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October 19 2012 Issue

Friday, October 19, 2012
Sandler, Travis & Rosenberg Trade Report

WTO Affirms Ruling Against “Retaliatory” Chinese AD/CV Duties

The World Trade Organization Appellate Body released Oct. 18 a decision upholding a dispute settlement panel’s ruling against China’s imposition of antidumping and countervailing duties on imports of grain oriented flat-rolled electrical steel from the U.S. Officials with the Office of the U.S. Trade Representative have said that this case deals with allegations that China used these trade remedy measures in a retaliatory manner and that the WTO ruling “carries the potential to strengthen future challenges” to such tactics.

GOES is a high-tech, high-value magnetic specialty steel used primarily by the power generating industry in transformers, rectifiers, reactors and large electric machines. USTR states that U.S. exports of GOES to China were valued at $270 million in 2008 but had dropped to less than $3 million by 2011.

According to a USTR press release, the Appellate Body rejected all of China’s claims on appeal. China had argued that the dispute settlement panel misinterpreted the WTO Antidumping Agreement and Subsidies and Countervailing Measures Agreement in finding defects in China’s determination that U.S. exports caused adverse price effects. The Appellate Body also upheld panel findings that China failed to disclose essential facts and explain its determination. China did not appeal the panel’s findings that it initiated CV duty investigations based on insufficient evidence, made unsupported findings that U.S. exports caused injury to China’s domestic industry, and calculated subsidy rates and dumping margins in a manner unsupported by the facts. 

Of Note: Supply Chain Security, Brazil Cotton Dispute

Is Google Moving Into Logistics & Cargo Security?

Farm bill delay is exacerbating Brazil-U.S. cotton dispute

Dates and Deadlines: CBP Forms, Conflict Mineral Reporting, Services Trade, Import Compliance Manuals

Following are highlights of regulatory effective dates and deadlines and federal agency meetings coming up in the next week.

Oct. 22 – International Trade Commission hearing on trade in environmental services

Oct. 22 – deadline for comments on proposed extension of form DS-6004, Request to Change End-User, End-Use and/or Destination of Hardware, and form DS-6001, Request for Advisory Opinion

Oct. 24 – ST&R webinar on new conflict mineral reporting requirements

Oct. 25 – deadline for furnishing information in connection with ITC’s 2013 report on trends in U.S. services trade

Oct. 25 – ST&R webinar on import compliance manuals

CV Notice: Pasta from Turkey

Agency: International Trade Administration.
Commodity: Pasta.
Country: Turkey.
Nature of Notice: Rescission of administrative review of countervailing duty order for the period Jan. 1 through Dec. 31, 2011, due to withdrawal of request for review.
Details: The ITA will instruct U.S. Customs and Border Protection to assess CV duties on all entries of pasta from Turkey at rates equal to the cash deposit of estimated CV duties required at the time of entry or withdrawal from warehouse for consumption. 

FTZ Authority Sought for Illinois Medical Device Kitting Facility

The Foreign-Trade Zones Board is accepting through Nov. 28 comments on a notification of proposed production activity under zone procedures for the AndersonBrecon Inc. facility within site 1 of FTZ 176 in Rockford, Ill. This facility is used for medical device kitting and related activity by AndersonBrecon on behalf of Ferrosan Medical Devices A/S and Ethicon Inc.

Production under FTZ procedures could exempt Ferrosan from customs duty payments on the foreign status components used in export production. On its domestic sales Ferrosan would be able to choose the duty rate that applies to the finished kits (zero) for foreign status inputs. Customs duties also could possibly be deferred or reduced on foreign status production equipment. 

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