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USITC Institutes Section 337 Investigation of Certain Child Resistant Closures with Slider Devices Having A User Actuated Insertable Torpedo For Selectively Opening the Closure and Slider Devices Therefor - U.S. International Trade Commission

The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain child resistant closures with slider devices having a user actuated insertable torpedo for selectively opening the closures and slider devices therefor.  The products at issue in the investigation are described in the Commission’s notice of investigation.

The investigation is based on a complaint filed by Reynolds Presto Products Inc. of Lake Forest, IL, July 22, 2019.  The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain child resistant closures with slider devices having a user actuated insertable torpedo for selectively opening the closures and slider devices therefor that infringe patents asserted by the complainant.  The complainant requests that the USITC issue a general exclusion order, or in the alternative a limited exclusion order, and a cease and desist order.

The USITC has identified the following as respondents in this investigation:

Dalian Takebishi Packing Industry Co., Ltd. of Dalian, China;
Dalian Altma Industry Co., Ltd., of Dalian, Liaoning, China;
Japan Takebishi Co., Ltd., of Tokyo, Japan;
Takebishi Co., Ltd., of Shiga, Japan;
Shanghai Takebishi Packing Material Co., Ltd., of Shanghai, China; and
Qingdao Takebishi Packing Industry Co., Ltd., of Jimo City, Qingdao, China.

By instituting this investigation (337-TA-1171), 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.


CBP Stops Attempt to Smuggle $3.4 Million worth of Counterfeit Products at LAX - US Customs & Border Protection

Handbags, Belts, Shoes, Watches, Electronics and other items in violation of Hermes, Louis Vuitton, Fendi, Gucci, Versace, Nike, Casio and Samsung Protected Trademarks 

LOS ANGELES — U.S. Customs and Border Protection (CBP) officers assigned to Cargo Operations at Los Angeles International Airport (LAX) in coordination with the Import Specialist assigned to the impacted Centers, seized 5,300 counterfeit products. If genuine, the seized merchandise would have had an estimated manufacturer’s suggested retail price of $3,475,000.

Among the seized products were 1,242 counterfeit Gucci belts, 678 pairs of counterfeit Nike shoes, 531 counterfeit Louis Vuitton handbags, 500 counterfeit Samsung adaptors, 502 counterfeit Gucci fanny packs, 230 counterfeit Hermes handbags, 192 counterfeit Casio Shock watches, 144 counterfeit Ferragamo belts, 100 counterfeit Versace belts, and 119 counterfeit Fendi shorts.

“CBP protects businesses and consumers every day through an aggressive intellectual property rights enforcement program,” said Carlos C. Martel, CBP Director of Field Operations in Los Angeles. “These seizures demonstrate the high level of skill and vigilance of our officers and import specialists.”

The merchandise arrived at LAX via air cargo from Hong Kong. The quantity and value of counterfeit merchandise seized is a clear indication of the profits that are involved in the illegal trade of luxury goods. 

“The American public should be aware that buying a counterfeit product is a lose-lose proposition, because the money they paid often funds criminal enterprises,” said Donald R. Kusser, CBP Port Director at LAX. “In addition, buyers get a substandard low-quality product, containing unknown chemicals and likely produced under inhumane conditions.”

Available on illegitimate websites and sold in underground outlets, counterfeit high fashion commodities multiply the illegal profits of smugglers and traffickers.  Consumers are tricked into believing they are buying an original product at a significant discount, and the money they spend on these types of goods is often used in other forms of criminal enterprises.

In fiscal year (FY) 2018, CBP seized 33,810 shipments containing goods that violated intellectual property rights. The total estimated manufacturer’s suggested retail price (MSRP) of the seized goods, had they been genuine, increased to nearly $1.4 billion from over $1.2 billion in FY 2017. 

Wearing apparel and accessories once again topped the list for number of seizures with 6,098, representing 18 percent of all seizures.  Watches and jewelry continued as the top product seized by total MSRP value with seizures valued at over $618 million, representing 44 percent of the total.  Handbags and wallets were second with seizures estimated to be valued at more than $226 million. 

If you have any suspicion of or information regarding suspected fraud or illegal trade activity, please report the trade violation to e-Allegations Online Trade Violation Reporting System or by calling 1-800-BE-ALERT.


Federal Register Notices:

PHARR, Texas — Officers with U.S. Customs and Border Protection, Office of Field Operations (OFO) at the Pharr International Bridge cargo facility foiled two smuggling attempts of marijuana and cocaine, in separate unrelated incidents that totaled over $2 million in street value.  

“These were two outstanding interceptions of narcotics in the cargo environment that were accomplished due to great teamwork and perseverance,” said Port Director Sylvia Briones, Port of Hidalgo/Pharr/Anzalduas.  

n Aug. 16, CBP officers assigned to the Pharr International Bridge cargo facility encountered a commercial shipment of floor tile arriving from Mexico. A CBP officer referred the tractor/trailer for further examination, which included a non-intrusive imaging  (NII) system inspection. Officers conducting the secondary inspection located 430 packages of alleged marijuana hidden within the shipment that weighed 1,079 pounds (489.5 kg) and which had an estimated street value of $216,000.

On Aug. 17, CBP officers at the same cargo facility inspected a commercial shipment of fresh limes and with the assistance of a (canine team), were able to detect packages of alleged cocaine hidden within the trailer. Officers removed and seized 80 packages of cocaine that weighed 202 pounds (91.5 kg) and had a street value of $1,860,000.

CBP OFO seized both conveyances along with all the narcotics and Homeland Security Investigations (HSI) continues with these investigations.


Steel Racks from China Injure U.S. Industry, Says USITC - U.S. International Trade Commission

The United States International Trade Commission (USITC) today(8/20/19) determined that a U.S. industry is materially injured by reason of imports of steel racks from China that the U.S. Department of Commerce (Commerce) has determined are subsidized and sold in the United States at less than fair value.

Chairman David S. Johanson and Commissioners Rhonda K. Schmidtlein, and Jason E. Kearns voted in the affirmative.  Commissioners Irving A. Williamson and Meredith M. Broadbent did not participate in these votes.

As a result of the USITC’s affirmative determinations, Commerce will issue antidumping and countervailing duty orders on imports of this product from China. 

The Commission’s public report Steel Racks from China (Inv. Nos. 701-TA-608 and 731-TA-1420 (Final), USITC Publication 4951, September 2019) will contain the views of the Commission and information developed during the investigations.

The report will be available by September 27, 2019; when available, it may be accessed on the USITC website at: https://www.usitc.gov/commission_publications_library.

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UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436
FACTUAL HIGHLIGHTS
Steel Racks from China
Investigation Nos. 701-TA-608 and 731-TA-1420 (Final)

Product Description:  A steel rack, sometimes referred to as a “storage rack,” is a structure consisting of the following hot-rolled or cold-formed steel structural components: (1) vertical columns connected by braces, (2) load-bearing horizontal beams, and (3) locking devices to secure the beams to the columns.

Certain types of steel racks may also include movable components, such as rails, wheels, rollers, tracks, channels, carts, or conveyors. Steel racks offer strength and stability for storing heavy loads in readily accessible rack configurations. Hence, they are utilized for short- or long-term holding of products or materials in warehouses, order-fulfillment and distribution centers, big-box retail stores, and manufacturing facilities.

Status of Proceedings:

1.   Type of investigations:  Final countervailing duty and antidumping investigations.

2.   Petitioners:  The Coalition for Fair Rack Imports and its members:  Bulldog Rack Company, Weirton, WV; Elite Storage Solutions, Monroe, GA; Hannibal Industries Inc., Los Angeles, CA; Husky Rack and Wire, Denver, NC; Ridg-U-Rak Inc., North East, PA; SpaceRAK, a Division of Heartland Steel Products Inc., Marysville, MI; Speedrack Products Group Ltd., Sparta, MI; Steel King Industries Inc., Stevens Point, WI; Tri-Boro Shelving & Partition Corp., Farmville, VA; and UNARCO Material Handling Inc., Springfield, TN.

3.   USITC Institution Date:  Wednesday, June 20, 2018.
4.   USITC Hearing Date:  Tuesday, July 16, 2019.
5.   USITC Vote Date:  Tuesday, August 20, 2019.
6.   USITC Notification to Commerce Date:  Tuesday, September 3, 2019.

U.S. Industry in 2018:
1.   Number of U.S. producers:  12.
2.  Location of producers’ plants:  California, Georgia, Illinois, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, and Wisconsin.
3.   Production and related workers:  [1]
4.   U.S. producers’ U.S. shipments:  1
5.   Apparent U.S. consumption:  1
6.   Ratio of subject imports to apparent U.S. consumption:  1

U.S. Imports in 2018:
1.   Subject imports:  1
2.   Nonsubject imports:  1
3.   Leading import source:  Mexico.  

[1] Withheld to avoid disclosure of business proprietary information.


OTEXA:  Announcements - Office of Textile and Apparel

08/19/2019 – Interested persons are invited to submit written comments and participate in a public hearing to assist the Office of the United States Trade Representative in the preparation of its annual report to the Congress on China's implementation of its obligations as a Member of the World Trade Organization. As notified in the Federal Register (84 FR 40471), written comments are due by September 18, 2019 and the hearing will be held on October 2, 2019. 

08/19/2019 – Interested persons are invited to submit written comments and participate in a public hearing to assist the Office of the United States Trade Representative in the preparation of its annual report to the Congress on Russia's compliance with the commitments made in connection with its accession to the World Trade Organization. As notified in the Federal Register (84 FR 40470), written comments are due by September 27, 2019 and the hearing will be held on October 8, 2019. 


FDA Warns Company for Putting Consumers at Risk With Drug Manufacturing Data Integrity Violations - Food & Drug Administration

Today the U.S. Food and Drug Administration posted a warning letter to Ningbo Huize Commodity Co., an over-the-counter (OTC) drug manufacturer, for significant current good manufacturing practice (CGMP) violations, including data integrity issues.

“Americans deserve to have confidence in the quality of drugs the FDA regulates – from the prescription medicines they take to the over-the-counter products they use in their daily lives, like toothpaste and sunscreen. Helping assure the quality and safety of these products is one of our greatest responsibilities as a public health agency. In recent years, the FDA has focused additional resources on efforts to prevent, uncover and combat data integrity lapses. We’ve focused comprehensive new efforts on these risks, both through our global inspections program as well as providing updated guidance, and to train our staff on identifying concerns related to data integrity,” said Acting FDA Commissioner Ned Sharpless, M.D. “Today’s action shows our continued commitment in our oversight of over-the-counter drug manufacturing and protecting consumers from products that may put them at risk.”

The warning letter issued to Ningbo Huize details a failure to have adequate quality control mechanisms in place. The company provided FDA investigators multiple documents that were falsified, including the cleaning validation reports and batch production and control records for multiple drugs. The firm also provided records showing they performed the required periodic reviews of their operation to assure quality, which they later admitted were also falsified. These CGMP violations cause all drugs manufactured by Ningbo Huize to be adulterated under the Federal Food, Drug, and Cosmetic Act (FD&C Act). The FDA also considers the adulterated products to be misbranded because the product labels did not include all the required information and directions for use. The labels of OTC medicines must comply with all requirements of the FD&C Act and applicable regulations. Following the inspection in March 2019, the FDA placed the company on import alert in June 2019 to prevent their drugs from entering the U.S. market. The company has also agreed to voluntarily recall drugs.

The FDA requested a response from the company within 15 working days of receipt of the letter. The company is directed to inform the agency of the specific actions taken to address each of the agency’s concerns. The warning letter also states that failure to correct violations may result in the FDA continuing to refuse admission of products manufactured at the company’s facility.

The FDA has uncovered circumstances of drug quality data and information being inaccurate, which can mask problems and failures. Patients cannot be assured of the safety and effectiveness of their medication when data has been altered.

One critical way to help ensure product quality is to prevent data integrity lapses from the outset. Over the past two decades, the FDA has publicly outlined its expectations for the accuracy, reliability and truthfulness of all data and information collected by drug manufacturers. In 2018, the agency updated guidance for industry on ensuring data integrity and compliance with CGMP. The FDA’s data integrity guidance aims to help manufacturers have the tools and systems in place to prevent adulterated products from entering the U.S. marketplace. Pharmaceutical quality can only be assured by robust quality control, which includes vigilant oversight of data integrity. This helps ensure the safety, effectiveness and quality of the drug products produced for the American public. When the agency finds manufacturers who are not complying with data integrity requirements, the FDA takes action against those manufacturers’ practices and works to bring them into compliance.

Most manufacturers are complying with the CGMP regulations and following technical standards outlined in guidances and in meetings with stakeholders and Americans should continue to use the OTC products, like sunscreen and toothpaste, they produce. The FDA will continue to ensure that drug manufacturers around the globe meet the required standards for drug quality that American consumers expect.

The FDA, an agency within the U.S. Department of Health and Human Services, protects the public health by assuring the safety, effectiveness, and security of human and veterinary drugs, vaccines and other biological products for human use, and medical devices. The agency also is responsible for the safety and security of our nation’s food supply, cosmetics, dietary supplements, products that give off electronic radiation, and for regulating tobacco products.
 
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