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USITC Launches New Investigation on Possible Modifications to the United States-Korea Free Trade Agreement Rules of Origin -
US 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-Korea Free Trade Agreement (KORUS) rules of origin.

The investigation, U.S.-Korea FTA: Advice on Modifications to Certain Textile and Apparel Rules of Origin, was requested by the U.S. Trade Representative (USTR) in a letter received on February 22, 2019.  The letter included an attachment detailing the certain textile and apparel articles affected by the proposed modifications.

As requested, the USITC, an independent, nonpartisan, factfinding federal agency, will provide advice on the probable economic effect of the proposed U.S.-Korea FTA rules of origin modifications on U.S. trade under the KORUS, total U.S. trade, and on domestic producers of the affected articles.

The USITC expects to submit its advice to the USTR by June 24, 2019. 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 March 29, 2019.

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 March 11, 2019, which can be obtained from the USITC Internet site (www.usitc.gov) or by contacting the Secretary at the above address.


 

Initiation of AD Investigations: Acetone from Multiple Countries - U.S. Customs & Border Protection

On March 11, 2019, the Department of Commerce (Commerce) initiated its less-than-fair-value investigations on “Acetone from Belgium, the Republic of Korea (Korea), the Kingdom of Saudi Arabia (Saudi Arabia), Singapore, the Republic of South Africa (South Africa), and Spain” (Initiation Notices). 

 

These investigations have been assigned the following case numbers: A-423-814 (Belgium), A-580-899 (Korea), A-517-805 (Saudi Arabia), A-559-808 (Singapore), A-791-824 (South Africa) and A-469-819 (Spain).

 

The Scope of Merchandise covered by these investigations reads as follows:

 

The merchandise covered by these investigations is all grades of liquid or aqueous acetone.  Acetone is also known under the International Union of Pure and Applied Chemistry (IUPAC) name propan-2-one.  In addition to the IUPAC name, acetone is also referred to as ß-ketopropane (or beta-ketopropane), ketone propane, methyl ketone, dimethyl ketone, DMK, dimethyl carbonyl, propanone, 2-propanone, dimethyl formaldehyde, pyroacetic acid, pyroacetic ether, and pyroacetic spirit.  Acetone is an isomer of the chemical formula C3H6O, with a specific molecular formula of CH3COCH3 or (CH3)2CO. 

 

The scope includes acetone that is combined or mixed with other products, including, but not limited to, isopropyl alcohol, benzene, diethyl ether, methanol, chloroform, and ethanol, regardless of the quantity or value of the acetone component.  For such combined products, only the acetone component is covered by the scope of these investigations.  Acetone that has been combined with other products is included within the scope, regardless of whether the combining occurs in third countries.  Notwithstanding the foregoing language, an acetone combination or mixture that is transformed through a chemical reaction into another product, such that, for example, the acetone can no longer be separated from the other products through a distillation process (e.g., methyl methacrylate (MMA) or Bisphenol A (BPA)) is excluded from these investigations.

 

The scope also includes acetone that is commingled with acetone from sources not subject to these investigations, regardless of the quantity or value of the subject acetone component.  Only the subject merchandise component of such commingled products is covered by the scope of these investigations. 

 

Acetone that has been commingled with acetone from sources not subject to these investigations is included within the scope, regardless of whether the combining occurs in third countries.  The acetone component from sources not subject to these investigations may still be subject to other acetone investigations.

 

The Chemical Abstracts Service (CAS) registry number for acetone is 67-64-1. 

 

The merchandise covered by these investigations is currently classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheadings 2914.11.1000 and 2914.11.5000.  Acetone and acetone combinations and mixtures covered by these investigations may also enter under different HTSUS subheadings, such as 2902.20.0000, 2902.70.0000, 2905.12.0050, or 2914.12.0000, however, this list of HTSUS subheadings is non-exhaustive.  Although these HTSUS subheadings and CAS registry number are provided for convenience and customs purposes, the written description of the scope of these investigations is dispositive.

 

Requirements For Submitting Comments On The Scope Of The Investigations:  Please be sure to comply with all three requirements established below.
 
Deadline for Submitting Comments:

As announced in the Initiation Notice, Commerce is setting aside a period for interested parties to raise issues regarding product coverage (scope).  The period for scope comments is intended to provide Commerce with ample opportunity to consider all comments and to consult with parties prior to the issuance of the preliminary determinations, as appropriate.  If scope comments include factual information (see 19 CFR 351.102(b)(21)), all such factual information should be limited to public information.  Commerce requests that all such comments be filed by 5:00 p.m. Eastern Time (ET) on April 1, 2019, which is 20 calendar days from the signature date of this notice.  Any rebuttal comments, which may include factual information, must be filed by 5:00 p.m. ET on April 11, 2019, which is 10 calendar days after the initial comments deadline.  Commerce requests that any factual information the parties consider relevant to the scope of the investigations be submitted during this time period.  However, if a party subsequently finds that additional factual information pertaining to the scope of the investigations may be relevant, the party may contact Commerce and request permission to submit the additional information.  All such comments must be filed on the records of each of the concurrent AD investigations identified above.


 

U.S. Department of Commerce Initiates Antidumping Duty Investigations of Imports of Acetone from Belgium, Korea, Saudi Arabia, Singapore, South Africa, and Spain - U.S. Department of Commerce

Today, the U.S. Department of Commerce announced the initiation of new antidumping duty (AD) investigations to determine whether acetone from Belgium, Korea, Saudi Arabia, Singapore, South Africa, and Spain is being sold in the United States at less than fair value.

These antidumping investigations were initiated based on petitions filed by the Coalition for Acetone Fair Trade on February 19, 2019. The members of the Coalition for Acetone Fair Trade are AdvanSix Inc. (Parsippany, NJ), Altivia Petrochemicals, LLC (Haverhill, OH), and Olin Corporation (Clayton, MO).

The alleged dumping margins are:
Belgium – 43.41 to 73.69 percent
Korea – 112.72 to 174.66 percent
Saudi Arabia – 36.88 percent
Singapore – 14.52 to 131.75 percent
South Africa – 214.09 to 414.92 percent
Spain – 102.97 and 171.81 percent

If Commerce makes affirmative findings in these investigations, and if the U.S. International Trade Commission (ITC) determines that dumped and/or unfairly subsidized U.S. imports of acetone from Belgium, Korea, Saudi Arabia, Singapore, South Africa, and Spain, are causing injury to the U.S. industry, Commerce will impose duties on those imports in the amount of dumping found to exist.

In 2017, imports of acetone from Belgium, Korea, Saudi Arabia, Singapore, South Africa, and Spain were valued at an estimated $31.4 million, $37.0 million, $3.6 million, $2.7 million, $17.3 million, and $7.3 million, respectively.

Click HERE for a fact sheet on these initiations.

Next Steps:

During Commerce’s investigations into whether acetone from Belgium, Korea, Saudi Arabia, Singapore, South Africa, and Spain is being dumped, the ITC will conduct its own investigations into whether the U.S. industry and its workforce are being harmed by such imports. The ITC will make its preliminary determinations on or before April 5, 2019. If the ITC preliminarily determines that there is injury or threat of injury, then Commerce’s investigations will continue, with the preliminary determinations scheduled for July 29, 2019, unless this deadline is extended.

If Commerce preliminarily determines that dumping is occurring, then it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing acetone from Belgium, Korea, Saudi Arabia, Singapore, South Africa, and Spain.

Final determinations by Commerce in these cases are scheduled for October 15, 2019, but this date may be extended. If Commerce finds that products are not being dumped, or the ITC finds in its final determinations there is no harm to the U.S. industry, then the investigations will be terminated and no duties will be applied.
The strict enforcement of U.S. trade law is a primary focus of the Trump Administration. Since the beginning of the current Administration, Commerce has initiated 149 new antidumping and countervailing duty investigations – this is a 263 percent increase from the comparable period in the previous administration.

Antidumping and countervailing duty laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of the unfair pricing of imports into the United States. Commerce currently maintains 471 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.

The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade law and does so through an impartial, transparent process that abides by international law and is based on factual evidence provided on the record.

Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to antidumping duties. Companies that receive unfair subsidies from their governments, such as grants, loans, equity infusions, tax breaks, or production inputs, are subject to countervailing duties aimed at directly countering those subsidies.


DOT Fines Delta Air Lines and American Airlines for Violating Tarmac Delay Rule - Department of Transportation

WASHINGTON – The U.S. Department of Transportation (DOT) today fined American Airlines $1 million and Delta Air Lines $750,000 for violating federal statutes and the Department’s rule prohibiting long tarmac delays.

DOT’s Aviation Enforcement Office investigation revealed that ten domestic and three international flights operated by American at various airports throughout the United States violated the Department’s tarmac delay rule between December 2015 and January 2017.  The Enforcement Office also found that eleven flights operated by Delta violated the Department’s tarmac delay rule between January 2017 and February 2018.  Penalties for violations of the tarmac delay rule vary based on the facts and circumstances in the case, including, but not limited to, the consumer harm, the number of violations, and the violator’s compliance disposition and enforcement history.  More information about the specific lengthy tarmac delays can be found in the consent orders, available at www.regulations.gov, docket number DOT-OST-2019-0001. 

Under DOT rules, airlines operating aircraft with 30 or more passenger seats are prohibited from allowing their domestic flights to remain on the tarmac for more than three hours at U.S. airports and their international flights to remain on the tarmac for more than four hours at U.S. airports without giving passengers an opportunity to leave the plane.  Exceptions to the time limits are allowed only for safety, security, or air traffic control-related reasons. 

Of the $1 million assessed to American, $450,000 will be credited to the airline for compensation provided to passengers on the affected flights.  Of the $750,000 assessed to Delta, $450,000 will be credited to the airline for compensation provided to passengers who experienced lengthy tarmac delays, and for Delta’s costs of establishing a backup data center and an automated aircraft-parking guidance and jet-bridge positioning system.

DOT’s airline consumer website makes it easy for travelers to understand their rights.  The page on tarmac delays can be found here.  Consumers may file a complaint with the Department here.




Fentanyl/Methamphetamine Smuggler Intercepted by CBP Officers at Port of San Luis  - U.S. Customs & Border Protection

TUCSON, Ariz. – U.S. Customs and Border Protection officers arrested a San Luis, Sonora, Mexico, woman Monday for an alleged attempt to smuggle five pounds of methamphetamine and suspected fentanyl through the Port of San Luis.

Officers referred a 19-year-old woman for additional inspection as she attempted to enter the U.S. Monday morning. After a CBP narcotics detection canine alerted to a scent it was trained to detect coming from under the hood of her Toyota sedan, a search led to the discovery of packages that were inside of the vehicle’s battery. The drugs were identified as nearly three pounds of meth, worth an estimated value of $8,900 as well as more than two pounds of suspected fentanyl pills, worth nearly $32,000.

Officers seized the drugs and the vehicle, while the subject was arrested and turned over to U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
 
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