USITC Begins Investigation 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) is seeking input for a newly initiated investigation concerning possible modifications to the Generalized System of Preferences (GSP).
The investigation, Generalized System of Preferences: Possible Modifications, 2016 Review (Investigation No. 332-560), was requested by the U.S. Trade Representative (USTR) in a letter received on January 4, 2017.
As requested, the USITC, an independent, nonpartisan, fact finding federal agency, will provide 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 and statistical reporting numbers:
For all GSP beneficiary developing countries:
- 1104.19.90 (Rolled or flaked grains of cereals, other than of barley or oats),
- 2008.20.00 (Pineapples, otherwise prepared or preserved, nesi),
- 2915.90.18 (Saturated acyclic monocarboxylic acids, nesoi),
- 3809.93.50 (Finishing agents, dye carriers and other preparations used in leather and like industries, < 5% by weight aromatic (mod.) substance(s)),
- 3912.20.00 (Cellulose nitrates (including collodions), in primary forms).
The USTR also requested that the USITC provide advice on the likely impact on U.S. imports, competing U.S. industries, and U.S. consumers of the removal from eligibility of one HTS subheading for all GSP countries. The removal in consideration is:
- 2922.49.40.20 (Glycine--part of 2922.49.40, "Amino acids")
In addition, the USITC will provide advice on the likely impact on U.S. imports, competing U.S. industries, and U.S. consumers of competitive need limitation waivers for specified countries. "Competitive need limitations" represent the maximum import level of a product that is eligible for duty-free treatment under the GSP. 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. With respect to the competitive need limit in section 503(c)(2)(A)(i)(I) of the 1974 Act, the USITC, as requested, will use the dollar value limit of $175 million. The HTS subheadings in consideration are:
- 0410.00.00 (Edible products of animal origin, nesi) from Indonesia,
- 0714.90.10 (Fresh or chilled dasheens, whether or not sliced or in the form of pellets) from Ecuador,
- 4011.20.10 (New pneumatic radial tires, of rubber, of a kind used on buses or trucks) from Indonesia,
- 4409.10.05 (Coniferous wood continuously shaped along any of its ends, whether or not also continuously shaped along any {of} its edges or faces) from Brazil,
- 6802.99.00 (Monumental or building stone & arts. thereof, nesoi, further worked than simply cut/sawn, nesoi) from Brazil,
- 8525.80.30 (Television cameras, nesi) from Thailand,
- 9001.50.00 (Spectacle lenses of materials other than glass, unmounted) from Thailand.
The USITC will submit its confidential report to USTR by May 4, 2017. As soon as possible thereafter, the USITC will, as requested by USTR, issue a public version of the report containing only the unclassified sections, with any business confidential information and classified information deleted.
The USITC is seeking input for this 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 hold a public hearing in connection with the investigation at 9:30 a.m. on February 21, 2017. Requests to appear at the public hearing should be filed no later than 5:15 p.m. on February 3, 2017, with the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.
The USITC also welcomes written submissions for the record. Written submissions should be addressed to the Secretary to the Commission at the above address and should be submitted at the earliest practical date but no later than 5:15 p.m. on March 3, 2017. All written submissions, except for confidential business information, will be available for public inspection.
Further information on the scope of this investigation and appropriate submissions appears in the USITC’s notice of investigation, dated January 17, 2017. The notice can be obtained from the USITC Internet site (www.usitc.gov) or by contacting the Office of the Secretary at the above address or at 202-205-2000.
USITC general fact finding 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 fact finding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General fact finding investigation reports are subsequently released to the public, unless they are classified by the requester for national security reasons.
CBP, ICE Seize Record Number of Shipments with Intellectual Property Rights Violations in FY2016 - U.S. Customs & Border Protection
Seized goods would have been worth more than $1.38 billion if genuine
WASHINGTON – U.S. Customs and Border Protection (CBP) and U.S. Immigration and Customs Enforcement (ICE) seized a record number of shipments containing goods that violated Intellectual Property Rights (IPR) in FY2016. The number of IPR seizures increased 9 percent in FY2016 to more than 31,560. The total estimated manufacturer’s suggested retail price (MSRP) of the seized goods, had they been genuine, increased to more than $1.38 billion. As a result of enforcement efforts, ICE Homeland Security Investigations arrested 451 individuals, obtained 304 indictments, and received 272 convictions related to intellectual property crimes in FY2016.
“Products that infringe on U.S. trademarks, copyrights, and patents threaten the health and safety of American consumers, the U.S. economy, and our national interests,” said CBP Commissioner R. Gil Kerlikowske. “This record-breaking year of IPR seizures highlights the vigilance of CBP and ICE personnel in preventing counterfeit goods from entering our stream of commerce and their dedication to protecting the American people.”
Apparel and accessories once again topped the list for number of seizures with 6,406, representing 20 percent of all IPR seizures in FY2016. Watches and jewelry continued as the top products seized by total MSRP value with seizures valued at more than $653.5 million, representing 47 percent of the total. Handbags and wallets were second with seizures estimated to be valued at more than $234 million.
The Transportation/Parts category significantly increased in FY2016 following numerous operations that led to the seizure of nearly 108,000 counterfeit hoverboards that caused safety concerns last year following reports of fires possibly caused by substandard and counterfeit lithium ion batteries.
The People’s Republic of China remained the primary source economy for counterfeit and pirated goods seized, accounting for $616 million or 45 percent of the total estimated MSRP value of all IPR seizures. Hong Kong again was the second largest source of IPR infringing shipments, accounting for nearly $600 million or 43 percent of the total MSRP value of all IPR seizures.
Eleven operations led by CBP’s Mobile Intellectual Property Enforcement Team, a special task force comprised of top IPR enforcement experts from a range of offices within the agency, resulted in 2,680 seizures of goods valued at over $85 million MSRP. Joint operations with international partners also netted significant seizures including an April 2016 operation with the General Administration of China Customs that resulted in more than 1,400 seizures of automobile parts, consumer electronics, identification tags and labels, and pharmaceuticals. Prior to Super Bowl 50, ICE, CBP, Hong Kong Customs and the Mexican Servicio de Administración Tributaria, conducted Operation Team Player to prevent the illegal importation of counterfeit sports-related merchandise.
Counterfeits are often made of inferior materials, manufactured under uncontrolled and unsanitary conditions and labeled with false information. As a result they can threaten the health and safety of the people who buy them.
“Counterfeiters can sell bogus goods through social media platforms, popular ecommerce sites, and seasonal storefronts, and will attempt to exploit consumer enthusiasm, especially during major shopping seasons, to peddle dangerous, substandard items,” said ICE Deputy Director Daniel Ragsdale. “The collaborative IP enforcement between ICE and CBP has kept dangerous counterfeit goods out of critical supply chains managed by government and business, and the IPR Center remains committed to developing and supporting effective enforcement actions going forward.”
Protecting IPR has been a priority trade issue for CBP since 2007 and the Trade and Facilitation and Trade Enforcement Act, passed in February 2016, includes a number of provisions that support CBP’s and ICE’s efforts in IPR enforcement. The Act includes mandates to enhance CBP’s and ICE’s collaboration with rights holders, interagency coordination through the IPR center, and international partnerships to stop counterfeiting at the source.
If you have any information regarding suspected fraud or illegal trade activity, please contact CBP through the e-Allegations website or by calling 1-800-BE-ALERT. IPR violations can also be reported to National Intellectual Property Rights Coordination Center at https://www.iprcenter.gov/referral/ or by telephone at 1-866-IPR-2060.
Following an e-allegation made in FY2016 concerning persistent and widespread infringement, CBP seized 42 shipments of unauthorized replica furniture—helping to protect more than 8,000 American jobs.
FDA and EPA Issue Final Fish Consumption Advice - Food & Drug Adminisration
Chart makes it easier than ever for pregnant women and others to choose from dozens of healthy and safe options; Nearly 90% of fish eaten in the U.S. fall into “best choices” category
Today, the U.S. Food and Drug Administration and the U.S. Environmental Protection Agency issued final advice regarding fish consumption. This advice is geared toward helping women who are pregnant or may become pregnant – as well as breastfeeding mothers and parents of young children – make informed choices when it comes to fish that are healthy and safe to eat. (This advice refers to fish and shellfish collectively as “fish.”)
To help these consumers more easily understand the types of fish to select, the agencies have created an easy-to-use reference chart that sorts 62 types of fish into three categories:
- “Best choices” (eat two to three servings a week)
- “Good choices” (eat one serving a week)
- “Fish to avoid”
Fish in the “best choices” category make up nearly 90 percent of fish eaten in the United States.
An FDA analysis of fish consumption data found that 50 percent of pregnant women surveyed ate fewer than 2 ounces a week, far less than the amount recommended. Because the nutritional benefits of eating fish are important for growth and development during pregnancy and early childhood, the agencies are advising and promoting a minimum level of fish consumption for these groups. The advice recommends 2-3 servings of lower-mercury fish per week, or 8 to 12 ounces. However, all fish contain at least traces of mercury, which can be harmful to the brain and nervous system if a person is exposed to too much of it over time. The maximum level of consumption recommended in the final advice is consistent with the previous recommended level of 12 ounces per week. The new advice is consistent with the 2015 - 2020 Dietary Guidelines for Americans.
For adults, a typical serving is 4 ounces of fish, measured before cooking. Serving sizes for children should be smaller and adjusted for their age and total calorie needs. It is recommended that children eat fish once or twice a week, selected from a variety of fish types.
“Fish are an important source of protein and other nutrients for young children and women who are or may become pregnant, or are breastfeeding. This advice clearly shows the great diversity of fish in the U.S. market that they can consume safely,” said FDA Deputy Commissioner for Foods and Veterinary Medicine Stephen Ostroff, M.D. “This new, clear and concrete advice is an excellent tool for making safe and healthy choices when buying fish.” Choices lower in mercury include some of the most commonly eaten fish, such as shrimp, pollock, salmon, canned light tuna, tilapia, catfish and cod.
When updating the advice, the agencies took a cautious and highly protective approach to allow consumers to enjoy the benefits of fish while avoiding those with higher levels of mercury, which is especially important during pregnancy and early childhood. The average mercury content of each type of fish was calculated based on FDA data and information from other sources. The updated advice cautions parents of young children and certain women to avoid seven types of fish that typically have higher mercury levels: tilefish from the Gulf of Mexico; shark; swordfish; orange roughy; bigeye tuna; marlin; and king mackerel.
For fish caught recreationally, consumers are urged to check for local advisories where they are fishing and gauge their fish consumption based on any local and state advisories for those waters. If no information on fishing advisories is available, eat just one fish meal a week from local waters and also, avoid other fish that week. Consumers should clean and trim the fish they catch of fat and skin, since locally-caught fish may contain contaminants besides mercury that can be reduced by proper trimming and cooking, (e.g. broiling instead of frying can reduce some contaminants by letting fat drip away from the fish).
“It’s all about eating and enjoying fish of the right kind and in the right amounts,” said EPA Director for Water Science and Technology, Elizabeth Southerland, Ph.D. “This joint advice not only provides information for fish consumers who buy from local markets, but it also contains good information for people who catch their own fish or are provided fish caught by friends or relatives.”
All retailers, grocers and others are urged to post this new advice, including the reference chart listing fish to choose, prominently in their stores so consumers can make informed decisions when and where they purchase fish. The agencies will be implementing a consumer education campaign working with a wide array of public and private partners featuring the new advice.
In June 2014, the agencies issued draft advice which encouraged pregnant women and others to eat between 8 and 12 ounces of fish a week of fish “lower in mercury” but did not provide a list showing consumers which fish are lower in mercury. The advice issued today also takes into account more than 220 comments received from academia, industry, nongovernmental organizations and consumers as well as an external peer review of the information and method used to categorize the fish.
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.
The EPA, a federal agency, works to protect all Americans from significant risks to human health and the environment where they live, learn and work. The agency focuses on all parts of society, from individuals to businesses and local governments. It develops regulations concerning natural resources, energy, transportation, agriculture, and industry and supports the various facets of environmental research and protection.
USITC Votes to Continue Investigations on Softwood Lumber Products from Canada - U.S. International Trade Commission
The United States International Trade Commission (USITC) today determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of softwood lumber products from Canada that are allegedly subsidized and sold in the United States at less than fair value.
Chairman Irving A. Williamson, Vice Chairman David S. Johanson, and Commissioners Meredith M. Broadbent, F. Scott Kieff, and Rhonda K. Schmidtlein voted in the affirmative. Commissioner Dean A. Pinkert did not participate in these investigations.
As a result of the Commission’s affirmative determinations, the U.S. Department of Commerce will continue to conduct its antidumping and countervailing duty investigations on imports of these products from Canada, with its countervailing duty determination due on or about February 20, 2017, and its preliminary antidumping duty determination due on or about May 4, 2017.
The Commission’s public report Softwood Lumber Products from Canada, Inv. Nos. 701-TA-566 and 731-TA-1342 (Preliminary), USITC Publication 4663, January 2017) will contain the views of the Commission and information developed during the investigations.
The report will be available after February 7, 2017. After that date, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.
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UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436
FACTUAL HIGHLIGHTS
Softwood Lumber Products from Canada
Investigation Nos. 701-TA-566 and 731-TA-1342 (Preliminary)
Product Description: Softwood lumber, siding, flooring and certain other coniferous wood (“softwood lumber products”), including: 1. Coniferous wood, sawn, or chipped lengthwise, sliced or peeled, whether or not planed, whether or not sanded, or whether or not finger-jointed, of an actual thickness exceeding six millimeters; 2. Coniferous wood siding, flooring, and other coniferous wood (other than moldings and dowel rods), including strips and friezes for parquet flooring, that is continuously shaped (including, but not limited to, tongued, grooved, rebated, chamfered, V-jointed, beaded, molded, rounded) along any of its edges, ends, or faces, whether or not planed, whether or not sanded, or whether or not end-jointed; 3. Coniferous drilled and notched lumber and angle cut lumber; 4. Coniferous lumber stacked on edge and fastened together with nails, whether or not with plywood sheathing; 5. Components or parts of semi-finished or unassembled finished products made from subject merchandise that would otherwise meet the definition above.
Status of Proceedings:
1. Type of investigations: Preliminary antidumping and countervailing duty.
2. Petitioners: Committee Overseeing Action for Lumber International Trade Investigations or Negotiations (COALITION), an ad hoc association of 13 U.S. companies and associations.
3. Preliminary investigations instituted by the USITC: November 25, 2016.
4. Commission’s conference: December 16, 2016.
5. USITC vote: January 6, 2017.
6. USITC determinations to the U.S. Department of Commerce: January 9, 2017.
7. USITC views to the U.S. Department of Commerce: January 17, 2017.
U.S. Industry:
1. Number of producers in 2015: Many small producers, but 110 firms are believed to have accounted for about 75 percent of production.
2. Location of producers’ plants: Alabama; Arkansas; California; Florida; Georgia; Idaho; Louisiana; Maine; Massachusetts; Michigan; Mississippi; Montana; New Hampshire; North Carolina; Oklahoma; Oregon; South Carolina; Texas; Washington; Wisconsin. Smaller producers may be located in additional states.
3. Employment of production and related workers in 2015: 19,535.
4. Apparent U.S. consumption in 2015: $15.9 billion.
5. Ratio of the value of total U.S. imports to total U.S. consumption in 2015: 33.5 percent.
U.S. Imports:
1. From the subject country during 2015: $4.7 billion.
2. From other countries during 2015: $584 million.
3. Leading sources during 2015: Canada.
U.S. Secretary of Commerce Penny Pritzker Releases New Report to Boost U.S. Port Efficiency and Competitiveness - U.S. Department of Commerce
U.S. Secretary of Commerce Penny Pritzker today issued a new report, Improving American Competitiveness: Best Practices by U.S. Port Communities, that documents operational best practices that leading U.S. ports and supply chains have implemented to overcome challenges associated with increasing vessel sizes, trade volumes, and industry complexity. The American Association of Port Authorities estimates that for every $1 billion in exports that are shipped through U.S. seaports, 15,000 U.S. jobs are created.
“More than 70 percent of America’s international merchandise trade flows through our seaports, linking our producers and retailers with their sources and customers and our nation’s supply chains with the global economy,” said Secretary Pritzker. “The efficiency and productivity of U.S. seaports and their connecting infrastructure is crucial to our nation’s ability to successfully compete in the global marketplace.”
The report suggests critical actions that could improve efficiency and competitiveness, including:
- Establishing comprehensive working groups, with broad stakeholder participation, that serve as forums for productive communication and collaboration;
- Using port community information-sharing technologies that improve operational efficiency and cargo status data flow between a port and its stakeholders;
- Implementing operational improvements that facilitate container chassis availability, allow more efficient planning and scheduling, improve terminal use, and reduce truck turnaround times; and,
- Working with local educational institutions to improve existing port workforce skills, retention rates, and recruitment.
This report is a deliverable under the Department’s 21st Century U.S. Port Competitiveness Initiative. This initiative features port efficiency roundtables with industry; a strategic government-academia partnership to improve supply chain technology; and recommendations by the Department’s Advisory Committee on Supply Chain Competitiveness. These best practices are shared so individual port communities can consider adopting comparable measures that are appropriate to their circumstances.
Travel Trade Industry Joins Coalition to Combat Wildlife Trafficking Worldwide - U.S. Wildlife Trafficking Alliance
U.S. Wildlife Trafficking Alliance announces new partnerships with major industry associations, launches global travel and tourism toolkit for travel companies