Petitions for the Imposition of Antidumping and Countervailing Duties on Steel Racks from the People's Republic of China - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
I. Type of Action: Antidumping Duty (“AD”) and Countervailing Duty (“CVD”): PRC
II. Product: The merchandise covered by this investigation is steel racks and parts thereof, assembled or unassembled. Steel racks are racks made of steel of dimensions and configurations that can be adjusted as required, with or without locking tabs or slots, and with or without bolted, clamped, or welded connections, including any of the following: uprights, posts, columns, braces, frames, beams, arms, locking devices, and rails.
A steel rack is a structure typically made from cold-formed or hot-rolled steel structural members and includes, but is not limited to, components such as plates, rods, angles, shapes, sections, and tubes. Welding, bolting, and clipping are the typical methods of assembly. Connections may also be made with locking devices such as clips, end plates, and beam connectors. Steel racks may be made to ANSI MH16.l or ANSI MH16.3 standards. All steel racks and parts thereof meeting the physical description set out herein are covered by the scope of this investigation, whether or not produced according to a particular standard.
The vertical components of steel racks may be referred to as uprights, posts, or columns, and may be connected with horizontal or diagonal braces to form upright frames. A typical storage configuration comprises upright frames perpendicular to the aisles that are independently adjustable, with positive-locking beams parallel to the aisle and spanning between the upright frames, and braces designed to support unit loads between the beams. A cantilever rack consists of uprights running parallel to the aisle and cantilever beams or aims connected to the uprights and running perpendicular to the aisle rather than spanning two upright frames.
The scope includes all steel racks and parts thereof meeting the description above, regardless of: (1) dimensions, weight, strength, gauge, or load rating; (2) vertical upright or frame type (including structural, roll-form, or other); (3) horizontal support or beam/brace type (including but not limited to structural, roll-form, slotted, unslotted, Z-beam, C-beam, L-beam, step beam, cantilever beam, and cargo rack); (4) number of supports; (5) number of levels; (6) surface coating, if any (including but not limited to paint, epoxy, powder coating, zinc, or other metallic coatings); (7) shape (including but not limited to rectangular, square, comer, and cantilever); (8) the method by which the vertical and horizontal supports connect (including but not limited to locking tabs or slots, bolting, clamping, and welding); and (9) the inclusion or not of moving components (including but not limited to rails, wheels, rollers, tracks, channels, carts, and conveyors).
Steel racks may be referred to as pallet racks, storage racks, stacker racks, retail racks, pick modules, selective racks, or cantilever racks. Steel racks that incorporate moving components may also be referred to as pallet-flow racks, carton-flow racks, push-back racks, movable-shelf racks, drive-in racks, and drive-through racks.
Subject merchandise includes material matching the above description that has been finished, assembled, or packaged in a third county, including by coating, painting, assembling, attaching to, or packaging with another product, or any other finishing, assembly, or packaging operation that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the steel racks and parts thereof.
III. HTS classifications: Merchandise covered by this investigation is currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under the following subheadings: 7326.90.8688 and 9403.20.0080. Subject merchandise may also enter under subheadings 7308.90.3000, 7308.90.6000, 7308.90.9590, and 9403.20.0090. The HTSUS subheadings set forth above are provided for convenience and U.S. Customs purposes only. The written description of the scope is dispositive.
IV. Date of Filing: June 20, 2018
V. Petitioners: The Coalition for Fair Rack Imports
VI. Foreign Producers/Exporters: Please contact our office for a list filed with the petition.
VII. US Importers named. Please contact our office for a list filed with the petition.
VIII. Alleged Dumping Margins (No CVD Margins Listed): PRC: 131.1-145.7%;
IX. Comments:
A. Projected date of ITC Preliminary Conference: July 11, 2018. Please contact our office for a complete projected schedule for the AD investigation.
B. The earliest theoretical date for retroactive suspension of liquidation for the AD is July 31, 2018; CVD is July 10, 2018. Please contact our office for a complete projected schedule for the CVD investigation.
C. Volume and Value of Imports: Please contact our office for a summary of the data filed with the petition.
D. List of Alleged Subsidy Programs: Please contact our office for a list of alleged subsidy programs.
If you have any questions regarding how this investigation may impact future imports of scope merchandise, or whether a particular product is within the scope of the investigation, please contact one of our attorneys.
CBP Officers Seize Coolers at Portal Port of Entry - U.S. Customs & Border Protection
PORTAL, N.D. — U.S. Customs and Border Protection (CBP) Office of Field Operations officers working at the Portal Port of Entry targeted a rail container destined to Minneapolis. In May, CBP officers inspected the rail container in Portal and discovered merchandise in violation of intellectual property rights (IPR) regulations.
The merchandise consisted of 887 coolers with built-in stereo systems. Examination of the coolers revealed counterfeit markings. As a result, CBP seized those items. The counterfeit merchandise has an aggregate manufacturer’s suggested retail price of $170,235.
“Counterfeiting adversely affects intellectual property rights holders by stealing the original ideas and the ability to make a profit from them,” said Brent Beeter, Portal Port Director. “Consumers are also harmed because manufacturers of counterfeit products have little motivation to use high-quality materials.”
Stopping the flow of illicit goods is a priority trade issue for CBP. The importation of counterfeit merchandise can damage the U.S. economy and threaten the health and safety of the American people. For more information on CBP’s IPR priority trade issue visit: CBP Trade and IPR.
With the growth of foreign trade, unscrupulous companies have profited billions of dollars from the sale of counterfeit and pirated goods. To combat the illicit trade of merchandise violating laws relating to IPR, trademark and copyright holders may register with CBP through an online system. Such registration assists CBP officers and import specialists in identifying merchandise that violate U.S. law.
CBP’s IPR enforcement strategy is multi-layered and includes seizing illegal merchandise at our borders, pushing the border “outward” through audits of suspect importers, cooperating with our international trading partners, and collaborating with industry and governmental agencies to enhance these efforts.
CBP and Otter Products Partner to Prevent Counterfeit Protective Phone Cases from Entering US - U.S. Customs & Border Protection
WASHINGTON—U.S. Customs and Border Protection (CBP) announced today a new formal partnership arrangement with Otter Products, LLC, maker of OtterBox and LifeProof brand phone cases, as part of the Donations Acceptance Program. Under its partnership with CBP, Otter Products will donate authentication devices for CBP officers and import specialists to use to quickly and accurately detect counterfeit Otter Products merchandise entering the United States.
“Building off the success of localized enforcement efforts, CBP is now working hand-in-hand with Otter Products to target and deploy authentication devices on a nation-wide scale,” said Todd C. Owen, Executive Assistant Commissioner, Office of Field Operations. “CBP’s formal partnership with Otter Products will help us broadly deliver these highly effective tools to the front line officers and trade specialists who need them most.”
As part of its rigorous and ongoing brand protection efforts, Otter Products intends to partner with CBP for the long term by resupplying and, if necessary, upgrading authentication devices as CBP’s detection needs evolve.
“CBP’s formal partnership with Otter Products extends well beyond the initial deployment of authentication devices,” said Brenda B. Smith, Executive Assistant Commissioner, Office of Trade. “Our goal is to provide continuous, organized feedback to Otter Products pertaining to the ongoing use of these devices, their effectiveness, and opportunities to improve upon them so that we may jointly outpace those who seek to profit off counterfeit goods.”
The Donations Acceptance Program broadly enables CBP to accept donations of real property, personal property (including monetary donations) and non-personal services from public and private sector entities in support of CBP operations. Accepted donations may be used for port of entry construction, alterations, operations, and maintenance activities.
Public-private partnerships are a key component of CBP’s Resource Optimization Strategy and allow CBP to provide new or expanded services and infrastructure at domestic ports of entry. For more information, visit www.CBP.gov/DAP.
FDA Updates the Everything Added to Food in the U.S. Inventory - Food & Drug Administration
The U.S. Food and Drug Administration today launched the new Substances Added to Food inventory, an upgraded version of the original Everything Added to Food in the U. S. (EAFUS) inventory. The new searchable inventory contains approximately 4,000 substances, and includes information on food additives, color additives, Generally Recognized As Safe (GRAS) and prior-sanctioned substances. Additional features include:
- A new search function that allows users to search multiple related food ingredient and packaging inventories;
- Direct links to any applicable regulations for a substance; and
- Additional information such as other known names, common uses, and information by other entities when available.
The Substances Added to Food inventory is maintained by Office of Food Additive Safety (OFAS) staff. OFAS staff in the FDA's Center for Food Safety and Applied Nutrition (CFSAN) are responsible for protecting consumer health, by ensuring the safety of substances added to food and food contact materials. OFAS is FDA's one-stop shop for questions about the safety of food ingredients, food contact substances (used in packaging and food processing equipment), sources of radiation used to treat food, and foods derived from bioengineered plants. OFAS is also the lead for FDA's food additive and color additive petition processes, the evaluation of GRAS notices, and the review of notifications for food contact substances.
OFAS maintains inventories and listings related to food ingredients, food additives, color additives, GRAS substances, and packaging and food contact substances, many of which have been available on the FDA website since 1999. It is important to note that the Substances Added to Food inventory is only a partial list of food ingredients and inclusion in this inventory of information from non-FDA entities does not indicate an FDA approval or evaluation of this use.
Section 301 Trade Remedies to be Assessed on Certain Products from China Effective July 6 - U.S. Customs & Border Protection
BACKGROUND: On August 18, 2017, the Office of the United States Trade Representative (USTR) initiated an investigation under Section 301 of the Trade Act of 1974 into the government of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. On March 22, 2018, the USTR issued a notice of determination and request for comments that stated that the government of China’s acts, policies, and practices covered by the investigation were found to be actionable under Section 301(b) of the Trade Act. The notice proposed the imposition of additional import duties on a preliminary list of 1,300 Chinese products, and indicated that a final list would be forthcoming after the period for public comment expired. See Federal Register, 83 FR 14906. On June 15, 2018, the USTR issued a notice of action providing for the imposition of additional import duties on a final list of Chinese products.
GUIDANCE: The additional import duties for Chinese goods covered by the Section 301 action will be effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM Eastern Standard Time on July 6, 2018.
Products Covered by Section 301 Action
The USTR has issued a final list of products covered by the Section 301 action, represented by their eight digit Harmonized Tariff Schedule of the United States (HTSUS) subheadings. The list comprises over 800 eight-digit HTSUS numbers, and is published in Annex A to the USTR’s Notice of Action. Any article classified in a subheading covered by this list that is a product of China would be subject to a 25% ad valorem duty rate, in addition to the general (Column 1) rate of duty for that particular subheading.
In addition to reporting the Chapters 1-97 HTSUS classification of the imported merchandise, importers shall also report the 9903.88.01 special tariff number for goods subject to the additional duty assessment of 25% ad valorem as a result of the Section 301 trade remedy.
9903.88.01: 25% ad valorem additional duty for articles the product of China
The Section 301 duties currently only apply to products of China, and are based on the country of origin, not country of export.
Additional Information
CHAPTER 98 - The rates of duty imposed by subheading 9903.88.01 shall not apply to products for which entry is properly claimed under a heading or subheading in Chapter 98.
TRADE PREFERENCE PROGRAMS - Products from China subject to the Section 301 trade remedy that are eligible for special tariff treatment under General Note 3(c)(i) to the HTSUS shall be subject to the additional 25 percent ad valorem rate of duty imposed by heading 9903.88.01.
FOREIGN TRADE ZONES - Per the Federal Register Notice published by the USTR, any product listed in Annex A, except any product that is eligible for admission under ‘domestic status’ as defined in 19 CFR 146.43, which is subject to the additional duty imposed by this determination, and that is admitted into a U.S. foreign trade zone on or after 12:01 am eastern daylight time on July 6, 2018, only may be admitted as ‘privileged foreign status’ as defined in 19 CFR 146.41. Such products will be subject upon entry for consumption to any ad valorem rates of duty or quantitative limitations related to the classification under the applicable HTSUS subheading.
PRODUCT EXCLUSIONS - The Federal Register Notice indicates that the USTR will establish a process by which U.S. stakeholders may request that particular products classified within an HTSUS subheading listed in Annex A be excluded from the additional Section 301 duties. USTR will publish a separate notice concerning the product exclusion process, and CBP will provide additional guidance on the matter as it becomes available.
Service, Global Wildlife Officers Bring the Thunder in Worldwide Anti-trafficking Effort - U.S. Fish & Wildlife
Snakes, songbirds and monkeys are just a few live species law enforcement officers from around the globe intercepted during Operation Thunderstorm. They also found shells, skins and other parts of protected species, and dangerous injurious species such as the giant African land snails, which were seized in New York.
Learn More about Operation Thunderstorm »