C-AIR TIMES ISSUE #676 - Sunday, April 04, 2021 08:25

USTR Announces Next Steps of Section 301 Digital Services Taxes Investigations - US Trade Representative

Six countries remain subject to potential action while broader international tax negotiations continue

WASHINGTON – The United States Trade Representative (USTR) today announced the next steps in its Section 301 investigations of Digital Service Taxes (DSTs) adopted or under consideration by ten U.S. trading partners. In January, USTR found that the DSTs adopted by Austria, India, Italy, Spain, Turkey, and the United Kingdom were subject to action under Section 301 because they discriminated against U.S. digital companies, were inconsistent with principles of international taxation, and burdened U.S. companies. USTR is proceeding with the public notice and comment process on possible trade actions to preserve procedural options before the conclusion of the statutory one-year time period for completing the investigations.

“The United States is committed to working with its trading partners to resolve its concerns with digital services taxes, and to addressing broader issues of international taxation,” said Ambassador Katherine Tai. “The United States remains committed to reaching an international consensus through the OECD process on international tax issues. However, until such a consensus is reached, we will maintain our options under the Section 301 process, including, if necessary, the imposition of tariffs.”

The remaining four jurisdictions – Brazil, the Czech Republic, the European Union, and Indonesia – have not adopted or not implemented the DSTs under consideration when the investigations were initiated. Accordingly, USTR is terminating these four investigations without further proceedings. If any of these jurisdictions proceeds to adopt or implement a DST, USTR may initiate new investigations.

Federal Register notices seeking public comment on proposed trade actions in the six continuing investigations, and terminating the remaining four investigations, may be found here.

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Background:

On June 2, 2020, USTR initiated investigations into DSTs adopted or under consideration in ten jurisdictions: Austria, Brazil, the Czech Republic, the European Union, India, Indonesia, Italy, Spain, Turkey, and the United Kingdom. Following comprehensive investigations, including consultations with the countries subject to investigation and consideration of public comments, in January 2021 USTR issued reports on DSTs adopted by Austria, India, Italy, Spain, Turkey. and the United Kingdom.

The reports detail unreasonable, discriminatory, and burdensome attributes of each of these countries’ DSTs. In addition, USTR issued a status update in the investigations of the DSTs under consideration by Brazil, the Czech Republic, the European Union, and Indonesia. The update discusses the status of each jurisdiction’s consideration of a possible DST, and notes U.S. concerns that DSTs may be adopted in the future. The status updates are available here.

Termination of Section 301 Digital Services Tax investigations of Brazil, the Czech Republic, the European Union, and Indonesia, may be found here.

Proposed Action in Section 301 Investigation of Austria’s Digital Services Tax
Proposed Action in Section 301 Investigation of India's Digital Services Tax
Proposed Action in Section 301 Investigation of Italy’s Digital Services Tax
Proposed Action in Section 301 Investigation of Spain's Digital Services Tax
Proposed Action in Section 301 Investigation of Turkey's Digital Services Tax
Proposed Action in Section 301 Investigation of the United Kingdom's Digital Services Tax

Petitions for the Imposition of Antidumping and Countervailing Duties on Certain Walk-Behind Snow Throwers and Parts 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 this investigation consists of gas-powered, walk-behind snow throwers (also known as snow blowers), which are snow moving machines that are powered by internal combustion engines and primarily pedestrian-controlled. The scope of the investigation covers certain snow throwers, whether self-propelled or non-self-propelled, whether finished or unfinished, whether assembled or unassembled, and whether containing any additional features that provide for functions in addition to snow throwing.

Walk-behind snow throwers subject to the scope of this investigation are powered by internal combustion engines which are typically spark ignition, single or multiple cylinder, and air-cooled with power take off shafts.

For purposes of this investigation, an unfinished and/or unassembled snow thrower means at a minimum, a sub-assembly comprised of an engine, auger housing (i.e., intake frame), and an auger (or “auger paddle”) packaged or imported together. An intake frame is the portion of the snow thrower – typically of aluminum or steel – that houses and protects an operator from a rotating auger and is the intake point for the snow. Importation of the subassembly whether or not accompanied by, or attached to, additional components including, but not limited to, handle(s), impeller(s), chute(s), track tread(s), or wheel(s) constitutes an unfinished snow thrower for purposes of this investigation. The inclusion in a third-country of any components other than the snow thrower sub-assembly does not remove the snow thrower from the scope. A snow thrower is within the scope of this investigation regardless of the origin of its engine.

Specifically excluded is merchandise covered by the scope of the antidumping and countervailing duty orders on Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof from the People’s Republic of China, 86 FR 12623, 86 FR 12619 (March 4, 2021).

III. HTS classifications: The snow throwers subject to this investigation are typically entered under Harmonized Tariff Schedule of the United States (HTSUS) subheading 8430.20.0060. Certain parts of snow throwers subject to this investigation may also enter under HTSUS 8407.90.9040, 8407.90.9060, 8431.49.9090, and 8431.49.9095. The HTSUS subheadings are provided for convenience and customs purposes only, and the written description of the merchandise under investigation is dispositive.

IV. Date of Filing: March 30, 2021

V. Petitioners: MTD Products Inc.

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: 87.71%

IX. Comments:

A. Projected date of ITC Preliminary Conference: April 20, 2021.

B. The earliest theoretical date for retroactive suspension of liquidation for the AD is June 9, 2021; CVD is April 19, 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: None listed

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:

CBP Advises Traveling Public on Easter Egg Regulations - U.S. Customs & Border Protection

LAREDO, Texas – With the Easter festivities right around the corner, CBP is reminding the traveling public that cascarones (confetti-filled eggshells) are restricted to quantities of 12 per passenger and the shells may be decorated, etched, or painted but they must be clean, dry, and free of any egg residue. They may contain confetti or other unregulated items.

Cascarones are a restricted commodity by CBP in order to prevent further spread of Newcastle Disease and Highly Pathogenic Avian Influenza (HPAI) through contaminated eggshells. According to the U.S. Department of Agriculture, Newcastle Disease is a highly contagious, fatal viral disease that affects a substantial number of bird species, attacking respiratory, nervous and digestive systems. Mortality is up to 90 percent of exposed birds. HPAI is also a viral disease that can cause exceptionally high mortality, especially in turkeys. The virus infects chickens, turkeys, ducks, partridges, pheasants, quail, pigeons, and ostriches. Effectively all birds are considered to be at risk of infection. In addition, official control measures for both diseases effectively disrupt trade in poultry products from affected areas.

CBP would like to remind the public that fresh eggs, raw chicken, and live birds or poultry continue to be prohibited from. Attempting to bring in these or other prohibited agricultural items would lead to traveler delays and may result in a fine ranging from $300 to $1000.

CBP’s highly trained agriculture specialists are the front line in safeguarding America’s agricultural resources. On a typical day last year, CBP agriculture specialists across the nation seized more than 3,000 prohibited plants, meats, animal byproducts, and soils and intercepted 250 insect pests.

CBP Issues Forced Labor Finding on Top Glove Corporation Bhd. - U.S. Customs & Border Protection

WASHINGTON — U.S. Customs and Border Protection (CBP) announced today that it has directed personnel at all U.S. ports of entry to begin seizing disposable gloves produced in Malaysia by Top Glove Corporation Bhd. (Top Glove).

The CBP Office of Trade, in consultation with the Secretary of the Treasury, published a forced labor finding against disposable gloves produced in Malaysia by Top Glove in the Customs Bulletin and in the Federal Register. The finding communicates that CBP has sufficient information to believe that Top Glove uses forced labor in the production of disposable gloves. Merchandise covered by the forced labor finding is subject to seizure upon arrival at a U.S. port of entry.

“Today’s forced labor finding is the result of a months-long CBP investigation aimed at preventing goods made by modern slavery from entering U.S. commerce,” said Troy Miller, Senior Official Performing the Duties of the CBP Commissioner. “CBP will not tolerate foreign companies’ exploitation of vulnerable workers to sell cheap, unethically-made goods to American consumers.”

“CBP has taken steps to ensure that this targeted enforcement action against Top Glove will not have a significant impact on total U.S. imports of disposable gloves,” said John Leonard, CBP Acting Executive Assistant Commissioner for Trade. “We continue to work with our interagency partners to ensure that the personal protective equipment, medical devices and pharmaceuticals needed for the COVID-19 response are cleared for entry as expeditiously as possible while verifying that those goods are authorized and safe for use.”

The finding expands upon a Withhold Release Order (WRO) that CBP issued in July 2020. That WRO was based on reasonable but not conclusive information that multiple forced labor indicators exist in Top Glove’s production process, including debt bondage, excessive overtime, abusive working and living conditions, and retention of identity documents.

Today’s finding is the second forced labor finding that CBP has issued in Fiscal Year 2021. All findings are publicly available and listed by country on the CBP’s Forced Labor Withhold Release Orders and Findings page.

Federal statute 19 U.S.C. 1307 prohibits the importation of merchandise mined, manufactured, or produced, wholly or in part, by convict labor, forced labor, and/or indentured labor, including forced or indentured child labor. CBP detains shipments of goods suspected of being imported in violation of this statute.

If CBP has evidence sufficient to determine that imported goods were produced using forced labor, the agency will publish a formal finding to that effect in the Customs Bulletin and in the Federal Register pursuant to 19 C.F.R. §12.42(f). CBP will seize shipments subject to findings unless the importer can prove to CBP’s satisfaction that, per 19 C.F.R §12.43, the merchandise was not produced with forced labor.

CBP receives allegations of forced labor from a variety of sources, including from the general public. Any person or organization that has reason to believe merchandise produced with the use of forced labor is being – or is likely to be – imported into the United States can report detailed allegations by contacting CBP through the e-Allegations Online Trade Violation Reporting System or by calling 1-800-BE-ALERT.

More information is available in the forced labor finding against Top Glove.

Pittsburgh’s Pirates Possibly Peeved after CBP Seizes Shipments of Eye Patches - U.S. Customs & Border Protection

PITTSBURGH – There are likely to be some perturbed plundering pirates pillaging around Pittsburgh, but U.S. Customs and Border Protection (CBP) only wants to ensure that they sack the city safely.

That’s because CBP officers seized 3,740 potentially harmful medicated eye patches on Saturday that the U.S. Food and Drug Administration determined to be unapproved for sale in the United States.

The patches initially arrived in two shipments from Hong Kong. The first shipment arrived on January 4 and consisted of 2,300 medicated eye patches. The second shipment of 1,440 medicated eye patches arrived on February 8. Both shipments were destined to separate addresses in Allegheny County, Pa. Upon close examination, none of the packaging contained English-language directions or ingredients. CBP officers detained both shipments and submitted photos and documentation of the medicated eye patches to FDA inspectors.

The FDA determined that the products violated the Federal Food, Drug and Cosmetic Act as adulterated or misbranded medical products and directed CBP to seize the eye patches.

Import specialists at CBP’s Centers of Excellence and Expertise, the agency’s trade experts, assessed the domestic value of the collective lot of medicated eye patches at more than $10,000.

“As our nation’s border security agency, Customs and Border Protection examines imports every day to ensure that the consumer goods comply with all applicable U.S. laws, and that they pose no harm to American consumers. We take this responsibility very serious,” said Keith Fleming, CBP’s Acting Director of Field Operations in Baltimore. “CBP remains steadfast in our continuing commitment to working with our consumer safety partners in our collective mission to help keep our citizens safe.”

CBP officers from the Office of Field Operations conducts the agency’s border security mission at our nation’s ports of entry. CBP officers screen international travelers and cargo and search for dangerous drugs, unreported currency, weapons, counterfeit consumer goods, prohibited agriculture, and other illicit products that could potentially harm the American public, U.S. businesses, and our nation’s safety and economic vitality.

On a typical CBP day last year, CBP processed 90,000 entries of imported goods with a value of $6.64 billion at our air, land, and sea ports of entry.

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.