International Trade Law News
June 4, 2004
DOC Announces Preliminary Determination in Softwood Lumber Administrative Reviews
On June 3, 2004, the Department of Commerce (DOC) announced the preliminary determinations in the first administrative reviews of the antidumping (AD) and countervailing duty (CVD) orders on softwood lumber from Canada. The review period was May 22, 2002 through March 31, 2003.
In the CVD administrative review, DOC evaluated the provincial stumpage programs of the provinces of British Columbia, Alberta, Manitoba., Saskatchewan, Ontario and Quebec and DOC found a preliminary net countervailable subsidy rate of 9.24% on all imports.
The preliminary dumping margins for the eight mandatory respondents in this review were as follows:
-Abitibi-Consolidated Company of Canada = 2.97%
-Buchanan Lumber Sales Inc. = 4.80%
-Canfor Canfor Corporation = 2.06%
-Slocan Forest Products Ltd. = 1.64%
-Tembec Inc. = 10.21%
-Tolko Industries Ltd. = 3.68%
-West Fraser Mills Ltd. = 1.08%
-Weyerhauser Company = 8.38%
The preliminary weighted-average "all others" dumping margin rate is 3.98%.
DOC is expected to announce the final determinations in these reviews on December 7, 2004.
June 2, 2004
Byrd Amendment Not Likely to be Repealed Any Time Soon
As mentioned in our June 1, 2004 post, the WTO's arbitration panel delayed its decision as to the level of sanctions that will be imposed on the U.S. as a result of its failure to repeal the Byrd Amendment. The Legal Times has published an excellent article describing the political realities that will make it very difficult for the U.S. Congress to repeal the Byrd Amendment. Click here to read article.
In a related development, U.S. Customs and Border Protection (CBP) published in today's Federal Register a notice announcing the agency's intention to distribute Byrd Amendment funds for fiscal year 2004. In addition to specifying the complete list of antidumping and countervailing duty orders and affected domestic producers eligible to receive a distribution, the notice also provides the instructions to the domestic interested producers to claim the funds. The due date for submitting written certifications to CBP in order to obtain Byrd Amendment funds is August 2, 2004.
U.S., Saudi Arabia Name Al-Haramain Charity Branches Terrorist Financiers
Today the U.S. Treasury Department and Saudi Arabia designated five additional branches of the Saudi-based Al-Haramain charity organization as mechanisms for financing terrorism. The designation affects branches in Afghanistan, Albania, Bangladesh, Ethiopia and the Netherlands.
Over the past two years, U.S. and Saudi officials have made similar designations regarding Al-Haramain branches in Bosnia, Somalia, Indonesia, Tanzania, Kenya, Pakistan and the United States. The charity's former leader, Aqeel Abdulaziz Al-Aqil, has previously been designated as an individual supporting terrorism.
The U.S. and Saudi Arabia will jointly submitting the named entities to the United Nations' 1267 Committee so that they can be added to the consolidated international list of terrorists.
United States to Require Prior Notice of All Imported Food Starting on June 4, 2004
U.S. Customs and Border Protection (CBP) Commissioner Robert C. Bonner today announced that beginning on June 4th at 6 a.m. Eastern Standard Time the third phase of the Bioterrorism Act (BTA) will be implemented. Phase III requires that CBP and the Food and Drug Administration (FDA) receive prior notice of all food for humans and animals imported or offered for import into the United States. Failure to provide prior notice will result in the merchandise being refused entry. Under the BTA food products shipped by truck are required to file prior notice two hours prior notification, 4 hours for rail and air, and 8 hours for sea.
Under the Phase III implementation, goods that have not obtained prior notification will be held at the port of entry or at a FDA registered secure facility. The carrier will have the opportunity to voluntarily export the items if compliance with the BTA cannot be accomplished in a timely manner or at all. There is an exception for transportation and exportation entries, which require that prior notice be filed at the port of arrival before movement can be authorized.
Commerce Department Building to Reopen After Fire
The main U.S. Department of Commerce building in Washington, D.C. will return to normal operations today after being closed on June 1, 2004 due to an electrical fire.
U.S. Designates Ten Persons Under Kingpin Act
On June 1, 2004, the Bush Administration designated 10 international drug traffickers from Mexico, India, Afghanistan, Jamaica and Peru as narcotics kingpins under the Foreign Narcotics Kingpin Designation Act (21 U.S.C. 1901-1908, 8 U.S.C. 1182). The Foreign Narcotics Kingpin Designation Act, commonly known as the "Kingpin Act", targets significant foreign narcotics traffickers, their organizations and operatives.
The Treasury Department's Office of Foreign Assets Control (OFAC) has added the 10 individuals to OFAC's Specially Designated Nationals (SDN) list as significant foreign narcotics traffickers ([SDNTK]s). As a result of this action, the individuals and their operatives will be denied access to the U.S financial system and their property in the U.S. will be blocked.
To date, the President has announced 48 Kingpins and the Department of the Treasury has announced a total of 66 derivative designations, 14 entities and 52 individuals. These entities and individuals are subject to the same sanctions that apply to kingpins. In addition, designated individuals and immediate family members who have knowingly benefited from the designated individuals' illicit activity will be denied visas to the United States.
A complete list of individuals and entities designated under the Kingpin Act and other U.S. sanctions programs can be found at www.treasury.gov/ofac.
June 1, 2004
Thailand May File Antidumping Cases on Products from China
As indicated by a recent article in The Nation, one of Thailand's leading English newspapers, the United States is not alone in using antidumping cases as a measure to stem the flow of imports from the People's Republic of China. Manufacturers of electronics, textiles, jewelry and air conditioners in Thailand claim that they are facing significant pricing pressures from imports of low-priced Chinese products. Click here to read article.
WTO Delays Decision on Byrd Amendment Sanctions
The World Trade Organization (WTO) today announced that it has delayed its decision regarding the level of sanctions that may be imposed on the United States as a result of its failure to repeal the Continued Dumping and Subsidy Offset Act of 2000, commonly known as the Byrd Amendment.
The decision by the WTO arbitration panel had been expected today, but European Union (EU) officials said they had been told the verdict would be delayed.
Brazil, Chile, the European Union, India, Japan, Korea, Canada and Mexico, have sought from the WTO the right to impose retaliatory sanctions on the U.S. because the U.S. Congress had not repealed the Byrd Amendment by the WTO's December 27 December 2003 deadline. The WTO had previously found the Byrd Amendment to violate various aspects of the WTO Agreement in January 2003. The eight complainants have claimed that sanctions are the only tool left to them to get the U.S. to comply with the WTO ruling.
In January 2004 the U.S. requested that a WTO arbitration panel decide what punitive measures would be imposed. While the eight complainants did not quantity the specific amount of sanctions that they would want imposed, the sanctions are likely to be equivalent to the amount that the U.S. Government has already paid to U.S. petitioners in antidumping cases (currently more than US$700 million).
Electrical Fire Forces Closure of Commerce Department's Main Building Today
The Commerce Department's main building at 14th Street and Constitution Avenue will be closed today as a result of a two-alarm electrical fire. The fire, which included an explosion, was reported in the basement of the building shortly before 11 p.m. Monday. Investigators believe the fire was caused by a faulty transformer. While damage was limited, the fire resulted in smoke throughout the building.
U.S. May Ease Sanctions on Sudan
The United States may be willing to ease economic sanctions on Sudan if the Government of Sudan takes efforts to end the long-running civil war.
The Bush administration has proposed more than $400 million in aid to Sudan for 2005, but existing sanctions prevent the development assistance from reaching government-controlled areas. The Bush Administration has reportedly advised the Government of Sudan that if Sudan met Washington's conditions, the U.S. Government would ease those restrictions and provide the money as part of an international reconstruction package.
Under pressure from Washington, the Sudan government and the rebel Sudan People's Liberation Army signed agreements on Wednesday on how to share power and manage disputed strategic areas, clearing the way for a full peace deal.
U.S. Sanctions Having Adverse Impact on Syria's Economy
The following is a link to an article describing the negative impact that the U.S. sanctions have already had on Syria and its economy: http://www.channelnewsasia.com/stories/afp_world_business/view/87810/1/.html.
