C-AIR TIMES ISSUE #672 - Friday, March 05, 2021 08:08

Petitions for the Imposition of Antidumping and Countervailing Duties on Certain Mobile Access Equipment and Subassemblies Thereof from the People's Republic of China - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP

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

II. Product: The merchandise covered by these investigations consists of certain mobile access equipment, which consists primarily of boom lifts, scissor lifts, and material telehandlers, and subassemblies thereof. Mobile access equipment combines a mobile (self-propelled or towed) chassis, with a direct, mechanically connected device for lifting persons, tools and/or materials, capable of reaching a working height of ten feet or more, and a coupler that provides an attachment point for the lifting device, in addition to other components. The scope of these investigations covers mobile access equipment and subassemblies thereof whether finished or unfinished, whether assembled or unassembled, and whether the equipment contains any additional features that provide for functions beyond the primary lifting function.

Subject merchandise includes, but is not limited to, the following subassemblies:

• scissor arm assemblies, or scissor arm sections, for connection to chassis and platform assemblies, including pin assemblies that connect sections into scissor arm assemblies and actuators powering arm assemblies to extend and retract, and which may or may not include blocks that allow sliding of end sections in relation to frame and platform, hydraulic hoses, and/or electrical cables;

• boom assemblies, or boom sections, for connection to the boom turntable or chassis assemblies and to platform assemblies or the lifting device, including telescoping sections where the smallest section (tube) can be nested in the next larger section (tube) and can slide out for extension and/or articulated sections joined by pins, and which may or may not include pins, hydraulic cylinders, hydraulic hoses and/or electrical cables;

• chassis assemblies, for connection to scissor arm assemblies or boom assemblies and/or boom turntable assemblies, including chassis frame or frame sections, and which may or may not include axles, wheel end components, steering cylinders, engine assembly, transmission, drive shafts, tires and wheels, crawler tracks and wheels, fuel tank, hydraulic oil tank, and/or battery assemblies; and/or

• boom turntable assemblies, for connection to chassis assemblies and boom assemblies, including turntable frame, and which may or may not include engine assembly, slewing rings, fuel tank, hydraulic oil tank, battery assemblies, counterweight, and/or hood (enclosure).

Importation of any of these subassemblies, whether assembled or unassembled, constitutes unfinished mobile access equipment for purposes of this investigation.

Processing of finished and unfinished mobile access equipment and subassemblies such as trimming, cutting, grinding, notching, punching, slitting, drilling, welding, joining, bolting, bending, beveling, riveting, minor fabrication, galvanizing, painting, coating, finishing, assembly, or any other processing either in the country of manufacture of the in-scope product or in a third country does not remove the product from the scope. Inclusion of other components not identified as comprising the finished or unfinished mobile access equipment does not remove the product from the scope.

The scope excludes forklifts, mobile self-propelled cranes and motor vehicles that incorporate a scissor arm assembly or boom assembly. Forklifts are material handling vehicles with a working attachment, usually a fork, lifted along a vertical guide rail with the operator seated or standing on the chassis behind the vertical mast. Self-propelled cranes are intended to solely handle loads suspended on ropes, cables and/or chains and have winches mounted on or near the base of the boom with ropes, cables and/or chains managed along the boom structure. The scope also excludes motor vehicles (defined as a vehicle driven or drawn by mechanical power and manufactured primarily for use on public streets, roads, and highways, but does not include a vehicle operated only on a rail line pursuant to 49 U.S.C. § 30102(a)(7)) that incorporate a scissor arm assembly or boom assembly.

III. HTS classifications: Imports of subject merchandise are classified under Harmonized Tariff Schedule of the United States (“HTSUS”) statistical numbers 8427.10.8010, 8427.10.8020, 8427.10.8030, 8427.10.8070, 8427.10.8090, 8427.10.8095, 8427.20.8000, 8427.20.8020 and 8427.20.8090. Subassemblies and/or parts of certain mobile access equipment are typically classifiable under HTSUS statistical heading 8431.20.0000 of the HTSUS. The most-favored nation duty rate for imports under each of these HTS numbers is zero percent.

IV. Date of Filing: February 26, 2021

V. Petitioners: Coalition of American Manufacturers of Mobile Access Equipment. JLG Indutries Inc. and Terex Corporation.

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 (No CVD Margins Listed): China: 86.56%

IX. Comments:

A. Projected date of ITC Preliminary Conference: March 19, 2021.

B. The earliest theoretical date for retroactive suspension of liquidation for the AD is May 7, 2021; CVD is March 18, 2021. Please contact our office for a complete projected schedule for the AD/CVD investigations.

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:

Major Chemical Distributor to Pay Fine, Correct Violations Under Settlement with U.S. EPA - EPA

Brenntag Pacific, Inc. had violated Toxic Substances Control Act

SAN FRANCISCO – Today, the U.S. Environmental Protection Agency announced it has reached a settlement agreement with Brenntag Pacific, Inc. for violations of the Toxic Substances Control Act (TSCA). Brenntag Pacific, Inc. has corrected the violations and will pay a $128,265 fine.

The violations were discovered following inspections at Brenntag Pacific, Inc. facilities in Fairbanks, Alaska and in Santa Fe Springs, Calif. EPA inspectors found the company failed to submit accurate and timely reports and notification associated with the import and export of nine chemicals.

“It is essential that chemical importers report the quantity of chemicals they are bringing in to the U.S., so that EPA can properly evaluate the risks of these chemicals to communities and the environment,” said Amy Miller, EPA Pacific Southwest Regional Director of Enforcement and Compliance Assurance. “Companies that do not comply will face significant Toxic Substance Control Act penalties.”

Between 2012 and 2015, Brenntag Pacific, Inc. failed to properly report the import production volumes and uses of five chemicals as required by the 2016 Chemical Data Reporting Rule. In addition, the company failed to produce first-time export notices for four chemicals between 2016 and 2017. Under the Toxic Substances Control Act, chemical importers and manufacturers are required to submit Chemical Data Reporting information to EPA every four years. EPA uses this data to track the chemicals being imported into the country and to assess the potential human health and environmental effects of these chemicals. In addition, EPA makes the non-confidential business information it receives available to the public.

The quadrennial chemical data reports for 2016 – 2019 were due from industry last month. For information about the Chemical Data Reporting under TSCA, please visit the TSCA Chemical Data Reporting at https://www.epa.gov/chemical-data-reporting

To find out if a specific chemical is on the TSCA chemical substance inventory, please visit the Substance Registry Services at https://sor.epa.gov/sor_internet/registry/substreg/LandingPage.do

For more information on TSCA chemical requirements, please visit www.epa.gov/laws-regulations/summary-toxic-substances-control-act

Federal Judge Enters Permanent Injunction Against New York Based Dietary Supplement Manufacturer - Food & Drug Administration

A dietary supplement manufacturer and two of its executives have been ordered by a federal court to stop manufacturing, holding, or distributing any articles of food, including dietary supplements, until they come into compliance with federal dietary supplement current good manufacturing practice regulations and other Federal Food, Drug, and Cosmetic Act (FD&C Act) requirements.

Today, Judge Edward R. Korman, of the U.S. District Court for the Eastern District of New York, entered an order of permanent injunction against Confidence USA Inc., of Long Island, New York, and the company’s president Helen Chian and general manager and founder Jim Chao. The permanent injunction requires the defendants to cease manufacturing, holding, or distributing dietary supplements until the FDA notifies defendants that they may resume operations.

“Consumers deserve access to dietary supplements that are manufactured to assure their quality. If a dietary supplement company repeatedly fails to comply with good manufacturing practice requirements, the public cannot trust that their products are what they say they are,” said Judy McMeekin, Pharm.D., FDA’s Associate Commissioner for Regulatory Affairs. “The FDA will continue to protect American consumers by taking appropriate actions necessary when companies violate the law.”

Confidence USA Inc. has manufactured and distributed more than 50 dietary supplements under brand names that include Confidence USA, American Best, USA Natural, and The Herbal Store. Confidence USA Inc. currently manufactures and distributes the above-mentioned dietary supplement products through Amazon, Walmart, and its own online store at www.confidenceusa.com.

The court found that defendants violated the FD&C Act because their products were prepared, packed, or held in violation of the Current Good Manufacturing Practice (CGMP) regulations for dietary supplements. Multiple FDA inspections showed that the defendants repeatedly failed to verify the identity of each dietary ingredient used in the manufacture of their supplements. The defendants also failed to verify that their products met specifications for purity, strength, composition, and contamination limits.

The court order prohibits the defendants from receiving, processing, manufacturing, preparing, packing, holding and distributing any article of food, including dietary supplements, until they hire an independent expert to ensure that they are following the CGMP regulations, and, following an inspection, receive the FDA’s approval to resume operations. Following the court order, once defendants resume operations, they must retain an independent auditor to ensure that they continue to follow the CGMP regulations.

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.

HSI, FBI, CBP Seize More than 460,000 Counterfeit N-95 Masks En Route to First Responders - ICE

SEATTLE – More than 460,000 counterfeit 3M N95 surgical masks destined to be used by first responders in the Puget Sound region were seized Wednesday by Homeland Security Investigations' (HSI) Border Enforcement Security Taskforce (BEST), U.S. Customs and Border Protection (CBP) and the FBI.

“Counterfeit surgical masks are a serious threat to the front-line personnel who rely on them as they bravely combat this pandemic. Ensuring the integrity of the PPE supply chain is of utmost importance,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI Seattle is actively engaging with our law enforcement partners to combat the trafficking of counterfeit PPE. The seizures today demonstrate our commitment to pursue anyone who puts lives and people’s health at risk just to gain an illicit profit.”

HSI, CBP and FBI work together to prevent unauthorized and counterfeit products from getting to U.S. consumers.

“Criminal organizations are exploiting the COVID-19 pandemic by selling counterfeit personal protective equipment to unsuspecting American consumers,” said Brian Humphrey, Director of Field Operations for CBP in Seattle. “In conjunction with our law enforcement partners, the vigilant men and women of CBP are working 24 hours a day, 7 days a week to keep these unlawful and unsafe products out of our nation’s hospitals and homes.”

The seizure of these counterfeit surgical masks not only ensures the health and safety of frontline health care workers by preventing them from receiving inferior personal protective equipment, it also protects the integrity of the American economy.

Donald M. Voiret, FBI Special Agent in Charge of the Seattle Field Office said, “During a time that we are relying on masks and other personal protective equipment to protect our first responders, health care providers, and members of the public, it is disheartening that these items can sometimes be fraudulent. We are grateful for our law enforcement partnerships to remove these products from distribution. The FBI encourages everyone to exercise due diligence and appropriate caution when dealing with unknown vendors and brokers in the supply chain.”

This counterfeit 3M N95 surgical mask seizure has a manufacturer’s recommended retail price (MSRP) of approximately $587,000. However, there are reported instances where victim organizations have paid high dollar amounts in excess of the MSRP to secure masks and other forms of PPE.

BEST identified seven potential victim organizations that purchased the counterfeit 3M masks. Notifications have been made to all potential victim organizations to prevent counterfeit PPE from being distributed to frontline workers.

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

Potential criminal violations range from smuggling, trafficking in counterfeit goods, wire fraud, money laundering, theft or fraud in connection with government programs and price gouging.

A number of BEST member agencies and partners provided critical support for this operation, including: CBP, FBI, the U.S. Department of Homeland Security (DHS)-Office of Inspector General (OIG), General Services Administration-OIG, the Food and Drug Administration, Health and Human Services-OIG, the DHS Cybersecurity and Infrastructure Security Agency, the Seattle Police Department and King County Office of Emergency Management.

HSI Pacific Northwest is actively engaged in a nationwide effort to combat counterfeit PPE trafficking.

National Effort - In the last several weeks, HSI has conducted enforcement actions across the country that have resulted in the seizure of almost 10 million counterfeit 3M N95 respirators.

Since many of the counterfeit masks are produced abroad, HSI is also working closely with its international law enforcement partners around the world to pursue leads into sources of supply and prevent shipments of counterfeit products from reaching U.S. shores.

Initial leads came to the HSI-led National Intellectual Property Rights Coordination Center through 3M, which shared reports of suspected counterfeits being purchased by hospitals and government organizations. HSI mobilized quickly, initiating multi-state investigations into the individuals and organizations looking to profit from the sale and distribution of counterfeit N95 respirators.

At the same time, HSI and 3M notified about 6,000 suspected victims of the fraud, in at least 12 states, including hospitals, medical facilities and others who may have purchased medical masks from the illicit dealers, urging them to immediately stop using the masks and to contact HSI immediately.

Since December of 2020, HSI has initiated over a dozen criminal investigations, across the U.S. and overseas, based on information received from 3M, about millions of counterfeit N95 respirator masks being sold to medical facilities and government agencies for use by hospital workers, first responders and others all over the country. The Cleveland Clinic and Washington State Hospital Association are just two of the many organizations that have reported receiving counterfeit respirators.

The HSI investigative actions are in addition to the efforts of Customs and Border Protection to identify and interdict these counterfeits at the border. HSI’s goal is to extend the border outward and intercept counterfeits before they have a chance to enter the U.S. and put frontline workers at risk.

HSI has strengthened its relationship with 3M and their counterfeit fraud team as part of HSI efforts launched under Operation Stolen Promise in April. Due to this relationship, 3M provided information that helped HSI, law enforcement and the public to identify counterfeit 3M respirators.

Operation Stolen Promise - 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, FBI, 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.

For more information or to report COVID fraud, visit the Operation Stolen Promise website.

HSI Upholding Fairness in Global Trade: Investigating Intellectual Property Crime, Trade Fraud, And Export Violations

HSI protects legitimate trade and commercial systems by investigating intellectual property crime, combating trade fraud and preventing the illicit proliferation of sensitive U.S. technology and weapons.

Through the HSI-led National Intellectual Property Rights (IPR) Coordination Center, HSI spearheads the U.S. government’s response to investigating and preventing intellectual property rights violations, digital piracy, illicit trade and customs fraud. These efforts protect U.S. industry, the U.S. consumer, and the safety of the American public from the adverse economic impact and health dangers posed from introducing counterfeit products into U.S. commerce.

The HSI counter-proliferation investigations program prevents the illicit procurement and export of sensitive U.S. technology and weapons and sanctions evasion by U.S. adversaries. HSI’s work in this area protects the U.S. warfighter, advances strategic defense interests and safeguards U.S. national security.

Homeland Security Investigations (HSI) is a directorate of U.S. Immigration and Customs Enforcement (ICE) and the principal investigative arm of the U.S. Department of Homeland Security, responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel, and finance move. HSI’s workforce of over 10,400 employees consists of more than 7,100 Special Agents assigned to 220 cities throughout the United States, and 80 overseas locations in 53 countries. HSI’s international presence represents DHS’s largest investigative law enforcement presence abroad and one of the largest international footprints in U.S. law enforcement.