New Exceptions Made for Certain Garments of Specified Non-Originating Fabrics Under the U.S.-Morocco Free Trade Agreement -Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
The U.S. has announced an agreement with Morocco, effective April 1, 2019, under which the originating status rule for five classes of woven garments has been modified to allow for the use of certain non-originating fabrics (i.e., the specified fabrics for the listed garments may be sourced from outside of Morocco or the U.S.)
In most instances, qualification of apparel for duty-free entry into the United States under the USMFTA requires satisfaction of a “yarn forward” rule (requiring that the formation of the yarn and all further processing occur in Morocco and/or the United States). This strict rule limits the benefits to be obtained from sourcing in Morocco. As a result of the recent change, certain non-originating fabrics may now be used for specific garments. The impacted garments and materials are listed below:
- Women’s or girls’ cotton corduroy skirts and divided skirts classified in subheading 6204.52, of cotton corduroy fabrics classified in subheading 5801.22;
- Women’s or girls’ man-made fiber blouses, shirts and shirt-blouses classified in subheading 6206.40, of polyester corduroy fabrics classified in subheading 5801.32;
- Women’s trousers classified in subheading 6204, of synthetic bi-stretch fabric containing 45 to 52 percent by weight of polyester, 45 to 52 percent by weight of rayon and 1 to 7 percent by weight of spandex, classified in subheading 5515.11;
- Women’s trousers classified in subheading 6204, of woven fabric containing 60 to 68 percent by weight of polyester, 29 to 37 percent by weight of rayon and 1 to 7 percent by weight of spandex, classified in subheading 5515.11; and
- Women’s trousers classified in subheading 6204, of woven herringbone fabric containing 31 to 37 percent by weight of viscose rayon, 17 to 23 percent by weight of polyester, 17 to 23 percent by weight of cotton, 13 to 19 percent by weight of wool, 5 to 11 percent by weight of nylon and 1 to 6 percent by weight of spandex, classified in subheading 5408.33.”
It must be noted that the above changes represent very discrete new exceptions. They will only benefit traders in these categories.
Should you have any questions on this development or any other free-trade agreement issues, please do not hesitate to contact our office.
POLA and POLB Marine Terminal Gates Closed Thursday, Apr. 4, 2019, 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, Apr. 4, 2019, starting at 5 p.m. As a result, no marine terminal gates at the Port of Los Angeles or the Port of Long Beach will operate between the hours of 5:00 p.m. on Apr. 4 through 3:00 a.m. on Apr. 5. There will be no OffPeak shift Thursday night Apr. 4.
Please check with individual terminals for substitute or alternative gates.
This labor shutdown falls under Rule 5 of the Marine Terminal Operator Schedule No. 1, which is available at:
https://www.pierpass.org/wp-content/uploads/2018/11/PierPASS-Schedule-11-21-2018.pdf
2019 Generalized System of Preferences (GSP): Notice of Annual GSP Product and Country Review; Deadline for Filing Petitions - Office of US Trade Representative/Federal Register
AGENCY: Office of the United States Trade Representative.
ACTION: Notice of statistics availability and announcement of annual GSP review.
SUMMARY: The Office of the United States Trade Representative (USTR) will consider petitions to modify the GSP status of GSP beneficiary developing countries (BDCs) because of country practices; add products to GSP eligibility; remove products from GSP eligibility for one or more countries; waive competitive need limitations (CNLs); deny de minimis waivers for products eligible for de minimis waivers; and redesignate currently excluded products. This review will include separate hearings on product petitions and country eligibility reviews, which USTR will announce in the Federal Register at a later date.
DATES: April 18, 2019 at midnight EST: Deadline for petitions to modify the GSP status of certain GSP beneficiary developing countries because of country practices; petitions requesting waivers of CNLs; petitions on GSP product eligibility additions or removals; petitions to deny de minimis waivers; petitions to redesignate an excluded product; and petitions for continuation of CNLs that have exceeded certain thresholds. USTR will not consider petitions submitted after the April 18, 2019 deadline. USTR will announce the petitions accepted for review, along with a schedule for any related public hearings and the opportunity for the public to provide comments, at a later date.
Read Supplemental Information
Notice of Product Exclusions: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation - Office of US Trade Representative/Federal Register
AGENCY: Office of the United States Trade Representative.
ACTION: Notice of product exclusions.
SUMMARY: Effective July 6, 2018, the U.S. Trade Representative (Trade Representative) imposed additional duties on goods of China with an annual trade value of approximately $34 billion (the $34 billion action) as part of the action in the Section 301 investigation of China's acts, policies, and practices related to technology transfer,intellectual property, and innovation. The Trade Representative's determination included a decision to establish a product exclusion process. The Trade Representative initiated the exclusion process in July 2018, and stakeholders have submitted requests for the exclusion of specific products. In December 2018, the Trade Representative granted an initial set of exclusion requests. This notice announces the Trade Representative's determination to grant additional exclusion requests, as specified in the Annex to this notice. The Trade Representative will continue to issue decisions on pending requests on
a periodic basis.
DATES: The product exclusions announced in this notice will apply as of the July 6, 2018 effective date of the $34 billion action, and will extend for one year after the publication of this notice. U.S. Customs and Border Protection will issue instructions on entry guidance and implementation.
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U.S. Department of Commerce Finds Dumping and Countervailable Subsidization of Imports of Steel Wheels from China -
U.S. Department of Commerce
Today(3/24/19), the U.S. Department of Commerce announced the affirmative final determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations of imports of steel wheels from China, finding that exporters from China have sold steel wheels at less than fair value in the United States at a rate of 231.70 percent. Commerce also determined that exporters from China received countervailable subsidies at a rate of 457.10 percent.
Upon publication of the final affirmative antidumping duty determination, Commerce will instruct U.S. Customs and Border Protection (CBP) to collect AD cash deposits equal to the applicable final weighted-average dumping margins. Further, as a result of the affirmative final countervailing duty determination, if the U.S. International Trade Commission (ITC) makes an affirmative injury determination, Commerce will instruct CBP to resume collection of CVD cash deposits equal to the applicable subsidy rates.
In 2017, U.S. imports of certain steel wheels from China were valued at an estimated $388 million.
The petitioners are Accuride Corporation (Evansville, IN) and Maxion Wheels Akron LLC (Akron, OH).
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 155 new antidumping and countervailing duty investigations – this is a 278 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 470 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.
The ITC is currently scheduled to make its final injury determinations on or about May 6, 2019. If the ITC makes affirmative final injury determinations, Commerce will issue AD and CVD orders. If the ITC makes negative final determinations of injury, the investigations will be terminated and no orders will be issued.
Click HERE for a fact sheet on today’s decisions.
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.
FTC Crackdown Stops Operations Responsible for Billions of Illegal Robocalls - Federal Trade Commission
Four separate operations responsible for bombarding consumers nationwide with billions of unwanted and illegal robocalls pitching auto warranties, debt-relief services, home security systems, fake charities, and Google search results services have agreed to settle Federal Trade Commission charges that they violated the FTC Act and the agency’s Telemarketing Sales Rule (TSR), including its Do Not Call (DNC) provisions.
The settlements are part of the agency’s ongoing efforts to combat the scourge of illegal robocalls. Under the court orders announced today, the defendants are banned from robocalling and most telemarketing activities, including those using an automatic dialer, and will pay significant financial judgments. The defendant in one of these cases provided the software platform that resulted in more than one billion illegal robocalls.
“We have brought dozens of cases targeting illegal robocalls, and fighting unwanted calls remains one of our highest priorities,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection. “We also have great advice on call-blocking services and how to reduce unwanted calls at www.consumer.FTC.gov.”
Each proposed settlement order is described here:
Office Depot and Tech Support Firm Will Pay $35 Million to Settle FTC Allegations That They Tricked Consumers into Buying Costly Computer Repair Services - Federal Trade Commission
Office Depot, Inc. and a California-based tech support software provider have agreed to pay a total of $35 million to settle Federal Trade Commission allegations that the companies tricked customers into buying millions of dollars’ worth of computer repair and technical services by deceptively claiming their software had found malware symptoms on the customers’ computers.
Office Depot has agreed to pay $25 million while its software supplier, Support.com, Inc., has agreed to pay $10 million as part of their settlements with the FTC. The FTC intends to use these funds to provide refunds to consumers.
“Consumers have a hard enough time protecting their computers from malware, viruses, and other threats,” said FTC Chairman Joe Simons. “This case should send a strong message to companies that they will face stiff consequences if they use deception to trick consumers into buying costly services they may not need.”
In its complaint, the FTC alleges that Support.com worked with Office Depot for nearly a decade to sell technical support services at its stores. Office Depot and Support.com used PC Health Check, a software program, as a sales tool to convince consumers to purchase tech repair services from Office Depot and OfficeMax, Inc., which merged in 2013.
The Office Depot companies marketed the program as a free “PC check-up” or tune-up service to help improve a computer’s performance and scan for viruses and other security threats. Support.com, which received tens of millions of dollars in revenue from Office Depot, remotely performed the tech repair services once consumers made the purchase.
The FTC alleges that while Office Depot claimed the program detected malware symptoms on consumers’ computers, the actual results presented to consumers were based entirely on whether consumers answered “yes” to four questions they were asked at the beginning of the PC Health Check program. These included questions about whether the computer ran slow, received virus warnings, crashed often, or displayed pop-up ads or other problems that prevented the user from browsing the Internet.
The complaint alleges that Office Depot and Support.com configured the PC Health Check Program to report that the scan found malware symptoms or infections whenever consumers answered yes to at least one of these four questions, despite the fact that the scan had no connection to the “malware symptoms” results. After displaying the results of the scan, the program also displayed a “view recommendation” button with a detailed description of the tech services consumers were encouraged to purchase—services that could cost hundreds of dollars—to fix the problems.
The FTC alleges that both Office Depot and Support.com have been aware of concerns and complaints about the PC Health Check program since at least 2012. For example, one OfficeMax employee complained to corporate management in 2012, saying “I cannot justify lying to a customer or being TRICKED into lying to them for our store to make a few extra dollars.” Despite this and other internal warnings, Office Depot continued until late 2016 to advertise and use the PC Health Check program and pushed its store managers and employees to generate sales from the program, according to the complaint.
The Commission alleges that both companies violated the FTC Act’s prohibition against deceptive practices.
In addition to the monetary payment, the proposed settlement also prohibits Office Depot from making misrepresentations about the security or performance of a consumer’s electronic device and requires the company to ensure its existing and future software providers do not engage in such conduct. As part of its proposed settlement, Support.com cannot make, or provide others with the means to make, misrepresentations about the performance or detection of security issues on consumer electronic devices.
The Commission vote authorizing the staff to file the complaint and stipulated final orders was 5-0. The FTC filed the complaint and stipulated final orders in the U.S. District Court for the Southern District of Florida. NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. Stipulated final orders have the force of law when approved and signed by a District Court judge.