C-AIR TIMES ISSUE #631 - Friday, May 22, 2020 08:08

Monday, May 25th, PNCT & Maher Terminal will be CLOSED in observance of Memorial Day Holiday

USTR Announces the Extensions of Certain Expiring China Section 301 List 1 Exclusions - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP

The Office of the United States Trade Representative (“USTR”) announced extensions for certain expiring exclusions from the China 301 List 1 tariffs (the $34 billion trade action).

To date, ten sets of exclusions have been issued in connection with List 1. The fourth set of exclusions is scheduled to expire on May 14, 2020. The USTR has announced that the expiration dates of the some such exclusions (see below) will be extended (to now cover the specified goods entered for consumption, or withdrawn from warehouse for consumption, before December 31, 2020).

Unless extended under the current action or prior actions, exclusions will expire on their previously scheduled expiration date. If you have any questions on the status of any particular China 301 exclusion(s), please contact our office.

LIST 1 (ROUND 4) EXCLUSIONS EXTENDED

· 10.0090

· 50.9040

· Filtering or purifying machinery or apparatus of a kind used for waste water treatment (described in statistical reporting number 8421.21.0000)

· Air purification equipment, electrically powered, weighing less than 36 kg (described in statistical reporting number 8421.39.8015)

· Armatures designed for use in hydraulic solenoid valves (described in statistical reporting number 8481.90.9040)

· C-poles, of steel, designed for use in hydraulic solenoid control valves (described in statistical reporting number 8481.90.9040)

· Metering spools, of aluminum, designed for use in hydraulic solenoid control valves (described in statistical reporting number 8481.90.9040)

· Metering spools, of steel, designed for use in hydraulic solenoid control valves (described in statistical reporting number 8481.90.9040)

· Poles, of steel, designed for use in hydraulic solenoid control valves (described in statistical reporting number 8481.90.9040)

· Push pins, of steel, designed for use in hydraulic solenoid control valves (described in statistical reporting number 8481.90.9040)

· Retainers, of steel, designed for use in hydraulic solenoid control valves (described in statistical reporting number 8481.90.9040)

· Stereoscopic microscopes, not provided with a means for photographing the image, valued not over $500 per unit (described in statistical reporting number 9011.10.8000)

· Adapter rings, tubes and extension sleeves, stands and arm assemblies, stages and gliding tables, eyeguards and focusing racks, all the foregoing designed for use with compound optical microscopes (described in statistical reporting number 9011.90.0000)

Port Truck Gate Schedule for Memorial Day Weekend 2020 - PierPass

Terminals at the Ports of Los Angeles and Long Beach have announced schedules for the Memorial Day Weekend period of Friday May 22 through Monday May 25, 2020. The schedule is posted below, and a PDF of the schedule can be downloaded by clicking here:
https://www.pierpass.org/wp-content/uploads/2020/05/MemorialDay_2020_2.pdf.

Please continue to monitor the websites of individual terminals for updates.

Federal Register Notices:

USITC Begins Investigation Concerning Possible Modifications to the U.S. Generalized System of Preferences for Additions and Removals - United States International Trade Commission

The U.S. International Trade Commission (USITC) is seeking input for an investigation concerning possible modifications to the Generalized System of Preferences (GSP).

The investigation, Generalized System of Preferences: Possible Modifications, 2020 Review (Investigation No. 332-578), was requested by the U.S. Trade Representative (USTR) in a letter received on May 4, 2020.
As requested, the USITC, an independent, nonpartisan, factfinding federal agency, will provide advice as to the probable economic effect on U.S. imports, U.S. industries producing like or directly competitive articles, and U.S. consumers of the addition of the following Harmonized Tariff Schedule (HTS) provisions to the list of GSP-eligible products:

For all GSP beneficiary developing countries:

0603.11.00 (sweetheart, spray and other roses, fresh cut),
0603.11.0010 (sweetheart roses, fresh, suitable for bouquets or for ornamental purposes),
0603.11.0030 (spray roses, fresh, suitable for bouquets or for ornamental purposes),
0603.11.0060 (roses, fresh, suitable for bouquets or for ornamental purposes, nesoi).

Also as requested, the USITC will provide advice as to the probable economic effect on total U.S. imports, U.S. industries producing like or directly competitive articles, and U.S. consumers of the removal from eligibility of six HTS provisions for all beneficiary developing countries.

The removals under consideration are:

1006.10.00 (rice in the husk, (paddy or rough)),
1006.20.20 (basmati rice, husked),
1006.20.40 (husked (brown) rice, other than basmati),
1006.30.10 (rice semi-milled or wholly milled, whether or not polished or glazed, parboiled),
1006.30.90 (rice semi-milled or wholly milled, whether or not polished or glazed, other than parboiled),
1006.40.00 (broken rice).

The USITC will submit its confidential report to USTR by August 31, 2020. As soon as possible thereafter, the USITC will, as requested by USTR, issue a public version of the report containing only the unclassified sections, with any business confidential information and classified information deleted.

The USITC is seeking input for this 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 hold a public hearing in connection with the investigation at 9:30 a.m. on June 19, 2020. Because COVID-19 mitigation measures are in effect, the public hearing will be held using Go To Meeting.

Information about how to participate in the hearing will be posted on the Commission’s website at (https://usitc.gov/research_and_analysis/what_we_are_working_on.htm). Requests to appear at the public hearing should be filed no later than 5:15 p.m. on June 3, 2020, with the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. See below for important information regarding filing a request to appear at a USITC hearing.

The USITC also welcomes written submissions for the record. Written submissions should be addressed to the Secretary to the Commission at the above address and should be submitted at the earliest practical date but no later than 5:15 p.m. on June 29, 2020. All written submissions, except for confidential business information, will be available for public inspection. See below for important information regarding the filing of written submissions for USITC investigations.

IMPORTANT: All filings, including requests to appear at the hearing and written submissions, must be made through the Commission’s Electronic Document Information System (EDIS, https://edis.usitc.gov). No in-person paper-based filings or paper copies of any electronic filings will be accepted until further notice. Persons with questions regarding electronic filing should contact the Office of the Secretary, Docket Services Division (202-205-1802), or consult the Commission’s Handbook on Filing Procedures.

Further information on the scope of this investigation and appropriate submissions appears in the USITC’s notice of investigation, dated on May 21, 2020. The notice can be obtained from the USITC Internet site (www.usitc.gov) or by contacting the Office of the Secretary at the above address or at 202-205-2000.

USITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analyses on the subjects investigated. The Commission makes no recommendations on policy or other matters in its general fact-finding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigation reports are subsequently released to the public, unless they are classified by the requester for national security reasons.

CBP Officers Seize 1,000 Counterfeit COVID-19 Test Kits And Other Non-compliant Items - U.S. Customs & Border Protection

EL PASO, Texas – Since the beginning of the pandemic, U.S. Customs and Border Protection (CBP) officers have seen an increase in unapproved, counterfeit, or non-FDA compliant COVID-19 tests, hand sanitizer, facemasks, and mask filters crossing the border.

“Some appear to be exploiting the pandemic for financial gain, leaving the consumer at risk. These products may result in serious consequences to the consumer, whether that end user is in the United States or another country,” said CBP El Paso Director of Field Operations Hector Mancha, “CBP officers are committed to ensuring that all items being imported and exported meet critical health and safety standards.”

On May 16, CBP officers from the Santa Teresa port of entry encountered a 36-year-old Mexican male traveling into Mexico with a suitcase. A CBP officer interviewed the subject and found inconsistencies in his story; he was referred for an intensive examination. During an examination of the subject’s suitcase, CBP officers discovered 1,000 counterfeit COVID-19 Rapid Tests. The test kits were seized pending further investigation.

Additionally, on May 17, CBP officers from the Ysleta port of entry encountered a 62-year-old U.S. citizen female with 1,000 facemasks, 2,740 mask filters, and 60 1-liter bottles of hand sanitizer. All of the products were found to lack proper registration, labeling, and did not comply with criteria set by the Food and Drug Administration; all of the products were seized.

USDA, FDA Strengthen U.S. Food Supply Chain Protections - FDA

As the COVID-19 pandemic response continues, the U.S. Department of Agriculture and the U.S. Food and Drug Administration have been working around the clock on many fronts to support the U.S. food and agriculture sector so that Americans continue to have access to a safe and robust food supply. As a next step in carrying out Executive Order 13917, the USDA and FDA today announced a Memorandum of Understanding (MOU) to help prevent interruptions at FDA-regulated food facilities, including fruit and vegetable processing.

This is an important preparedness effort as we are approaching peak harvesting seasons, when many fruits and vegetables grown across the U.S. are sent to be frozen or canned. The MOU creates a process for the two agencies to make determinations about circumstances in which the USDA could exercise its authority under the Defense Production Act (DPA) with regard to certain domestic food resource facilities that manufacture, process, pack, or hold foods, as well as to those that grow or harvest food that fall within the FDA’s jurisdiction.

While the FDA will continue to work with state and local regulators in a collaborative manner, further action under the DPA may be taken, should it be needed, to ensure the continuity of our food supply. As needed, the FDA will work in consultation with state, local, tribal and territorial regulatory and public health partners; industry or commodity sector; and other relevant stakeholders (e.g. Centers for Disease Control and Prevention, Occupational Safety and Health Administration) to chart a path toward resuming and/or maintaining operations while keeping employees safe.

We are extremely grateful to essential workers for everything they do every day to keep our pantries, refrigerators and freezers stocked. All of the food and agriculture sector -- whether it is regulated by the USDA or FDA -- are considered critical infrastructure, and it is vital for the public health that they continue to operate in accordance with guidelines from the CDC and OSHA regarding worker health and safety. As we work to get through the current challenge together, we remain committed to workers’ safety, as well as ensuring the availability of foods, and that our food remains among the safest in the world.

Additional Information

On April 28, 2020, President Donald J. Trump signed Executive Order 13917, Delegating Authority Under the Defense Production Act with Respect to the Food Supply Chain Resources During the National Emergency Caused by the Outbreak of COVID-19, delegating the powers of the President under the DPA to the Secretary of Agriculture to ensure continuity of operations for our nation’s food supply chain. The Executive Order gave the Secretary of Agriculture the authority to utilize the DPA if needed to require the fulfillment of contracts at food processing facilities. The MOU makes clear that the FDA will work with stakeholders to monitor the food supply for food resources not under the USDA’s exclusive jurisdiction in order to prevent interruptions at FDA-regulated food facilities.

This action is another in a series of proactive steps the USDA and FDA have taken to maximize food availability following unprecedented disruptions the COVID-19 pandemic has caused to food supply chains that have been established and refined for decades.

Supporting Industry and Protecting Frontline Workers

Our nation’s food and agriculture facilities and workers play an integral role in the continuity of our food supply chain.

The USDA and FDA have been working to ensure that frontline workers in food facilities and retailers that have remained on the job during this crisis have the information and resources they need for business continuity and to continue working safely, which includes mitigating the risk of spreading COVID-19. We continue to provide information and update frequently asked questions on both the FDA and USDA’s websites.
We will continue to work with facilities and farms, CDC, OSHA, and state, tribal, and local officials to ensure facilities and farms are implementing practices consistent with federal worker safety guidelines to keep employees safe and continue operations.

We are working with our federal partners who have the authority and expertise over worker safety to develop information on protecting worker health. We are also working with other federal partners to assist the food and agriculture industry in addressing shortages of personal protective equipment (PPE), cloth face coverings, disinfectants and sanitation supplies.

Monitoring and Securing Human and Animal Food Supply Chains 24/7

Throughout the pandemic, the USDA and FDA have been closely monitoring the food supply chain for shortages in collaboration with industry and our federal and state partners. We are in regular contact with food manufacturers and grocery stores.

We have issued guidances to ensure regulatory flexibility to safely reroute food that typically would be bought in bulk by food facilities and restaurants, like eggs and flour, directly to consumers.

Food Safety Reminders for Every American

As we continue to respond to COVID-19, we want to remind consumers that there is no evidence that COVID-19 has been transmitted by food or food packaging, as well as the importance of taking precautionary food safety steps to protect against foodborne illness pathogens such as Salmonella and E. Coli.

With respect to the safety of food across the U.S., both the USDA and FDA continue to use their respective authorities, including conducting inspections, as appropriate. The agencies also continue to monitor foods for hazards, work with industry on any potential or reported issues in their facilities, and conduct food recalls when appropriate. This applies to both domestically produced food and food that is imported from other countries.

Unlike foodborne gastrointestinal (GI) viruses like norovirus and hepatitis A that often make people ill through contaminated food, foodborne exposure is not known to be a route of transmission for SARS-CoV-2, which causes COVID-19.

With respect to foodborne pathogens, the CDC, FDA and FSIS continue to work with state and local partners to investigate foodborne illness and outbreaks. During this coronavirus outbreak, we will continue to operate to prepare for, coordinate and carry out response activities to incidents of foodborne illness in both human and animal food.

USITC Votes to Continue Investigations on Mattresses from Cambodia, China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam - 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 mattresses from Cambodia, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam that are allegedly sold in the United States at less than fair value and subsidized by the government of China.

Chairman David S. Johanson and Commissioners Rhonda K. Schmidtlein, Jason E. Kearns, Randolph J. Stayin, and Amy A. Karpel voted in the affirmative.

As a result of the Commission’s affirmative determinations, the U.S. Department of Commerce will continue with its antidumping and countervailing duty investigations concerning imports of this product from Cambodia, China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam with its preliminary countervailing duty determination due on or about June 24, 2020, and its antidumping duty determinations due on or about September 8, 2020.

The Commission’s public report Mattresses from Cambodia, China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam (Inv. Nos. 701-TA-645 and 731-TA-1495-1501 (Preliminary), USITC Publication 5059, May 2020) will contain the views of the Commission and information developed during the investigations.

The report will be available after June 12, 2020; 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

Mattresses from Cambodia, China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam
Investigation Nos. 701-TA-645 and 731-TA-1495-1501 (Preliminary)

Product Description: "Mattress" generally means a resilient material or combination of materials generally enclosed by ticking that is intended or promoted for sleeping upon by people. Mattresses generally consist of (1) a core, (2) upholstery material, and (3) ticking. The core provides the main support system of the mattress. The core may consist of innersprings, non-innersprings (e.g., foam), other resilient filling, or a combination of these materials. "Upholstery" refers to the material between the core and the ticking. "Ticking" refers to the cover or the outermost layer of fabric or other material that encloses the core and any upholstery material.

Status of Proceedings:

Type of investigations: Preliminary phase antidumping duty and countervailing duty investigations.
Petitioners: Brooklyn Bedding, Phoenix, AZ; Corsicana Mattress Co., Dallas, TX; Elite Comfort Solutions, Newnan, GA; FXI, Inc., Media, PA; Innocor, Inc., Media, PA; Kolcraft Enterprises, Inc., Chicago, IL; Leggett & Platt, Inc., Carthage, MO; the International Brotherhood of Teamsters, Washington, DC; and United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFLCIO, Washington, DC.
USITC Institution Date: Tuesday, March 31, 2020.
USITC Conference Date: Tuesday, April 21, 2020.
USITC Vote Date: Thursday, May 14, 2020.
USITC Notification to Commerce Date: Friday, May 15, 2020.

U.S. Industry in 2019:

Number of U.S. producers: at least 63.
Location of producers’ plants: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Tennessee, Texas, Utah, Washington, and Wisconsin.
Production and related workers: [1]
U.S. producers’ U.S. shipments: $4.8 billion.
Apparent U.S. consumption: 1
Ratio of subject imports to apparent U.S. consumption: 1

U.S. Imports in 2019:

Subject imports: $1.1 billion.
Nonsubject imports: 1
Leading import sources: China, Vietnam, and Indonesia.

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