U.S. Department of Commerce Issues Affirmative Preliminary Determination in the Countervailing Duty Investigation of Imports of Ceramic Tile from China - U.S. Department of Commerce
Today (9/10/19), the U.S. Department of Commerce announced the affirmative preliminary determination in the countervailing duty (CVD) investigation of imports of ceramic tile from China, finding countervailable subsidy rates ranging from 103.77 to 222.24 percent.
As a result of today’s decision, Commerce will instruct U.S. Customs and Border Protection to collect cash deposits from importers of ceramic tile from China based on these preliminary rates.
In 2018, imports of ceramic tile from China were valued at an estimated $483.1 million.
The petitioner is the Coalition for Fair Trade in Ceramic Tile. The members of the Coalition are American Wonder Porcelain (Lebanon, TN), Crossville, Inc. (Crossville, TN), Dal-Tile Corporation (Dallas, TX), Del Conca USA, Inc. (Loudon, TN), Florida Tile, Inc. (Lexington, KY), Florim USA (Clarksville, TN), Landmark Ceramics (Mount Pleasant, TN), and StonePeak Ceramics (Chicago, IL).
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 182 new antidumping and countervailing duty investigations – a 231 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 494 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.
Commerce is currently scheduled to announce its final CVD determination on or about January 22, 2020.
If Commerce makes an affirmative final determination, the U.S. International Trade Commission (ITC) will be scheduled to make its final injury determination on or about March 6, 2020. If Commerce makes an affirmative final determination in this investigation, and the ITC makes an affirmative final injury determination, Commerce will issue a CVD order. If Commerce makes a negative final determination, or the ITC makes a negative final determination of injury, the investigation will be terminated and no order will be issued.
Click HERE for a fact sheet on today’s decision.
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.
ITC Votes to Continue Investigations Concerning Polyethylene Terephthalate (PET) Sheet from Korea and Oman, but not Mexico - U.S. International Trade Commission
The United States International Trade Commission (USITC) today determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of polyethylene terephthalate (PET) sheet from Korea and Oman that are allegedly sold in the United States at less than fair value. The Commission further found that imports of this product from Mexico are negligible and voted to terminate the investigation concerning Mexico.
Chairman David S. Johanson and Commissioners Rhonda K. Schmidtlein, Jason E. Kearns, and Amy A. Karpel voted in the affirmative with respect to Korea and Oman and made a finding of negligibility with respect to Mexico. Commissioner Randolph J. Stayin voted in the affirmative with respect to all investigations.
As a result of the Commission’s affirmative determinations, the U.S. Department of Commerce will continue with its antidumping duty investigations concerning imports of this product from Korea and Oman, with its preliminary antidumping duty determinations due on or about January 6, 2020. As a result of the Commission’s finding of negligibility, the investigation concerning imports of this product from Mexico will be terminated.
The Commission’s public report Polyethylene Terephthalate (PET) Sheet from Korea, Mexico, and Oman (Inv. Nos. 731-TA-1455-1457 (Preliminary), USITC Publication 4970, September 2019) will contain the views of the Commission and information developed during the investigations.
The report will be available after October 11, 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
Polyethylene Terephthalate (PET) Sheet from Korea, Mexico, and Oman
Investigation Nos. 731‐TA‐1455‐1457 (Preliminary)
Product Description: PET of these investigations is a thermoplastic polymer that is manufactured into sheet form. The primary end use is a wide variety of food, beverage and retail packaging. PET sheet is used in the manufacture of products such as food trays and containers (e.g., cake and cookie containers, one‐time use school and hospital trays), carry‐out containers, fruit and vegetable clamshell containers and trays, drinking cups, medical trays, paint tray liners, consumer packaging, and packaging for electro‐static sensitive devices (such as integrated computer circuits). PET sheet covered by these investigations is raw, pretreated, or primed polyethylene terephthalate sheet, whether extruded or coextruded, in nominal thicknesses of equal to or greater than 7 mil (0.007 inches or 177.8 mm) and not exceeding 45 mil (0.045 inches or 1143 mm). The investigations include all PET sheet whether made from prime (virgin) inputs or recycled inputs, as well as any blends thereof. The investigations include all PET sheet meeting the above specifications regardless of width, color, surface treatment, coating, lamination, or other surface finish.
Status of Proceedings:
- Type of investigation: Preliminary phase antidumping duty investigations.
- Petitioners: Advanced Extrusion, Inc., Rogers, Minnesota; Ex‐Tech Plastics, Inc., Richmond, Illinois; and Multi‐Plastics Extrusions, Inc., Hazleton, Pennsylvania.
- USITC Institution Date: Tuesday, July 9, 2019.
- USITC Conference Date: Tuesday, July 30, 2019.
- USITC Vote Date: Tuesday, September 10, 2019.
- USITC Views to Commerce: Friday, September 20, 2019.
U.S. Industry in 2018:
- Number of U.S. producers: 35.
- Location of producers’ plants: Pennsylvania, Minnesota, Illinois, Nebraska, Oklahoma, North Carolina, Georgia, California, New York, Texas, Ohio, Wisconsin, Arizona, New Jersey, Washington, Florida, Tennessee, Massachusetts, and Michigan.
- Production and related workers: 1,467.
- U.S. producers’ U.S. shipments: $710 million.
- Apparent U.S. consumption: [1]
- Ratio of subject imports to apparent U.S. consumption: 1
U.S. Imports in 2018:
- Subject imports: 1
- Nonsubject imports: 1
- Leading import sources: Oman.
[1] Withheld to avoid disclosure of business proprietary information
Commission Makes Determination in Five-Year (Sunset) Review Concerning Diffusion-Annealed, Nickel-Plated Flat-Rolled Steel Products from Japan - U.S. International Trade Commission
The U.S. International Trade Commission (USITC) today determined that revoking the existing antidumping order on imports of diffusion-annealed, nickel-plated flat-rolled steel products from Japan would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.
As a result of the Commission’s affirmative determination, the existing antidumping duty order on imports of these products from Japan will remain in place.
Chairman David S. Johanson and Commissioners Rhonda K. Schmidtlein and Jason E. Kearns voted in the affirmative. Commissioners Randolph J. Stayin and Amy A. Karpel did not participate in this vote.
Today’s action comes under the five-year (sunset) review process required by the Uruguay Round Agreements Act. See the attached page for background on this five-year (sunset) review.
The Commission’s public report Diffusion-Annealed, Nickel-Plated Flat-Rolled Steel Products from Japan (Inv. No. 731-TA-1206 (Review), USITC Publication 4971, September 2019) will contain the views of the Commission and information developed during the review.
The report will be available by October 15, 2019; when available, it may be accessed on the USITC website at: https://www.usitc.gov/commission_publications_library.
BACKGROUND
The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the USITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies (Commerce) and of material injury (USITC) within a reasonably foreseeable time.
The Commission’s institution notice in five-year reviews requests that interested parties file responses with the Commission concerning the likely effects of revoking the order under review as well as other information.
Generally within 95 days from institution, the Commission will determine whether the responses it has received reflect an adequate or inadequate level of interest in a full review. If responses to the USITC’s notice of institution are adequate, or if other circumstances warrant a full review, the Commission conducts a full review, which includes a public hearing and issuance of questionnaires.
The Commission generally does not hold a hearing or conduct further investigative activities in expedited reviews. Commissioners base their injury determination in expedited reviews on the facts available, including the Commission’s prior injury and review determinations, responses received to its notice of institution, data collected by staff in connection with the review, and information provided by the Department of Commerce.
The five-year (sunset) review concerning Diffusion-Annealed, Nickel-Plated Flat-Rolled Steel Products from Japan was instituted on April 1, 2019.
On July 5, 2019, the Commission voted to conduct an expedited review. Chairman David S. Johanson and Commissioners Irving A. Williamson, Meredith M. Broadbent, Rhonda K. Schmidtlein, and Jason E. Kearns concluded that the domestic group response was adequate and the respondent group response was inadequate and voted for an expedited review.
A record of the Commission’s vote to conduct an expedited review is available from the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may be made by telephone by calling 202-205-1802.
Federal Register Notices:
OTEXA: Announcements - Office of Textile & Apparel
- 09/04/2019 – July 2019 Textile and Apparel Import Report
- 09/04/2019 – The Office of the United States Trade Representative (USTR) annually publishes the National Trade Estimate Report on Foreign Trade Barriers (NTE report). USTR invites interested persons to submit written comments by October 31, 2019 to assist in identifying significant barriers to U.S. exports of goods, services, and U.S. foreign direct investment for inclusion in the 2020 NTE report. For more details, see the Federal Register notice (84 FR 46079).
- 09/04/2019 – Modification of Section 301 Action: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation. The Office of the U.S. Trade Representative invites public comment on the proposed modification increasing the rate of additional duty from 25 percent to 30 percent on the products of China currently subject to tariff actions first taken in June, August, and September 2018. Written comments must be submitted by September 20, 2019. The proposed modification would be effective on October 1, 2019. See the Federal Register notice (84 FR 46212) for more details.
CBP at LAX Seizes $560,000 worth of Fake NBA Championship Rings - U.S. Customs & Border Protection
28 Counterfeit Rings Seized for Infringement of the Protected Trademarks and Designs of 11 NBA Teams
LOS ANGELES — U.S. Customs and Border Protection (CBP) officers assigned to Cargo Operations at Los Angeles International Airport (LAX), in coordination with import specialists assigned to the Consumer Products and Mass Merchandising Center of Excellence (CPMM Center), recently seized 28 counterfeit National Basketball Association (NBA) championship rings. If genuine, the seized rings would have had an estimated manufacturer’s suggested retail price (MSRP) of $560,000. 
CBP Officers discovered the 28 rings while conducting an enforcement exam on a shipment arriving from China with a final destination in Arizona. The rings were found inside of a wooden box, with the apparent intent to be sold as a collection.
CPMM Center import specialists confirmed that the designs and word marks were in violation of the Cleveland Cavaliers, San Antonio Spurs, Boston Celtics, Los Angeles Lakers, Detroit Pistons, Miami Heat, Dallas Mavericks, Houston Rockets, Chicago Bulls, Denver Nuggets, Golden State Warriors, Air Jordan and NBA trophy design protected trademarks.
“Scammers take advantage of collectors and pro-basketball fans desiring to obtain a piece of sports history”, said Carlos C. Martel, CBP Director of Field Operations in Los Angeles. “This seizure illustrates how CBP officers and import specialists protect not only trademarks, but most importantly, the American consumer.”
Legitimate NBA championship ring prices range between $10,000 and $40,000 and in some cases over $200,000. The quantity and estimated MSRP value of counterfeit items seized are clear indications of the profits that are involved in the illegal trade of counterfeit NBA championship rings.
“Transnational criminal organizations are shipping illicit goods to the United States via small express parcels in an attempt to circumvent U.S. laws,” said Donald R. Kusser, CBP Port Director at LAX. “CBP at LAX commits substantial resources to detect, intercept and seize illicit goods in a challenging e-commerce global environment.”
In fiscal year (FY) 2018, CBP seized 33,810 shipments containing goods that violated intellectual property rights. The total estimated MSRP value 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 FY 2018 seizures. Watches and jewelry continued as the top products 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.
CBP has established an educational initiative at U.S. airports and online to raise consumer awareness and conscientiousness about the consequences and dangers that are often associated with the purchase of counterfeit and pirated goods. Information about the Truth Behind Counterfeits public awareness campaign can be found at fakegoodsrealdangers page.
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.
Intellectual Property Rights (IPR) violations can also be reported to the National Intellectual Property Rights Coordination Center at iprcenter.gov/referral or by telephone at 1-866-IPR-2060.
StarKist Ordered to Pay $100 Million Criminal Fine for Antitrust Violation - Department of Justice
Leading Producer Receives Highest Corporate Fine in Packaged Seafood Investigation
StarKist Co. was sentenced to pay a criminal fine of $100 million, the statutory maximum, for its role in a conspiracy to fix prices for canned tuna sold in the United States. StarKist was also sentenced to a 13-month term of probation.
StarKist faced a criminal fine of up to $100 million, the statutory maximum, for its participation in a conspiracy to fix the prices of canned tuna fish from as early as November 2011 through at least as late as December 2013. As part of today’s sentencing hearing, U.S. District Judge Edward M. Chen found that StarKist had not proven that its financial circumstances justified a lower criminal fine. The Antitrust Division opposed StarKist’s request for a fine reduction, arguing that StarKist had sufficient financial resources to pay a $100 million criminal fine. In addition to the criminal fine and term of probation, StarKist has also agreed to cooperate in the Antitrust Division’s ongoing investigation.
“Today’s result demonstrates our commitment to enforcing the antitrust laws aggressively against companies that fix prices,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Hard-working Americans deserve the benefits of open competition when they spend their hard-earned money on items that stock kitchen shelves. When a corporation cheats customers at the checkout line, the Antitrust Division will hold it accountable to the greatest extent.”
“The consequences for greedy companies who cheat the marketplace and American consumers are significant and clear,” said FBI San Francisco Special Agent in Charge John F. Bennett. “The FBI, along with our law enforcement colleagues, will continue to pursue those who conspire to fix prices and bring them to justice.”
A total of six charges have resulted from an ongoing federal antitrust investigation into the packaged-seafood industry, which is being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office. Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to the packaged-seafood industry should contact the Antitrust Division’s San Francisco Office at 415-934-5300, visit www.justice.gov/atr/contact/newcase.html, or call the FBI tip line at 415-553-7400.