International Trade Law News

The U.S. International Trade Commission (ITC) announced in today's Federal Register the initiation of a market disruption investigation on certain passenger vehicle and light truck tires from China. This case is being initiated by the ITC after receiving a petition filed by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union.

Section 421 was added to the Trade Act of 1974 by the U.S.-China Relations Act of 2000 (H.R. 4444), which established permanent normal trade relations with China and cleared the way for China's accession to the World Trade Organization (WTO). The China-specific safeguard provision was added to U.S. law in order to alleviate concerns over possible market disruption due to increased imports from China during the first 12 years that it is a WTO member.

In Section 421 investigations the ITC determines whether imports of a product from China are being imported into the U.S. in such increased quantities or under such conditions as to cause or threaten to cause market disruption to the domestic producers of like or directly competitive products. If the ITC makes an affirmative determination, it proposes a remedy to the President and the President makes the final remedy decision. Such remedies can include quotas and other relief.

According to the petition filed in this case, China exported nearly 46 million consumer tires with a value of more than $1.7 billion to the U.S. in 2008, making it the largest source of consumer tire imports. The petition also claims that imports of consumer tires from China increased from 2004 to 2008 by 215% in volume and 295% by value.

This Section 421 investigation will move very quickly. The ITC has already issued questionnaires to producers and importers, and responses to these questionnaires will have a large impact on the outcome of the case. Companies affected by this investigation, including those in the automotive industry and retailers of tires, only have until May 5, 2009 to notify the ITC that they intend to participate.

The Bush administration considered and rejected seven Section 421 petitions. Thus, this investigation will be watched very closely to determine how the Obama Administration responds if the ITC recommends that relief be granted.

Labels: China;, ITC

The U.S. International Trade Commission (ITC) has released a new Harmonized Tariff Schedule (HTS) Online Reference Tool that contains an online version of the U.S. HTS.

The ITC's online HTS includes a number of very useful features to importers, such as links directly to U.S. Customs and Border Protections' customs classification rulings on the CROSS system at the 10-digit level, an online version of the relevant chapter notes and links to the chapter 99 item showing temporary and seasonal rates.

Labels: CBP, HTS, ITC

CBP does not intend to proceed further on the proposal on first sale before January 1, 2011. Nor will we change the current interpretation with respect to first sale without consulting with the Congress and the private sector, or without the explicit approval of the Secretary of Treasury.

Labels: CBP, Congress, ITC

The Automotive Trade Policy Council (ATPC), whose members include Chrysler, Ford and General Motors, recently endorsed H.R. 1127, the "American Manufacturing Competitiveness Act".

H.R. 1127, which was introduced in Congress by Representative Joe Knollenberg (R-MI), would allow U.S. manufacturers to participate in antidumping and countervailing duty cases.

Under current U.S. law, industrial users do not have standing in antidumping and countervailing duty cases even though a decision to place antidumping or countervailing duties on raw materials and other production inputs can impact their production costs. H.R. 1127 would give industrial users legal standing in trade remedy cases involving the products that they import. H.R. 1127 also requires the U.S. International Trade Commission to weigh the harm to industrial users in making material injury determinations in antidumping and countervailing duty determinations.

The Automotive Trade Policy Council joins the Consuming Industries Trade Action Coalition (CITAC) in supporting H.R. 1127. CITAC voice its support for H.R. 1127 in testimony before the House Ways and Means Trade Subcommittee on August 2, 2007.

Labels: Antidumping, Countervailing Duties, ITC

In response to a request by the Senate Finance Committee, the U.S. International Trade Commission last week issued a report entitled "U.S. Agricultural Sales to Cuba: Certain Economic Effects of U.S. Restrictions".

The ITC's report provides an overview of Cuba's purchases of agricultural products since 2000, an analysis of the effects that U.S. restrictions on trade and travel to Cuba by U.S. citizens have on those Cuban purchases and estimates of likely U.S. agricultural sales if such restrictions were lifted.

The major findings trade-related findings of the report include:

• Following implementation of the Trade Sanctions Reform and Export Enhancement Act (TSRA) of 2000, U.S. exports grew rapidly and by 2004 the U.S. was the largest supplier of agricultural products to Cuba.
  
• However, following OFAC's February 2005 policy change that required the seller to receive payment from the Cuban buyer prior to the departure of the vessel carrying the goods to Cuba, the value of Cuban agricultural imports from the United States dropped by 10% in 2005 and a further 4% in 2006.
• U.S. regulations, such as those requiring the Cuban government to pay for U.S. agriculture products in cash or through letters of credit drawn on third-country banks, raise the cost of U.S. goods for Cubans and likely limit U.S. sales.
  
• The ITC found that OFAC appears to have restricted business travel to and from Cuba that is necessary for U.S. exporters to effectuate sales. Particularly important are Cuban officials traveling to the United States to inspect U.S. processing facilities, U.S. port facilities, fresh produce, live animals and other products subject to sanitary and phytosanitary standards. For many of these products, the ITC found that restricting business travel effectively bars U.S. sales to Cuba.
• OFAC restrictions on maritime shipping of U.S. products to Cuba significantly increased
  freight charges for cargo to Cuba above freight charges to other Caribbean destinations.
• Overall, the ITC found that all U.S. agricultural commodity sectors would likely benefit from the lifting of the financing restrictions on U.S. agricultural exports to Cuba.

Labels: Cuba, ITC, OFAC

The U.S. International Trade Commission has published the second revision to the 2007 Harmonized Tariff Schedule of the United States Annotated (HTSA). This version of the HTSA took effect on July 2nd. The second revision to the 2007 HTSA corrects a number of typographical errors in the previous version. It also includes changes made by the Committee for Statistical Annotation of Tariff Schedules (commonly known as the 484(f) Committee) and modifications made to the Generalized System of Preferences program. A complete "change record" listing the various changes can be found here.

Labels: HTS, ITC

Pursuant to a request made by the Senate Finance Committee, the U.S. International Trade Commission (ITC) will hold a hearing on May 1, 2007 in connection with its investigation on U.S. Agricultural Sales to Cuba: Certain Economic Effects of U.S. Restrictions.

Representatives from the U.S. Cuba Trade Association, U.S.-Cuba Trade and Economic Council, Inc., Port of Corpus Christi, North Dakota Department of Agriculture, USA Rice Federation and the American Society of Travel Agents are scheduled to testify at the hearing.

The ITC intends to submit its report to the Senate Finance Committee by June 29, 2007.

Labels: Cuba, ITC

The U.S. International Trade Commission recently published its first revision to the 2007 version of the Harmonized Tariff Schedule of the United States (HTSUS). The changes correct a number of typographical and other errors in the general notes, duty rates and make several other changes to various provisions of the 2007 HTSUS schedule that took effect in February.

U.S. importers should now use the revised version of the 2007 HTSUS, which can be found at the following link: www.usitc.gov/tata/hts and entitled "HTS 2007 Revision 1". The list of changes made in Revision 1 can be found at the following link: hotdocs.usitc.gov/docs/tata/hts/bychapter/0701chgs.pdf.

Labels: HTS, ITC

Pursuant to a request made by the Senate Finance Committee, the U.S. International Trade Commission (ITC) has launched an investigation to report on the effects of U.S. trade and travel restrictions with Cuba on U.S. exports of agricultural, fish and forest products to Cuba.

Labels: Cuba, Export Controls, ITC

As we previously noted, the Presidential Proclamation authorizing the modification of the Harmonized Tariff Schedule of the U.S. (HTSUS) to conform to the numerous changes made to the Harmonized System was recently issued. The Proclamation states that the modifications to the HTSUS will apply to "goods entered, or withdrawn from warehouse for consumption, on or after the later of (i) February 1, 2007, or (ii) the thirtieth day after the date of publication of this proclamation in the Federal Register."

The Proclamation will be published in the Federal Register on January 4, 2007. The thirtieth day after January 4, 2007 is February 3, 2007.

In the meantime, today the U.S. International Trade Commission (ITC) posted on its website for the first time the complete 10-digit version of the HTSUS, incorporating the changes made by the World Customs Organization (WCO) and other changes required by U.S. law. The draft chapter-by-chapter listing of the 2007 Harmonized Tariff Schedule and general notes can be found at the following link: www.usitc.gov/tata/hts/bychapter/index.htm. As you will note, this version is prominently labeled "DRAFT" in red on each page, since it will not take effect until February. The ITC has advised that the final version of the basic edition of the 2007 HTS will be posted on the ITC's website on or about February 3, 2007 and a hard copy version will be published by the Government Printing Office at that time.

Another major change that will occur with the implementation of the new HTSUS in February, is that in most cases the tariff codes contained in the HTSUS can be used instead of Schedule B codes for reporting exports on the Shipper's Export Declaration or under the Automated Export System. The list of products for which a Schedule B number still must be used can be found in the "Notice to Exporters" section of the HTSUS at http://hotdocs.usitc.gov/docs/tata/hts/bychapter/0700n2x.pdf.

Labels: Customs, HTS, ITC