United States Officially Withdraws from the Trans-Pacific Partnership Agreement (“TPP”) - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
Making good on a campaign pledge, President Trump today signed an Executive Order withdrawing the U.S. from the TPP process, the marquee trade initiative of the prior administration.
The TPP would have lowered trade barriers amongst its twelve members (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam), accounting for approximately 40% of the world’s economy.
Five years of negotiations culminated in an agreement in October of 2015; however it needed the ratification by the legislative bodies of the negotiating partners to take effect. The U.S. Presidential candidates on both sides of the aisle had campaigned on a rejection of the TPP as part of an effort to protect U.S. manufacturing jobs. Ironically, a required U.S. International Trade Commission report concluded that the probable economic effect of the agreement on the U.S. economy would have been minimal.
Many questions remain as a result of today’s action. Vietnam had been touted as the big winner under the TPP based on its history as a manufacturing base and its attractive labor rates as compared to the more developed TPP countries. A number of U.S. companies have invested in both factory space and local material mills in anticipation of the TPP taking effect. However, Vietnam government officials promote the ongoing competitive nature of Vietnam along with the fact that Vietnam (either alone or as part of ASEAN) has implemented or concluded free trade negotiations with numerous other countries, including a pending agreement with the EU (awaiting ratification).
In addition, although the TPP is now “off the table,” past statements by the President reflect his potential openness to negotiating separate bilateral deals with individual TPP countries (as well as others, such as a post-Brexit United Kingdom).
No doubt the Trump administration will bring with it a number of developments on the trade front that will have to be closely watched and assessed.
POLA and POLB Marine Terminal Gates Closed on Thursday Feb. 2, 2017, from 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, Feb. 2, 2017, 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 Feb. 2 through 3:00 a.m. on Feb. 3. There will be no OffPeak shift Thursday night Feb. 2.
Please check with individual terminals for substitute or alternative gates.
USITC Institutes Section 337 Investigation of Certain Electronic Devices, Including Mobile Phones, Tablet Computers, and Components Thereof - U.S. International Trade Commission
The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain electronic devices, including mobile phones, tablet computers, and components thereof. The products at issue in the investigation are generally known to consumers as mobile phones or smartphones and tablet computers or tablets.
The investigation is based on a complaint filed by Nokia Technologies Oy of Espoo, Finland, on December 22, 2016. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain electronic devices, including mobile phones, tablet computers, and components thereof that allegedly infringe patents asserted by the complainant. The complainant requests that the USITC issue a limited exclusion order and a cease and desist order.
The USITC has identified Apple Inc., a/k/a Apple Computer, Inc., of Cupertino, CA, as the respondent in this investigation.
By instituting this investigation (337-TA-1038), the USITC has not yet made any decision on the merits of the case. The USITC’s Chief Administrative Law Judge will assign the case to one of the USITC’s administrative law judges (ALJ), who will schedule and hold an evidentiary hearing. The ALJ will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.
The USITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation. USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.
Customs and Border Protection Officers Seize $1.3 Million in Narcotics in Five Seizures at the Brownsville Port of Entry - U.S. Customs & Border Protection
BROWNSVILLE, Texas – U.S. Customs and Border Protection officers at the Brownsville Port of Entry intercepted five loads of alleged narcotics over the past week. CBP officers discovered the alleged drugs, which carried a combined street value of approximately $1,279,941, hidden within the multiple vehicles and the personal belongings of a pedestrian traveler.
“I am proud of the efforts our officers are doing in intercepting these dangerous drugs,” said Port Director Petra Horne, Brownsville Port of Entry. “Every seizure is paramount in keeping our borders secure.”
The first seizure took place on Tuesday, Jan. 17, at Gateway International Bridge, when CBP officers working primary encountered a man as he arrived at the port of entry as the driver of a tan 1995 Ford F-150. The driver, identified as a 37-year-old male Mexican citizen who resides in Matamoros, Tamaulipas, Mexico, was referred to CBP secondary for further examination after a primary inspection. With the help of a K9 unit, CBP officers discovered four packages hidden within the Ford F-150. CBP officers removed the packages, which contained a total of 7.72 pounds of alleged cocaine with an estimated street value of $59,500.
The second seizure took place on Wednesday, Jan. 18, at the Brownsville and Matamoros International Bridge, when CBP officers working primary encountered a man as he arrived at the port of entry as the driver of a red 2007 Cadillac Escalade. The driver, identified as a 28-year-old male Mexican citizen who resides in Matamoros, Tamaulipas, Mexico, was referred to CBP secondary for further examination after a primary inspection. With the help of a non-intrusive imaging system, CBP officers discovered 25 packages hidden within the vehicle. CBP officers removed the packages which contained a total of 504.37 pounds of alleged marijuana with an estimated street value of $100,873.
The third seizure took place on Thursday, Jan. 19, at the Gateway International Bridge, when CBP officers encountered a man attempting entry as a pedestrian. The traveler, identified as a 55-year-old male Mexican citizen who resides in Brownsville, TX, was referred to CBP secondary for further examination. With the help of a non-intrusive imaging system and a K-9 unit, CBP officers discovered 83 packages. CBP officers removed the packages which contained a total of 11.44 pounds of alleged methamphetamine with an estimated street value of $228,837.
The fourth seizure took place on Friday, Jan. 20, at the Brownsville and Matamoros International Bridge, when CBP officers working primary encountered a female as she arrived at the port of entry as the driver of a white 2005 Jeep Cherokee. The driver, identified as a 53-year-old female Mexican citizen who resides in Brownsville, Texas, was referred to CBP secondary for further examination after a primary inspection. With the help of a K-9 unit, CBP officers discovered 291 packages within the vehicle. CBP officers removed the packages which contained a total of 33.34 pounds of alleged methamphetamine with an estimated street value of $666,671.
The fifth seizure took place on Monday, Jan. 23, at the Gateway International Bridge, when a K-9 unit conducting operations encountered a man as he arrived at the port of entry as the driver of a gray 2013 Chevy Sonic. The driver, identified as a 40-year-old male United States citizen who resides in Harlingen, Texas, was referred to CBP secondary for further examination. CBP officers discovered 12 packages hidden within the vehicle. CBP officers removed the packages which contained a total of 29.06 pounds of alleged cocaine with an estimated street value of $224,060.
The combined estimated street value of the narcotics from these seizures is approximately $1,279,941.
CBP officers seized the narcotics along with the vehicles, arrested the drivers and pedestrian, and turned them over to the custody of Homeland Security Investigations (HSI) special agents for further investigation.
Media Advisory - Port Authority Public Meetings on Proposed $32.2 Billion 10-Year Capital Plan to Begin Next Week - Port of New York/New Jersey
The Port Authority will host the first of two public meetings on its largest ever $32.2 billion proposed 2017-2026 Capital Plan on Tuesday, January 31, at 4 World Trade Center.
The meeting, to be held from 5 p.m. to 8 p.m., will be attended by Board commissioners as well as the executive director and chief financial officer. A second meeting will be held during the same time period on February 7 at Port Authority offices at 2 Montgomery Street in Jersey City. To speak at either of the two meetings, members of the public can register in advance by clicking here: http://corpinfo.panynj.gov/pages/capital-plan-speaker-registration/
Registrations also will be available at the door beginning at 4:30 p.m. on both dates.
The meetings are just one component of the Port Authority’s month-long public review and comment period on the proposed 10-year plan. The plan is posted on the Port Authority’s web site and comments on the document can be submitted through February 15 to publiccomments@panynj.gov. The Board is scheduled to take action on the plan at its February 16, 2017 meeting. Prior to that action, the Board will consider public comments received in order to determine if any modifications to the draft plan are warranted.
The proposed plan outlines new major capital projects the agency will invest in over the next 10 years. All projects remain subject to Board authorization processes, and are subject to a rigorous “gates” review process before they proceed that looks at agency revenue and the ability to finance them. The significant projects include:
A new Port Authority Bus Terminal.
The redevelopment of John F. Kennedy International Airport and a new
AirTrain system to serve LaGuardia Airport.
The redevelopment of Terminal A at Newark Liberty International Airport.
The redevelopment of LaGuardia Airport’s Terminals C and D.
The extension of the PATH system to the rail link station at Newark Liberty International Airport.
The proposed plan also includes $8.8 billion – or 30 percent of the total 10-year spending – for critical renewal projects at the agency’s transportation facilities, including nearly $2 billion to restore the George Washington Bridge, $1.4 billion to replace the Lincoln Tunnel Helix and $550 million to replace wharves and piers. The proposed Capital Plan also follows the Special Panel’s recommendation to redeploy $600 million in regional development funds previously allocated to both states.
The proposed Capital Plan includes a commitment to pay debt service on up to $2.7 billion of expected borrowing by the Gateway Program Development Corporation from low-interest federal Railroad Rehabilitation and Improvement Financing loans for the critical trans-Hudson rail tunnel link between New York and New Jersey and Portal Bridge North projects.
The plan also includes $7.6 billion to finish projects currently in construction, such as LaGuardia Airport’s ongoing Terminal B redevelopment project, the Bayonne Bridge, Goethals Bridge, PATH’s signal replacement program, upgrades to the Harrison and Grove Street PATH stations and the port and rail cargo facility at Greenville Yard.
Publication of a Federal Register Notice Concerning FDA’s Ban on Powdered Gloves - U.S. Customs & Border Protection
FDA issued a final rule (effective January 18, 2017) banning all powdered surgeon's gloves, powdered patient examination gloves, and absorbable powder for lubricating a surgeon's glove because these products present unreasonable and substantial risk to health care providers, patients and other individuals. The effective date of this rule applies to devices already in commercial distribution and those already sold to the ultimate user, as well as to devices that would be sold or distributed in the future. Section 501(g) of the FD&C Act (21 U.S.C. 351(g)) deems a device to be adulterated if it is a banned device. Importers, manufacturers, and customs brokers should take note that powdered surgeon's gloves, powdered patient examination gloves, and absorbable powder for lubricating a surgeon's glove offered for import into the United States will be subject to refusal of admission. For more information please visit the FDA Medical Device Bans webpage. Questions regarding FDA’s ban of powdered surgeon's gloves, powdered patient examination gloves, and absorbable powder for lubricating a surgeon's glove should be directed to FDA’s Center for Device and Radiological Health CDRH OC Import mailbox at cdrhocimport@fda.hhs.gov or 240-402-4020. Questions regarding FDA’s import processes can be directed to FDA’s Division of Import Operations at FDAImportsInquiry@fda.hhs.gov.
ITA: Press Releases - U.S. International Trade Administration
01/23/2017 Final Determinations in the Antidumping Duty (AD) and Countervailing Duty (CVD) Investigations of Imports of Truck and Bus Tires
Delayed Effective Dates for 2 EPA Rules - U.S. Customs & Border Protection
On January 25, 2017, the Office of the Federal Register placed on its public inspection website
two notices that delay the effective dates of two final rules from January 26, 2017, to March 21, 2017. The two final rules amend the CBP regulations relating to:
(1) the importation into the United States of certain vehicles and engines under the Clean Air Act in order to harmonize the documentation requirements applicable to different classes of vehicles and engines that are subject to the CAA’s emission standards (81 FR 94974); and
(2) the requirement to file a Toxic Substances Control Act (TSCA) certification when importing into the customs territory of the United States chemicals in bulk form or as part of mixtures and articles containing a chemical or mixture (81 FR 94980).
Both final rules amended the regulations to permit importers to file the required EPA documents with CBP electronically.
To comply with the White House Chief of Staff memorandum issued on January 20, 2017, CBP has issued the two documents that will be published in the Federal Register on January 27, 2017, that announce that the effective date of the Final Rules are delayed for 60 days from January 20, 2017, to March 21, 2017.
Port Sees Advantages After Year of Challenges - Port of Long Beach
The Port of Long Beach sails into 2017 propelled by transformative modernization projects all across the harbor, excellent financial health, an industry-leading record of environmental progress, and a strong commitment to working with the City and neighbors, said Harbor Department leaders Wednesday morning at the annual “State of the Port” event.
About 300 industry stakeholders, civic leaders and community members attended the gathering at the Long Beach Convention Center to hear about the Port’s plans to enhance its rail network and other efficiencies to pursue competitiveness in the year ahead.
Despite a 2016 that took the shipping industry and the Port into some rough seas, the Port of Long Beach responded to the challenges, staying on course and providing world-class service, building the most advanced facilities in North America and maintaining one of the best credit ratings for any U.S. seaport.
Board of Harbor Commissioners President Lori Ann Guzmán set the stage for the State of the Port address, laying out the Port’s goals in 2017 for increasing sustainability, financial strength and market share.
“This past year, members of the Harbor Commission worked together on the Port’s Strategic Plan -- identifying course corrections, quantifying our key goals, and ensuring we have the resources available to achieve the Port’s critical mission,” Guzmán told attendees. “Our top priority is your long-term prosperity, and the best way to accomplish this is through our updated Strategic Plan.”
Interim Chief Executive Duane Kenagy noted that last year the Port hosted the christening of the biggest vessel to visit North America, opened the first phase of the highly advanced Pier E terminal, and constructed the early stages of the massive span that will eventually replace the Gerald Desmond Bridge.
“We saw mergers, changing alliances, and even bankruptcies, and now we face uncertain trade policies. It is clear -- only the most efficient and strongest will survive,” Kenagy said. “But working with each of you -- our customers and partners -- I am confident the Port of Long Beach will thrive.”
The Port is blessed, Kenagy said, with an aggressive and well-financed program to reinvest in its infrastructure, a highly trained and productive labor force, an impressive record of ecological improvements and shipping line partners that are stepping up to fill in where another left off.
For an archived webcast of State of the Port, go to www.polb.com/StateOfThePort. To access the Port of Long Beach Fiscal Year 2017 Strategic Plan, go to www.polb.com/strategicplan.
Photo caption: Interim Chief Executive Duane Kenagy delivers the 2017 State of the Port Address at the Long Beach Convention Center.