International Trade Law News
December 5, 2003
Legislation to be Introduced in Effort to Preclude Pro-Cuba Lobbying in Exchange for Food Contracts
U.S. Representatives Peter Deutsch (D-FL) and Robert Menendez (D-NJ) today announced that they would introduce a bill that would bar U.S. companies from lobbying for a change in U.S. policy toward Cuba as part of any contract to sell food products to Cuba.
As previously reported (see December 2, 2003 story below) the Government of Cuba has started requiring U.S. companies selling agricultural products to Cuba that they will agree to lobby Congress to lift the U.S. trade and travel restrictions on Cuba.
The proposed legislation would penalize companies signing such commitments by placing a 100 percent tax on their profits from any sale to Cuba. The legislators acknowledged that nothing could stop companies from lobbying independently against the embargo, as opposed to being contractually obliged to do so.
Congressman Deutsch has announced his intention to run for the U.S. Senate seat being vacated by Senator Bob Graham.
BIS Imposes Civil Penalty for Export of Aluminum Alloy Rods
The Commerce Department’s Bureau of Industry and Security (BIS) today announced that Reliance Steel & Aluminum Company, acting through its Bralco Metals division (Bralco) in La Mirada, California, agreed to a civil penalty of $95,850 to settle charges that Bralco made 13 exports of aluminum alloy rods to the People’s Republic of China, Taiwan, Malaysia, and Singapore without obtaining the required export licenses. BIS alleged that Bralco had also submitted Shipper’s Export Declarations (SEDs) that falsely represented that the shipments were eligible for export without a license. Exports of aluminum alloys require a license because they can be used in the manufacture of nuclear weapons.
ITC Makes Affirmative Market Disruption Finding on Ductile Iron Waterworks From China
The U.S. International Trade Commission (ITC) determined yesterday by a vote of 6-0 that certain ductile iron waterworks fittings from China are being imported into the United States in such increased quantities as to cause market disruption to the domestic producers. As a result of yesterday's vote the ITC commissioners must provide the President with a recommendation for a safeguard remedy to give the domestic industry temporary relief from import competition. The President will make the final decision concerning whether to provide import relief to the U.S. industry and if so, the type and duration of relief.
Commerce Department Initiates Antidumping Investigation on Processed Hazelnuts from Turkey
The U.S. Department of Commerce (DOC) has formally initiated its antidumping investigation on certain processed hazelnuts from Turkey after determining that the antidumping petition was filed on behalf of the domestic industry. After polling the domestic industry, DOC found that the domestic producers of processed hazelnuts who support the antidumping petition account for more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the petition. As a result, DOC found that the industry support requirements of the Tariff Act have been met. The period of investigation in this case will be October 1, 2002 through September 30, 2003.
This antidumping investigation will proceed if the U.S. International Trade Commission (ITC) makes a preliminary injury determination on December 10, 2003. A negative ITC determination will result in the investigation being terminated.
December 4, 2003
Bush Administration Announces Repeal of Steel Safeguard Measures
As expected, the Bush Administration today announced the termination the U.S. safeguard measures imposed on steel products. As indicated by the legal proclamation and fact sheet issued by the White House, the safeguards have been repealed on all products and the import licensing system will remain in place. The additional duties imposed by the safeguards will be terminated for goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m., eastern standard time, December 5, 2003. Otherwise, the announcement was in line with what we expected to occur.
Shortly after the U.S. decision was announced the European Union announced that it would remove its own safeguard measures that were imposed shortly after the U.S. safeguards were implemented. The EU safeguards were intended to block an influx of steel from third countries that was predicted to result after the imposition of the U.S. tariffs in March 2002.
Commerce Department Issues Final Determinations on PC Wire Strand
The U.S. Department of Commerce (DOC) has issued a final determination in the antidumping and countervailing duty investigations on imports of PC wire strand. In the event that the U.S. international Trade Commission (ITC) reaches an affirmative final injury determination, which is expected next month, the DOC will impose an antidumping order on PC strand ranging up to 119 percent on imports from Brazil; 102 percent on imports from India; 54 percent on Korean imports; 77 percent on Mexican product; and 13 percent on Thai imports. A countervailing duty order will be issued on PC strand from India.
PC strand is used as reinforcement in high-strength concrete structures, such as parking decks, commercial and institutional construction, bridges and pilings. In 2002, the U.S. market for PC strand was about $190 million.
These investigations were brought by Sumiden Wire Products Corp. of Stockton, California, Spring Wire Corp. of Bedford Heights, Ohio and Insteel Wire Products Co. of Mount Airy, N.C.
December 3, 2003
Bush Administration Expected to Remove Steel Safeguards Tomorrow
The Bush Administration is expected to announce tomorrow (Thursday) that the U.S. will remove most of the safeguard measures imposed on imported steel products in March 2002. The announcement, which is likely to be made by Secretary of Commerce Donald Evans and not by the President, is expected to include an expansion of the Commerce Department's steel import licensing program and monitoring system. The Bush Administration is also expected to agree to more stringent enforcement of antidumping laws and may also agree to self-initiate antidumping cases on steel products, rather than requiring the U.S. steel industry to do so. In addition, the administration is also likely to continue to press other countries to reduce their overcapacity in steel production and to assist the U.S. steel industry in dealing with the significant pension costs that the companies face.
ITC Issues Final Affirmative Injury Determination on Ceramic Station Post Insulators From Japan
The United States International Trade Commission (ITC) determined on December 2, 2003 that a U.S. industry is materially injured by reason of imports of certain ceramic station post insulators from Japan. As a result of this decision the U.S. Department of Commerce will issue an antidumping order on this product. All six ITC Commissioners voted in the affirmative.
This antidumping investigation was initiated in response to a petition filed by Lapp Insulator Company LLC, Le Roy, NY, Sandersville, GA; Newell Porcelain Co., Newell, WV; Victor Insulators Inc., Victor, NY; and the IUE-CWA, AFL-CIO.
The imported products subject to this investigation are station post insulators manufactured of porcelain, of standard strength, high strength, or extra high strength, solid core or cavity core, single unit or stacked unit, assembled or unassembled, and with or without hardware attached, rated at 115 kilovolts (kV) and above (550 kilovolt Basic Impulse Insulation Level (BIL) and above). These products are classifiable under tariff classification number 8546.20.0060 of the Harmonized Tariff Schedule of the United States.
Commerce Department Initiates Antidumping Duty Investigation on Processed Hazelnuts from Turkey
The U.S. Commerce Department yesterday announced the initiation of an antidumping duty investigation on certain processed hazelnuts from Turkey. The U.S. International Trade Commission (ITC) is scheduled to issue its preliminary determination as to whether the domestic industry is materially injured, or is threatened with material injury, as a result of imports from Turkey on December 10, 2003. If the ITC makes an affirmative preliminary determination, the Commerce Department will proceed with its investigation and should issue a preliminary determination in April 2004.
The petition requesting this investigation was filed on October 21, 2003 by Westnut LLC (Dundee, OR), Northwest Hazelnut Company (Hubbard, OR), Hazelnut Growers of Oregon (Cornelius, OR), Willamette Filbert Growers (Newberg, OR), Evergreen Orchards (McMinnville, OR), and Evonuk Orchards (Eugene, OR). The petition alleged an antidumping margin of 31.80%.
This investigation covers certain processed hazelnuts, including kernels, and kernels that have been roasted, blanched, sliced, diced, chopped, or in the following other forms: paste, meal, flour, croquant, and butter. In-shell hazelnuts are excluded from the scope of the order. The merchandise subject to this investigation is classified in the Harmonized Tariff Schedule of the United States (HTSUS) at subheadings 0802.22 and 2008.19.2000.
December 2, 2003
Cuba Requires U.S. Firms to Lobby For End to Embargo in Exchange for Trade Deals
Cuba's Deputy Foreign Minister has confirmed that the Government of Cuba is now requiring U.S. companies selling agricultural products to Cuba that they will agree to lobby Congress to lift the U.S. trade and travel restrictions on Cuba.
For example, the Indiana Farm Bureau has recently signed a ''memorandum of understanding'' with the Government of Cuba that provides that the the bureau will agree to lobby Cuba's interest on Capitol Hill if Cuba agrees to buy $15 million in soybeans, cattle, pork, poultry, corn and eggs from Indiana farmers.
Cuba has recently stepped up their purchases of U.S. agricultural products. Since December 2001, Cuba has spent more than $300 million buying agricultural and food products from U.S. companies. Sales in 2003 are expected to be nearly 50 percent higher than in 2002.
OFAC Publishes Guidance Letter on Burmese Teak Lumber
The Treasury Department's Office of Foreign Assets Control (OFAC) today issued a guidance letter on whether containers of Burmese teak lumber, sawn in third countries and leaving from those ports, are able to be imported into the United States if the shipments arrive after August 27, 2003, the date that the Burmese Freedom and Democracy Act of 2003 went into effect. Under the Burmese Freedom and Democracy Act no products can be imported into the U.S. from Burma (Myanmar) after August 27, 2003 unless the President issues a national interest waiver for that product.
In its guidance letter, OFAC stated that from the facts presented it appeared that the Burmese lumber had been substantially transformed into finished products of third countries. However, OFAC noted that the substantial transformation issue is a matter for U.S. Customs and Border Protection (CBP) to decide. OFAC noted that if under the Customs Rules of Origin, the Burmese lumber was “substantially transformed” in a third country, then the goods would not be considered products of Burma and are not prohibited from importation into the U.S.
U.S. Wins WTO Appeal on Japan's Restrictions on U.S. Apples
The World Trade Organization (WTO) Appellate Body has upheld earlier dispute settlement panel findings that Japan's import restrictions on U.S. apples are not justified and are in breach of Japan's WTO obligations. The U.S. commenced this action in March 2002 due to Japan's restrictions imposed on imported U.S. apples that were intended to protect Japanese plants from fire blight, a plant disease. In its appeal, the U.S. contended that there was no scientific evidence that mature apple fruit can transmit fire blight. The WTO Appellate Body agreed with the U.S. on many of its major claims in this dispute. Specifically, the Appellate Body upheld panel findings that Japan had acted inconsistently with its WTO obligations by maintaining its import restrictions on U.S. apples without sufficient scientific evidence and that Japan had acted inconsistently with its obligation to base the import restrictions on a risk assessment.
Government of South Africa Becomes First African Nation to Implement Container Security Initiative
U.S. Customs and Border Protection (CBP) has announced that the Government of South Africa has become the first African nation to implement the Container Security Initiative (CSI) and has begun to pre-screen cargo at the port of Durban destined for U.S. ports.
As part of the CSI program, CBP will deploy a team of officers to the port of Durban to work with South African personnel to target high-risk cargo containers destined for the U.S. Officials of the South Africa Revenue Service are responsible for screening any container identified jointly with CBP officers as a potential terrorist risk.
The port of Durban is the 17th CSI port to become operational since CSI was proposed in January 2002. CSI is now operational in the following ports: Rotterdam, LeHavre, Bremerhaven, Hamburg, Antwerp, Singapore, Yokohama, Hong Kong, Göteborg, Felixstowe, Genoa, La Spezia, Busan, Vancouver, Montreal, Halifax, and Durban.
December 1, 2003
New Antidumping Petition Filed on Kosher Chicken From Canada
Today Empire Kosher Poultry, Inc., located in Mifflintown, PA, filed an antidumping petition on certain Kosher Chicken from Canada. The products subject to this antidumping petition are imports of Ready to Cook (Raw) Kosher Chickens (Whole or Cut-up Whole Chicken), Ready to Cook Kosher Chicken Legs (Thighs and Drumsticks) and Ready to Cook Kosher Chicken Breasts (Bone In and Boneless) from Canada.
Empire Kosher Poultry, Inc., founded in 1938, is the world's largest kosher poultry processing plant. The company has its own hatchery, feed mill and network of local contract farmers.
ITC Issues Preliminary Injury Determination on Certain Aluminum Plate From South Africa
The United States International Trade Commission (ITC) today determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of certain aluminum plate from South Africa. All six Commissioners voted in the affirmative. As a result of today's vote, the U.S. Department of Commerce will continue to conduct its antidumping investigation of imports of certain aluminum plate from South Africa, with its preliminary determination due on or about March 24, 2004.
This investigation covers only imports of 6000 series alloy plate from South Africa, a product used widely in American industry and is classified under HTS subheading 7606.12.3030. The primary South African exporter of this plate is Hulett Aluminium (Pty) Limited.
Washington Post Reports That U.S. Will Lift Steel Safeguards
The Washington Post reports today that the Bush administration has decided to repeal most of the safeguards imposed on imported steel products. Citing administration sources, the story indicates that the decision to lift the safeguarrds was "all but set in stone" and that a formal announcement may be made as early as this week.
BIS Issues Amendment to Australia Group Controls
The Bureau of Industry and Security today published in the Federal Register a notice containing corrections to the June 10, 2003 final rule implementing cerrtcontained errors in the notice implementing changes made to the Australia Group lists of chemical and biological weapon controls. The final rule contained errors in the List of Items Controlled for Export Control Classification Numbers (ECCNs) 2E001 and 2E002 on the Commerce Control List (CCL), as well as an error in the licensing policy provisions of the EAR that apply to items identified on the Australia Group lists.
House Passes Miscellaneous Trade and Technical Corrections Act of 2003
The United States House of Representatives recently passed H.R. 3521, a bill that would make permanent normal trade relations with Armenia and make hundreds of technical corrections to U.S. trade laws. The Miscellaneous Trade and Technical Corrections Act of 2003, which is part of an omnibus tax bill, would give Armenia permanent normal trade relations by permanently waiving the Jackson-Vanik requirement of having normal trade relations subject to annual review. Total United States-Armenia bilateral trade for 2002 amounted to more than $134,200,000.
The measure would also make a number of technical corrections to U.S. trade laws and would suspend tariffs on a number of products not produced domestically and traded in small volume.
Absent from the bill was a provision that would have created "qualifed industrial zones" (QIZs) in Turkey that would permit certain goods produced jointly by Turkish and Israeli manufacturers to enter the U.S. market duty free. The QIZ provision was in the version of the miscellanerous tariffs bill passed by the House in 2002, but the Senate never considered such legislation before that session of Congress adjourned. It is not clear whether the Senate will consider this bill prior to the Christmas recess.
