International Trade Law News

The International Trade Commission (ITC) determined on February 23, 2004 that there is reasonable indication that an industry is materially injured by imports of outboard engines from Japan, which are allegedly sold in the U.S. at less than fair value.

All six of the ITC Commissioners voted in the affirmative. The U.S. Department of Commerce will therefore continue its antidumping investigation, which it initiated on January 29, 2004, to determine if the outboard engines are being sold in U.S. markets at less than fair value.

For more information on the Department of Commerce’s investigation see the posting on February 2, 2004 under the heading DOC Initiates Antidumping Duty Investigation on Outboard Engines from Japan.

The Bureau of Industry and Security (BIS) of the Department of Commerce issued on February 20, 2004 the final rule, Penalty Guidance in the Settlement of Administrative Enforcement Cases, which amends the Export Administration Regulations (EAR). The rule, which incorporates guidance on how BIS makes penalty determinations when settling enforcement cases under the EAR, states that “BIS carefully considers each settlement offer in light of facts and circumstances of the case, relevant precedent, and BIS’s objective to achieve in each case an appropriate level of penalty and deterrent effect.”

Towards that end, the rule enumerates factors BIS considers in making penalty determinations. The rule provides a number of “General Factors” considered including the degree of willfulness of the party, the destination of the export, and additional related or unrelated violations of the exporter. The rule also includes a number of mitigating factors BIS considers, including whether the party made a voluntary self-disclosure of the violation, whether the party has an effective compliance program, and whether the violation was an isolated occurrence, whether the party cooperated to an “exceptional degree” with the investigation. Finally, the rule states a number of “Aggravating Factors” such as whether the party tried to conceal the violation.

The final rule, found at 15 CFR Parts 764 and 766, is the product of the proposed rule released on September 17, 2003 and BIS’s consideration of public comments on it.

Labels: BIS

The United States International Trade Commission (ITC) unanimously determined on February 17, 2004 that there is reasonable indication that a U.S. industry is materially injured or threatened with material injury by imports of frozen and canned warmwater shrimp and prawns from Brazil, China, Ecuador, India, Thailand, and Vietnam. As a result, the U.S. Department of Commerce will continue the investigation it began on January 21, 2004 to determine whether shrimp is being sold in U.S. markets at less than fair market value. Commerce will make a preliminary antidumping determination on or about June 8, 2004.

The antidumping investigation was initiated by the Ad Hoc Shrimp Trade Action Committee, whose members are located in Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, and Texas.

The imported products subject to this investigation are warmwater shrimp and prawns, whether frozen or canned, wild-caught (ocean harvested) or farm-raised (produced by aquaculture), heads-on or heads-off, shell-on or peeled, tail-on or tail-off, deveined or not deveined, cooked or raw, or otherwise processed in frozen or canned form. The merchandise subject to this investigation is provided for in subheadings 0306.13.00.03, 0306.13.00.06, 0306.13.00.09, 0306.13.00.12, 0306.13.00.15, 0306.13.00.18, 0306.13.00.21, 0306.13.00.24, 0306.13.00.27, 0306.13.00.40, 1605.20.10.10, 1605.20.10.30, and 1605.20.10.40 of the Harmonized Tariff Schedule of the United States.

DBX, the first trade show and conference to be held in Baghdad following the military conflict will be held from April 5-8, 2004. DBX is organized by the Iraqi American Chamber of Commerce & Industry (IACCI) and has the endorsement of the CPA. For more details see the DBX Web site.

The FDA has published a notice in the Federal Register making technical and other corrections to the interim final rule on the prior notice of food imports under the Public Health Security and Bioterrorism Preparedness and Response Act of 2002.

The Bush Administration's proposed budget for fiscal year 2005 proposes a significant increase in funding for the Bureau of Industry and Security (BIS). Under the budget proposal BIS would receive an $8.1 million spending increase. Part of that increase would be used to beef up enforcement of technology export controls. The request also includes $2 million to create an Office of Technology Evaluation (OTE) to assess sensitive technology exports.

OTE is intended to address industry complaints about overly restrictive U.S. export controls on technologies that US companies claim are widely available. The Bush administration is promoting a “smart export controls” program that would focus on the impact of technology exports on national security “without unnecessarily burdening U.S. exporters.”

Labels: BIS

China's Ministry of Commerce has issued a final determination in the antidumping investigation on imports of phenol from Japan, South Korea, the United States and Taiwan. The final antidumping determination imposes antidumping duties of up to 144 per cent on imported phenol, a chemical used in solvents, plastic coatings, timber and textiles.

In response to a petition submitted by Mercury Marine, the U.S. Department of Commerce (DOC) has initiated an antidumping duty investigation on imports of outboard engines from Japan. The petition alleged dumping margins of 11.80% - 41.50%.

The U.S. International Trade Commission (ITC) is scheduled to issue its preliminary injury determination on or before February 23, 2004. If the ITC finds that there is a reasonable indication that the domestic industry is materially injured, or is threatened with material injury, as a result of imports of outboard engines, the DOC investigation will proceed. DOC is expected to issue its preliminary determination in June 2004. If the ITC makes a negative determination on imports, then the DOC investigation will be terminated.

The products subject to this investigation are gasoline-powered spark outboard motors designed and used for all types of light recreational and commercial boats. These outboard motors are produced by some of Japan's largest companies, including Yamaha, Honda and Suzuki. These products are classified in the Harmonized Tariff Schedule of the United States (HTSUS) at subheadings 8407.21.0040 and 8407.21.0080.