GDLSK CAFTA-DR Short-Supply Fabric Request Approved
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
In a notice published in the Federal Register on May 17, 2016, the Committee for the Implementation of Textile Agreements (“CITA”) announced its approval of a short supply petition filed by GDLSK seeking a determination that certain warp stretch woven rayon blend fabrics are not available in commercial quantities in a timely manner in the CAFTA–DR (Central America Free Trade Agreement – Dominican Republic) countries.
The specific fabrics have been added to the CAFTA–DR short supply list in unrestricted quantities meaning that garments made from such fabrics may qualify for duty-free treatment, even where the fabric is formed outside of the CAFTA–DR region.
Under the CAFTA-DR short supply program, subject to certain additional conditions, a garment made from non-CAFTA-DR fabric is entitled to duty-free treatment when it is cut (and/or knit to shape) and sewn in the CAFTA-DR territory if the fabric of the outer shell (exclusive of collars, cuffs and ribbed waistbands - but only if the ribbed waistband is present in combination with cuffs of identical fabric construction) is wholly of--
(1) one or more fabrics listed in the short supply list; or
(2) one or more fabrics or knit to shape components formed in the CAFTA-DR territory from one or more yarns listed in the short supply list; or
(3) any combination of the above.
The Federal Register notice announcing the approval and setting forth the specifications of the recently added short supply fabric can be accessed at: this link
Please contact Arthur W. Bodek for further information on this fabric short supply development and on how we may generally assist in qualifying imported goods under available Free Trade Agreements and other duty-free programs.
USITC Releases Report Concerning Possible Modifications to the U.S. Generalized System of Preferences for Additions, Removals, and Competitive Need Limitation Waivers
U.S. International Trade Commission
The U.S. International Trade Commission (USITC) today released a public version of its confidential report on possible modifications to the Generalized System of Preferences (GSP).
The investigation, Generalized System of Preferences: Possible Modifications, 2015 Review (Investigation No. 332-556), was requested by the U.S. Trade Representative (USTR).
The USITC, an independent, nonpartisan, factfinding federal agency, submitted a confidential version of the report to the USTR on April 26, 2016. The USTR requested that the USITC issue a public version of the report containing only the unclassified sections, with any business confidential information deleted.
As requested, the USITC provided advice on the likely impact on U.S. imports, competing U.S. industries, and U.S. consumers of the addition of the following Harmonized Tariff Schedule (HTS) subheadings:
For all GSP-eligible countries:
- 2204.21.20 (effervescent wine),
- 3301.13.00 (essential oil of lemon), and
- 7202.11.50 (ferromanganese containing by weight more than 4 percent of carbon).
For least-developed beneficiary developing countries (LDBDC), African Growth and Opportunity Act (AGOA) beneficiary developing countries, and both these country groupings combined:
- 29 HTS subheadings for certain handbags and travel goods products (4202.11.00, 4202.11.00.30, 4202.11.0090, 4202.12.2020, 4202.12.2050, 4202.12.40, 4202.12.8030, 4202.12.8070, 4202.21.60, 4202.21.90, 4202.22.15, 4202.22.45, 4202.22.8050, 4202.31.60, 4202.32.40, 4202.32.80, 4202.32.9550, 4202.32.9560, 4202.91.0030, 4202.91.0090, 4202.92.15, 4202.92.20, 4202.92.3020, 4202.92.3031, 4202.92.3091, 4202.92.45, 4202.92.9026, 4202.92.9060, and 4202.99.90).
The USITC also provided advice on the likely impact on U.S. imports, competing U.S. industries, and U.S. consumers of the removal of 5 HTS subheadings for specified countries:
- 3204.20.10 (fluorescent brightening agent 32) from India and Indonesia,
- 3204.20.80 (other fluorescent brightening agents) from India and Indonesia,
- 3907.60.00 (PET resin also known as polyethylene terephthalate in primary forms) from India,
- 3920.62.00 (nonadhesive plates, sheets, film, foil and strip, noncellular, of polyethylene terephthalate) from Brazil, and
- 3921.90.40 (nonadhesive plates, sheets, film, foil and strip, flexible, nesoi*, of noncellular plastics) from Brazil.
The USITC also provided advice on the likely impact on competing U.S. industries of competitive need limitation waivers specified in section 503(c)(2)(A) of the Trade Act of 1974 for 4 Harmonized Tariff Schedule (HTS) subheadings. "Competitive need limits" represent the maximum import level of a product that is eligible for duty-free treatment under the GSP. The USITC was requested to use the dollar figure of $170 million for the competitive need limitation. Once the limit is reached, trade is considered "competitive," benefits are no longer needed, and imports of the article become ineligible for GSP treatment, unless a waiver is granted. The four HTS subheadings and specified countries that the USITC provided advice are:
- 0804.10.60 (dates, fresh or dried, whole, without pits, packed in units weighing over 4.6 kg) from Tunisia,
- 2102.20.60 (single-cell micro-organisms, dead, excluding yeasts, but not including vaccines of heading 3002) from Brazil,
- 2202.90.90 (nonalcoholic beverages, nesi*, not including fruit or vegetable juices of heading 2009) from Thailand, and
- 8708.50.95 (parts and accessories of motor vehicle of 8701, nesoi, 8702 and 8704-8705, half-shafts) from India.
* nesoi and nesi – not elsewhere specified or indicated
The Generalized System of Preferences: Possible Modifications, 2015 Review (Investigation No. 332-556, USITC publication 4609, May 2016) is available on the USITC's Internet site at https://www.usitc.gov/publications/332/pub4609.pdf.
USITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analyses on the subjects investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigation reports are subsequently released to the public, unless they are classified by the requester for national security reasons.
CBP Commissioner Issues Detention Order on Stevia Produced in China with Forced Labor
U.S. Customs & Border Protection
WASHINGTON—Effective today, imported stevia extracts and their derivatives produced by PureCircle Ltd in the People’s Republic of China will be detained at all U.S. ports of entry. U.S. Customs and Border Protection Commissioner R. Gil Kerlikowske directed the issuance of a withhold release order against PureCircle Ltd based on information obtained by CBP indicating stevia extracts and derivatives are produced with the use of convict labor.
“It is imperative that companies examine their supply chains to understand product sourcing and the labor used to generate their products,” said Commissioner Kerlikowske. “CBP is committed to ensuring U.S. values outweigh economic expediency and as part of its trade enforcement responsibilities, will work to ensure products made with forced labor do not cross our borders.”
The order will require detention at all U.S. ports of entry of any such merchandise manufactured by this company. Importers of detained shipments are provided an opportunity to demonstrate that the merchandise was not produced with forced labor.
Under 19 U.S.C. § 1307 it is illegal to import into the United States goods made, in whole or in part, by forced labor, including convict labor, forced child labor, and indentured labor. CBP issues withhold release orders when information available reasonably indicates that imported merchandise is in violation of this statute.
Additional information, including how to submit information to CBP, may be found at http://www.cbp.gov/trade/trade-community/programs-outreach/convict-importations.
FDA Issues Draft Guidance to Food Industry for Voluntarily Reducing Sodium in Processed and Commercially Prepared Food
U.S. Food & Drug Administration
Today, the U.S. Food and Drug Administration issued draft guidance for public comment that provides practical, voluntary sodium reduction targets for the food industry. Average sodium intake in the U.S. is approximately 3,400 mg/day. The draft short-term (two-year) and long-term (10-year) voluntary targets for industry are intended to help the American public gradually reduce sodium intake to 2,300 milligrams (mg) per day, a level recommended by leading experts and the overwhelming body of scientific evidence. The targets are also intended to complement many existing efforts by food manufacturers, restaurants, and food service operations to reduce sodium in foods.
Americans consume almost 50 percent more sodium than what most experts recommend. One in three individuals has high blood pressure, which has been linked to diets high in sodium and is a major risk factor cause of heart disease and stroke. That number climbs to one in two African Americans and even includes one in 10 children aged 8-17. While a majority of Americans reports watching or trying to reduce added salt in their diets, the deck has been stacked against them. The majority of sodium intake comes from processed and prepared foods, not the salt shaker.
The science supporting the relationship between sodium reduction and health is clear: When sodium intake increases, blood pressure increases, and high blood pressure is a major risk factor for heart disease and stroke – two leading causes of death in the U.S. (CDC has compiled a number of key studies, which continue to support the benefits of sodium reduction in lowering blood pressure. In some of these studies, researchers have estimated lowering U.S. sodium intake by about 40 percent over the next decade could save 500,000 lives and nearly $100 billion in healthcare costs.)
“Many Americans want to reduce sodium in their diets, but that’s hard to do when much of it is in everyday products we buy in stores and restaurants,” HHS Secretary Sylvia Burwell said. “Today’s announcement is about putting power back in the hands of consumers, so that they can better control how much salt is in the food they eat and improve their health.”
The FDA is especially encouraging adoption by food manufacturers whose products make up a significant portion of national sales in one or more categories and restaurant chains that are national and regional in scope. The FDA estimates that less than 10 percent of packaged foods account for more than 80 percent of sales. According to the USDA’s Economic Research Service, about 50 percent of every food dollar goes to food consumed outside the home. Therefore the draft voluntary guidance also covers common foods served in restaurants and other food service establishments.
“The totality of the scientific evidence supports sodium reduction from current intake levels,” said Susan Mayne, Ph.D., director of the FDA’s Center for Food Safety and Applied Nutrition. “Experts at the Institute of Medicine have concluded that reducing sodium intake to 2,300 mg per day can significantly help Americans reduce their blood pressure and ultimately prevent hundreds of thousands of premature illnesses and deaths. Because the majority of sodium in our diets comes from processed and prepared foods, consumers are challenged in lowering their sodium intake themselves.”
Included in the draft guidance is a common system for defining and measuring progress on reducing sodium in the U.S. food supply. The approach is to establish reasonable, voluntary reduction targets for the majority of processed and prepared foods, placing foods in nearly150 categories from bakery products to soups. The draft targets factor in data on consumer preferences, as well as current industry efforts to reduce sodium. The FDA is confident that the short-term targets, which seek to decrease sodium intake to about 3,000 mg per day, are readily achievable. In fact, many foods, such as top-selling pretzel products, have already met the short-term target.
The FDA has proposed a national, practical, gradual, and voluntary approach to sodium reduction and is sharing it as a draft for public comment. The FDA’s draft guidance proposes feasible reductions across a broad range of food categories with high and moderate amounts of sodium. This approach is expected to achieve significant reductions in sodium while providing flexibility for industry and more choices for consumers.
“We believe that the time is now to engage in a national dialogue on the problem of excess sodium. Publishing these targets is an important step in that dialogue,” added Dr. Mayne.
The FDA encourages feedback from stakeholders on this draft guidance during the 90- and 150-day comment periods.
The FDA, an agency within the U.S. Department of Health and Human Services, protects the public health by assuring the safety, effectiveness, and security of human and veterinary drugs, vaccines and other biological products for human use, and medical devices. The agency also is responsible for the safety and security of our nation’s food supply, cosmetics, dietary supplements, products that give off electronic radiation, and for regulating tobacco products.
Clean Vessel Incentive Draws Cleanest Vessels to Port of NY & NJ
Port of NY & NJ / Breaking Waves
The Amended Clean Vessel Incentive Program (CVI Program), launched on January 1, 2016, achieved superb results for first quarter 2016. A total of 253 qualifying vessel calls were logged, earning incentives totaling $385,000 for clean vessels. These figures represent increases of 35% and 10%, respectfully, over the same results polled in the first quarter 2015.
NYK Line (North America) Inc. had the most qualifying vessel calls at 49, as well as the highest incentive award earned, totaling $86,000.
Evergreen Marine’s vessel, Ever Libra, recorded the highest Environmental Ship Index (ESI) Score at 54.2, and was one of seven vessels with ESI scores above 50.
The ESI evaluates a vessel’s nitrogen oxide and sulfur oxide emissions, whether or not it can receive shore power, and also includes a reporting scheme on the greenhouse gas it releases.
The total ESI score provides a good indication of the environmental performance of an ocean going vessel. For vessels that participate in vessel speed reduction, the CVI Program adds more points to the ESI score.
Ships equipped with Tier II engines, which achieve 20% nitrogen oxide reduction over Tier I engines, earn additional financial incentive.
During first quarter 2016, 16 qualifying vessel calls were made by ships with Tier II engines; this represents a 100% increase over first quarter 2015.
The bottom line is this: the CVI Program is attracting much cleaner vessels, and more of them, to the Port Authority’s marine terminals.