Burma Set to Become Eligible under GSP
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
On September 14, 2016, President Obama issued Proclamation No. 9492 designating Burma (Myanmar) as a beneficiary developing country under the Generalized System of Preferences (GSP). The proclamation also designates Burma as a “least developed beneficiary country,” further expanding Burma’s GSP eligibility. These measures will allow qualifying goods from Burma to be imported into the United States duty-free.
The proclamation was issued following President Obama’s meeting with Burmese leader Aung San Suu Kyi, earlier that day. The U.S. suspended Burma from the GSP program in 1989, following actions taken by Burma’s then-ruling military junta against pro-democracy protesters.
Proclamation 9492 becomes effective November 13, 2016.
USITC Launches New Investigation on Possible Modifications to the United States-Morocco Free Trade Agreement Rules of Origin
United States International Trade Commission
The United States International Trade Commission (USITC) is seeking input on a newly initiated investigation concerning proposed modifications of the United States-Morocco Free Trade Agreement (U.S.-Morocco FTA) rules of origin.
The investigation, Probable Economic Effect of Certain Modifications to the U.S.-Morocco FTA Rules of Origin, was requested by the U.S. Trade Representative (USTR) in a letter received on August 24, 2016. The letter included an attachment detailing the certain textile and apparel articles affected by the proposed modifications.
As requested by the USTR, the USITC, an independent, nonpartisan, factfinding federal agency, will provide advice on the probable economic effect of the proposed U.S.-Morocco FTA rules of origin modifications on U.S. trade under U.S.-Morocco FTA, total U.S. trade, and on domestic producers of the affected articles.
The USITC expects to submit its advice to the USTR by January 24, 2017. A public version of the report, with all confidential business information deleted, will be released as soon as possible thereafter.
The USITC is seeking input for its new investigation from all interested parties and requests that the information focus on the articles for which the USITC is requested to provide information and advice. The USITC will not hold a public hearing in connection with the investigation; however, the USITC welcomes written submissions for the record. Written submissions should be addressed to the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436 and should be submitted at the earliest practical date but no later than 5:15 p.m. on October 13, 2016.
Further information on the scope of this investigation, the proposed rules of origin modifications, and the procedures for written submissions is available in the USITC's notice of investigation, dated September 8, 2016, which can be downloaded from the USITC Internet site (www.usitc.gov) or by contacting the Secretary at the above address.
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.
USITC Launches Miscellaneous Tariff Bill (MTB) Web Page - United States International Trade Commission
The U.S. International Trade Commission (USITC) has rolled out a web page to provide information about how it plans to implement new duties related to the miscellaneous tariff bill (MTB) process.
The Commission’s MTBInfo page can be found here: https://www.usitc.gov/mtbps
The American Manufacturing Competitiveness Act of 2016 (AMCA) directs the USITC to establish a process for the submission and consideration of petitions for duty suspensions and reductions.
In the past, U.S. importers would request that Members of Congress introduce bills seeking to temporarily suspend or reduce tariffs on certain imports. The Commission would review and produce reports for Congress on each bill, and the House Ways and Means and Senate Finance Committees would then combine the individual bills in a single MTB for Congressional consideration.
Under the AMCA, likely beneficiaries must now file a petition directly with the Commission. The Commission will publish and request public comment on the petitions received and issue preliminary and final reports recommending certain petitions for inclusion in an MTB for Congressional consideration.
The web page launched by the Commission is an information site and will be updated as new documents and information are released. The agency will post all key documents (notices, rules, etc.) on the page as they are issued, along with informational articles, tips for filing and commenting on MTB petitions, and other useful materials. Information on contacts is also provided on the page.
The USITC is building a web-based MTB portal to be used for filing and commenting on MTB petitions. The filing and commenting process will be entirely electronic; no paper submissions will be accepted. When the petition process launches on October 14, the MTB portal will become the main MTB page. In the meantime, the newly launched web page is where anyone interested in the process can turn for up-to-date information and access to documents.
Goodman Co. Agrees to Pay $5.55 Million for Delay and Misrepresentation in Reporting Fire Hazard Involving Air Conditioners/Heaters - U.S. Consumer Safety Product Commission
The U.S. WASHINGTON, D.C. – The U.S. Consumer Product Safety Commission (CPSC) announced that Goodman Company, L.P., of Houston, Texas, has agreed to pay a $5.55 million civil penalty and has agreed to other terms of a consent decree (which is subject to judicial approval) for delay and misrepresentation in reporting a fire hazard associated with air conditioners and heaters.
The penalty resolves allegations in a complaint filed by the U.S. Department of Justice in the U.S. District Court for the Southern District of Texas that the firm knowingly failed to inform CPSC immediately, as required by federal law, that its packaged terminal air conditioners/heaters (PTACs) contained a hazardous defect and posed an unreasonable risk of serious injury or death to consumers. The complaint also alleges that when Goodman ultimately reported the fire risk to CPSC, it misrepresented the number of fires that had occurred.
After receiving numerous reports about the PTACs catching fire, smoking and overheating, including three reports of hotel fires, Goodman delayed reporting the fire hazard to CPSC for about two years. When it ultimately reported, Goodman identified only three reports of overheating, even though it had received additional reports of overheating and fires.
After reporting to CPSC, Goodman learned of additional fires involving the PTACs, but the firm failed to timely report. The firm withheld notifying the government of six additional incidents.
“Goodman’s conduct was illegal, dangerous and unacceptable,” said Chairman Elliot F. Kaye. “Goodman’s decision to hide information about serious fires for years, while continuing to profit from sales, slowed down the announcement of a recall and put the safety of many families at real risk. CPSC will continue to work closely with the Department of Justice to enforce the law and hold violators accountable.”
“Goodman knew of a fire risk but waited roughly two years to inform the CPSC,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Companies must report these safety issues immediately, as the law requires, to protect the public from an unnecessary risk of injury. The Department of Justice will continue to take enforcement action against companies that do not meet their consumer product safety obligations.”
In addition to paying a $5.55 million civil penalty, Goodman has agreed to comply with and maintain a compliance program that is designed to ensure compliance with the Consumer Product Safety Act (CPSA). The firm has also agreed to comply with and maintain a system of internal controls and procedures.
The firm recalled 233,500 of the air conditioning and heating units in August 2014. The units were sold at Goodman and heating and cooling equipment dealers nationwide from January 2007 through June 2008 for between $700 and $1,000.
To Bee or Not To Bee: CBP and Partners Seized 132 Drums of Honey - U.S. Customs & Border Protection
MIAMI – On Aug. 12, Import Specialists from the Miami based Agriculture & Prepared Products Center of Excellence & Expertise (APP Center) in collaboration with U.S. Customs & Border Protection (CBP) Officers and Special Agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Chicago, seized around 42 tons of illegally imported Chinese honey. This represents the third such significant seizure of honey in four months.
The honey was contained in 132 fifty-five gallon drums that were falsely declared as originating from Taiwan to evade anti-dumping duties applicable to Chinese-origin honey. The evaded anti-dumping duties on this shipment of Chinese honey would be nearly $180,299 based on the rates imposed by the U.S. Department of Commerce, had CBP not intervened.
Prior to seizing the smuggled honey, samples were sent to the CBP Laboratory for analysis, where it was determined that the honey had a greater than 99 percent probability match with honey originating from China.
Import Specialists have been working with HSI agents on honey transshipment for years following concerns from industry experts about how anti-dumping circumvention schemes like the one announced today foster a divergent market which severely disadvantages legitimate importers, processors and end-users of honey versus those who place cost above truth-in-labeling. Today’s seizure follows a string of successful criminal prosecutions by HSI Chicago agents of multiple U.S. importers convicted of illegally transacting in smuggled Chinese honey disguised as Taiwanese – among many other false origins – who were ultimately sentenced and subsequently deported.
“Customs and Border Protection considers Trade Enforcement a priority since it levels the playing field for legitimate companies. The agency certainly does not want questionable companies having a competitive edge because they choose not to correctly describe their products to evade duties,” stated Center Director for Agriculture & Prepared Products Center of Excellence & Expertise Dina M. Amato.
Upon successful forfeiture of the honey to the United States following the government’s ongoing investigation into the full supply chain, the seized honey will be destroyed.
With the recent enactment of the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA), Congress recognized that industries and companies that circumvent U.S. law and regulation remain a risk to this nation’s economic security. Among its provisions, TFTEA requires CBP and HSI to collaborate to enhance trade enforcement. One of the ways of meeting this requirement comes in the form of an increased and more focused perspective by CBP in the trade arena.
Over the past few years, CBP has stood up ten industry based Centers of Excellence & Expertise as part of CBP’s plan to become more industry and account focused in order to protect the interests of legitimate businesses. These Centers are placed around the country and the Agriculture & Prepared Products Center of Excellence & Expertise is one of these centers and it is headquartered out of CBP’s Miami Field Office in Florida. The APP Center currently employs CBP Import Specialists around the U.S. in dozens of ports of entry whose main focus is ensuring the legitimacy of importations in the agricultural/food industry.
This recent seizure and others occurring around the country in a number of other industries are a great indication that CBP’s efforts are paying off and that the recently enacted TFTEA is already making an impact in the trade enforcement arena.
The public may submit allegations and tips concerning food fraud to the APP Center at: CEE-Enforcement-Agriculture@cbp.dhs.gov.
FDA Protects Kids from Illegal Sales of E-Cigarettes, E-Liquids and Cigars - Food & Drug Administration
The U.S. Food and Drug Administration announced today it has taken action against 55 tobacco retailers by issuing the first warning letters for selling newly regulated tobacco products, such as e-cigarettes, e-liquids and cigars, to minors. These actions come about a month after the FDA began enforcing new federal regulations making it illegal nationwide to sell e-cigarettes, cigars, hookah tobacco, and other newly regulated tobacco products to anyone under age 18 in person and online, and requiring retailers to check photo ID of anyone under age 27, among other restrictions.
“We’re helping protect the health of America’s youth by enforcing restrictions that make it illegal to sell tobacco products to minors – including e-cigarettes, e-liquids and cigars. Retailers play a vital role in keeping harmful and addictive tobacco products out of the hands of children and we urge them to take that responsibility seriously,” said Mitch Zeller, J.D., director of the FDA’s Center for Tobacco Products. “It’s clear from these initial compliance checks that there’s a need for strong federal enforcement of these important youth access restrictions.”
During compliance checks at major national retail chains, tobacco specialty stores and online retailers, minors were able to purchase some of these newly regulated tobacco products in a variety of youth-appealing flavors, including bubble gum, cotton candy and gummy bear.
Before the final rule that extended the FDA’s authority to all tobacco products, including e-cigarettes, cigars, hookah tobacco and pipe tobacco, among others, there was no federal prohibition on the sale of these products to children, contributing to skyrocketing use by youth. Data from the FDA and the Centers for Disease Control and Prevention show current e-cigarette use among high school students increased by more than 900 percent between 2011 and 2015, and hookah use also increased significantly during this time. Additionally, data show high school boys smoked cigars at about the same rate as cigarettes. The rule, which went into effect on Aug. 8, allows the FDA to protect future generations from the dangers of tobacco use through provisions aimed at restricting youth access.
As part of the 2009 Family Smoking Prevention and Tobacco Control Act, the FDA closely monitors retailer compliance with federal tobacco laws and regulations and takes corrective action when violations occur. The agency, on its own or through contracts, conducts inspections in 56 states and territories. When violations are found, the agency generally issues warning letters before it pursues enforcement actions, including civil money penalties and no tobacco sale orders. Since 2009, the FDA has conducted more than 660,000 inspections of tobacco product retail establishments, issued more than 48,900 warning letters to retailers for violating the law and initiated more than 8,290 civil money penalty cases.
The FDA's tobacco compliance and enforcement program works to ensure that industry and retailers follow existing laws designed to protect public health. To help retailers of tobacco products understand how to comply with federal regulations, the FDA provides compliance education and training opportunities to retailers.
Consumers and other interested parties can report a potential tobacco-related violation of the Federal Food, Drug, and Cosmetic Act, including sale of tobacco products to minors, by using the FDA’s Potential Tobacco Product Violation Reporting Form.
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.