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POLA and POLB Marine Terminal Gates Closed on Thursday, August 4, 2016 at 5 p.m. - PierPass

PierPass Inc. has been notified that the International Longshore and Warehouse Union (ILWU) will observe a special stop work meeting for union business on Thursday, August 4, 2016, starting at 5 p.m. As a result, no marine terminal gates at the Port of Los Angeles and the Port of Long Beach will operate between the hours of 5:00 p.m. on August 4 through 3:00 a.m. on August 5. There will be no OffPeak shift Thursday night August 4.

Please check with individual terminals for substitute or alternative gates.

This labor shutdown falls under Rule 5 of the Marine Terminal Operator Schedule No. 1, which is available at: http://www.pierpass.org/wp-content/uploads/2016/07/8-8-16-MTO-Schedule.pdf


USTR Announces Major Expansion of Trade Preferences for Least Developed and African Countries - Office of the U.S. Trade Representative

Aiming to Promote Poverty Alleviation and Economic Growth in Poorest Countries

Washington, D.C. – The Office of the United States Trade Representative announced today the outcome of the Obama Administration’s Annual Product Review under the Generalized System of Preferences (GSP) program.

This review adds new duty-free status for travel goods (including luggage, backpacks, handbags, and wallets) for Least Developed Beneficiary Developing Countries (LDBDCs) and African Growth and Opportunity Act (AGOA) countries.

GSP is a 40-year-old trade preference program under which the United States provides duty-free treatment to many imports from beneficiary developing countries and additional products for LDBDCs.

“Trade preference programs such as GSP and AGOA can make a powerful contribution to lifting people out of poverty and supporting growth in some of the poorest countries in the world, while also reducing costs to American consumers and businesses,” said U.S. Trade Representative Michael Froman.  “We have used these programs to give beneficiary countries a vital leg up vis-à-vis more advanced competitors.”

Based on the Administration’s review of various issues and petitions related to eligibility of products under the GSP program, President Obama also made several other determinations today affecting product coverage under GSP, including the following:

  • The removal of products from specific GSP countries where the country is sufficiently competitive and so as to no longer need tariff preferences to compete in the U.S. market, including fluorescent brightening agents and PET resin from India;
  • The granting of competitive need limitation (CNL) waivers, ensuring continued GSP duty-free benefits, for 114 products from 15 countries.

The full results of the GSP 2015/2016 Annual Review are available here and will also be announced in the Federal Register.

Background

Under the GSP program, approximately 5,000 products from 122 beneficiary developing countries and territories, including 43 least-developed countries, are eligible for duty-free treatment when exported to the United States,  Nearly 1,500 of these products are reserved for duty-free treatment for LDBDCs only. In 2015, the total value of imports that entered the United States duty-free under GSP was $17.4 billion.

The Trade Preference Extension Act (TPEA) of 2015 gave the President, for the first time, the authority to add certain travel and luggage goods products to GSP, subject to the regular, petition-driven review process.  The 27 HTS subheadings cited in the TPEA included luggage, handbags, backpacks, and pocket goods (such as wallets).

As part of the GSP 2015/2016 Annual Review, an interagency committee led by USTR (the GSP Subcommittee of the Trade Policy Staff Committee) received and considered requests seeking: 1) to add or remove products from the list of those eligible for duty-free treatment under GSP; 2) to waive product exclusions for certain countries based on statutory requirements related to competitiveness (CNLs); and 3) to withdraw or limit a country’s eligibility for GSP trade benefits based on statutory eligibility criteria, including whether a country is taking steps to afford internationally recognized standards for worker rights, whether it provides important investor protections including enforcement of arbitral awards, and the extent to which a country adequately and effectively protects intellectual property rights.  For those petitions accepted for review, the USTR-led committee holds public hearings, solicits public comments, and – in the case of product petitions – reviews analyses prepared by the U.S. International Trade Commission of the economic impact of product eligibility decisions on domestic industries and consumers.  Any change to the lists of products or countries eligible for GSP benefits requires a presidential determination.

For more information on the GSP program, visit the GSP page on the USTR website here.


ITA: Press Releases - International Trade Administration

07/21/2016 Initiation of an Antidumping Duty (AD) Investigation of Imports of Dioctyl Terephthalate (DOTP) from Korea

07/21/2016 Initiation of Antidumping Duty (AD) and Countervailing Duty (CVD) Investigations of Imports of Finished Carbon Steel Flanges from India, Italy (AD), and Spain (AD)

07/21/2016 Final Determinations in the Antidumping Duty (AD) and Countervailing Duty (CVD) Investigations of Imports of Certain Cold-Rolled Steel Flat Products from Brazil, India, Korea, Russia, and the United Kingdom (AD)


USITC:  News Releases & New Documents - U.S. International Trade Commission

Limits use for acute bacterial sinusitis, acute bacterial exacerbation of chronic bronchitis and uncomplicated urinary tract infections

The U.S. Food and Drug Administration today approved safety labeling changes for a class of antibiotics, called fluoroquinolones, to enhance warnings about their association with disabling and potentially permanent side effects and to limit their use in patients with less serious bacterial infections.

“Fluoroquinolones have risks and benefits that should be considered very carefully,” said Edward Cox, M.D., director of the Office of Antimicrobial Products in the FDA’s Center for Drug Evaluation and Research. “It’s important that both health care providers and patients are aware of both the risks and benefits of fluoroquinolones and make an informed decision about their use.”

Fluoroquinolones are antibiotics that kill or stop the growth of bacteria. While these drugs are effective in treating serious bacterial infections, an FDA safety review found that both oral and injectable fluroquinolones are associated with disabling side effects involving tendons, muscles, joints, nerves and the central nervous system. These side effects can occur hours to weeks after exposure to fluoroquinolones and may potentially be permanent.

Because the risk of these serious side effects generally outweighs the benefits for patients with acute bacterial sinusitis, acute exacerbation of chronic bronchitis and uncomplicated urinary tract infections, the FDA has determined that fluoroquinolones should be reserved for use in patients with these conditions who have no alternative treatment options. For some serious bacterial infections, including anthrax, plague and bacterial pneumonia among others, the benefits of fluoroquinolones outweigh the risks and it is appropriate for them to remain available as a therapeutic option.

FDA-approved fluoroquinolones include levofloxacin (Levaquin), ciprofloxacin (Cipro), ciprofloxacin extended-release tablets, moxifloxacin (Avelox), ofloxacin and gemifloxacin (Factive). The labeling changes include an updated Boxed Warning and revisions to the Warnings and Precautions section of the label about the risk of disabling and potentially irreversible adverse reactions that can occur together. The label also contains new limitation-of-use statements to reserve fluoroquinolones for patients who do not have other available treatment options for acute bacterial sinusitis, acute bacterial exacerbation of chronic bronchitis and uncomplicated urinary tract infections. The patient Medication Guide that is required to be given to the patient with each fluoroquinolone prescription describes the safety issues associated with these medicines.

The FDA first added a Boxed Warning to fluoroquinolones in July 2008 for the increased risk of tendinitis and tendon rupture. In February 2011, the risk of worsening symptoms for those with myasthenia gravis was added to the Boxed Warning. In August 2013, the agency required updates to the labels to describe the potential for irreversible peripheral neuropathy (serious nerve damage).

In November 2015, an FDA Advisory Committee discussed the risks and benefits of fluoroquinolones for the treatment of acute bacterial sinusitis, acute bacterial exacerbation of chronic bronchitis and uncomplicated urinary tract infections based on new safety information. The new information focused on two or more side effects occurring at the same time and causing the potential for irreversible impairment. The advisory committee concluded that the serious risks associated with the use of fluoroquinolones for these types of uncomplicated infections generally outweighed the benefits for patients with other treatment options.

Today’s action also follows a May 12, 2016, drug safety communication advising that fluoroquinolones should be reserved for these conditions only when there are no other options available due to potentially permanent, disabling side effects occurring together. The drug safety communication also announced the required labeling updates to reflect this new safety information.

The FDA, an agency within the U.S. Department of Health and Human Services, protects the public health by assuring the safety, effectiveness, security of human and veterinary drugs, vaccines and other biological products for human use, and medical devices. The agency is also 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.


FMC Votes on Rulemakings, Provides Briefings on Global Shipping Issues - Federal Martime Commission

The Federal Maritime Commission voted yesterday to seek public comments on two proposed rules aimed at clarifying and streamlining FMC regulations as well as leveraging technology to relieve regulatory burdens and increase efficiency. Commissioners also provided briefings related to recent developments in international shipping and efforts to address supply chain congestion. At yesterday’s meeting, the Commission welcomed Daniel Maffei who was sworn in on Monday as a Commissioner.

Proposed Rules – Agreements and Service Contracts/NVOCC Service Arrangements

The following proposed rules were developed after industry comment was received in response to advanced notices of proposed rulemaking published in February of this year.

Docket No. 16-04

Public comment is sought on a proposal that would revise rules applicable to ocean common carrier and marine terminal operator agreements, proposing a number of key changes to existing regulations. For example, the rule would revise the definition of "capacity rationalization" to include agreement authority that allows carriers to discuss or agree on the amount of vessel capacity supplied in a service or trade, and subject such agreements to the standard 45-day review period. The rule would also simplify the current low market share exemption to the agreement filing requirements and exempt simple space charter or slot exchange agreements between just two parties from the 45-day waiting period. The proposed rule would maintain the filing exemption for marine terminal services agreements but strengthen the requirement to provide such agreements upon request of the Commission. The rule would also provide additional clarity on the definition of "complete and definite" agreements.

Docket No. 16-05

Comment is also sought on proposed revisions to the rules on service contracts and non-vessel-operating common carrier (NVOCC) service arrangements (NSAs). The proposed rule, would reduce regulatory burdens in several areas and provide for increased flexibility by leveraging technology. For example, under the rule revisions service contract and NSA amendments could be filed 30 days after the effective date of any amendment. The rule would also encourage increased use of the automated web services for filing to increase efficiency and reduce filing costs.

To submit comments:

Once published in the Federal Register and on the Commission’s website, the public will have 60 days to submit comments in Docket No. 16-04, and 30 days to submit comments in Docket No. 16-05.

Briefings by Commissioners on Recent Developments

U.S.-China Bilateral Maritime Agreement Consultations & 8th U.S.-China Transportation Forum

Chairman Mario Cordero updated his colleagues on the 2016 U.S.-China Bilateral Maritime Agreement Consultations which took place in Los Angeles in early June. The consultations are government-to-government exchanges between relevant agencies from the United States and China with jurisdiction over shipping issues. Cordero co-lead the delegation and engaged his Chinese counterparts on matters related to the consolidation of Chinese shipping lines; changes in the alliance structures; the status of China COSCO Shipping as a "Controlled Carrier"; and NVOCC bond recognition.

Taking place concurrently to the Bilateral Maritime Consultations was the 8th U.S.-China Transportation Forum, a ministerial level bilateral meeting that covers policy issues related to all modes of transportation. Cordero engaged in sessions that addressed congestion, port productivity, environmental initiatives, and technology.

U.S.-Korea Bilateral Maritime Consultation

Commissioner Michael Khouri was a member of the U.S. delegation that traveled to the Republic of Korea June 13-17 for consultations with officials from the Ministry of Oceans & Fisheries. He briefed the Commission on the delegation’s activities while in Korea which included government-to-government exchanges and a tour of a key port facility in that country. The delegation conducted discussions with the Vice Minister and other senior officials from the Ministry of Oceans & Fisheries where a number of issues of reciprocal interest were addressed, including matters related to carrier alliances, which are the jurisdiction of the Federal Maritime Commission. These discussions were held in Sejong City. The delegation also had a meeting with U.S. Ambassador Mark Lippert in Seoul, and visited marine terminal facilities in Incheon where they had the opportunity to inspect the Sun Kwang Newport container terminal.

Panama Canal Expansion Dedication

Chairman Cordero and Commissioner William Doyle were both members of the official U.S. delegation that visited Panama to witness the opening of the newly expanded Canal that took place on June 26. Cordero and Doyle each provided a report on their participation in that event.

Supply Chain Innovation Teams Initiative

Commissioner Rebecca Dye reported on the status of the Supply Chain Innovation Teams Initiative that she is leading. In her update, Dye noted that at their launch meetings in early May, the three teams identified improving supply chain visibility as be most effective way to increase the reliability and effectiveness of supply chains. The teams also agreed, at the May meeting, to pursue the development of a national supply chain information portal that could be adopted for use by any port in the country. Since then, the Commissioner advised, the teams have been meeting regularly to discuss and refine the critical information needs that, when met, would maximum supply chain coordination and efficiency. The approach, she said, would provide no "quick fix," but reported that the project was making great progress.


Volkswagen to Spend up to $14.7 Billion to Settle Allegations of Cheating Emissions Tests and Deceiving Customers on 2.0 Liter Diesel Vehicles
Federal Trade Commission

Settlements Require VW to Spend up to $10 Billion to Buyback, Terminate Leases, or Modify Affected 2.0 Liter Vehicles and Compensate Consumers, and Spend $4.7 Billion to Mitigate Pollution and Make Investments that Support Zero-Emission Vehicle Technology

In two related settlements, one with the United States and the State of California, and one with the U.S. Federal Trade Commission (FTC), German automaker Volkswagen AG and related entities have agreed to spend up to $14.7 billion to settle allegations of cheating emissions tests and deceiving customers. Volkswagen will offer consumers a buyback and lease termination for nearly 500,000 model year 2009-2015 2.0 liter diesel vehicles sold or leased in the U.S., and spend up to $10.03 billion to compensate consumers under the program. In addition, the companies will spend $4.7 billion to mitigate the pollution from these cars and invest in green vehicle technology.

The settlements partially resolve allegations by the Environmental Protection Agency (EPA), as well as the California Attorney General’s Office and the California Air Resources Board (CARB) under the Clean Air Act, California Health and Safety Code, and California’s Unfair Competition Laws, relating to the vehicles’ use of “defeat devices” to cheat emissions tests. The settlements also resolve claims by the FTC that Volkswagen violated the FTC Act through the deceptive and unfair advertising and sale of its “clean diesel” vehicles. The settlements do not resolve pending claims for civil penalties or any claims concerning 3.0 liter diesel vehicles. Nor do they address any potential criminal liability.

The affected vehicles include 2009 through 2015 Volkswagen TDI diesel models of Jettas, Passats, Golfs and Beetles as well as the TDI Audi A3.

“Today’s announcement shows the high cost of violating our consumer protection and environmental laws,” said FTC Chairwoman Edith Ramirez. “Just as importantly, consumers who were cheated by Volkswagen’s deceptive advertising campaign will be able to get full and fair compensation, not only for the lost or diminished value of their car but also for the other harms that VW caused them.”

“By duping the regulators, Volkswagen turned nearly half a million American drivers into unwitting accomplices in an unprecedented assault on our atmosphere,” said Deputy Attorney General Sally Q. Yates.  “This partial settlement marks a significant first step towards holding Volkswagen accountable for what was a breach of its legal duties and a breach of the public’s trust. And while this announcement is an important step forward, let me be clear, it is by no means the last. We will continue to follow the facts wherever they go.”

“Today’s settlement restores clean air protections that Volkswagen so blatantly violated,” said EPA Administrator Gina McCarthy. “And it secures billions of dollars in investments to make our air and our auto industry even cleaner for generations of Americans to come. This agreement shows that EPA is committed to upholding standards to protect public health, enforce the law, and to find innovative ways to protect clean air.”

According to the civil complaint against Volkswagen filed by the Justice Department on behalf of EPA on January 4, 2016, Volkswagen allegedly equipped its 2.0 liter diesel vehicles with illegal software that detects when the car is being tested for compliance with EPA or California emissions standards and turns on full emissions controls only during that testing process. During normal driving conditions, the software renders certain emission control systems inoperative, greatly increasing emissions. This is known as a “defeat device.” Use of the defeat device results in cars that meet emissions standards in the laboratory, but emit harmful NOx at levels up to 40 times EPA-compliant levels during normal on-road driving conditions. The Clean Air Act requires manufacturers to certify to EPA that vehicles will meet federal emission standards. Vehicles with defeat devices cannot be certified.

The FTC sued Volkswagen in March, charging that the company deceived consumers with the advertising campaign it used to promote its supposedly “clean diesel” VWs and Audis, which falsely claimed that the cars were low-emission, environmentally friendly, met emissions standards and would maintain a high resale value.

The settlements use the authorities of both the EPA and the FTC as part of a coordinated plan that gets the high-polluting VW diesels off the road, makes the environment whole, and compensates consumers.

The settlements require Volkswagen to offer owners of any affected vehicle the option to have the company buy back the car and to offer lessees a lease cancellation at no cost. Volkswagen may also propose an emissions modification plan to EPA and CARB, and if approved, may also offer owners and lessees the option of having their vehicles modified to substantially reduce emissions in lieu of a buyback. Under the U.S./California settlement, Volkswagen must achieve an overall recall rate of at least 85% of affected 2.0 liter vehicles under these programs or pay additional sums into the mitigation trust fund. The FTC order requires Volkswagen to compensate consumers who elect either of these options.

Volkswagen must set aside and could spend up to $10.03 billion to pay consumers in connection with the buy back, lease termination, and emissions modification compensation program. The program has different potential options and provisions for affected Volkswagen diesel owners depending on their circumstances:

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