The Office of the U.S. Trade Representative (USTR) Seeks Comments on a List of Products Imported From China Proposed for Additional 10% Tariffs - U.S. Office of U.S. Trade Representative
The Office of the U.S. Trade Representative (USTR) seeks comments on a list of products imported from China proposed for additional 10% tariffs. The proposed action would be taken in conjunction with the Section 301 investigation of the acts, policies, and practices of the Government of China related to technology transfer, intellectual property, and innovation. The deadline for written comments is August 17, 2018. A public hearing will take place on August 20-23, 2018. See 83 FR 33608 for details.
CBP Officers Seized Marijuana Manifested as Kids Toys and Clothing - U.S. Customs & Border Protection
BUFFALO, N.Y. – Yesterday, U.S. Customs and Border Protection (CBP) officers working at the Peace Bridge discovered approximately 3 pounds of alleged marijuana manifested as “Kids Toys.”
“This is an excellent seizure that demonstrates our officers’ dedication to enforcing the CBP mission,” said Buffalo Port Director Cary Frieling. “Smugglers will use many methods to bring illegal narcotics into the U.S. and our officers will work diligently to prevent these types of shipments form hitting our streets.”
On July 23, CBP officers working at the Peace Bridge warehouse selected a commercial shipment manifested as “Kids Toys/Clothing” for inspection. Upon opening the box, CBP officers discovered two clear wrapped bags containing what appeared to be marijuana. The contents of the bags field-tested positive for the properties of marijuana and weighed approximately 3 pounds. In fiscal year 2017, officers in the Buffalo Field Office made 640 narcotic seizures- a 6 percent increase from fiscal year 2016.
CBP Field Operations is responsible for securing our borders at the ports of entry. U.S. Customs and Border Protection Officers’ primary mission is anti-terrorism; they screen all people, vehicles, and goods entering the U.S., while facilitating the flow of legitimate trade and travel into and out of the U.S. Their mission also includes carrying out traditional border-related responsibilities, including narcotics interdiction, enforcing immigration law, protecting the nation’s food supply and agriculture industry from pests and diseases, and enforcing trade laws.
Expanded Flexibility for Ocean Transportation Intermediaries Effective August 22, 2018 - Federal Martime Commission
A Final Rule published today by the Federal Maritime Commission offering deregulatory flexibilities for Non-Vessel-Operating Common Carrier (NVOCC) Negotiated Rate Arrangements (NRAs) and NVOCC Service Arrangements (NSAs) will go into force on August 22, 2018.
The key changes to NRAs allow them to be amended at any time; allow the inclusion of non-rate economic terms; and, allow an NVOCC to provide for shipper’s acceptance of the NRA by booking a shipment. NSAs will become easier and more attractive to use by removing filing and essential terms requirements.
"These regulation amendments for NSAs and NRAs will benefit American consumers and the carrier industry – both vessel operators and NVOCCs – by expanding choices for shippers, reducing regulatory requirements, and increasing efficiencies in contracting for ocean shipping services. The National Customs Brokers & Forwarders Association of America petition has had a long road here and they must be commended for their work. The time and effort from all industry participants has been welcomed and worthwhile. I remain committed to proactively considering stakeholder requests to address outdated, unnecessary, or unduly burdensome regulations. I also welcome such comments on statute requirements that may be addressed by the Commission via Section 16 exemption processes," said Acting Chairman Michael A. Khouri.
Commissioner Rebecca Dye noted that "This is one of the first pieces of major deregulation accomplished by the Commission and I am anxious to build upon this momentum."
NSAs and NRAs are instruments created by the Commission, at the request of shipper and carrier stakeholders, respectively in 2004 and 2010. They provide shippers and OTIs with a more efficient way to comply with Shipping Act reporting requirements while relieving them from the tariff filing process.
The Commission voted on June 6, 2018 in favor of moving forward with a proposed draft Final Rule in Docket 17-10, "Amendments to Regulations Governing NVOCC Negotiated Rate Agreements and NVOCC Service Arrangements".
FTC Approves Final Revisions to Jewelry Guides - Federal rade Commission
The Federal Trade Commission has amended its Jewelry Guides to help prevent deception in jewelry marketing.
The Guides (formally, the “Guides for the Jewelry, Precious Metals, and Pewter Industries”) explain to businesses how to avoid making deceptive claims about precious metal, pewter, diamond, gemstone, and pearl products, and when they should make disclosures to avoid unfair or deceptive trade practices.
In 2012, as part of its systematic review of its rules and guides, the Commission sought public comments on the Guides’ costs and benefits, and whether they should be repealed, amended, or retained in their current form. It also sought comments on specific issues concerning composite gemstones, pearls, diamonds, and precious metal alloys.
Using comments and information obtained during a June 2013 public roundtable, in January 2016, the agency proposed, and sought public comments on, revisions to the Guides regarding below-threshold alloys, precious metal content of products containing more than one precious metal, surface application of precious metals, lead-glass filled stones, “cultured” diamonds, treated pearls, varietals, and misuse of the word “gem.”
Based on the overall record, the Commission has approved revisions to help align the Jewelry Guides with Section 5 of the FTC Act by tying guidance to consumer expectations, and to address technological developments and related changes in industry practice, providing needed clarification and greater flexibility for businesses.
Specifically, the revisions address (1) surface application of precious metals, (2) alloys with precious metals in amounts below minimum thresholds, (3) products containing more than one precious metal, (4) composite gemstone products, (5) varietals, (6) “cultured” diamonds, (7) qualifying claims about man-made gemstone products, (8) pearl treatment disclosures, (9) use of the term “gem,” (10) misleading illustrations, (11) the definition of “diamond,” and (12) exemptions recognized in the assay for gold, silver, and platinum.
The revisions also remove outdated or redundant provisions, guide marketing of certain products to more accurately represent their properties, and remove existing restrictions on product marketing that are unnecessary to prevent deception.
The Commission vote to approve the Federal Register Notice containing final amendments to the Jewelry Guides was 5-0. The Notice is available on the FTC’s website and soon will be published in the Federal Register. (FTC File No. G711001; the staff contact is Reenah Kim, Bureau of Consumer Protection, 202-326-2272.)
FMC Collects $618,000 In Penalty Payments - Federal Maritime Commission
The Federal Maritime Commission completed compromise agreements with eight non-vessel-operating common carriers, recovering a total of $618,000 in civil penalties. The agreed penalties resulted from investigations conducted by the Commission’s Area Representatives in Houston, and New York/New Jersey, and by Washington D.C. headquarters staff. The parties settled and agreed to penalties, but did not admit to violations of the Shipping Act or Commission regulations.
The Respondents and the alleged violations are:
Separate compromise agreements were entered with Blue Cargo Group, LLC, Miami, FL, and Trans Orient Express, Inc., Los Angeles, CA, both licensed NVOCCs; and with Bondex Logistics, Inc., a registered NVOCC based in the People’s Republic of China. It is alleged that each Respondent knowingly and willfully obtained transportation at less than applicable rates and charges by improperly utilizing rates contained in service contracts limited to certain named shipper accounts for unrelated shipments of cargo. The compromise agreement with Bondex Logistics also alleged that it provided service in the liner trade that was not in accordance with its published tariff.
The compromise agreement with Jiangsu Feiliks International Logistics, Inc., a registered NVOCC located in the People’s Republic of China alleged that Respondent knowingly and willfully allowed another NVOCC to access its service contracts and thereby unlawfully permitted a non-contract party to enjoy the benefits of service contracts contrary to the terms of its contract with the respective ocean common carrier.
A compromise agreement with North Star World Trade Service, Inc., Mendota Heights, MN, a licensed NVOCC and freight forwarder, alleged that Respondent operated without a Qualifying Individual for a period in excess of one year.
Separate compromise agreements with licensed NVOCCs Walmay Logistics, Inc., Diamond Bar, CA; Prime Shipping International, Inc. dba Prime Agency, City of Industry, CA; and SWAT International, Inc., Jamaica, NY, alleged that each Respondent knowingly and willfully obtained transportation at less than applicable rates and charges by unlawfully accessing service contracts to which they were not a party. The compromise agreements also alleged that each Respondent provided transportation in the liner trade that was not in accordance with its published tariff.
Air Travel Consumer Report: May 2018 Numbers
Department of Transportation
WASHINGTON – The U.S. Department of Transportation (DOT) today released its May 2018 Air Travel Consumer Report (ATCR) on air carrier data compiled for the month of May 2018. The full consumer report and other aviation consumer matters of interest to the public can be found at
http://www.transportation.gov/airconsumer
On-Time Performance: In May 2018, the reporting carriers posted an on-time arrival rate of 79.4 percent, up from the 79.1 percent on-time rate in May 2017, but down from the 81.3 percent mark in April 2018.
Highest On-Time Arrival Rates:
Hawaiian Airlines – 90.8 percent
Delta Air Lines – 85.0 percent
Endeavor Air – 83.2 percent
Lowest On-Time Arrival Rates
JetBlue Airways – 71.0 percent
Frontier Airlines – 71.8 percent
PSA Airlines – 75.0 percent
Cancellations: In May 2018, the reporting carriers canceled 1.2 percent of their scheduled domestic flights, up from both the 0.8 percent cancellation rate posted in May 2017 and the 1.0 percent rate in April 2018.
Highest Rates of Canceled Flights:
Envoy Air – 3.7 percent
Republic Airline – 2.6 percent
PSA Airlines – 2.3 percent
Lowest Rates of Canceled Flights
Delta Air Lines – 0.0 percent*
Hawaiian Airlines – 0.1 percent
Allegiant Air – 0.3 percent
*Delta Air Lines canceled 23 flights in May.
Tarmac Delays
In May 2018, airlines reported 12 tarmac delays of more than three hours on domestic flights, compared to one such tarmac delay reported in April 2018 and 26 tarmac delays reported in May 2017. In May 2018, airlines reported four tarmac delays of more than four hours on international flights, compared to no such tarmac delays reported in April 2018 and no tarmac delays reported in May 2017. Extended tarmac delays are investigated by the Department.
Domestic Flights with Longest Tarmac Delays Exceeding Three Hours
- Spirit Airlines flight 695 from Baltimore/Washington International Airport to Las Vegas, 5/12/18 – delayed 3 hours and 53 minutes on the tarmac in St. Louis after being diverted
- United Airlines flight 1926 from New York LaGuardia to Houston Bush, 5/26/18 – delayed 3 hours and 43 minutes on the tarmac at Houston Hobby after being diverted
- Trans States Airlines flight 4285 from Washington Reagan National to Grand Rapids, Mich., 5/31/18 – delayed 3 hours and 36 minutes on the tarmac at Washington Reagan National
- International Flights with Longest Tarmac Delays Exceeding Four Hours
- Air India flight 127 from Delhi, India to Chicago O’Hare, 5/9/18 – delayed 5 hours and 50 minutes on the tarmac in Milwaukee, Wis. after being diverted
- Japan Airlines flight 4 from Tokyo Narita to Washington Dulles, 5/15/18 – delayed 4 hours and 59 minutes on the tarmac at Washington Dulles
- Aer Lingus flight 125 from Dublin, Ireland to Chicago O’Hare, 5/2/18 – delayed 4 hours and 57 minutes on the tarmac in Milwaukee, Wis. after being diverted
Nicotine Addictiveness Warning Statement - Food & Drug Administration
The United States District Court for the District of Columbia recently issued an order enjoining FDA from enforcing the health warnings requirements for cigars and pipe tobacco set forth in 21 C.F.R §§ 1143.3 and 1143.5 until 60 days after final disposition of the plaintiffs’ appeal of the court’s order on the health warnings requirements. See Order, Cigar Association of Am. v. U.S. Food & Drug Admin., No. 1:16-cv-01460 (D.D.C. July 5, 2018). The compliance date for the health warnings requirements in 21 C.F.R. part 1143 is August 10, 2018. FDA intends to comply with the court’s order in Cigar Association of America. In addition, the agency does not intend to enforce the labeling requirements under sections 903(a)(2) and 920(a)(1) for cigars and pipe tobacco while the injunction is in effect so that firms may make these required label changes at one time. See 81 Fed. Reg. at 29,006 (noting that compliance date for the 903(a)(2) and 920(a)(1) requirements is intended to match date for health warnings). We note that cigar and pipe tobacco firms may choose to voluntarily comply with 21 C.F.R. §§ 1143.3 and 1143.5 and sections 903(a)(2) and 920(a)(1) while the injunction is in effect. Below we are describing certain provisions relating to the health warning requirements for covered tobacco products (other than cigars), RYO tobacco, and cigarette tobacco as set forth in the deeming rule. For pipe tobacco, this description is intended to assist firms with voluntary compliance since, as noted, the health warning requirements for pipe tobacco will not be enforced while the injunction is in effect.
The court’s order does not enjoin FDA from enforcing the health warning requirements for other product categories, including Electronic Nicotine Delivery Systems (ENDS) products, hookah tobacco, and cigarette tobacco and roll-your-own tobacco products.
Accordingly, by the compliance date of August 10, 2018, roll-your-own tobacco, cigarette tobacco, or covered tobacco products (except cigars and pipe tobacco) manufactured, packaged, sold, offered for sale, distributed, or imported for sale or distribution within the United States must bear the required warning statement on the tobacco product package label, per 21 CFR § 1143.3(a)(1). (Cigar required warnings are described under 21 CFR § 1143.5.)