C-AIR TIMES ISSUE #621 - Friday, March 13, 2020 07:12

Petitions for the Imposition of Antidumping and Countervailing Duties on Common Alloy Aluminum Sheet ("CAAS") - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP

I. Type of Action: Antidumping Duty (“AD”): Brazil and China; Countervailing Duty (“CVD”): China

II. Products: The merchandise subject to this investigation consists of wood mouldings and millwork products that are made of wood (regardless of wood species), laminated veneer lumber (LVL), or of wood and composite materials (where the composite materials make up less than 50 percent of the total merchandise), and which are woodwork or building materials that are produced in a mill or otherwise undergo remanufacturing.

The covered products include, but are not limited to, the following: interior and exterior door frames or jambs (including split, flat, stop applied, single- or double-rabbeted), frame or jamb kits, packaged door frame trim or casing sets, mullions, mull posts, mouldings (crowns, beds, coves, quarter rounds, half rounds, base shoes, astragals, shelf edge/screen moulds, glass bead mouldings, base caps, brickmould, panel mouldings, drip caps, corner guards, shingle/panel mouldings, battens, closet rod, hand rails, rounds, squares, screen/”surfaced on 4 sides” (S4S) and/ or “surface 1 side, 2 edges” (S 1 S2E) stock (also called boards) that are finger jointed and/or coated with any surface coating (including primed), lattice, dowels, picture moulding, wainscot/ply cap, back bands, chair rails), stops, sashes, base mouldings, casing, trim, panel strips, shelf cleats, chamfer strips, inside corners, window stools (flat/rabbeted), sills, door stiles, thresholds/saddles, decorative wood mouldings (embossed, dentil, carved rope moulding), rosettes, plinth blocks, interior siding, including nickel gap or shiplap, that is LVL or finger jointed and/or coated with any surface coating (including primed), and finger-jointed or edge-glued moulding or millwork blanks (whether or not resawn).

The covered products may be solid wood, laminated, finger-jointed, edge-glued, or otherwise joined in the production or remanufacturing process and are covered by the scope whether imported raw, coated (e.g., gesso, polymer, or plastic), primed, painted, stained, wrapped (paper or vinyl overlay), any combination of the aforementioned surface coatings, treated, or which incorporate rot-resistant elements (whether wood or composite). The covered products are covered by the scope whether or not any surface coating(s) or covers obscures the grain, textures, or markings of the wood, whether or not they are ready for use or require final machining (e.g. endwork/dado, hinge/strike machining, weather strip or application thereof, mitre) or packaging.

All wood mouldings and millwork products are included within the scope even if they are trimmed; cut-to-size; notched; punched; drilled; or have undergone other forms of minor processing.

Subject merchandise also includes wood mouldings and millwork products that have been further processed in a third country, including but not limited to trimming, cutting, notching, punching, drilling, coating, or any other processing that would not otherwise remove the merchandise from the scope of the investigations if performed in the country of manufacture of the in-scope product.

Excluded from the scope of this investigation are exterior fencing, exterior decking and exterior siding products, finished and unfinished doors, flooring, and parts of stair steps.

Excluded from the scope of this investigation are all products covered by the scope of the antidumping and countervailing duty orders on Hardwood Plywood from the People’s Republic of China. See Certain Hardwood Plywood Products from the People’s Republic of China: Amended Final Determination of Sales at Less Than Fair Value, and Antidumping Duty Order, 83 FR 504 (January 4, 2018); Certain Hardwood Plywood Products from the People’s Republic of China: Countervailing Duty Order, 83 FR 513 (January 4, 2018).

Excluded from the scope of this investigation are all products covered by the scope of the antidumping and countervailing duty orders on Multilayered Wood Flooring from the People’s Republic of China. Multilayered Wood Flooring from the People’s Republic of China: Amended Final Determination of Sales at Less Than Fair Value and Antidumping Duty Order, 76 FR 76690 (December 8, 2011); Multilayered Wood Flooring from the People’s Republic of China: Countervailing Duty Order, 76 FR 76693 (December 8, 2011).

III. HTS classifications:

Imports of wood mouldings and millwork products are primarily entered under the following Harmonized Tariff Schedule of the United States (HTSUS) numbers: 4409.10.4010, 4409.10.4090, 4409.10.4500, 4409.10.5000, 4409.22.4000, 4409.22.5000, 4409.29.4000, 4409.29.4100, 4409.29.5000, and 4409.29.5100. Imports of wood mouldings and millwork products may also enter under HTSUS numbers: 4409.10.6000, 4409.10.6500, 4409.22.6000, 4409.22.6500, 4409.29.6100, 4409.29.6600, 4418.99.9095 and 4421.99.9780. While the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of these investigations is dispositive.

IV. Date of Filing: January 8, 2020

V. Petitioners: Coalition of American Millwork Producers comprised of Bright Wood Corporation, Cascade Wood Products, Inc., Endura Products, Inc., Sierra Pacific Industries, Sunset Moulding, Woodgrain Millwork Inc., and Yuba River Moulding

VI. Foreign Producers/Exporters: Please contact our office for a list filed with the petition.

VII. US Importers named: Please contact our office for a list filed with the petition.

VIII. Alleged Dumping Margins:

Brazil: 268.74%

China: 289.70% – 361.83%

No CVD Rate Alleged

IX. Comments:
A. Projected date of ITC Preliminary Conference: January 29, 2020. Please contact our office for a complete projected schedule for the AD/CVD investigations.

B. The earliest theoretical date for retroactive suspension of liquidation for the AD cases is March 18, 2020; CVD is January 28, 2020.

C. Volume and Value of Imports: Please contact our office for a summary of the data filed with the petition.

D. List of Alleged Subsidy Programs: Please contact our office for a list of alleged subsidy programs.

If you have questions regarding how this investigation may impact future imports of scope merchandise or whether a particular product is within the scope of the investigation, please contact one of our attorneys.

Federal Register Notices:

Coronavirus Disease 2019 (COVID-19) Update: Foreign Inspections - Food & Drug Administration

Today, we are providing an update on the status of U.S. Food and Drug Administration inspections outside of the U.S. in response to the COVID-19 outbreak. After careful consideration, the FDA is postponing most foreign inspections through April, effective immediately. Inspections outside the U.S. deemed mission-critical will still be considered on a case-by-case basis.

The FDA based this decision on a number of factors, including State Department Level 4 travel advisories in which travel is prohibited for U.S. government employees, Centers for Disease Control and Prevention travel recommendations, access restrictions being imposed on foreign visitors by certain countries, guidance from the Office of Personnel Management and the importance of the health and safety of our employees. Another critical factor in taking this action is the confidence we have in our ability to maintain oversight over international manufacturers and imported products using alternative tools and methods.

We are aware of how this action may impact other FDA responsibilities, including product application reviews. We will be vigilant and monitor the situation very closely and will try to mitigate potential impacts from this outbreak in lockstep with the whole of the federal government. We stand ready to resume foreign inspections as soon as feasible.

When we are temporarily not able to physically inspect foreign produced FDA-regulated products or manufacturers, as an interim measure we employ additional tools to ensure the safety of products imported to the U.S., which have proved effective in the past. These include denying entry of unsafe products into the U.S., physical examinations and/or product sampling at our borders, reviewing a firm’s previous compliance history, using information sharing from foreign governments as part of mutual recognition and confidentiality agreements and requesting records “in advance of or in lieu of” on-site drug inspections. For example, we began exercising this authority when we postponed on-the-ground inspections of manufacturers of FDA-regulated products in China earlier in the outbreak. This is all part of the FDA’s multi-pronged and risk-based approach to ensuring quality, as well as compliance, with applicable federal laws and regulations.

The FDA will continue working with U.S. Customs and Border Protection to target products intended for importation into the U.S. that violate applicable legal requirements for FDA-regulated products, which may come from a variety of sources, such as first-time importers unfamiliar with regulatory requirements or repeat offenders trying to skirt the law. The FDA has the ability through our risk-based import screening tool (PREDICT) to focus our examinations and sample collections based on heightened concerns of specific products being entered into U.S. commerce. The PREDICT screening continues to adjust risk scores as necessary throughout the COVID-19 outbreak. We are keeping a close eye out for indications of port shopping or cargo diversion and will continue our oversight of shipments through potentially higher-risk venues such as International Mail Facilities. We can refuse admission of products that fail sample testing or may violate other applicable legal requirements.

Americans can rest assured the FDA is diligently monitoring this outbreak and the impact to our operations. Our leadership team meets daily to talk about the myriad of urgent issues facing us as we actively facilitate efforts to diagnose, treat and prevent the disease; survey the medical product supply chain for potential shortages or disruptions and help to mitigate such impacts, as necessary; and leverage the full breadth of our public health tools, including enforcement tools to stop fraudulent COVID-19 activity.

As this remains a dynamic situation, we will continue to assess and calibrate our approach as needed to help advance federal response efforts in the fight against this outbreak.

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.

USDA Announces Continued Progress on Implementation of China Phase One Agreement - U.S. Department of Agriculture

WASHINGTON, March 10, 2020 – U.S. Secretary of Agriculture Sonny Perdue announced today that China has continued its progress in implementing the U.S.-China Phase One Economic and Trade Agreement and has taken several additional actions to realize its agriculture-related commitments. The agreement entered into force on February 14, 2020, and the actions announced today build upon the measures announced on February 25. The most recent actions include:

Signing a protocol that allows the importation of fresh California nectarines (USDA’s Animal and Plant Health Inspection Service will share details once they are finalized);

Conditionally lifting a ban on imports of beef and beef products from animals over 30 months of age (Lifting Restriction on U.S. Beef 30 Months and Over Announcement), subject to other relevant import requirements;

Updating lists of facilities approved for exporting dairy, infant formula, seafood, and fish oil and fish meal.

In addition, China’s new tariff exclusion process went into effect on March 2 and importers can now apply for exclusions from retaliatory tariffs (Tariff Exclusion Process Announcement). USDA has published a translation and analysis of China’s guidance for participating in this latest round of exclusions (USDA Report on China’s New Round of Tariff Exclusions). On February 28, China announced new exclusions of U.S. hardwood products; these exclusions were issued under the previous exclusion process (USDA Report on Tariff Exclusions for U.S. Hardwood Products). USDA will continue to closely monitor China’s implementation of the agreement.

“These implementation measures are promising steps showing that China is taking steps to fulfill their purchase commitments,” Secretary Perdue said. “Under President Trump’s leadership, this agreement will produce positive gains for the entire economy, especially our agriculture sector. We look forward to China continuing to achieve their commitments in future months.”

Philadelphia CBP Seizes $317,000 in Counterfeit Designer Handbags, Wallets, Sneakers, and Clothing from Turkey - U.S. Customs & Border Protection

PHILADELPHIA – U.S. Customs and Border Protection (CBP) officers seized a shipment of counterfeit consumer goods recently while inspecting arriving express delivery parcels near Philadelphia International Airport. If authentic, the merchandise would have had a manufacturer suggested retail price of $317,080.

CBP officers initially examined the shipment on February 14. The shipment, which arrived from Turkey and was destined to an address in Delaware County, Pa., contained handbags, wallets, sneakers, shoes, sweatshirts, hats and belts bearing designer brands Burberry, Channel, Gucci, Hermes, Louis Vuitton, Moschino and Versace. Officers detained the shipment due to the poor quality and packaging of the merchandise.

CBP officers worked with CBP’s Consumer Products and Mass Merchandising Centers for Excellence and Expertise, the agency’s trade experts and verified through the trademark holder that the products were counterfeit. Officers seized the shipment February 24.

CBP protects businesses and consumers every day through an aggressive Intellectual Property Rights (IPR) enforcement program. Importation of counterfeit merchandise can cause significant revenue loss, damage the U.S. economy, and threaten the health and safety of the American people. On a typical day in 2019, CBP officers seized $4.3 million worth of products with Intellectual Property Rights violations. Learn more about what CBP did during "A Typical Day" in 2019.

“Customs and Border Protection officers encounter a wide variety of counterfeit consumer goods, like these trademark-infringing products, and we continue to work with our trade and consumer safety partners to identify and seize counterfeit products,” said Anne Maricich, CBP’s Acting Director of Field Operations, Baltimore Field Office. “CBP urges consumers to protect their families and their wallets by purchasing authentic goods from reputable vendors.”

CBP officers and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) agents seized 27,599 shipments containing counterfeit goods in Fiscal Year (FY) 2019. The total estimated manufacturer’s suggested retail price (MSRP) of the seized goods, had they been genuine, increased to over $1.5 billion from nearly $1.4 billion in FY 2018.

Additionally, HSI arrested 256 individuals, obtained 197 indictments, and received 157 convictions related to intellectual property crimes during FY 2019.

The People’s Republic of China remained the primary source economy for seized counterfeit and pirated goods, accounting for a total estimated MSRP value of over $1 billion or 66 percent of the estimated MSRP value of all IPR seizures.

CBP's border security mission is led at ports of entry by CBP officers from the Office of Field Operations. Please visit CBP Ports of Entry to learn more about how CBP’s Office of Field Operations secures our nation’s borders. Learn more about CBP at www.CBP.gov.

CBP Officers in Louisville Seize Hundreds of Counterfeit IDs - US Customs & Border Protection

LOUISVILLE, Ky.—U.S. Customs and Border Protection (CBP) officers in Louisville have made no less than 400 seizures of counterfeit identification in the past six months.

Back in November, CBP officers seized six shipments containing 2,909 counterfeit driver’s licenses and 3,123 blank card stocks to make counterfeit driver’s licenses. And the seizures are not only of counterfeit IDs. These seizures include passports, I-551 Legal Permanent Resident cards, and miscellaneous ID cards. Many of the seizures involving driver’s licenses had officers finding 20 to 40 in each shipment.

On December 6, 2019, CBP officers intercepted a package from China. This small box had a false bottom, which contained 31 counterfeit driver’s licenses. After some investigating, one of the persons that was waiting for his fake ID was found to be a Trusted Traveler member. His membership was revoked, and on February 20, he was arrested in Newark by the Port Authority Police Department after returning from his vacation. Additionally, he had another counterfeit driver’s license in his possession at the time of the arrest.

“Counterfeit IDs directly aids and influences the availability of underage persons to purchase alcohol and tobacco products, said Chief CBP Officer Brian Lick. “CBP's interception of these IDs significantly reduces the chances for alcohol to be procured in establishments and all the entanglements that often accompanies underage drinking. But alcohol is not the only risk; procurement of fake IDs plays a role in identity theft, immigration and public benefit fraud and terrorist motives.”

Identity theft and fraudulent activities are major concerns of CBP. Counterfeit identification can be very dangerous when it is used by criminals to take advantage of people or organizations. “I believe we are seeing more counterfeit IDs as they are being utilized in benefit fraud and scams,” said Louisville Port Director Thomas Mahn.

Over these past six months, CBP officers have seized 28 fake birth certificates, 5,063 counterfeit driver’s licenses, and 46 fraudulent passports.

CBP Officers remain diligent in searching for counterfeit identification, through the art of targeting and physical inspections, and coordinate findings with CBP’s Fraudulent Document Analysis Unit, Homeland Security Investigations and other federal partners in an effort to combat this illicit activity. CBP routinely conducts inspection operations on arriving and departing international flights and intercepts narcotics, weapons, currency, prohibited agriculture products, counterfeit goods, and other illicit items at our nation’s 328 international ports of entry.