International Trade Law News /title <!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd"> <html xmlns="http://www.w3.org/1999/xhtml" xml:lang="en" lang="en"> <head> <title>International Trade Law News

December 31, 2003 

OFAC Issues General License Permitting Direct Earthquake Relief Donations

The Office of Foreign Assets Control (OFAC) has issued a general license permitting U.S. persons to make donations of funds to nongovernmental organizations in direct support of humanitarian relief and reconstruction efforts being undertaken in Iran in response to the earthquake in Bam. The general license is valide for 90 days. Donations made under this general license may be made through a bank owned or controlled by the Government of Iran, provided that the transfer does not involve the debit or credit of an account of the Iranian bank maintained on the books of a U.S. bank.

This general license does not authorize any funds transfers to or through any blocked person, including specially-designated nationals.

 

American Seafood Distributors Announce Opposition to Shrimp Antidumping Case

Shortly after the filing of the antidumping petition on imported shrimp, the American Seafood Distributors Association (ASDA) stated that they will "vigorously oppose" the action. In a press release, ASDA's president said that "We look forward to the opportunity to explain to the International Trade Commission in the coming weeks why continuing access to imported shrimp is essential to the financial well-being of literally thousands of American businesses and individuals who are employed by those businesses. Moreover, the inescapable truth is that, even if successful, this case will not generate a single additional pound of domestic shrimp sales because the Gulf of Mexico and South Atlantic shrimp fisheries are being fished to their maximum capacity right now.

 

Antidumping Petition Filed on Frozen and Canned Warmwater Shrimp

As expected, today the Ad Hoc Shrimp Trade Action Committee, filed an antidumping petition on frozen and canned warmwater shrimp. The countries named in the petition are Brazil, China, Ecuador, India, Thailand and Vietnam.

 

Commerce Department Initiates Antidumping Case on Ready-to-Cook Kosher Chicken From Canada

In response to the December 1, 2003 peitition filed by Empire Kosher Poultry, Inc., the U.S. Department of Commerce (DOC) has initiated an antidumping case on imports of ready-to-cook Kosher chicken and parts thereof from Canada. The merchandise covered by this investigation is ready-to-cook chicken from Canada, whether fresh, chilled or frozen and whether whole or cut-up in pieces, that has been certified as Kosher or Glatt Kosher and is classifiable under subheadings 0207.11.00.20, 0207.11.00.40, 0207.12.00.20, 207.12.00.40, 0207.13.00.00, and 0207.14.00.40 of the Harmonized Tariff Schedule of the United States (HTSUS).

The U.S. International Trade Commission (ITC) will render its preliminary injury determination by January 15, 2004. A negative ITC injury determination will result in the investigation being terminated.

 

Antidumping Case on Imported Shrimp to be Filed Today

Today the Southern Shrimp Alliance will file the long-expected antidumping case on shrimp from Thailand, China, Vietnam and other countries in Asia and Latin America.

December 30, 2003 

BIS Announces Results of Export Control Investigations

The Commerce Department’s Bureau of Industry and Security (BIS) today issued the following announcements regarding investigations on export control violations:

Honeywell International Inc. (Honeywell) has agreed to pay a $36,000 civil penalty to settle charges that it illegally exported chemicals to Mexico. Between December 2001 and February 2002, Honeywell made 12 shipments of hydrogen fluoride to Mexico from its Geismar, Louisiana facility without the required export licenses. Hydrogen fluoride is controlled because it can assist in the development of chemical weapons. BIS stated that Honeywell voluntarily disclosed the violations and cooperated fully with the investigation.

Mahmoud Haghsheno Kashani (also known as Mike Kashani), acting as an officer of Zimex, Inc. in Ontario, Canada, has agreed to a 5-year denial of export privileges to settle charges that he attempted to export U.S.-origin parts to Iran in violation of U.S. export control laws. BIS alleged that Kashani violated the Export Administration Regulations by attempting to export replacement parts for multiple gas analyzers to Iran through Germany and Saudi Arabia.

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December 29, 2003 

ITC Issues Affirmative Injury Determination on Hand Trucks From China

Today the United States International Trade Commission (ITC) determined by a vote of 6-0 that there is a reasonable indication that a U.S. industry is threatened with material injury by reason of imports of hand trucks from China that are allegedly sold in the United States at less than fair value. As a result of the Commission's affirmative determination, the U.S. Department of Commerce will continue to conduct its antidumping investigation of imports of hand trucks from China, with its preliminary determination due on or about April 21, 2004.

December 22, 2003 

WTO Issues Trade Policy Review of Turkey

The Trade Policy Review Body of the World Trade Organization (WTO) has recently issued its third Trade Policy Review (TPR) of Turkey. The TPR states that Turkey’s economic reforms could be strengthened by continued structural adjustment, including privatization, and by the improvement of its multilateral commitments, both in goods and services. The report notes that such reforms would enhance Turkey's ability to attract foreign investment and the predictability of its trade regime.

The report notes that since 1998, Turkey has implemented four stabilization programmes but they are yet to show full and sustainable effects. The economic situation remains fragile and the country’s vast potential for attracting investment remains largely untapped, in part because of politico-economic instability, high external indebtedness, slow progress in the implementation of its privatization programme and restrictions on foreign direct investment.

The report also calls for further simplification of the tariff which remains complex, and the extension of the binding commitments to ensure further integration of Turkey into the multilateral trading system.

December 20, 2003 

European Union Issues Annual Report on U.S. Trade Barriers

The European Commission today released its nineteenth annual report on barriers to trade and investment in the United States, detailing the obstacles that E.U. exporters and investors face in the U.S. The report highlights those obstacles which the E.U. believes are affecting the rights of E.U. companies to conduct trade with the U.S.

The report notes that the U.S. has been slow to implement the necessary legal changes in order to conform to its WTO commitments. For example, the E.U. noted that the U.S. has still not repealed the 1916 Anti-dumping Act, which was found to violate certain WTO provisions.

The report also notes that the U.S. has continued its tendency to introduce new national security measures that are more trade distorting than necessary. For example, the E.U. stated that the implementation of the Bioterrorism Act, and in particular the food related provisions of this legislation, have far reaching implications for E.U. agricultural exporters. There are also new restrictions to U.S. government procurement, for example, as a result of the recent announcement by the U.S. Defense Department that competition for prime contracts for procurement for the reconstruction of Iraq would be restricted to companies from the US, Iraq, coalition partners and force contributing nations.

December 17, 2003 

Busy Week for BIS Export Enforcement

This week, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) announced several settlements of cases involving violation of U.S. export control laws.

In the most significant case, Sun Microsystems, Inc. and two of its subsidiaries reached a settlement involving illegal exports of computers to military end-users in China and Egypt, and for failing to comply with license conditions on eight BIS export licenses. A fourth company, Automated Systems Ltd. (ASL) of Hong Kong, involved in an export of Sun servers to the Chinese military will pay a $22,000 civil penalty to settle allegations that it aided and abetted the export. Under the agreement reached with BIS, Sun Microsystems will pay a $269,000 fine and have its export privileges denied for one year, although the denial will be suspended. To settle charges that they aided and abetted the illegal export to China, Sun Microsystems China Ltd., and Sun Microsystems California, Ltd., both of Hong Kong, will each pay a $11,000 fine and will not participate in transactions subject to the Export Administration Regulations involving the Changsha Institute of Science and Technology in the People's Republic of China, the Chinese military end-user, for one year.

BIS also imposed a $35,000 civil penalty on TLC Precision Wafer Technology of Minneapolis, Minnesota to settle charges that the company illegally exported aluminum gallium arsenide/gallium arsenide epitaxial wafers to Israel and Brazil without the required export licenses and failed to file the necessary Shippers Export Declarations (SEDs) for the transactions. These products are used in automotive, communication and radar systems. The company also provided false information on the SED for a shipment of oscillator chips to Israel.

Finally, BIS reached a settlement agreement with ABO (USA) Inc. of Miami, Florida that found that ABO conspired to export and exported second generation night vision scopes to Japan without the required export license. ABO was charged with falsifying invoices and shipping documents and disassembling the night vision scopes before export to avoid detection by U.S. authorities. Under the agreement, ABO agreed to a suspended civil fine of $20,000 and the denial of export privileges for two years to all destinations other than Canada.

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December 16, 2003 

ITC Reaffirms Lumber Antidumping and Countervailing Duty Threat Findings

The United States International Trade Commission (ITC) today reaffirmed its affirmative threat determinations in the partial remand of the ITC's antidumping and countervailing duty investigations of imports of softwood lumber from Canada. By a vote of 5-0, the ITC found on remand that an industry in the United States is threatened with material injury by reason of imports of softwood lumber from Canada that the U.S. Department of Commerce determined are subsidized and sold in the United States at less than fair value.

This remand was required by a NAFTA Binational Panel decision in September 2003 that held that the ITC failed to prove that Canadian timber pricing practices had hurt or materially threatened U.S. producers. The NAFTA panel found that the ITC not only failed to follow its own regulations, but that the agency ignored evidence on whether U.S. lumber producers were threatened by Canadian imports.

This ruling comes less than two weeks after the U.S. and Canada negotiated a framework deal to end the trade dispute. However, many major Canadian lumber companies have opposed the deal, which would limit Canadian exports to the United States and refund approximately one-half of the $1.8 billion in antidumping and countervailing duties the Canadian industry has paid so far.

December 15, 2003 

ITC Commissioners Announce Remedy Proposals in the Market Disruption Investigation on Ductile Iron Waterworks From China

Today the six U.S. International Trade Commission (ITC) commissioners announced their remedy proposals in the market disruption investigation on certain ductile iron waterworks fittings from China. Today's action follows the ITC's unanimous December 4, 2003 determination that certain ductile iron waterworks fittings from China are causing disruption to the U.S. industry.

Chairman Deanna Tanner Okun and Commissioners Stephen Koplan, Charlotte R. Lane and Daniel R. Pearson announced that they will propose that the President impose a tariff-rate quota for a three-year period. In the first year, they will propose an additional 50 percent tariff on imports exceeding 14,324 short tons; in the second year, an additional 40 percent tariff on imports exceeding 15,398 short tons; and in the third year, an additional 30 percent tariff on imports exceeding 16,553 short tons. They also recommended that, if applications are filed, the President direct the U.S. Department of Commerce and the U.S. Department of Labor to provide expedited consideration of trade adjustment assistance for firms and/or workers affected by the subject imports.

Vice Chairman Jennifer A. Hillman announced that she will propose that the President impose a quota on imports for a three-year period at the following levels: 14,324 short tons in the first year of relief; 15,398 short tons in the second year of relief; and 16,553 short tons in the third year of relief.

Commissioner Marcia E. Miller announced that she will propose that the President impose a tariff increase for a three-year period at the following levels: 50 percent ad valorem in the first year of relief; 40 percent ad valorem in the second year of relief, and 30 percent ad valorem in the third year of relief.

The ITC will submit a report to the President and the USTR by December 24, 2003. The report will include the Commissioners' determinations, views, and remedy proposals. The President will make the final decision whether to provide relief to the U.S. industry and the type and amount of relief.

December 12, 2003 

President Bush Signs Syria Accountability Act

Late Friday afternoon President Bush signed into law H.R. 1828, the Syria Accountability and Lebanese Sovereignty Restoration Act of 2003. While the President did not specifically indicate whether he would invoke the waiver authority provided for in the legislation, the statement issued in connection with the signing of the bill appears to indicate that he is leaning in that direction. Specifically, the President noted that "a law cannot burden or infringe the President's exercise of a core constitutional power by attaching conditions precedent to the use of that power" and that the "executive branch shall construe and implement section 5 in a manner consistent with the President's constitutional authority to conduct the Nation's foreign affairs and as Commander in Chief. . . "

These are strong statements that are certainly going to generate a strong negative response from member of Congress. Several members of Congress indicated after the bill was passed that any waiver of the Syrian sanctions by the President should be invoked sparingly and would "be given the strictest scrutiny by Congress."

 

USA*Engage Urges President to Waive Sanctions Under the Syria Accountability Act

USA*Engage and the National Foreign Trade Council recently sent a letter to President Bush urging him to waive the sanctions against Syria contained in the Syria Accountability Act (H.R. 1828) recently passed by Congress, but has not yet been signed by the President.

The letter states that imposing any of the sanctions set forth in the legislation would have a severely negative impact on hundreds of U.S. businesses currently operating in Syria. Moreover, the letter noted that unilateral sanctions have an "established track record of failing to achieve their desired foreign policy objectives and are, in fact, counterproductive to U.S. commercial, diplomatic, and national security interests."

December 11, 2003 

[Export Controls] Directorate of Defense Trade Controls to Hold Seminar on Electronic Filing of License Applications and TAAs

The Directorate of Defense Trade Controls (DDTC) will host two live web seminars to introduce users to the D-TRADE licensing system, which will allow users to file electronically form DSP-5 and Technical Assistance Agreements. The program will also provide an overview on digital certificates and user management. There is no cost for attendance but interested parties must be currently registered with DDTC. Click here for registration and course options.

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December 10, 2003 

[Antidumping] ITC Makes Preliminary Affirmative Injury Determination on Processed Hazelnuts From Turkey

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 processed hazelnuts from Turkey that are allegedly sold in the United States at less than fair value. All six Commissioners voted in the affirmative. As a result of the Commission's affirmative determination, the U.S. Department of Commerce will continue to conduct its antidumping investigation of imports of certain processed hazelnuts from Turkey, with its preliminary determination due on or about March 29, 2004.

 

[Export Controls] BIS Publishes Wassenaar Revisions to Commerce Control List

The Bureau of Industry and Security (BIS) today published a final rule revising certain items on the Commerce Control list (CCL) to confirm to revisions to the Wassenaar List made late last year. The final rule modifies items controlled for national security purposes in Categories 1, 2, 3, 4, 5 Part I (telecommunications), 5 Part II (information security), 6, and 7 of the CCL.

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December 09, 2003 

[Trade] Highlights of FY 2004 Omnibus Appropriations Bill

The following are some of the trade-related highlights of the FY2004 omnibus appropriations bill that passed the House Monday and awaits final Senate action. Efforts by the Senate to pass the bill yesterday were unsuccessful and it appears that the bill may not be reconsidered by the Senate until early next year.

• Cuba - As expected, the bill does not include the language in the original House and Senate bills that would have ended the ban on travel to Cuba by US citizens. The bill provides the administration's request of $7 million to promote a peaceful transition to democracy in Cuba.

• International Trade Administration (ITA), Department of Commerce - The spending bill appropriates $395 million for the ITA — $27 million (7 percent) more than the current level, but equal to the request and the House level. The bill includes $500,000 for a comprehensive study of future domestic demand for steel and $3 million to establish an Office of China Compliance.

• Office of the US Trade Representative (USTR). The bill provides $42 million for the USTR — $7 million (21 percent) more than the current level.

 

[Cuba Trade] Washington Post Article Focuses on Crackdown on Cuba-Related Travel

Today's Washington Post has an article discussing the ramifications of the Bush Administration's recent effort to reduce the number of U.S. citizens who visit Cuba. The article reports that licenses for travel to Cuba have been reduced, and prosecution of accused lawbreakers has intensified. The article notes that the Treasury Department's Office of Foreign Assets Control (OFAC), which enforces sanctions against countries, terrorist networks and drug traffickers around the world, has assigned 21 of its 120 employees -- and $3.3 million of its $21.2 million budget -- to Cuba enforcement efforts in fiscal year 2003. The article also states that the Department of Homeland Security has begun training officers to look for U.S. citizens traveling illegally to Cuba through third countries, including Canada and Mexico.

 

[Imports] FDA Publishes Prior Notice Guidance Document on Food Imports

The FDA has published a Guidance Document on the FDA Prior Notice Regulations governing the importation of food products. This document is intended to explain the FDA's Prior Notice rules in simplified format and language.

 

Commerce Publishes Notice Continuing Steel Import Licensing Program

The Commerce Department today published a notice providing for the continuation of the Steel Import Licensing and Surge Monitoring program despite the termination of the safeguard measures by the President.

December 08, 2003 

Tentative Agreement Reached in Softwood Lumber Trade Dispute

The U.S. government and its domestic producers reached a tentative deal with the Government of Canada this weekend in the long-running dispute on softwood lumber imports from Canada. While the agreement is subject to approval by Canadian lumber interest, the current agreement provides that the antidumping and countervailing duty cases on softwood lumber from Canada will be suspended in exchange for the following:

*Canadian lumber would have a duty-free ceiling of 31.5%, which is slightly below Canada's current share of the U.S. market. If Canadian sales to the U.S. exceed that proportion of the market, a tariff of US$200 per thousand board feet of lumber would be imposed.
*US$1.6 billion antidumping and countervailing duties collected in the past 18 months would be split between Canadian and U.S. producers, with Canadians getting 52 per cent.
*The agreement would run for three years. Once the three-year term is up, Canadian provinces that move towards a more free-market forest policy could increase their duty free share by five per cent in the fourth and fifth years, if their policies are approved by the U.S. Department of Commerce.

 

Sparks Fly in U.S. Furniture Industry Over Antidumping Petition on Bedroom Furniture From China

Last week two retail furniture chains announced that they would stop buying goods from American furniture makers who are supporting the antidumping petition on wooden bedroom furniture from China. American Furniture Warehouse Co. Inc., based in Englewood, Colo., which has nine stores across Colorado, and Columbus, Ohio-based Value City Furniture, which has 80 stores across the East Coast and Midwest, have indicated that they would no longer buy bedroom sets from companies supporting the antidumpoing petition against China. Wickes Furniture, a 40-store chain in the Midwest, has also recently stopped buying from a major U.S. furniture manufacturer.

These decisions will have a significant bottom-line impact on U.S. furniture manufacturers, such as Vaughan-Bassett Furniture Co., Hooker Furniture Corp. and La-Z-Boy Inc., all of which are supporting the antidumping petition.

December 05, 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.

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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 04, 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 03, 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 02, 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 01, 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.

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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.


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