help us manage these increases. We need to continue moving forward with our modernization efforts of the Automated Commercial Environment to ACE 2.0,” CBP’s cargo processing system.
Miller told attendees that in 2023, CBP had successfully tested technology and standards that assisted with origin compliance and product identification in the steel industry and affirmed preferential treatment under free trade agreements for oil transported by pipelines. “In 2024, we will expand our tests into the areas of e-commerce, food safety, and natural gas. But we need authorization, funding, and collaboration with industry and our interagency partners to really make an impact,” said Miller.
CBP also is investing in non-intrusive inspection technology, NII systems, that allows officers to detect anomalies in cargo and identify contraband and illicit goods more quickly. “Eight minutes compared to two hours for a physical inspection, which saves everyone time and money,” said Miller. “CBP is saving an estimated $1 billion in annual operating costs and the trade industry will save billions through improved efficiency and reduced delays.” Miller shared that CBP officers used large-scale NII to conduct more than 9.4 million exams, resulting in over a thousand seizures in fiscal year 2023. “These seizures included more than 50,000 kilograms of drugs and $2.5 million in undeclared U.S. currency.”
Continue reading
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Following Baltimore Port Closure, Port of New York and New Jersey Pitches In - Port of New York and New Jersey / Breaking News
After seeing the horrific images out of Baltimore, it was the first thought that popped into Bethann Rooney’s head: “What can we do to help?”
It was early Tuesday when the Port Authority’s port director helped to unleash a series of measures up and down the East Coast aimed at keeping the regional supply chain running smoothly after the Port of Baltimore, one of the nation’s busiest ports, went offline.
At the Port of New York and New Jersey, that help is taking many forms. For one, the port is helping to move additional cargo offloaded from ships that already stop here. Just 24 hours after the bridge collapse, the port was already accepting cargo from ships berthed in New York/New Jersey that were supposed to call next at Baltimore.
“What would typically happen is we take 60 to 65 percent of ship’s capacity off at our terminals here before they go on to other ports,” Rooney explained. “Now, we’re going to take 70 to 75 percent of the ship’s capacity off here.”
Read entire article here
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Venezuela Sanctions Relief: Expiration of General License 44 - U.S. Department of State
After a careful review of the current situation in Venezuela, the United States determined Nicolas Maduro and his representatives have not fully met the commitments made under the electoral roadmap agreement, which was signed by Maduro representatives and the opposition in Barbados in October 2023. Therefore, General License 44, which authorizes transactions related to oil or gas sector operations in Venezuela, will expire at 12:01 AM on April 18.
Despite delivering on some of the commitments made under the Barbados electoral roadmap, we are concerned that Maduro and his representatives prevented the democratic opposition from registering the candidate of their choice, harassed and intimidated political opponents, and unjustly detained numerous political actors and members of civil society. We again call on Maduro to allow all candidates and parties to participate in the electoral process and release all political prisoners without restrictions or delay.
In order to implement an orderly process following the expiration of General License 44, the United States will issue a 45-day wind-down license. Treasury’s Office of Foreign Assets Control also will consider requests for specific licenses to continue activities beyond the end of the wind-down period on a case-by-case basis.
We will continue to support Venezuelans’ aspirations for a more democratic, stable, and prosperous Venezuela. We and our partners in the international community urge Maduro to uphold all the commitments made under the electoral roadmap established by the signatories of the Barbados Agreement.