Thanksgiving Closures:
• The USITC will close at 1:15 p.m. ET on Wednesday, November 27, 2024, for the Thanksgiving holiday. If you need to pick up or deliver any documents to the Office of the Secretary on Wednesday, November 27, please do so by 1:15 p.m. The USITC will reopen for business at 8:45 a.m. ET on Friday, November 29, 2024.
• PNCT will be CLOSED on Thanksgiving Day
• Maher Terminal will be CLOSED on Thanksgiving Day
• The PierPASS/PortCheck Service Center will be CLOSED on Thursday, 11/28 for Thanksgiving and will have LIMITED hours on Friday, 11/29 from 6 AM to 3 PM PST.
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DHS Further Amends the UFLPA Entity List to Reflect Additional Parties (Effective November 25, 2024) - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
The U.S. Department of Homeland Security announced the addition of twenty-nine companies to the Uyghur Forced Labor Prevention Act (UFLPA) Consolidated Entity List (and corrected the name of a thirtieth company).
By statute, goods, mined, produced, or manufactured wholly or in part in the XUAR or produced by an entity on one of the UFLPA lists are subject to a rebuttable presumption that they were made using forced labor and are inadmissible.
The specific changes are set forth below.
1. Entities Added under the UFLPA Section 2(d)(2)(B)(ii) List (entities working with the government of the XUAR to recruit, transport, transfer, harbor or receive forced labor or Uyghurs, Kazakhs, Kyrgyz, or members of other persecuted groups out of the XUAR)
• Western Gold Co., Ltd.
• Western Gold Hami Gold Mine Co., Ltd.
• Western Gold Karamay Hatu Gold Mine Co., Ltd.
• Xinjiang Nonferrous Metals Industry Group Co., Ltd.
• Xinjiang Zhonghe Co., Ltd. (also known as Xinjiang Joinworld Co., Ltd.)
2. Entities Added under the UFLPA Section 2(d)(2)(B)(v) list (facilities and entities that source material from the XUAR or from persons working with the government of Xinjiang or the Xinjiang Production and Construction Corps (XPCC) for purposes of the “poverty alleviation” program or the “pairing-assistance” program or any other government labor scheme that uses forced labor)
• Anhui Yaozhiyuan Biotechnology Development Co., Ltd. (also known as Anhui Yaozhiyuan Chinese Herbal Medicine Co., Ltd.; Anhui Yaozhiyuan Chinese Medicinal Materials Co., Ltd.; and Anhui Yaozhiyuan Biological Technology Development Co., Ltd.)
• Annan Canned Food Co., Ltd. (also known as Nanling County Annan Canned Food Co., Ltd.)
• Dalian Sunspeed Foods Co., Ltd. (also known as Dalian Shengchi International Trade Co., Ltd.)
• Gansu Yasheng International Trading Co., Ltd. (also known as Gansu Yasheng International Trade Co., Ltd.; and Yasheng International Trade; and formerly known as Gansu Yasheng International Trade Group Co., Ltd.)
• Hangzhou Union Biotechnology Co., Ltd. (also known as Hangzhou Youer Biotechnology Co., Ltd.; Youer Biotech; and Union Biotech)
• Hebei Suguo International Trade Co., Ltd. (also known as Suguo International)
• Hebei Tomato Industry Co., Ltd. (also known as Hebei Temeite Industrial Group Co., Ltd.; and formerly known as Hebei Temeite International Trade Co., Ltd.)
• Hunan Nanmo Biotechnology Co., Ltd. (also known as Hunan Nanmomo Technology Co., Ltd.)
• Inner Mongolia Qileyuan Food Co., Ltd.
• Inner Mongolia Xuanda Food Co., Ltd. (also known as Xuanda Food; and formerly known as Wuyuan County Xuanda Cereals, Oils and Foods Co., Ltd.)
• Jinan Haihong International Trade Co., Ltd. (formerly known as Jinan Haifang Trading Co., Ltd.)
• Jining Pengjie Trading Co., Ltd.
• Junan Jinsheng Import & Export Co., Ltd. (also known as Junan County Jinsheng Import and Export Co., Ltd.)
• Kingherbs Limited (also known as Changsha Jincao Biotechnology Co., Ltd.)
• Qingdao Vital Nutraceutical Ingredients BioScience Co., Ltd. (also known as Qingdao Weiyikang Biotechnology Co., Ltd.)
• Shanghai JUMP Machinery & Technology Co., Ltd. (also known as Shanghai Jiapai Machinery Technology Co., Ltd.; and formerly known as Shanghai Chituma Food Machinery Technology Co., Ltd.)
• Sichuan Yuan’an Pharmaceutical Co., Ltd. (also known as Sichuan Yuanan Pharmaceutical Co., Ltd.)
• Taiyuan Weishan International Economic Business Co., Ltd. (also known as Taiyuan Weishan International Trade Co., Ltd.)
• The TNN Development Limited (also known as Dehui (Dalian) International Trade Co., Ltd.)
• Tianjin Dunhe International Trade Co., Ltd. (also known as Dunhe Foods)
• Tianjin Kunyu International Co., Ltd. (also known as China Kunyu Industrial Co., Ltd.)
• Tianjin Tianwei Food Co., Ltd. (formerly known as Tianjin Sanhe Fruit and Vegetable Co., Ltd.)
• Weifang Alice Food Co., Ltd.
• Xinjiang Daqo New Energy Co., Ltd. (also known as Xinjiang Great New Energy Co., Ltd.; Xinjiang Daxin Energy Co., Ltd.; and Xinjiang Daqin Energy Co., Ltd.)
• Zhangzhou Hang Fat Import & Export Co., Ltd. (also known as Zhangzhou Hengfa Import and Export Co., Ltd.)
3. Modification of Party Name under the UFLPA Section 2(d)(2)(B)(i) list (entities in the XUAR that mine, produce, or manufacture wholly or in part any goods, wares, articles and merchandise with forced labor)
• Xinjiang East Hope Nonferrous Metals Co., Ltd.
Since the UFLPA was signed into law, over 100 entities have been added to the UFLPA Entity List involving various product sectors. The full list can be found here. Future additions to the list will be considered. A procedure is also available whereby parties may request their removal from the entity list.
Please do not hesitate to contact any of our attorneys for further information on the above or any other aspect of UFLPA compliance
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China Section 301 Litigation Update - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
The litigation challenging the assessment of additional duties on goods imported from China under Section 301 is continuing. The U.S. Court of Appeals for the Federal Circuit (CAFC) has finally calendared the lead (HMTX Industries LLC v. US) for oral argument. The oral argument will take place on January 8, 2025, at the CAFC in Washington, D.C.
We anticipate that the CAFC will issue its decision approximately four to six months after the oral argument. Whatever the CAFC decides, there will likely be a further appeal, either a request for a rehearing before the CAFC, or a writ of certiorari to the Supreme Court. Accordingly, a final decision in this case is likely to take another year or more.
We will continue to provide periodic updates as the case continues. In the meantime, should you have any questions, please do not hesitate to contact one of our attorneys.
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Petitions for the Imposition of Antidumping and Countervailing Duties on Imports of Floating Glass Products from the People’s Republic of China and Malaysia - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
On November 21, 2024, a petition was filed for the imposition of antidumping and countervailing duties on the imports of floating glass products from the People’s Republic of China and Malaysia. The petition alleges dumping margins of 91.05% to 165.11% from China and 141.87% to 344.43% from Malaysia. The petition identifies certain foreign producers/exporters and U.S. importers of the investigated product.
The scope of the petitions covers float glass products (“FGP”), which are articles of soda-lime-silica glass that are manufactured by floating a continuous strip of molten glass over a smooth bath of tin (or another liquid metal with a density greater than molten glass), cooling the glass in an annealing lehr, and cutting it to appropriate dimensions. For purposes of the petitions, float glass products have a nominal thickness of at least 2.0 mm (0.079 inches) and a nominal surface area of at least 0.37 square meters (4.0 square feet). Please see the petitions for a more detailed description of the covered merchandise and exclusions.
The projected date of International Trade Commission’s Preliminary Conference is December 12, 2024. The earliest theoretical date for retroactive suspension of liquidation for AD is January 30, 2025; CVD is December 11, 2024.
Please feel free to contact one of our attorneys for further information, including a complete scope description, complete projected schedule for the AD and CVD investigations; the volume and value of imports; and list of identified foreign exporters and U.S. importers.
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China: New Tariff Law Enacted - Library of Congress
On April 26, 2024, the Standing Committee of the 14th National People’s Congress (NPC) passed the Tariff Law of the People’s Republic of China (Tariff Law), which will take effect on December 1, 2024. It comprises seven chapters and 72 articles, covering General Provisions, Tariff Categories and Rates, Taxable Amounts, Tax Incentives and Special Cases, Collection and Management, Legal Liability, and Supplementary Provisions. The law includes a new Import and Export Tariff Schedule, which will take effect on the same day.
Before the enactment of the Tariff Law, China’s customs duties were levied based on the Regulations of the People’s Republic of China on Import and Export Duties (Regulations). According to the explanation by the Legislative Affairs Commission of the Standing Committee of the NPC, the Tariff Law was introduced in response to changes in both domestic and international circumstances, and was formulated after summarizing the experiences gained from implementing the Regulations. The Regulations will be repealed the day the Tariff Law takes effect. (Tariff Law, art. 72.)
Retaining and Updating Provisions on Retaliatory Tariffs
The Tariff Law retains the provisions on retaliatory tariffs from the previous Regulations, empowering China to impose retaliatory tariffs when a foreign country or region violates relevant trade agreements by adopting restrictive measures such as prohibitions, increased tariffs, or other actions. (Tariff Law, art. 18, para. 1; Regulations, art. 14, para. 1.)
The Tariff Law introduces two notable updates. First, it includes countermeasures for violations of most-favored-nation treatment or tariff preferences by other parties, allowing China to take corresponding measures based on the principle of reciprocity. (Art. 17.) Second, it alters the procedure for retaliatory tariffs—under the previous Regulations, the Tariff Policy Commission determined the specifics of retaliatory tariffs, while under the new law the Commission will submit recommendations for approval by the State Council before implementation. (Arts. 17 & 18, para. 2; Regulations, art. 14, para. 2.)
Elevating Technical Tariff Standards to Legal Norms
The two basic elements of tariffs are taxable items and tariff rates. Taxable items represent the scope and subjects of taxation that are identified through classification codes and names. Tariff rates reflect the degree of taxation on the items. The classification rules for goods connect these two elements, specifying how taxable items correspond to applicable rates.
The Tariff Law introduces a dedicated chapter on “Taxable Items and Tariff Rates,” outlining the rules for tariff items and the classification of goods. (Art. 9.) This ensures that the core elements of tariffs are concretely defined.
The Tariff Law also introduces rules on determining the origin of goods, to align China’s tariff practices with international standards. Goods wholly obtained in one country or region are considered to originate from there, while those produced across multiple locations are considered to originate from where the last substantial transformation occurred. In cases where international treaties or agreements provide different rules, those provisions will prevail. (Art. 11.)
Enhanced Administration of Cross-Border E-Commerce
Regarding cross-border e-commerce, the Tariff Law defines entities obligated to serve as tax withholding agents to include platform operators, logistics companies, tariffs declaration enterprises, and entities and individuals engaged in retail imports. (Art. 3, para. 2.) With the rapid development of cross-border e-commerce in recent years, previous regulatory gaps have hindered industry growth. This provision identifying withholding agents provides a legal basis for taxation of cross-border e-commerce by defining the withholding obligations of all participating entities.
Additionally, the Tariff Law stipulates relevant penalties, clarifying the compliance obligations and legal responsibilities of entities other than taxpayers, such as tax withholding agents. Notably, tax withholding agents may be subject to fines ranging from 50% to three times the amount of unpaid tariffs in cases where tariffs are underpaid. (Art. 64.)
Prepared by Jingjing Gao, Law Library Intern, under the supervision of Laney Zhang, Foreign Law Specialist.
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Federal Register Notices:
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled Into Modules, From Malaysia: Amended Preliminary Determination of Countervailing Duty Investigation; Correction
• Certain Activated Carbon From the People's Republic of China: Final Results of Antidumping Duty Administrative Review; 2022-2023
• Overhead Door Counterbalance Torsion Springs From the People's Republic of China and India: Initiation of Countervailing Duty Investigations
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Photodynamic Therapy Systems, Components Thereof, and Pharmaceutical Products Used in Combination With the Same; Notice of Commission Determination Not To Review an Initial Determination Granting in Part Complainant's Motion To Amend the Complaint and Notice of Investigation
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Steel Nails From Taiwan: Final Results of Antidumping Duty Administrative Review and Final Determination of No Reviewable Sales; 2022-2023
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: 2,4-Dichlorophenoxyacetic Acid (2,4-D) From China and India; Scheduling of the Final Phase of Countervailing Duty and Antidumping Duty Investigations
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Steel Nails From Taiwan: Final Results of Antidumping Duty Administrative Review and Final Determination of No Reviewable Sales; 2022-2023
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: 2,4-Dichlorophenoxyacetic Acid (2,4-D) From China and India; Scheduling of the Final Phase of Countervailing Duty and Antidumping Duty Investigations
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DelBene, Beyer Introduce Legislation to Block President from Imposing Unchecked Tariffs - U.S. Congresswoman Susan DelBene
Today (11/20/24), Representatives Suzan DelBene (WA-01), Don Beyer (VA-08), and eight Ways & Means Committee members introduced the Prevent Tariff Abuse Act, legislation to stop the President of the United States from imposing import tariffs under the guise of a national emergency without Congressional approval. Donald Trump repeatedly promised on the campaign trail that he would impose sweeping tariffs of 10-20% on all imported goods into the U.S., against our allies and adversaries alike. These actions are estimated to directly raise prices on consumer goods by $2,600 to $4,000 a year for the average American family.
The president has broad authority to declare emergencies in response to national security or economic threats under the International Emergency Economic Powers Act (IEEPA). The law was intended for the president to be able to impose financial sanctions on hostile foreign nations that pose an emergency threat to the nation. It was never meant to allow a president to indiscriminately impose tariffs without Congress’ approval.
“The American people have clearly and consistently said that costs are one of their top concerns. Imposing sweeping tariffs on imported goods would raise prices on consumer products by thousands of dollars a year according to estimates. Not only would widespread tariffs drive up costs at home and likely send our economy into recession, but they would damage our trade relationships with allies and likely lead to significant retaliation, hurting American workers, farmers, and businesses,” said DelBene. “The law was never intended to be abused in this way. This legislation would enable Congress to limit this sweeping emergency authority and put in place the necessary Congressional oversight before any president – Democrat or Republican – could indiscriminately raise costs on the American people through tariffs.”
“Congress has ceded far too much authority to the president to unilaterally raise tariffs, and in the wrong hands that power can be used to wreak economic havoc and harm broad swathes of the country,” said Beyer. “This sensible legislation would prevent the misuse of emergency authorities by the president to impose massive costs on American families without the approval of Congress.”
The Constitution clearly states that “Congress shall have Power To lay and collect Taxes, Duties … and to regulate Commerce with foreign Nations.” Tariffs are taxes on imported goods, and no president, Democrat or Republican, should have the power to raise taxes on the American people without the consent of Congress. DelBene’s bill would clarify that the imposition of duties or quotas on the importation of goods is prohibited under IEEPA.
DelBene and Beyer are joined by Ways & Means Trade Subcommittee Ranking Member Earl Blumenauer (OR-03), and Committee Members Jimmy Panetta (CA-19), Brad Schneider (IL-10), Terri Sewell (AL-07), Steven Horsford (NV-04), John Larson (CT-01), Dan Kildee (MI-08), and Judy Chu (CA-28).
The text of the legislation can be found here.
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How long will your smart device get software updates? It’s hard to know - Federal Trade Commission
Smart devices are everywhere. Devices track our health and fitness, control our lights and thermostats, and keep an eye on our homes and pets. We pay a premium for the smart features and functionality of these products. But what happens if the manufacturer stops updating the software that makes them “smart”?
Manufacturers of smart products often push out free software updates with new features or bug fixes that can be critical for the product’s smart features to work as intended. As a consumer, knowing how long the manufacturer will update the product software could mean the difference between a product that you want and one you don’t care to have. But an FTC report revealed that many manufacturers don't make it easy to find that information.
So, before you buy a smart product, consider if it’s worth the price. Search the product website or look on the manufacturer’s website for information about how long the manufacturer will update the software. If you can’t find it, contact the manufacturer by phone, email, or chat.
Consider how the product will work if the manufacturer stops updating the software. For example, a smart light bulb might still work the old-fashioned way, by flipping the switch, but you won’t be able to control it remotely. But if your smart speaker can’t connect to your music streaming service, it’s not very useful.
If the manufacturer does tell you when the software updates will end, find out whether the manufacturer offers a trade-in or recycling program for used electronics.
Finally, if you buy, or already have, an internet-connected device, learn how to protect it from hackers.