International Trade Law News
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 For example, the E.U. noted that the U.S. has still not repealed the 1916 Anti-dumping Act, which was found to violate certain WTO provisions.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.
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.
