C-AIR TIMES ISSUE #678 - Friday, April 16, 2021 08:26

Court Declares Section 212 Steel and Aluminum "Derivative" Tariffs Unlawful; Refunds May be Available - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP

On April 5, 2021, the U.S. Court of International Trade issued an opinion declaring the Section 232 steel and aluminum “derivative” tariffs unlawful, and ordered the government to refund any duties to the plaintiff. Prime Source Building Products v. United States, Slip Op. 21-36.

The Section 232 “derivative” tariffs were imposed beginning January 24, 2020 on certain articles of steel and aluminum such as nails, tacks, stranded wire (of aluminum), and bumper stampings. A complete list of affected products can be found at 85 Fed. Reg. 5281. The 232 tariff is 25% ad valorem on the steel articles and 10% ad valorem on the aluminum articles. The court found these tariffs unlawful because the President had imposed them beyond the time limit authorized by Section 232. The decision in Prime Source only affects tariffs on these “derivative” products. It does not impact the initial Section 232 tariffs imposed on certain steel and aluminum.

It is anticipated that the government will appeal this decision to the Court of Appeals for the Federal Circuit. If you have questions about the impact of this decision, including what steps are needed to protect potential recovery of refunds, please feel free to contact one of our attorneys.

Federal Register Notices:

Subsidized Chassis and Subassemblies from China Injure U.S. Industry, Says USITC - U.S. International Trade Commission

The United States International Trade Commission (USITC) today determined that a U.S. industry is materially injured by reason of imports of chassis and subassemblies that the U.S. Department of Commerce (Commerce) has determined are subsidized by the government of China.

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

As a result of the Commission’s affirmative determination, Commerce will issue a countervailing duty order on imports of this product from China.

The Commission’s public report Chassis and Subassemblies from China (Inv. No. 701-TA-657 (Final), USITC Publication 5187, May 2021) will contain the views of the Commission and information developed during the investigation.

The report will be available by May 27, 2021; when available, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.

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UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436

FACTUAL HIGHLIGHTS

Chassis and Subassemblies from China
Investigation No. 701-TA-657 (Final)

Product Description: Chassis are skeletal rectangular framed trailers used to transport shipping containers. The rectangular frame is made up of steel with a suspension and axle system, wheels and tires, brakes, a lighting and electrical system, a coupling for towing behind a truck tractor, and a locking system or systems to secure the shipping container or containers attached to the chassis. Chassis are designed to carry containers of various sizes (usually ranging from 20-feet to 53-feet in the United States).

Status of Proceedings:

Type of investigation: Final countervailing duty investigation.
Petitioners: Coalition of American Chassis Manufacturers (Cheetah Chassis Corporation, Fairless Hills, PA; Hercules Enterprises LLC, Hillsborough, NJ; Pitts Enterprises, Inc., Pittsview, AL; Pratt Industries, Inc., Bridgman, MI; Stoughton Trailers, Stoughton, WI).
USITC Institution Date: Thursday, July 30, 2020.
USITC Hearing Date: Tuesday, March 16, 2021.
USITC Vote Date: Tuesday, April 13, 2021.
USITC Notification to Commerce Date: Thursday, May 6, 2021.

U.S. Industry in 2020:

Number of U.S. producers: 5.
Location of producers’ plants: Alabama, California, Michigan, New Jersey, Pennsylvania, South Carolina, Virginia, and Wisconsin.
Production and related workers: [1]
U.S. producers’ U.S. shipments: 1
Apparent U.S. consumption: 1
Ratio of subject imports to apparent U.S. consumption: 1

U.S. Imports in 2020:

Subject imports: 1
Nonsubject imports: 1
Leading import sources: China, Mexico.

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

OTEXA: Announcements - Office of Textile & Apparel

04/07/2021 – February 2021 Textile and Apparel Import Report

Fish & Wildlife: Bulletins & Alerts - FWS

Amendments to CITES Appendix III - April 14, 2021

CBP Reminds Public That All Marijuana Imports Are Prohibited - U.S. Customs & Border Protection

EL PASO, Texas – U.S. Customs and Border Protection officers working at ports of entry in El Paso, west Texas and New Mexico have encountered more than two dozen small marijuana seizures since the beginning of April. Area CBP officers have encounters 26 cases involving incidents of people possessing just a few grams or ounces since April 1.

“As some states have decriminalized the use and possession of marijuana it is important that members of the traveling public clearly understand that federal law still prohibits the importation of any amount of this drug,” said CBP El Paso Director of Field Operations Hector Mancha. “Do not cross the border with any amount of marijuana at all.”

Violators may face several consequences. The contraband and associated paraphernalia will be seized. Individuals can also face federal civil penalties of up to $1,000. CBP officers may also turn the case over to state and local departments for prosecution.

“Processing these cases also has a negative impact on our ability to manage the flow of legitimate traffic,” said acting CBP El Paso port Director Greta Campos.” When we encounter a case like this a CBP officer is taken off the line for several hours and that lane will be closed until the process is completed.”

In addition to the marijuana seizures area CBP officers continue to encounter and stop other drug loads as well. Since the beginning of April area CBP officers have made 20 other drug busts. Those seizures netted 299 pounds of methamphetamine, 99.8 pounds of cocaine, six pounds of heroin and 5.4 pounds of fentanyl. CBP officers have also encountered 21 people attempting to cross prohibited medications during this time.

CBP officers performing inspections at area ports have identified 44 wanted persons since the start of the month. They have also prevented the introduction of prohibited agriculture items 14 times. Those smuggled products included pork, tomatoes, oranges, avocados, apples, guavas, and live plants. Penalties in the amount of $3,300 were assessed.

CBP reminds travelers that it is best to declare all items to the CBP officer upon entry to the U.S. If a declared item is prohibited in many cases it can be abandoned without consequence. If an undeclared item is discovered during the inspection process then various consequences may be applied.

Cincinnati CBP Seizes 1,196 Fake Keys, Fobs, Decals Worth $103,101 - U.S. Customs & Border Protection

CINCINNATI — Over the past six weeks, U.S. Customs and Border Protection (CBP) officers in Cincinnati seized 1,196 counterfeit keys, key fobs, key fob covers, and decals bearing protected trademarks of multiple vehicle manufacturers. The counterfeit items were found inside six shipments from China enroute to addresses in Illinois, New Jersey, Ohio, Puerto Rico, Columbia, and Mexico. CBP’s Centers of Excellence and Expertise confirmed the items were counterfeit.

Audi, BMW, Cadillac, Chevrolet, Ford, Honda, Hyundai, Jeep, Land Rover, Lexus, Mazda, Mini, Mitsubishi, Nissan, Porsche, Suzuki, Toyota, Volkswagen, and Yamaha were among the manufacturers whose trademarks were used without permission. Many of the items arrived with black tape covering the trademark image, an obvious attempt by the shipper to conceal the violation. Had the items been genuine, the combined Manufactured Suggested Retail Price (MSRP) would have been $103,101.

“When consumers purchase smart keys for their vehicles, they expect them to work correctly and within the standards that specific manufacturer has designed for optimum performance. However, counterfeit electronic components in smart keys can be faulty or cause unexpected problems ranging from dangerous electrical issues to poor performance,” said Cincinnati Port Director Richard Gillespie. “Our officers are trained to recognize a wide range of trademark and consumer safety violations and ensure that cross-border trade complies with our laws and promotes fair, secure, and safe competition.”

CBP combats trade fraud by detecting high-risk activity, deterring non-compliance, and disrupting fraudulent behavior. The agency coordinates with U.S. industries, 47 U.S. agency partners, and foreign governments to detect anomalies, trends, and violations in the global supply chain to target high-risk shipments and promote compliance.

CBP has established an educational initiative to raise consumer awareness about the consequences and dangers that are often associated with the purchase of counterfeit and pirated goods. Information about the Truth Behind Counterfeits public awareness campaign can be found at
https://www.cbp.gov/FakeGoodsRealDangers.

FMC Seeking Comments on Carrier Automated Tariffs - The Federal Maritime Commission

For Press Inquiries, Please Contact: John K. DeCrosta, 202-523-5911

The Federal Maritime Commission is seeking public comment to determine if changes are needed to existing regulations on carrier automated tariffs, which are publicly available systems containing common carrier rates, charges, classifications, rules, and practices.

The Commission is responsible for establishing requirements for accuracy and accessibility of these systems. Noting that tariff access fees vary widely, the Commission is asking for information on the reasonableness of charges for accessing tariffs.

Additionally, the Commission is seeking comment on practices related to non-vessel-operating common carriers passing carrier charges through to shippers, commonly known as “pass-through” charges.

The Commission issued an Advance Notice of Proposed Rulemaking this week requesting comments by June 7, 2021. Comments are to be submitted to secretary@fmc.gov.

Joint CDC and FDA Statement on Johnson & Johnson COVID-19 Vaccine - Food & Drug Administration

The following statement is attributed to Dr. Peter Marks, director of the FDA’s Center for Biologics Evaluation and Research and Dr. Anne Schuchat, Principal Deputy Director of the CDC

As of April 12, more than 6.8 million doses of the Johnson & Johnson (Janssen) vaccine have been administered in the U.S. CDC and FDA are reviewing data involving six reported U.S. cases of a rare and severe type of blood clot in individuals after receiving the J&J vaccine. In these cases, a type of blood clot called cerebral venous sinus thrombosis (CVST) was seen in combination with low levels of blood platelets (thrombocytopenia). All six cases occurred among women between the ages of 18 and 48, and symptoms occurred 6 to 13 days after vaccination. Treatment of this specific type of blood clot is different from the treatment that might typically be administered. Usually, an anticoagulant drug called heparin is used to treat blood clots. In this setting, administration of heparin may be dangerous, and alternative treatments need to be given.

CDC will convene a meeting of the Advisory Committee on Immunization Practices (ACIP) on Wednesday to further review these cases and assess their potential significance. FDA will review that analysis as it also investigates these cases. Until that process is complete, we are recommending a pause in the use of this vaccine out of an abundance of caution. This is important, in part, to ensure that the health care provider community is aware of the potential for these adverse events and can plan for proper recognition and management due to the unique treatment required with this type of blood clot.

Right now, these adverse events appear to be extremely rare. COVID-19 vaccine safety is a top priority for the federal government, and we take all reports of health problems following COVID-19 vaccination very seriously. People who have received the J&J vaccine who develop severe headache, abdominal pain, leg pain, or shortness of breath within three weeks after vaccination should contact their health care provider. Health care providers are asked to report adverse events to the Vaccine Adverse Event Reporting System at https://vaers.hhs.gov/reportevent.html.

CDC and FDA will provide additional information and answer questions later today at a media briefing. A recording of that media call will be available on the FDA’s YouTube channel.

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.