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    ISSUE #129 - 8/27/10
 
Individual commitment to a group effort - that is what makes a team work, a company work, a society work, a civilization work.
 
                            ~ Vince Lombardi
 

New proposals would help ensure a level playing field for U.S. companies 

U.S. Commerce Secretary Gary Locke today announced proposed measures – especially focused on illegal import practices from non-market economies - that will strengthen trade enforcement and help keep U.S companies competitive. These steps support President Obama’s National Export Initiative (NEI), which aims to double exports in the next five years and support the creation of several million new jobs. 

The National Export Initiative is focused on three key areas:  a robust, administration-wide trade promotion strategy, improving access to credit and continuing the rigorous enforcement of U.S. trade laws.

As part of that effort, Locke directed Commerce’s International Trade Administration (ITA) to survey the agency’s current trade remedy practices in order to determine how the Department could improve the effectiveness of its existing enforcement tools through administrative and regulatory changes.  Based on this review, Commerce has developed a list of 14 proposals that will help strengthen the administration of the nation’s antidumping (AD)* and countervailing duty (CVD)* laws.
 
“The Obama administration is committed to aggressively enforcing our trade laws to ensure a level playing field for U.S. companies and their workers – the engines of our economic growth,” Locke said. “Today’s announcement is another demonstration of our continuing efforts to sharpen our trade enforcement tools.”
 
Commerce’s ITA directly supports this NEI priority by enforcing the U.S. AD/CVD laws, which provide U.S. industries and workers with a reliable and transparent mechanism to seek relief from unfair trade practices that hinder their competitiveness in the U.S. market and abroad.   
 
Under the Obama administration, ITA continues to step up its enforcement of U.S. trade laws. In 2009, ITA’s Import Administration initiated 34 antidumping and countervailing duty investigations compared to 19 the previous year, an increase of 79 percent. Cases against non-market economies comprise roughly one-third of the Import Administration’s caseload.
 
Among the proposed changes:
  • Currently, individual companies from a foreign country were excused from AD/CVD duties by demonstrating that they were not dumping or receiving subsidies for a certain period of time. The new proposal would allow for companies to be removed from the process only upon the normal country-wide expiration of those duties.
  • Starting as early as when Commerce makes a preliminary determination on an AD/CVD investigation, a new proposed measure will require importers to post cash deposits rather than bonds to facilitate entry of their goods and services into the United States. Currently, once an initial affirmative determination is made in an AD/CVD case, importers are able to post a bond in the amount of the estimated duties owed. However, experience has shown that in certain circumstances, the amount of the bond proved inadequate to cover the ultimate AD/CVD liability.  Under this proposal, Commerce will ensure that importers will bear full responsibility for any future duties.
  • Additionally, to address a range of methodological issues unique to antidumping (AD) proceedings involving non-market economy countries, Commerce is proposing updates to its practice that will more closely capture the realities of how entities function in a non-market economy.  In this context, Commerce is proposing to adjust its antidumping calculation to account for export taxes or value added taxes included in the U.S. price that are not rebated upon export, just as in cases involving market economy countries.  Where such taxes are present, this proposed change would result in an increase in antidumping margins.
 
The other proposed changes would include: improved methodology for determining the value of labor in non market economy cases (to ensure that all benefits and other costs associated with labor are captured); tightening the certification process for the information submitted to Commerce as part of the AD/CVD case process; and strengthening specific rules to ensure that parties are paying the full amount of their anti-dumping duties.

In the coming months, Locke said the Commerce Department will conduct a transparent review of these proposals and seek public comment through a comprehensive stakeholder process.  The process for introducing these proposed changes will begin this fall.

President Obama announced the NEI during his State of the Union earlier this year. It will provide more funding, more focus and more cabinet-level coordination to grow U.S. exports, and it represents the first time the United States will have a government-wide export-promotion strategy with focused attention from the president and his cabinet.

Since the President announced the NEI, the Department of Commerce’s Advocacy Center has assisted American companies competing for export opportunities, supporting $11.7 billion in exports and an estimated 70,000 jobs. To date, the Commerce Department has coordinated 19 trade missions with over 195 companies to 25 countries. 

Exports remain an integral part of the U.S. economy. In 2008, American exports accounted for nearly 7 percent of our total employment and one in three manufacturing jobs. In the first four months of 2010, exports grew almost 17 percent compared to the same period last year.

* Antidumping duties are levied on foreign firms who, on the basis of a detailed investigation, are found to sell their products in the United States at prices that are below their home market price or their cost of production and cause injury to domestic industry. Countervailing duties are imposed after a similar investigation determines that imports into the United States have been unfairly subsidized by foreign governments and are injuring domestic producers.

Below you’ll find descriptions of the 14 proposed measures:
  • Expanded use of random sampling to select companies as individual respondents in AD investigations and reviews rather than choosing the largest exporters; 
  • Strengthening  Commerce’s current practice regarding the issuance of company-specific AD rates in NME cases;
  • Clarification of Commerce’s current NME practice that when  the Department uses import prices for valuing a production factor, such prices should include all applicable freight and handling costs;
  • Clarification of Commerce’s current NME practice to require companies to report production inputs for all products produced at each of their facilities – not just those facilities that produced merchandise destined for the United States – for use in the Department’s NME dumping calculations;
  • Clarification of Commerce’s current CVD practice to reiterate that Commerce considers state-owned enterprises (SOEs) as constituting a “specific” group when they are alleged to be receiving countervailable subsidies from the government;
  • Reconsidering the treatment of export taxes and value-added taxes (VAT) in Commerce’s NME AD methodology; and
  • Strengthening the treatment of resellers and other non-reviewed parties in NME cases to ensure that such parties pay the full amount of AD duties.
  • Adoption of a new methodology for valuing wage (labor) rates in NME cases by using surrogate wage rates that fully capture all labor costs (including benefits and taxes paid to workers by their employers) in the NME country;
  • Eliminating the practice of allowing individual companies  to seek removal from an antidumping (AD) or countervailing duty (CVD) order based on their ability to show zero dumping margins or subsidy rates for three (AD) or five (CVD) consecutive years;
  • Tightening the rules in non-market economy (NME) cases for determining when the price of production inputs purchased from market economy countries will be substituted for the Department’s standard valuation for such inputs;
  • Considering whether importers will be required to post cash deposits rather than bonds for imports that fall within the scope of an AD/CVD investigation starting with the issuance of Commerce’s preliminary determination (rather than following the imposition of an AD/CVD order);
  • Strengthening the certification process for the submission of factual information to the Department;
  • Strengthening the accountability of attorneys and non-attorneys practicing before Commerce; and
  • Tightening the deadlines for submitting new factual information in AD/CVD cases.

 


The Consumer Product Safety Commission has posted a draft version of its final interpretive rule that would add a new Part 1200 to 16 CFR on the term "children’s product" as used in the Consumer Product Safety Improvement Act of 2008 (CPSIA).

The draft version would define "children’s product" and "general use product," and provide additional guidance on the factors that are considered when evaluating what is a children’s product. The draft version also lists examples.

In addition, the draft's preamble contains CPSC responses to comments received on the proposed rule.

(Note that most of the requirements introduced by the CPSIA apply to "children’s products" (the phthalates bans, lead content limits, third-party testing, tracking labels, etc.).)

Decision Meeting on Rule Scheduled for Sept 9

A cover sheet accompanying the draft final interpretive rule states that a decision meeting for the rule is scheduled for September 9, 2010; a ballot vote has not been scheduled.

Draft Definition of "Children’s Product"

According to the draft regulations, the term "children’s product" would be defined as follows:

"Under section 3(a)(2) of the Consumer Product Safety Act (CPSA), a children’s product means a consumer product designed or intended primarily for children 12 years of age or younger. The term "designed or intended primarily" applies to those consumer products mainly for children 12 years old or younger.

Whether a product is a children’s product is determined by considering the four specified statutory factors. The examples discussed herein may also be illustrative in making such determinations.

The term “for use” by children 12 years or younger generally means that children will physically interact with such products based on the reasonably foreseeable use and misuse of such product.

Toys and articles that are subject to the small parts regulations at 16 CFR Part 1501 and ASTM F963, would logically fall within the definition of children’s product since they are intended for children 12 years of age or younger.

Toys and other articles intended for children up to 96 months (8 years old) that are subject to the requirements at 16 CFR 1500.48 through 1500.49 and 16 CFR 1500.50 through 1500.53, and ASTM F963 would similarly fall within the definition of children’s products given their age grading for these other regulations.

Therefore, a manufacturer could reasonably conclude on the basis of the age grading for these other regulations that it must comply with all requirements applicable to children’s products including, but not limited to, those under the Federal Hazardous Substances Act, ASTM F963, "Standard Consumer Safety Specification for Toy Safety," and the Consumer Product Safety Improvement Act of 2008."

 
 

CBP is announcing changes to the Harmonized Tariff Schedule of the United States (HTSUS) by the Manufacturing Enhancement of 2010.

BACKGROUND:
 
The Manufacturing Enhancement Act of 2010, which was signed into law on August 11, 2010, sets forth changes to subchapter II, chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS), as amended.  Goods listed in Titles I, II, and III of the Manufacturing Enhancement Act of 2010, entered or withdrawn from warehouse for consumption, on or after August 26, 2010 are afforded the duty suspensions or reductions listed in the Manufacturing Enhancement Act of 2010.

Title I of the Manufacturing Enhancement Act of 2010, added new duty suspensions and reductions to subchapter II, chapter 99 of the HTSUS.  Titles II and III of the Manufacturing Enhancement Act of 2010, pertain to either existing duty suspensions and reductions or additional existing duty suspensions and reductions to subchapter II, chapter 99 of the HTSUS.
 
ACTION:
 
Goods listed in Titles II and III of the Manufacturing Enhancement Act of 2010, are provided retroactive benefits for merchandise entered or withdrawn from warehouse, on or after January 1, 2010 and before August 26, 2010.  Notwithstanding section 514 of the Tariff Act of 1930, any other provision of law, US Customs and Border Protection (CBP) shall liquidate or reliquidate articles listed in Titles II and III in accordance with the Manufacturing Enhancement Act of 2010 upon a formal request filed with CBP.  Liquidation or reliquidation will occur only if the request is filed with CBP within 180 days after the enactment of the Manufacturing Enhancement Act of 2010.  The request must contain sufficient information to enable CBP to locate the entry or request a reconstructed entry if it cannot be located.  The request must be made at the port of entry.  Any payment of amounts owed by the Government pursuant to liquidation or reliquidation of an entry shall be paid without interest, not later than 90 days from the date of the liquidation or reliquidation.  CBP is in the process of updating the Automated Commercial System (ACS) to reflect the provisions of the Act.  And it is expected that these changes will be completed by the effective date.
 
 
 

The Pipeline and Hazardous Materials Safety Administration has issued a final rule that will, effective October 1, 2010, (with earlier voluntary compliance)1, amend certain packaging requirements in the Hazardous Materials Regulations to enhance compliance flexibility, improve clarity, and reduce regulatory burdens.

The following are highlights of the final rule:

Large Packaging Requirements

Effective October 1, 2010, the final rule will make the following amendments with respect to large packaging requirements (partial list):

Incorporates UN requirements. The final rule will incorporate certain United Nations requirements2 for large packagings, by, among other things, adding new subparts P and Q to 49 CFR Part 178 that specify design, construction, and testing requirements for large packagings. PHMSA explained that adding these requirements into the HMR provides additional flexibility and effectively removes the need to apply for an approval to manufacture and use these packagings in the U.S.

Authorization. 49 CFR 172.101 Hazardous Materials Table entries will be revised to authorize the use of large packagings for certain explosives, and revise packaging requirements for “Azodicarbonamide” and “Isosorbide-5-mononitrate.”

Special provisions. 49 CFR 172.102(c)(4) will be revised to include special provisions for Large Packagings, which specify that Large Packagings are authorized when a table entry specifies Special Provision IB3 or IB8.

Revised Definitions for Bulk Packaging, Large Packaging

The definitions for “Bulk packaging” and “Large packaging” will be revised to allow intermediate forms of containment and add a definition for “Strong outer packaging” for consistency and clarity when shipping in non-specification packaging.

Revision of Shipper Responsibilities

The shipper's responsibilities in 49 CFR 173.22(a)(4) will be revised to include a requirement to maintain a copy of the manufacturer's notification, including closure instructions, unless permanently embossed or printed on the packaging. When applicable, a person must also maintain a copy of any supporting documentation for an equivalent level of performance under the selective testing variation in 49 CFR 178.601(g)(1).

Stenciling of UN Symbol

The final rule will permit the stenciling of the UN symbol on specification packaging.

Authorizes Transport of Bromine in Cargo Tanks

The final rule will also authorize the transportation of bromine residue in cargo tanks.

1Compliance with the final rule requirements was authorized as of March 4, 2010.

2UN Recommendations on the Transport of Dangerous Goods, Thirteenth Revised Edition (2003); Chapter 6.6 Requirements for the Construction and Testing of Large Packagings.
 
 
 
Canada to Begin Collecting 10% Softwood Lumber Duties Sept 1 - Broker Power Inc. 

Canada's Gazette has published an order stating an additional 10% charge on the export of softwood lumber products originating in Ontario, Quebec, Manitoba or Saskatchewan will begin on September 1, 2010.

(September 1, 2010 is the date that sections 99 to 102 of Canada’s Jobs and Economic Growth Act come into force, which amend the Softwood Lumber Products Export Charge Act of 2006 to provide for the additional charge from these regions.)

U.S. to Cease Collection, Revenue to be Distributed to Canada Provinces

The September 1 coming-into-force date immediately follows the date on which the U.S. agreed to cease collecting a 10% import duty on Canadian softwood lumber products imported from the above-mentioned regions.

The U.S. Trade Representative and Canadian Minister of International Trade recently agreed to transfer to Canada collection of the duty that the U.S. currently imposes. Canada also noted that once it starts collecting the 10% additional duty, the revenue collected will stay in Canada and be distributed back to the four provinces.
 
 
 
Sandler Travis & Rosenberg PA

The International Trade Administration has announced that during the period Jan. 1 through March 31, 2010, it completed scope rulings concerning the antidumping and countervailing duty orders on the following products.

• Sparklers from China
• Hand trucks from China
• Lined paper products from China
• Steel nails from China
• Raw flexible magnets from China
• Polyethylene terephthalate film from China

In addition, requests for scope rulings and anti-circumvention determinations concerning the AD and CV duty orders on the following products were pending as of March 31.

Scope Inquiries

• Ball bearings and parts from Germany
• Iron construction castings from China
• Petroleum wax candles from China
• Tapered roller bearings from China
• Silicon metal from China
• Cased pencils from China
• Pure magnesium in granular form from China
• Folding metal tables and chairs from China
• Wooden bedroom furniture from China
• Hand trucks from China
• Artist canvas from China
• Steel nails from China
• Raw flexible magnets from China
• Steel threaded rod from China
• Kitchen appliance shelving and racks from China
• Carbazole violet pigment 23 from India and China

Anti-circumvention Rulings

• Cut-to-length carbon steel from China
• Tissue paper products from China
• Uncovered innerspring units from China 
 
 
 

The International Trade Administration is revoking the antidumping duty order on polychloroprene rubber from Japan, pursuant to the final results of its five-year sunset review.

Domestic Interested Parties Did Not Participate in Sunset Review

The ITA states that domestic interested parties did not file a notice of intent to participate in this sunset review; therefore, it finds that no domestic interested party is participating in this sunset review.

Suspension of Liquidation/Cash Deposits Terminated Effective Aug 4

The ITA is revoking the AD duty order effective August 4, 2010, and will issue instructions to U.S. Customs and Border Protection to terminate the suspension of liquidation and the collection of AD duty cash deposits on the merchandise subject to this finding1 with a time of entry on or after August 4, 2010.

Entries of subject merchandise prior to the effective date of revocation will continue to be subject to suspension of liquidation and AD duty deposit requirements.

ITA Will Complete Pending Reviews on Entries Prior to Aug 4

The ITA will also complete any pending administrative reviews and will conduct administrative reviews of subject merchandise with a time of entry prior to August 4, 2010, in response to appropriately filed requests of review.

1Imports covered by the finding are shipments of polychloroprene rubber, an oil resistant synthetic rubber also known as polymerized chlorobutadiene or neoprene, currently classifiable under HTS numbers 4002.41.00, 4002.49.00, 4003.00.00.

(FR Pub 08/24/10, ITA Case No. A-588-046)
 
 
 
 

Five terminals raise handling fees 2 percent, add service charges

Five marine terminals in the Port of New York and New Jersey will raise some handling fees by 2 percent and impose new charges for early delivery of export containers and for improperly documented hazardous-materials exports.

The changes, effective Oct. 1, were announced by the New York Terminal Conference, whose members are authorized to set common charges under Federal Maritime Commission authority.

Fees will not change for demurrage rates, VACIS and government inspection, and labor rates for special services.

The new schedule allows terminals to charge $125 per load for export cargo delivered to terminals ahead of schedule, in addition to the normal gate charge for early delivery. Terminals also will be permitted to charge a documentation fee of $50 per cargo unit for additional services required for hazmat exports that arrive with improper documentation.

Terminal conference members are American Stevedoring, Global Terminal, New York Container Terminal, Port Newark Container Terminal and Universal Maritime (APM Terminals). Maher Terminals is not a conference member.

 
 
 

Number of violations cited surges in second annual two-week sweep
 
Federal and state officials pulled more than 100 truck drivers off the road for drug and alcohol violations in a two-week investigative sweep. The drug and alcohol task force also levied charges on more than 175 companies.

That's a 42 percent increase in the number of truck and bus drivers put out of service from last year, when the first drug and alcohol task force put 77 drivers out of service and charged 84 companies with violating drug and alcohol rules.

"If you are a commercial driver or carrier operating in violation of federal drug and alcohol laws, we will remove you from our roadways," said Transportation Secretary Ray LaHood.

The sweep took place in late June and involved Federal Motor Carrier Safety Administration investigators and state truck and bus safety officials, FMCSA said. The investigators examined truck and bus company driver records.

Of the 109 drivers removed from service, 101 were truck drivers, FMCSA confirmed yesterday. Sixteen of those truckers had hazardous materials endorsements to their commercial driver's licenses, and four were driving a hazmat truck at the time.

The drivers face fines and the prospect of being barred from operating commercial vehicles. The 175 carriers cited could face fines and other penalties as well.
 
The drivers and companies may contest the alleged violations and penalties.
 
 

  
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Newsletter Archive:



C-Air Times Newsletter #130 - 9/03/10

C-Air Times Newsletter #129 - 8/27/10

C-Air Times Newsletter #128 - 8/20/10

C-Air Times Newsletter #127 - 8/13/10

C-Air Times Newsletter #126 - 8/06/10

C-Air Times Newsletter #125 - 7/30/10

C-Air Times Newsletter #124 - 7/16/10

C-Air Newsletter Issue 50 01/30/09

C-Air Newsletter Issue 49 01/23/09

C-Air Newsletter Issue 48 01/16/09

C-Air Newsletter Issue 47 01/05/09

C-Air Newsletter Issue 46 12/29/08

C-Air Newsletter Issue 45 12/19/08

C-Air Newsletter Issue 44 12/12/08

C-Air Newsletter Issue 43 12/05/08

C-Air Special Edition 11/26/08

C-Air Newsletter Issue 42 11/21/08

C-Air Newsletter Issue 41 11/14/08

C-Air Special Edition 10+2 Announcement 11/10/08

C-Air Newsletter Issue 40 11/07/08

C-Air Newsletter Issue 39 10/31/08

C-Air Newsletter Issue 38 10/24/08

C-Air Newsletter Issue 37 10/17/08

C-Air Newsletter Issue 36 10/10/08

C-Air Newsletter Issue 35 10/03/08

C-Air Newsletter Issue 34 09/26/08

C-Air Newsletter Issue 33 09/19/08

C-Air Newsletter Issue 32 09/12/08

C-Air Newsletter Issue 31 09/05/08

C-Air Newsletter Issue 30 08/29/08

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C-Air Newsletter Issue 21 06/27/08

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C-Air Newsletter Issue 17 05/30/08

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C-Air Newsletter Issue 8 02/22/08