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Governor Newsom Signs Executive Order to Help Tackle Supply Chain Issues - Office of Governor Cavin Newsom
Formalizes state agencies’ partnership with the Biden-Harris Administration’s efforts to address state, national and global supply chain challenges
Directs state agencies to develop longer-term proposals that support port operations and goods movement for consideration in the January 10 Governor’s Budget
SACRAMENTO – Amid global disruptions to the goods movement supply chain, Governor Gavin Newsom today signed an executive order directing state agencies to identify additional ways to alleviate congestion at California ports. The executive order builds on earlier efforts this year by the Governor’s Office of Business and Economic Development (GO-Biz) to ease supply chain issues by engaging the diverse network of stakeholders along the supply chain to discuss key challenges and identify short-term and long-term solutions. Record demand for imported goods combined with capacity issues across the entire supply chain have slowed distribution at ports on the California coast.
“California’s ports are critical to our local, state and national economies and the state is taking action to support goods movement in the face of global disruptions,” said Governor Newsom. “My administration will continue to work with federal, state, labor and industry partners on innovative solutions to tackle immediate challenges while also bringing our distribution processes into the 21st century.”
Today’s executive order directs state agencies to continue coordinating with the Biden-Harris Administration Supply Chain Disruptions Task Force to address state, national and global supply chain challenges. The executive order also directs the Department of Finance to work with state agencies to develop longer-term solutions that support port operations and goods movement for consideration in the January 10 Governor’s Budget, which may include port and transportation infrastructure improvements, electrification of the goods movement system from port to delivery, and workforce development.
Additionally, today’s executive order directs state agencies to identify state-owned properties and other locations that could be available to address short-term storage needs once goods are unloaded from ships; to identify priority freight routes to be considered for a temporary exemption to current gross vehicle limits to allow for trucks to carry additional goods; and to create workforce training and education programs. AB 639’s (Cervantes, 2020) implementation is also expedited through this executive order.
Earlier this year, GO-Biz launched the California Supply Chain Success Initiative, a partnership with the California State Transportation Agency, the Port of Long Beach, and the CSU Long Beach Center for International Trade and Transportation to engage the diverse network of stakeholders along the supply chain to discuss key challenges and identify creative solutions. This effort, which brought together federal, state and local leaders, is focused on both short-term and long-term steps to address port congestion, including implementing a new 24/7 environment across the supply chain, a move the state worked with the Biden-Harris Administration on, improving collaboration, and exploring policies to remove obstacles and improve the movement of goods.
A copy of the executive order signed today can be found here.
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Federal Register Notices:
• Initiation of Antidumping and Countervailing Duty Administrative Reviews
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Mobile Access Equipment and Subassemblies Thereof From the People's Republic of China: Final Affirmative Countervailing Duty Determination
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Petroleum Wax Candles From China
• Investigations; Determinations, Modifications, and Rulings, etc.: Porcelain-on-Steel Cooking Ware From China; Termination of Five-Year Review
• Certain Foodservice Equipment and Components Thereof; Notice of Commission Determination Finding No Violation of Section 337; Termination of the Investigation
• Utility Scale Wind Towers From India and Malaysia; Scheduling of the Final Phase of Countervailing and Antidumping Duty Investigations
• Certain Vaporizer Cartridges and Components Thereof; Notice of Request for Submissions on the Public Interest
• Certain Laparoscopic Surgical Staplers, Reload Cartridges, and Components Thereof; Final Determination Finding a Violation of Section 337 and Issuance of Remedial Orders; Suspension of Enforcement of the Remedial Orders Pending Final Resolution of a Final Written Decision by the Patent Trial and Appeal Board; and Termination of the Investigation
• Polyethylene Terephthalate (PET) Resin From Canada, China, India, and Oman; Scheduling of Full Five-Year Reviews
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Uncoated Paper From Portugal: Final Results of Antidumping Duty Administrative Review; 2019-2020
• Welded Line Pipe From the Republic of Korea: Final Results of Antidumping Duty Administrative Review; 2018-2019
• Investigations; Determinations, Modifications, and Rulings, etc.: Polyethylene Retail Carrier Bags From China, Indonesia, Malaysia, Taiwan, Thailand, and Vietnam
• Notification of Temporary Travel Restrictions Applicable to Land Ports of Entry and Ferries Service Between the United States and Canada
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CBP Issues Withhold Release Order on Supermax Corporation Bhd. and its Subsidiaries - U.S. Customs & Border Protection
Agency will detain imports of disposable gloves produced using forced labor
WASHINGTON — Effective Oct. 21, U.S. Customs and Border Protection (CBP) officers at all U.S. ports of entry will detain disposable gloves produced by Supermax Corporation Bhd.’s wholly-owned subsidiaries, Maxter Glove Manufacturing Sdn. Bhd., Maxwell Glove Manufacturing Bhd., and Supermax Glove Manufacturing.
“With this Withhold Release Order, the Biden-Harris Administration continues to make clear that products made in whole or in part by forced labor will not be allowed into the United States,” said Secretary of Homeland Security Alejandro N. Mayorkas. “DHS will continue to set an international standard for the elimination of the deplorable practice of forced labor. We will remove it from American supply chains.”
CBP issued a Withhold Release Order (WRO) against Supermax Corporation Bhd. and its subsidiaries based on information that reasonably indicates their use of forced labor in manufacturing operations. CBP identified 10 of the International Labour Organization’s indicators of forced labor during its investigation.
“This Withhold Release Order will help protect vulnerable workers,” said Troy Miller, CBP Acting Commissioner. “CBP is a global leader in forced labor enforcement, and we will continue to exclude products made by modern slavery from entering into the United States.”
Federal statute 19 U.S.C. 1307 prohibits the importation of merchandise 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. Importers of detained shipments have the opportunity to export their shipments or demonstrate that the merchandise was not produced with forced labor.
“With 10 of the 11 forced labor indicators identified during the course of our investigation, CBP has ample evidence to conclude that Supermax Corporation Bhd. and its subsidiaries produce gloves in violation of U.S. trade law,” said CBP Office of Trade Executive Assistant Commissioner AnnMarie R. Highsmith. “Until Supermax and its subsidiaries can prove their manufacturing processes are free of forced labor, their goods are not welcome here.”
In Fiscal Year 2021, CBP issued seven WROs and two forced labor findings. The International Labour Organization estimates that 25 million workers suffer under conditions of forced labor worldwide. Foreign companies exploit forced labor to sell goods below market value. This exposes vulnerable populations to inhumane working conditions like physical and sexual violence, isolation, restriction of movement, withholding of wages, excessive overtime, and more. It also hurts law-abiding businesses, threatens American jobs, and exposes consumers to unwittingly supporting unethical business practices.
Any person or organization that has reason to believe merchandise produced with the use of forced labor is being, or likely to be, imported into the United States can report detailed allegations by contacting CBP through the e-Allegations Online Trade Violations Reporting System or by calling 1-800-BE-ALERT.
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CBP Officers in International Falls seize counterfeit Apple AirPods valued at more than $800,000 - U.S. Customs & Border Protection
INTERNATIONAL FALLS, Minn. — U.S. Customs and Border Protection (CBP) Office of Field Operations officers at the International Falls Port of Entry targeted a rail container destined to arrive in Ranier, Minnesota. CBP officers inspected the rail container and discovered counterfeit Apple AirPods that were in violation of intellectual property rights (IPR) regulations.
CBP seized 384 pair of the counterfeit AirPods on Oct. 12 with an estimated manufacturer’s suggested retail price of $813,216 if the goods had been genuine.
“CBP is focused on identifying and intercepting counterfeit merchandise and products. The enforcement of trade laws at U.S. ports of entry remains a high priority for us,” said Anthony Jackson, International Falls Port Director. “Counterfeiting adversely affects the ability of lawful copyright holders to profit from their original ideas. Counterfeiting also harms consumers because manufacturers of forged products have little motivation to use safe, high-quality materials in their products.”
Stopping the flow of illicit goods is a priority trade issue for CBP. The importation of counterfeit merchandise can damage the U.S. economy and threaten the health and safety of the American people. For more information on CBP’s IPR priority trade issue visit: CBP Trade and IPR.
With the growth of foreign trade, unscrupulous companies have profited billions of dollars from the sale of counterfeit and pirated goods. To combat the illicit trade of merchandise violating laws relating to IPR, trademark and copyright holders may register with CBP through an online system. Such registration assists CBP officers and import specialists in identifying merchandise that violates U.S. law.
CBP’s IPR enforcement strategy is multi-layered and includes seizing illegal merchandise at our borders, pushing the border “outward” through audits of suspect importers, cooperating with our international trading partners, and collaborating with industry and governmental agencies to enhance these efforts.
CBP has established an educational initiative at U.S. international airports and online to raise consumer awareness about the consequences and dangers that can be associated with the purchase of counterfeit and pirated goods. These include the loss of American jobs, support of criminal activity, significant risks to consumer health and safety, and the impacts of unknowingly purchasing counterfeits online. For more information, see www.cbp.gov/fakegoodsrealdangers.
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FDA Permits Marketing of New Oral Tobacco Products through Premarket Tobacco Product Application Pathway - US Food & Drug Administration
Today, the U.S. Food and Drug Administration announced it has authorized the marketing of four new oral tobacco products manufactured by U.S. Smokeless Tobacco Company LLC under the brand name of Verve. Based on the FDA’s comprehensive review of available scientific evidence in the company’s premarket tobacco product applications (PMTAs), the agency determined the marketing of these products would be consistent with the statutory standard, “appropriate for the protection of the public health.” This includes a review of data showing that youth, nonsmokers and former smokers are unlikely to initiate or reinitiate tobacco use with these products. The four products are: Verve Discs Blue Mint, Verve Discs Green Mint, Verve Chews Blue Mint, and Verve Chews Green Mint.
“Ensuring new tobacco products undergo a robust premarket evaluation by the FDA is a critical part of our mission to protect the public—especially kids. While these are mint flavored products, data submitted to the FDA show the risk for youth uptake of these particular products is low, and stringent marketing restrictions will help prevent youth exposure,” said Mitch Zeller, J.D., director of the FDA’s Center for Tobacco Products. “Importantly, evidence shows these products could help addicted smokers who use the most harmful combusted products completely switch to a product with potentially fewer harmful chemicals.”
The Verve products are oral tobacco products that contain nicotine derived from tobacco, but they do not contain cut, ground, powdered or leaf tobacco. All four products are chewed and then discarded, rather than swallowed, once the user is finished with the product. The discs and chews differ in part by their texture. Both are flexible, but the discs are firm, and the chews are soft. These products are intended for adult tobacco users.
Before authorizing new tobacco products via the PMTA pathway, the FDA must, by law, take into consideration, among other things, the likelihood that current tobacco users will stop using tobacco products and the likelihood that current nonusers will start using tobacco products. Research shows a low likelihood that youth, nonsmokers, or former smokers would initiate or reinitiate tobacco use with the Verve products. Current users of Verve products and users who switch completely to Verve products are generally exposed to fewer harmful and potentially harmful constituents compared to cigarettes and other smokeless tobacco products. The agency has posted the decision summary that further describes the basis for issuing marketing orders for these four products.
The marketing authorizations issued today allow the four tobacco products to be legally sold or distributed in the United States, but it does not mean the products are safe or “FDA approved,” as there are no safe tobacco products.
Additionally, the FDA is placing stringent restrictions on how Verve products are marketed, including via websites and through social media platforms, to help ensure that marketing targets only adults. The FDA will evaluate new available data regarding the products through postmarketing records and reports required in the marketing order. The company is required to regularly report to the FDA with information regarding the products on the market, including, but not limited to, ongoing and completed consumer research studies, advertising, marketing plans, sales data, information on current and new users, manufacturing changes and adverse experiences.
The FDA will withdraw a marketing order if it determines that the continued marketing of a product is no longer appropriate for the protection of the public health, for example, as a result of significant uptake of the product by youth.
The agency continues to conduct premarket review of thousands of tobacco product applications and remains committed to communicating with the public about progress, including the issuance of marketing denial orders for more than one million flavored e-cigarette products that lacked sufficient evidence that they have a benefit to adult smokers sufficient to overcome the public health concern posed by the well-documented and considerable appeal of such products to youth.
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$1.9 Million worth of Fake Chanel Earrings Seized Destined for Little Rock - U.S. Customs & Border Protection
MEMPHIS, Tennessee — On Thursday, September 30, U.S. Customs and Border Protection Officers (CBPOs) at the port of Memphis, TN selected for inspection a shipment from The United Arab Emirates en route to an apartment on the east side of Little Rock, Arkansas listed as “LADIES JEWELRY.” Inside the shipment CBPOs found 500 pairs of earrings that had the recorded trademarks of Chanel. This was the same shipper and consignee of a previous, nearly identical shipment just days before. The earrings were identified as counterfeit based on the low value claimed, incorrect appearance and low-quality construction, and shoddy packaging method. If these had been authentic, and sold for the manufacturers’ suggested retail price (MSRP), the value would have been $1,900,000.
Illicit manufacturers continue to exploit the rapid growth of e-commerce to sell counterfeit goods to unsuspecting consumers in the United States. In Fiscal Year 2020, CBP seized more than 26,500 shipments containing counterfeit goods that would have been worth nearly $1.3 billion had they been genuine.
CBP data indicates that handbags, wallets, apparel, footwear, watches, jewelry, and consumer electronics are at higher risk of being counterfeited. Counterfeit watches and jewelry make up almost half of the total MSRP of seized goods. Counterfeit versions of popular brands are regularly sold in online marketplaces and flea markets. Counterfeit goods hurt the U.S. economy, cost Americans their jobs, threaten consumer health and safety, and fund criminal activity. Visit the National IPR Coordination Center for more information about IPR including counterfeiting and piracy.
CBP personnel intercept counterfeit goods bound for consumers and marketplaces throughout the United States every day. Other CBP seizures include:
• Louisville seizes $67 million in counterfeit watches
• 86 Counterfeit Championship Rings Seized by Chicago CBP
• CBP Long Beach Foils Attempts to Smuggle Over $53 Million Worth of Fake Designer Products in two containerized shipments from China
In addition to posing potential health and safety hazards, counterfeit goods are often of inferior quality. Peeling labels, low-quality ink or printing errors on the packaging, and loosely packed items in the box can be signs that the product you purchased may not be legitimate. Counterfeit apparel and handbags may feature poor or uneven stitching and improperly sized or designed logos. The performance of counterfeit electronics is often marked by short battery life and regular overheating.
Consumers can take simple steps to protect themselves and their families from counterfeit goods:
• Purchase goods directly from the trademark holder or from authorized retailers.
• When shopping online, read seller reviews and check for a working U.S. phone number and an address that can be used to contact the seller.
• Review CBP’s E-Commerce Counterfeit Awareness Guide for Consumers.
• Remember that if the price of a product seems too good to be true, it probably is.
New Orleans Field Office Hotline - Report Smuggling Activities: NFO-ReportSmuggling@cbp.dhs.gov or 1-866-237-3468
To report suspected counterfeits, visit CBP’s online e-Allegations portal or call 1-800-BE-ALERT. More information about counterfeit goods is available on CBP’s Fake Goods, Real Dangers website and StopFakes.gov.
 
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