C-AIR TIMES ISSUE #660 - Friday, December 11, 2020 09:13

CBP Issues Detention Order on Cotton Products Made by Xinjiang Production and Construction Corp using Prison Labor - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP

In a December 2, 2020 statement, CBP’s Office of Trade directed the issuance of a Withhold Release Order (“WRO”) against cotton and cotton products made by Xinjiang Production and Construction Corps (“XPCC”) based on information that reasonably indicates its use of forced labor. As a result, CBP will detain shipments containing cotton and cotton products originating from XPCC (as well as from any subordinate and affiliated entities). The WRO extends to products that are made in whole or in part of the above cotton, including garments and other textile products. CBP officials have estimated that this action could ultimately impact billions of dollars of imports.

Although no action has yet been taken in response to a petition seeking the issuance of a Xinjiang region-wide WRO on all cotton-made goods (which would account for 85% China’s cotton), CBP officials have observed that this latest action will have a comparable effect given how deeply XPCC is embedded in the economy of the Xinjiang region.

The WRO on XPCC cotton products comes on the heels of various other recent actions targeting goods allegedly made by forced labor from China’s Xinjiang Uyghur Autonomous Region. These have included legislation introduced in the U.S. Congress, the issuance of a multi-agency business advisory, CBP’s issuance of several supplier-specific WRO’s and CBP’s initiation of surveys of various importer’s practices and policies with respect to avoidance of forced labor in their supply chains.

In light of the above developments, companies should take stock of their supply chains to identify where potential risks may exist as well as enhance current due diligence practices.

On December 10, 2020, GDLSK partners Arthur Bodek and Patrick Caulfield will be speaking on these topics at a webinar presented by the U.S. Fashion Industry Association. Further information and registration details can be found at: https://www.usfashionindustry.com/webinars/emerging-developments-forced-labor.

Should you wish to explore these topics further, please do not hesitate to contact our office.

Cincinnati CBP Seizes 200 Counterfeit Autographed Jerseys Worth $42,625 - U.S. Customs & Border Protection

CINCINNATI –- Over the past week, CBP officers in Cincinnati seized 200 counterfeit jerseys determined to have several athletes’ autographs that were unapproved and inauthentic. Had the clothing been real, their cumulative value would have been $42,625.

The jerseys were printed with signatures of Jason Witten, Minkah Fitzpatrick, Dwayne Haskins, and Rod Carew. All of the clothing originated in the Philippines and were destined to a warehouse in Nashville, Tennessee.

“Counterfeiters only care about making a profit,” said Cincinnati Port Director Richard Gillespie. “They don’t care about the effect their fake product has on you, your family, or your job. Our officers are well-trained to find seizures like these, to continue our mission of protecting the American public and the American economy”

In Fiscal Year 2020, CBP seized 26,503 shipments of counterfeit goods worth nearly $1.3 billion had the goods been genuine. Most of these seizures were of apparel and accessories, but fake medical supplies played a significant role as well. Since the beginning of the COVID-19 pandemic, CBP has seized more than 13.5 million counterfeit face masks, and more than 177,000 unapproved COVID-19 test kits.

CBP encourages consumers to be aware of counterfeit and pirated goods when shopping this holiday season, particularly when purchasing online. CBP has also established an educational initiative to raise consumer awareness about the consequences and dangers associated with purchasing counterfeit and pirated goods online or in stores. More information about that initiative is available
www.cbp.gov/fakegoodsrealdangers.

Federal Register Notices:

[12/04/2020] – On November 9, the EU published a list of $4 billion of U.S. products subject to retaliatory tariffs following its WTO dispute case alleging subsidies to Boeing. Included among the non-aircraft goods now subject to a 25 percent levy are travel goods and cotton.

FMC User Fees Scheduled to Be Revised in January - Federal Maritime Commission

The Federal Maritime Commission is updating the fees it charges for services, effective January 27, 2021 barring further action or significant adverse comments.

Comments regarding this rule must be filed with the Commission by December 14, 2020.

This change is pursuant to Office of Management and Budget directives applying to all Executive Branch agencies and was published by the Commission as a Direct Final Rule on November 13, 2020.

A list of the fees can be found on the Commission’s website and will be updated on January 27, 2021. Fees can be paid electronically through the Commission’s website or by check.

The Commission is required to review, and adjust accordingly, its fees on a biennial basis. Fees were last adjusted in 2018.

ICE, CBP Seize more than 100,000 Counterfeit Surgical Masks Intended for Hospital Workers - U.S. Customs & Border Protection

More than 100,000 counterfeit 3M N95 surgical masks destined to be used by hospital workers were seized Dec. 7 by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Customs and Border Protection.

On Dec. 3, CBP officers at the Ysleta Cargo Facility initially intercepted the shipment of 100,080 3M N95 surgical masks with an MSRP of $600,480. The masks were in-transit at an El Paso bonded warehouse destined to a hospital on the East Coast.

ICE HSI special agents determined the masks were counterfeit after working with the National Intellectual Property Rights Coordination Center and 3M Company.

“The seizure of these counterfeit surgical masks not only ensures the health and safety of our frontline health care workers by preventing them from receiving inferior personal protective equipment, it also protects the integrity of the American economy. We will continue to aggressively investigate, arrest and prosecute criminal counterfeiters who show a total disregard for human life and take advantage of a relentless world pandemic for economic gain.” said Erik P. Breitzke, acting special agent in charge of ICE HSI El Paso.

“HSI and CBP will continue to collaborate to prevent unauthorized and counterfeit products from getting to U.S. consumers to protect the health and safety of the American public and the American economy,” said Ysleta Port Director Arnoldo Gomez. “This large seizure of counterfeit surgical masks, destined for frontline medical workers, demonstrates the great collaborative effort between CBP and HSI. Counterfeit surgical masks pose a great risk to our medical community, and any individual who may use them.”

This shipment is in violation of Importation, Removal and Contrary to Law (19 U.S.C. 1595a(c)(2)(A)) and the Federal Food, Drug and Cosmetic Act. ICE HSI El Paso is investigating the seizure with assistance from CBP.

ICE HSI launched Operation Stolen Promise in April 2020 to protect U.S. consumers from the increasing and evolving threat posed by the pandemic. The operation involves various federal agencies, including CBP, the U.S. Department of Justice, U.S. Postal Inspection Service, U.S. Food and Drug Administration, the Internal Revenue Service, and multiple private sector partners, including Pfizer, 3M, Amazon and others.

Operation Stolen Promise combines ICE HSI’s expertise in global trade, financial fraud, international operations and cybercrime to investigate financial fraud schemes, the importation of prohibited pharmaceuticals and medical supplies, offending e-commerce schemes, and any other illicit criminal activities associated with the COVID-19 virus that may compromise legitimate trade, financial systems and/or endangers the public.

$800K of Counterfeit Purses and Hats Seized by CBP Officers in Louisville - U.S. Customs & Border Protection

LOUISVILLE, Ky — Last Friday, December 4, U.S. Customs and Border Protection (CBP) officers in Louisville intercepted two shipments containing counterfeit hats and handbags worth over $800,000, if they were real.

The first shipment was arriving from China, while the second shipment arrived from Vietnam. Each package was mis-manifested, and CBP officers inspected the parcels to determine the admissibility of its contents in accordance with CBP regulations. When the first shipment, which was destined for Texas, was opened officers found 938 counterfeit Louis Vuitton hats. If these hats were real they would have been worth $764,470. The second shipment, destined for a residence in local Columbia, KY, contained 29 counterfeit Louis Vuitton handbags. If these purses were real, they would have been worth $56,550. In all, CBP officers seized $821,000 worth of counterfeit goods.

“Criminal groups continue to send shipments like this flooding our country with fake, sometime dangerous, products,” said Thomas Mahn, Port Director-Louisville. “When consumers purchase counterfeit goods, legitimate companies lose revenue, which can force those companies to cut jobs.”

In Fiscal Year 2020, CBP seized 26,503 shipments of counterfeit goods worth nearly $1.3 billion had the goods been genuine. The most commonly counterfeited goods are watches and jewelry; apparel and related accessories; handbags and wallets; footwear; and consumer electronics.

U.S. Department of Commerce Finds Dumping and Countervailing Subsidization of Imports of Prestressed Concrete Steel Wire Strand from Eight Countries - U.S. Department of Commerce

WASHINGTON – Today, the U.S. Department of Commerce announced affirmative final determinations in the antidumping duty (AD) investigations of prestressed concrete steel wire strand (PC strand) from Argentina, Colombia, Egypt, the Netherlands, Saudi Arabia, Taiwan, Turkey, and the United Arab Emirates, as well as the countervailing duty (CVD) investigation of PC strand from Turkey.

Commerce determined that exporters from the countries listed below have dumped PC strand in the United States at the following rates:

60.40 percent for Argentina,
86.09 percent for Colombia,
29.72 percent for Egypt,
30.86 percent for the Netherlands,
194.40 percent for Saudi Arabia,
23.89 percent for Taiwan,
53.65 percent for Turkey, and
170.65 percent for the United Arab Emirates.

In addition, Commerce determined that exporters from Turkey received countervailable subsidies at rates ranging from 30.78 percent to 158.44 percent.

The 2019, imports of PC strand from the countries under investigation were approximately valued as follows:

$2.3 million for Argentina;
$9.6 million for Colombia;
$345.9 thousand for Egypt;
$1.6 million for the Netherlands;
$1.4 million for Saudi Arabia;
$3.0 million for Taiwan;
$13.1 million for Turkey; and
$2.3 million for the United Arab Emirates.

The petitioners are Insteel Wire Products Company (Mount Airy, NC), Sumiden Wire Products Corporation (Dickson, TN), and Wire Mesh Corporation (Houston, TX).

The U.S. International Trade Commission (ITC) is currently scheduled to make its final injury determinations on or about January 21, 2021. 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. Read the fact sheet on today’s decision(s).

Commerce is conducting concurrent AD investigations of PC strand from Indonesia, Italy, Malaysia, South Africa, Spain, Tunisia, and Ukraine. The final determinations for these investigations are scheduled to be announced on April 6, 2021.

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 306 new AD and CVD investigations – a 283 percent increase from the comparable period in the previous administration.

The AD and CVD laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair pricing of imports into the United States. Commerce currently maintains 539 AD and CVD orders that provide relief to American companies and industries impacted by unfair trade.

The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules 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 AD duties. Foreign companies that receive unfair subsidies from their governments, such as grants, loans, equity infusions, tax breaks, or production inputs, are subject to CVD duties aimed at directly countering those subsidies.