Removal of Certain General Approved Exclusions under the Section 232 Steel and Aluminum Tariff Exclusion Process - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
In a notice to be published in the Federal Register on December 9, 2021, the Bureau of Industry and Security of the U.S. Department of Commerce (DOC) announces the removal of thirty General Approved Exclusions (GAEs) under the Section 232 Steel and Aluminum Tariff action.
By way of background, a series of Presidential Proclamations issued in 2018 imposed additional duties on imports of aluminum (10%) and steel (25%), respectively, under Section 232 of the Trade Expansion Act of 1962, as amended (Section 232). With respect to certain countries, quantitative limitations were established in lieu of additional duties. The Proclamations also authorized the DOC to grant exclusions from the sanctions on a case-by-case basis. A process involving requests, objections, rebuttals and surrebuttals was established and the approved exclusions were granted on a company-specific basis.
On December 14, 2020, the DOC issued an interim rule which established 123 GAEs that may be used by any importer without the need to file a separate request.
As part of its ongoing review, DOC has decided to eliminate thirty GAEs as it has concluded that the products at issue are associated with exclusion requests that recently received objections and/or denials in the Section 232 Exclusions Portal. The particular items, identified by their GAE # and tariff classification, are as follows: GAE.3.S: 7220.90.0060, GAE.7.S: 7227.90.1060, GAE.14.S: 7215.50.0018, GAE.16.S: 7228.50.1040, GAE.23.S: 7220.20.6010, GAE.27.S: 7219.32.0020, GAE.33.S: 7304.51.5005, GAE.34.S: 7219.33.0025, GAE.35.S: 7217.90.1000, GAE.37.S: 7217.10.8030, GAE.38.S: 7212.20.0000, GAE.39.S: 7217.20.4560, GAE.52.S: 7219.22.0040, GAE.53.S: 7219.32.0038, GAE.54.S: 7219.32.0045, GAE.55.S: 7219.35.0005, GAE.56.S: 7219.32.0036, GAE.60.S: 7225.50.1110, GAE.68.S: 7302.10.1015, GAE.71.S: 7217.30.4541, GAE.75.S: 7219.21.0005, GAE.76.S: 7304.29.3160, GAE.78.S: 7216.40.0010, GAE.87.S: 7304.29.3180, GAE.92.S: 7208.39.0015, and GAE.98.S: 7229.20.0015, GAE.2.A: 7607.20.5000, GAE.11.A: 7616.99.5170, GAE.14.A: 7601.20.9095, and GAE.15.A:7616.99.5160. This action takes effect fifteen days after the date of publication in the federal register.
The remaining 93 GAEs (which can be accessed in the DOC notice here) continue to remain in effect.
Should you have any questions regarding the above or the Section 232 program in general, please contact Arthur Bodek or any of our other attorneys.
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Chairman Blumenauer Opening Statement at Trade Subcommittee Hearing on Supporting U.S. Workers, Businesses, and the Environment in the Face of Unfair China Trade Practices - Ways and Means Committee
This hearing comes at a critical and fascinating time in the U.S.-China trade relationship. Later next week will mark the 20th anniversary of China officially joining the World Trade Organization.
To put it mildly, the results of China’s two decades at the WTO have left much to be desired.
Instead of joining other market-based world economies, China has doubled down on its state-driven economic model. Economists now describe this phenomenon as the “China shock,” which has had devastating and sustained impacts on U.S. workers and businesses across our country.
Twenty years later, China’s approach has not changed. If anything, it has expanded. While the global economy is still dealing with steel and aluminum overcapacity caused by Chinese subsidies, China is doubling down on this approach with its “Made in China 2025” which has expanded its industrial model to focus on key sectors of the future.
More broadly, China continues to demonstrate that it refuses to play by the rules. China will exploit loopholes wherever they exist. We’ve given too much of a free pass to China over the years – it’s now time to take these issues seriously and take a more aggressive approach.
The testimony of our witnesses today highlights some of these problems. Ms. Glas has noted the example of Shein. This Chinese company has developed a business model to exploit the de minimis provision in U.S. law to avoid paying any costs or go through oversight at the U.S. border, all of which undercuts U.S. companies playing by the rules.
Shein is also part of a Chinese textile industry that benefits from the deplorable treatment and forced labor of Uyghurs and other minorities in the Xinjiang region of China. Lack of oversight at U.S. borders makes it even more difficult for CBP to intercept these shipments.
These issues with de minimis and forced labor are key areas of importance for me and ones that I intend to legislate on in the coming months.
Dr. Mallory highlights another area where China continues to break the rules: fisheries practices and subsidies. It’s a similar story to other industries: China will take public steps to claim adherence to international rules and commitments, but through obfuscation and an overall lack of transparency, avoids actually taking meaningful action.
Twenty years on, it’s clear to me that China is committed to its state-driven economic model and that the United States must change its approach to effectively grapple with this reality.
The Trump Administration highlighted many legitimate concerns with China’s trade practices, but its approach was too haphazard and chaotic to be effective. They refused to address labor and environmental issues in China and were entirely unsuccessful in addressing China’s industrial policies.
Equally troubling, the Trump administration went it alone labeling our allies as national security threats and leaving them in the dark.
The Biden Administration has provided a breath of fresh air. Ambassador Tai has completed a thorough review of the China policy she was handed and is creating a rational and coordinated strategy.
Importantly, the Biden Administration is working with our allies to identify areas of convergence and to increase pressure on China with a coalition of concerned partners.
There’s much more that the Administration must do on China, and I stand ready to work with them to do so. As always, the key to effective and lasting U.S. trade policy is close and consistent coordination with Congress.
Congress also has action that it can take to respond to the challenges posed by China. The Senate has been working on the United States Innovation and Competitiveness Act, or USICA, but the trade provisions in that bill are inadequate and fail to rise to the current moment.
For one, USICA does not include meaningful provisions on forced labor in Xinjiang. This is a critical defect. The House of Representatives has developed strong legislation has substantial support among Democrats and Republicans.
In addition, USICA’s trade title includes GSP and MTB legislation without making key reforms. I have introduced legislation that makes critical and reasonable reforms to both programs that must be included in any reauthorization.
I stand ready to work with Members on China-related legislation, but it must address the issues I’ve identified above and take steps to address key issues, like subsidies, that the current bill fails to address.
I look forward to hearing from our witnesses on these issues as we consider ways to more effectively address unfair Chinese trading practices.
With that, I’ll conclude my opening remarks.
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Federal Register Notices:
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Steel Concrete Reinforcing Bar From the Republic of Turkey: Preliminary Results of Countervailing Duty Administrative Review and Intent To Rescind in Part; 2019
• Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes From the Republic of Turkey: Final Results of the Expedited First Sunset Review of the Countervailing Duty Order
• Utility Scale Wind Towers From India: Countervailing Duty Order
• Utility Scale Wind Towers From India and Malaysia: Antidumping Duty Orders
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Corrosion-Resistant Steel Products From China, India, Italy, Korea, and Taiwan; Notice of Commission Determination To Conduct Full Five-Year Reviews
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Forged Steel Fittings From the People's Republic of China: Preliminary Results of Antidumping Duty Administrative Review and Partial Rescission; 2019-2020
• Forged Steel Fittings From the People's Republic of China: Preliminary Results of Countervailing Duty Administrative Review; 2019
• Circular Welded Non-Alloy Steel Pipe From the Republic of Korea: Preliminary Results of Antidumping Duty Administrative Review and Preliminary Determination of No Shipments; 2019-2020
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Walk-Behind Snow Throwers From China; Scheduling of the Final Phase of Countervailing Duty and Anti-Dumping Duty Investigations
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Integrated Circuits, Chipsets, and Electronic Devices, and Products Containing the Same; Notice of Institution
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Large Residential Washers From Mexico: Final Results of Antidumping Duty Administrative Review; 2019-2020; Correction
• Circular Welded Carbon Steel Pipes and Tubes From Thailand: Final Results of Antidumping Duty Administrative Review and Final Determination of No Shipments; 2019-2020
• Investigations; Determinations, Modifications, and Rulings, etc.: Hot-Rolled Steel Flat Products From Turkey; Request for Comments Regarding the Institution of a Section 751(b) Review Concerning the Commission's Affirmative Determination; Correction
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Corrosion-Resistant Steel Products From the Republic of Korea: Final Results of Antidumping Duty Administrative Review; 2019-2020
• Potassium Permanganate From the People's Republic of China: Continuation of Antidumping Duty Order
• Freight Rail Coupler Systems and Certain Components Thereof From the People's Republic of China: Postponement of Preliminary Determination in the Countervailing Duty Investigation
• Certain Frozen Warmwater Shrimp From India: Notice of Court Decision Not in Harmony With the Results of Antidumping Administrative Review; Notice of Amended Final Results; Correction
• Rules: Removal of Certain General Approved Exclusions (GAEs) Under the Section 232 Steel and Aluminum Tariff Exclusions Process
• Investigations; Determinations, Modifications, and Rulings, etc.: Raw Honey From Argentina, Brazil, India, Ukraine, and Vietnam; Scheduling of the Final Phase of Anti-Dumping Duty Investigations
• Certain Chocolate Milk Powder and Packaging Thereof; Notice of Request for Submissions on the Public Interest
• Certain Mobile Access Equipment and Subassemblies Thereof From China; Determination
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Mobile Access Equipment and Subassemblies Thereof From the People's Republic of China: Countervailing Duty Order and Amended Final Affirmative Countervailing Duty Determination
• Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes From Turkey: Notice of Initiation and Preliminary Results of Changed Circumstances Review
• Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel From India: Final Results of Countervailing Duty Administrative Review; 2019
• Certain Carbon and Alloy Steel Cut-To-Length Plate From Germany: Final Results of Antidumping Duty Administrative Review; 2019-2020
• Investigations; Determinations, Modifications, and Rulings, etc.: Notice of Commission Determination Not To Review an Initial Determination Granting a Motion for Return of a Bond; Certain Microfluidic Systems and Components Thereof and Products Containing Same
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Nightly CBP Officers in Louisville Intercept Dangerous Shipments - U.S. Customs & Border Protection
LOUISVILLE, Ky — Christmas came early for U.S. Customs and Border Protection (CBP) officers at the Louisville Port of Entry. In just this past week, November 29 to December 3, CBP officers have seized several dangerous drugs, counterfeit designer apparel and counterfeit currency-a total of 133 shipments containing illegal materials.
Nightly officers at Express Consignment Operations hub in Louisville inspect hundreds of packages arriving from various locations, either from stateside addresses or from foreign locations. Many inspected packages reveal illegal contents that are concealed to smuggle their product through the mail system. CBP officers use knowledge, experience, and technology to detect these items, and seize them before they reach their ultimate destination.
Last week officers intercepted 89 shipments which contained a variety of different drugs, ranging from controlled substance prescriptions to methamphetamine to fentanyl. Fentanyl was found in two different shipments. One shipment concealed ButyrFentanyl within an art craft, while the other shipment contained more than 2 pounds of Fentanyl concealed in a doll. Theses shipments originated from Mexico.
Fentanyl is an extremely toxic substance to handle in addition to being a dangerous narcotic to use, with two milligrams considered a lethal dose. Officers are extremely careful when confronted with this substance, which again demonstrates the risk CBP officers face performing their daily duties.
“Our CBP officers worked diligently to stop these dangerous parcels from reaching their destinations, especially fentanyl,” said LaFonda Sutton-Burke, Director, Field Operations-Chicago. This opioid is a very dangerous drug that can prove to be fatal. These seizures showcase the excellent work our officers perform day in and day out.”
In addition to the narcotic seizures, officers were also stopping counterfeit items from entering the country. CBP officers intercepted 42 shipments that would have been worth more than $3.29 million. The items ranged from counterfeit Apple Airpods to counterfeit designer handbags, watches, and jewelry, with 95% of the packages arriving from Hong Kong.
On December 1, Louisville CBP also seized shipments containing a total of $4.45 million in counterfeit currency. These five shipments contained counterfeit $100 and $20 bills and were arriving from the same sender in China. The counterfeit currency, manifest as paper cards, was turned over to the U.S. Secret Service for further investigation.
“Even though the money says in small print ‘copy money’ it is very easy for these bills to be slipped into mainstream circulation,” said Thomas Mahn, Port Director-Louisville. “Our officers were able to take $4.45 million of fake currency out of circulation where it could have done harm to businesses and individuals financially.”
According to the Secret Service, special agents, and investigative analysts from around the country continue to work closely with state and local law enforcement partners to minimize risks by informing the public and apprehending those responsible for passing counterfeit currency. Counterfeiting Federal Reserve notes is a federal crime. Visit the United States Secret Service’s website for detailed information. Both consumers and retailers can protect themselves from inadvertently receiving counterfeit currency by quickly glancing at the note.
CBP conducts operations at ports of entry throughout the United States, and regularly screens arriving international passengers and cargo for narcotics, weapons, and other restricted or prohibited products. CBP strives to serve as the premier law enforcement agency enhancing the Nation’s safety, security, and prosperity through collaboration, innovation, and integration.
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OTEXA: Announcements - OTEXA
12/07/2021 – October 2021 Textile and Apparel Import Report
12/07/2021 – The Committee for the Implementation of Textile Agreements (CITA) has published a Federal Register notice (16 CFR Part 323) announcing the opportunity for public comment on a request to modify the rules of origin in the U.S.-Korea Free Trade Agreement (KORUS). Public comments must be received no later than January 5, 2022.
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Scammers Prefer Gift Cards, but not Just Any Card Will Do - Federal Trade Commission
Gift cards are an easy way to give. Reports to the FTC’s Consumer Sentinel show they’re also an easy way to take. About one in four people who report losing money to fraud say it happened when a scammer tricked them into giving the numbers on the back of a gift card. Gift cards are far more frequently reported than any other payment method for fraud and the numbers have reached staggering new highs compared to past years. In the first nine months of 2021 alone, nearly 40,000 people reported $148 million stolen using gift cards. And because the vast majority of frauds are not reported to the government, this reflects only a fraction of the harm these scams cause.
Scammers favor gift cards because they are easy for people to find and buy, and they have fewer protections for buyers compared to some other payment options. Scammers can get quick cash, the transaction is largely irreversible, and they can remain anonymous.
According to reports received by the FTC, scams demanding gift cards most often start with a phone call from someone impersonating a well-known business or government authority. Many people report that a scammer posing as Amazon or Apple told them to send pictures of the numbers on gift cards to fix a supposed security problem with their account. Sometimes they call those numbers “security codes.” But the only thing the numbers are good for is taking the money on the card. Other people report that a scammer claiming to be the Social Security Administration said their bank accounts would be frozen as part of an investigation. They’re told to buy gift cards to avoid arrest or to secure access to their money. Reports also show that scammers asking for gift cards pretend to be a love interest, employer, sweepstakes or lottery company, or family member in trouble.
Whatever the story, reports show that scammers don’t settle for just any card – they tell people the specific gift card brands to buy. In the first nine months of 2021, over twice as much money was reported lost on Target gift cards than any other brand. Google Play gift cards were next, followed by Apple, eBay, and Walmart cards.
Scammers also tell people where to buy the gift cards. In the first nine months of 2021, people who reported losing money buying gift cards mentioned Target stores more than other retailers. Reports suggest that Walmart, Best Buy, CVS, and Walgreens stores are also popular with scammers.
Scammers use lots of tricks to avoid detection. People often say the scammer sent them to several store locations to make multiple purchases. Scammers tell people to stay on the phone with the scammer the entire time – a trick to make sure they don’t call anyone who might help. Scammers even coach people on what to say if a cashier asks questions; they don’t want anyone to stop the scam, and they know store employees are often the only people who can help.
Both the number of reported gift card scams and total losses have increased every year since 2018. Losses are certainly up due to the higher number of reports, but individuals also report that they’re losing a lot more money. In fact, losses of $5,000 or more have increased from about 8% of reports in 2018 to about 14% in the first nine months of 2021. Over the same period, median reported losses increased from $700 to $1,000.
Losses also vary by card brand. Target cards, for example, saw a median reported loss of $2,500 in the first nine months of the year, far higher than other frequently reported cards.7 In addition, 30% of people who paid with a Target card said they lost $5,000 or more.8
Whenever someone demands to be paid with a gift card, that’s a scam. It’s just that simple. Gift cards are for gifts, not for payments. If someone convinced you to give them the numbers on a gift card or send them a photo, hang onto the card and your receipt, and report it to the card issuer right away. You’ll find contact information for some major gift cards at ftc.gov/giftcards. Then report your experience to the FTC at ReportFraud.ftc.gov.
If you’re a retailer, or state or local law enforcement, and you’re interested in helping your customers and neighbors avoid gift card scams, visit ftc.gov/StopGiftCardScams to download, print, and share materials in your store and community.