U.S. House of Representatives passed H.R. 1493, the “Protect and Preserve International Cultural Property Act”
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
On April 13, 2016, the U.S. House of Representatives passed H.R. 1493, the “Protect and Preserve International Cultural Property Act” that included emergency import restrictions for such material coming from Syria. A copy of the Bill could be viewed by selecting the below link.
https://www.congress.gov/114/bills/hr1493/BILLS-114hr1493eas.pdf
California-Based Z Gallerie LLC Agrees to Pay $15 Million to Settle False Claims Act Suit Alleging Evaded Customs Duties
Department of Justice
The Department of Justice announced today that Z Gallerie LLC has agreed to pay $15 million to resolve allegations that the company engaged in a scheme to evade customs duties on imports of wooden bedroom furniture from the People’s Republic of China (PRC), in violation of the False Claims Act. Z Gallerie sells upscale furniture and accessories in stores across the United States and through the Internet. The company is headquartered in Los Angeles, California.
“This settlement reflects the Department of Justice’s commitment to ensure that those who import and sell foreign-made goods in the United States comply with the law, including laws meant to protect domestic companies and American workers from unfair competition abroad,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will zealously pursue those who seek an unfair advantage in U.S. markets by evading the duties owed on goods imported into this country.”
The Department of Commerce assesses, and the U.S. Department of Homeland Security’s Customs and Border Protection (CBP) collects, duties to protect U.S. manufacturers from unfair competition abroad by leveling the playing field for domestic products. The particular duties at issue in this case are antidumping duties, which protect domestic manufacturers against foreign companies “dumping” products on U.S. markets at prices below cost. Imports of wooden bedroom furniture manufactured in the PRC have been subject to antidumping duties since 2004.
The settlement announced today resolved allegations that Z Gallerie evaded antidumping duties on wooden bedroom furniture imported from the PRC from 2007 to 2014, by misclassifying, or conspiring with others to misclassify, the imported furniture as pieces intended for non-bedroom use on documents presented to CBP. For example, Z Gallerie allegedly sold certain Bassett Mirror Company products, including a six-drawer dresser and three-drawer chest, as part of a bedroom collection; however, these goods were misidentified on CBP documents, using descriptions such as “grand chests” and “hall chests,” in order to avoid paying antidumping duties on wooden bedroom furniture.
“Savannah is home to one of the fastest growing ports in the country, handling almost 10 percent of all the containerized cargo volume in the United States,” said U.S. Attorney Edward J. Tarver for the Southern District of Georgia. “This U.S. Attorney’s Office will work hard to make sure those using the Port of Savannah play by the rules, and to hold those who try to cheat their way out of paying customs duties accountable.”
“Under the new Trade Facilitation and Trade Enforcement Act, CBP will likely see an increase in these types of settlements as the streamlined processes take effect concerning allegations of duty evasion,” said CBP Commissioner R. Gil Kerlikowske. “The Act reinforces CBP’s existing authorities and tools to collect and investigate public allegations of duty evasion improving the overall effectiveness and enforcement of CBP law enforcement actions concerning illicit trade activity, specifically in the area of antidumping and countervailing duty evasion schemes.”
“Companies that intentionally mislabel shipments or misrepresent the value of goods being imported into the United States to avoid paying the appropriate duties do so in an attempt to create an unfair advantage over businesses that play by the rules,” said Special Agent in Charge Nick S. Annan of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI) in Atlanta. “This type of activity hurts legitimate U.S. businesses and, by extension, our overall national economy. Uncovering these types of schemes will continue to be a major investigative priority for ICE HSI.”
The allegations resolved by the settlement were originally brought by whistleblower Kelly Wells, an e-commerce retailer of furniture, under the qui tam provisions of the False Claims Act. The act permits private parties to sue on behalf of the United States those who falsely claim federal funds or, as in this case, those who avoid paying funds owed to the government or cause or conspire in such conduct. The act also allows the whistleblower to receive a share of any funds recovered. Wells will receive $2.4 million as her share of the settlement.
The investigation was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Georgia, CBP and HSI Atlanta.
The claims resolved by this settlement are allegations only; there has been no determination of liability.
ITA: OTEXA (Office of Textiles and Apparel) Announcements
International Trade Administration
04/18/2016 – USITC announces investigation “Nepal: Advice Concerning Whether Certain Textile and Apparel Articles are Import Sensitive”. Public hearing set for June 9, 2016. Written submissions for the record must be submitted no later than June 24, 2016.
04/18/2016 – – CITA is soliciting public comments on three (3) new Commercial Availability Requests under the U.S.-Morocco FTA: certain woven fabrics for dresses, skirts, blouses and tops; certain woven fabrics for pants, skirts, jackets, shirts, and casual dresses; and certain woven fabrics for women’s pants. Comments on the requests must be received by May 16, 2016.
USITC Makes Determination in Five-Year (Sunset) Review Concerning Petroleum Wax Candles from China
U.S. International Trade Commission
The U.S. International Trade Commission (USITC) today determined that revoking the existing antidumping duty order on petroleum wax candles from China would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.
As a result of the Commission’s affirmative determination, the existing antidumping duty order on imports of these products from China will remain in place.
All six Commissioners voted in the affirmative.
Today’s action comes under the five-year (sunset) review process required by the Uruguay Round Agreements Act. See the attached page for background on this five-year (sunset) review.
The Commission’s public report Petroleum Wax Candles from China (Inv. No. 731-TA-282 (Fourth Review), USITC Publication 4610, May 2016) will contain the views of the Commission and information developed during the review.
The report will be available by May 31, 2016; when available, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.
BACKGROUND
The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the USITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies (Commerce) and of material injury (USITC) within a reasonably foreseeable time.
The Commission’s institution notice in five-year reviews requests that interested parties file responses with the Commission concerning the likely effects of revoking the order under review as well as other information. Generally within 95 days from institution, the Commission will determine whether the responses it has received reflect an adequate or inadequate level of interest in a full review. If responses to the USITC’s notice of institution are adequate, or if other circumstances warrant a full review, the Commission conducts a full review, which includes a public hearing and issuance of questionnaires.
The Commission generally does not hold a hearing or conduct further investigative activities in expedited reviews. Commissioners base their injury determination in expedited reviews on the facts available, including the Commission’s prior injury and review determinations, responses received to its notice of institution, data collected by staff in connection with the review, and information provided by the Department of Commerce.
The five-year (sunset) review concerning Petroleum Wax Candles from China was instituted on December 1, 2015.
On March 7, 2016, the Commission voted to conduct an expedited review. All six Commissioners concluded that the domestic group response for this review was adequate and the respondent group response was inadequate and voted for an expedited review.
A record of the Commission’s vote to conduct an expedited review is available from the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may be made by telephone by calling 202-205-1802.
CBP Officers in Tampa Seize More Than Half a Million Dollars in Counterfeit Memory Cards
U.S. Customs & Border Protection
TAMPA – Over the course of only a few days, U.S. Customs and Border Protection (CBP) Office of Field Operations (OFO) officers working at Area Port of Tampa discovered two shipments with more than half a million dollars-worth of counterfeit merchandise.
CBP officers first examined an air shipment containing merchandise containing counterfeit memory cards worth a total estimated Manufacturer’s Suggested Retail Price (MSRP) value of $155,000.
Later in the week, CBP officers targeted an additional shipment of counterfeit memory cards with a total estimated MSRP value of over $395,000.
“It is extremely important that we continue to intercept this kind of counterfeit merchandise in order to protect the rights of the trademark holder and the American economy,” said Tampa Port Director Radames A. Torres.
Intellectual Property Rights (“IPR”) enforcement is a CBP Priority Trade Issue.
U.S. Customs and Border Protection (CBP) and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) released their Fiscal Year 2015 IPR Seizure Statistics this month. The total number of seizures for IPR violations increased nearly 25 percent in fiscal year 2015 nationwide. The collaboration netted 28,865 seizures of shipments, an increase from 23,140 in fiscal year 2014.
If you are aware of, or suspect, a company or individual of infringing upon a trademark or copyright, please report the suspected violation to e-Allegations Online Trade Violation Reporting System or by calling 1-800-BE-ALERT.
In Florida, CBP facilitates travel and trade and secures over 1,200 miles of the coastal border. Find out more and get real-time updates at @CBPFlorida on Twitter.
CBP Seizes 1,700 Fake Shirts At Alexandria Bay Port Of Entry
U.S. Customs & Border Protection
ALEXANDRIA BAY, N.Y. — U.S. Customs and Border Protection officers have seized more than 1,700 counterfeit shirts at the Port of Alexandria Bay, N.Y. The shipment of shirts was valued by CBP at more than $66,000.
“Our officers and import specialists did an excellent job targeting this shipment and identifying the counterfeit items,” said Port Director Tim Walker.“CBP protects businesses and consumers every day with an aggressive intellectual property rights enforcement program.”
Officers selected a shipment for secondary examination where they discovered more than 1,700 shirts bearing the trademarks of Tapout and Ralph Lauren. Further examination by CBP officers indicated the shirts were counterfeit.
Products that infringe on U.S. trademarks, copyrights, and patents threaten the health and safety of American consumers, the economy, and national security.CBP and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations continue IPR enforcement against illicit imports.
If you have information about counterfeit merchandise being illegally imported into the U.S., CBP encourages you to submit an E-Allegation. The E-Allegation provides a means for the public to anonymously report to CBP any suspected violations of trade laws or regulations related to the importation of goods into the U.S.
Violations may include misclassification of merchandise, false country-of-origin markings, health and safety issues, valuation issues, and intellectual property rights. To submit your trade allegation, please visit E-Allegation.
ICE Remains Committed to IP Enforcement
Immigration and Customs Enforcement
WASHINGTON – U.S. Immigration and Customs Enforcement (ICE) is reminding the U.S. public on World Intellectual Property Day 2016 that IP theft threatens the health and safety of consumers, negatively impacts the American economy and funds transnational criminal organizations involved in violent activities.
The ICE-led National Intellectual Property Rights Coordination Center (IPR Center), a task-force agency combining the expertise of 23 investigative organizations, is the U.S. government’s response to ensuring national security by protecting the public, the economy and the national defense supply chain that are vulnerable to the proliferation of counterfeit goods.
The IPR Center supports ICE agents conducting investigations to identify, disrupt and dismantle entities involved in the manufacture and distribution of illicit counterfeit products. The agency’s robust operational portfolio played an essential role in contributing to the record number of seizures made in fiscal year 2015 that were worth an estimated $1.35 billion. There were 538 arrests, with 339 indictments, and 357 convictions all related to intellectual property rights violations during the same year.
The IPR Center has enhanced IP enforcement by collaborating with international customs and investigative authorities. Last fall the agency coordinated with police in China to shut down a counterfeit airbag distribution network that was selling illegal goods in the United States. In February, the IPR Center worked with enforcement agencies in Mexico and Hong Kong to crackdown on the sale of counterfeit sports-related merchandise.
“Intellectual property enforcement is a team effort between U.S. government agencies, international customs authorities and members of industry,” said IPR Center Director Bruce Foucart. “The IPR Center is committed to providing training and outreach to domestic and international agencies, education the public on the dangers of counterfeit goods and supporting field investigations by affording agents with all possible resources.”
Other initiatives over the past year include expanding the Trade Enforcement Coordination Center effort, an approach that strengthens ICE and U.S. Customs and Border Protection collaboration in major U.S. port cities by increasing the exchange of intelligence, and developing new operations to place emphasis on various counterfeit consumer products harmful to the public.
Founded in 2000, the IPR Center – formally codified in the Trade Facilitation and Trade Enforcement Act of 2015 – is one of the U.S. government's key weapons in the fight against criminal counterfeiting and piracy. The center uses the expertise of its 23 member agencies to share information, develop initiatives, coordinate enforcement actions, and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and the war fighters.
In 2000, the World Intellectual Property Organization (WIPO) designated April 26 – the day on which the WIPO Convention came into force in 1970 – as World IP Day with the aim of increasing general understanding of IP. Since then, World IP Day has offered a unique opportunity each year to join with others around the globe to consider how IP contributes to the flourishing of music and the arts and to driving the technological innovation that helps shape our world.