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December 7 2012 Issue

Friday, December 07, 2012
Sandler, Travis & Rosenberg Trade Report

Informal Entry Limit Raised to $2,500

U.S. Customs and Border Protection has issued a final rule that, effective Jan. 7, will increase from $2,000 to the statutory maximum of $2,500 the value below which merchandise may qualify for informal entry. As of that date, entries valued under $2,500 will not require a CBP Form 7501 or a surety bond and the required merchandise processing fee will be reduced from $25 to $2 (assuming the entries are filed electronically).

This rule also removes the language requiring formal entry for certain articles that were formerly subject to absolute quotas under the Agreement on Textiles and Clothing, makes a technical conforming amendment to reflect a recent statutory change that increased the MPF from 0.21% to 0.3464% for imported merchandise entered on or after Oct. 1, 2011, until June 30, 2014, and makes non-substantive editorial and nomenclature changes.

U.S., EU Sign Deal to Promote Transatlantic Trade Among Small Businesses


The International Trade Administration and the European Commission Directorate-General for Enterprise and Industry signed this week a memorandum of understanding aimed at promoting international trade and business cooperation between small and medium-sized enterprises in the U.S. and the European Union. The MOU will guide U.S.-EU cooperation on small business trade promotion activities, which will include joint trade shows, cooperation on small business events, small business networking opportunities and the promotion of business partnering opportunities. It will also facilitate the undertaking of specific initiatives to address market access and other barriers that constrain the growth of SME trade and investment.

The next step will be to “quickly formulate a work plan and constitute an appropriate working group to advance a robust agenda coming out of the MOU,” said Assistant Secretary of Commerce Michael Camunez. “We want to work closely with the private sector to better understand the trade promotion, trade finance and market access challenges SMEs are facing—especially those SMEs that are at the forefront of introducing innovative and transformative products and services that are bona fide engines of job creation.” Camunez identified several areas on which the ITA is or will be focusing under the MOU, including developing a common template for third-market IPR toolkits that both the U.S. and the EU have developed, establishing an appropriate mechanism to help SMEs deal with standards and regulatory problems, considering practical mechanisms (such as crowd-funding) that specifically address the trade financing needs of SMEs, and better linking SMEs to known regional innovation and manufacturing clusters on both sides of the Atlantic. 

CBP Working to Clear Backlog Due to Strike at Los Angeles/Long Beach


U.S. Customs and Border Protection reports that port operations at Los Angeles and Long Beach, which had been shut down for about a week due to a union strike, were restored on Dec. 5. To alleviate the backlog of vessels that are anchored in the harbor, CBP Los Angeles is conducting vessel boardings to initiate the entry/clearance requirements so these vessels can dock at terminals as they open. Other actions being taken include the following.

- allowing for flexible boarding request(s) to include anchor boardings in preparation for arrival/discharge

- extending gate hours of operation at all terminals to include shifts from 3:00 a.m. to 8:00 a.m. if necessary

- extending internal watch commander work tours to address questions or concerns from the shipping community

- providing additional CBP personnel to accommodate non-intrusive inspection appointments at the terminals

- deploying additional CBP personnel at terminals with high alarm rates at the radiation portal monitor sites

- providing additional CBP personnel to staff the Trade Interface Unit to accommodate inquiries from the trade community

- extending operating hours at the container examination stations to support increased demands for cargo examinations and cargo releases 

Dates and Deadlines: Classification Rulings, FTZ Application, Hazmat Rules


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

Dec. 10 – effective date of revocation or modification of rulings on task lights, plastic cups, footwear

Dec. 10 – comments on proposed production activity at cosmetics facility in Oxford, N.C.

Dec. 12 – meeting of BIS Emerging Technology and Research Advisory Committee

Dec. 13 – ST&R webinar on basics of compliance with hazardous materials transportation rules

AD/CV Notices: Solar Cells, Carbon, Pipes, Glycine, Steel, Ribbons, Hangers


Agency: International Trade Administration.
Commodity: Crystalline silicon photovoltaic cells, whether or not assembled into modules.
Country: China.
Nature of Notice: Issuance of antidumping duty order, effective Dec. 7.
Details: The ITA will direct U.S. Customs and Border Protection to assess AD duties at rates ranging from 18.32% to 249.96% on unliquidated entries of subject merchandise entered or withdrawn from warehouse for consumption on or after May 25, 2012, except entries made between Nov. 21 and Dec. 5. The ITA will also instruct CBP to require AD cash deposits at these rates, adjusted where appropriate for export subsidies. Because the International Trade Commission made a negative critical circumstances determination, the ITA will instruct CBP to lift the suspension of liquidation, release any bond or other security and refund any AD cash deposit made with respect to entries of subject merchandise entered or withdrawn from warehouse for consumption on or after Feb. 25, 2012, but before May 25, 2012.

Agency: International Trade Administration.
Commodity: Crystalline silicon photovoltaic cells, whether or not assembled into modules.
Country: China.
Nature of Notice: Issuance of countervailing duty order, effective Dec. 7.
Details: The ITA will direct U.S. Customs and Border Protection to assess CV duties on unliquidated entries of solar cells from China that were entered or withdrawn from warehouse for consumption on or after March 26, 2012, and before July 24, 2012. Entries of solar cells made on or after July 24 and prior to Dec. 6 are not liable for the assessment of CV duties. In light of the International Trade Commission’s negative critical circumstances determination the ITA will direct CBP to refund all CV cash deposits collected on entries of solar cells that were entered or withdrawn from warehouse for consumption on or after Dec. 27, 2011, and before March 26, 2012. The ITA will also direct CBP to reinstitute the suspension of liquidation of solar cells effective Dec. 6 and to assess CV duties for each entry of subject merchandise in an amount based on the net countervailable subsidy rates. On or after Dec. 6 CBP must require CV cash deposits at rates ranging from 14.78% to 15.97%, depending on the exporter.

Agency: International Trade Administration.
Commodity: Activated carbon.
Country: China.
Nature of Notice: Rescission of administrative review of antidumping duty order for the period April 1, 2011, through March 31, 2012, with respect to two companies.

Agency: International Trade Administration.
Commodity: Circular welded carbon steel pipes and tubes.
Country: Korea.
Nature of Notice: Final results of administrative review of antidumping duty order for the period May 1, 2010, through April 30, 2011.
Details: Weighted average dumping margins of zero for one reviewed manufacturer/exporter and 6.05% for the other. AD duties based on these rates will be assessed on entries of subject merchandise made during the period of review, and AD cash deposits at the 6.05% rate will be required for appropriate shipments of subject merchandise entered or withdrawn from warehouse on or after Dec. 6.

Agency: International Trade Administration.
Commodity: Glycine.
Country: China.
Nature of Notice: Preliminary results of administrative review of antidumping duty order for the period March 1, 2011, through Feb. 29, 2012.
Details: Weighted average dumping margin of 453.79% for the China-wide entity, including Baoding Mantong Fine Chemistry Co. Ltd., which has not cooperated to the best of its ability and has withheld information.

Agency: International Trade Administration.
Commodity: Hot-rolled flat-rolled carbon-quality steel products.
Country: Russia.
Nature of Notice: Final results of administrative review for the period July 1, 2010, through June 30, 2011, and revision of agreement suspending AD duty investigation.

Agency: International Trade Administration.
Commodity: Narrow woven ribbons with woven selvedge.
Country: Taiwan.
Nature of Notice: Final results of administrative review of antidumping duty order for the period Sept. 1, 2010, through Aug. 31, 2011.
Details: Weighted average dumping margin of 137.20% for sole respondent Hubschercorp. AD duties based on this rate will be assessed on entries of subject merchandise made during the period of review, and AD cash deposits at this rate will be required for shipments of subject merchandise entered or withdrawn from warehouse on or after Dec. 6.

Agency: International Trade Administration.
Commodity: Corrosion-resistant carbon steel flat products.
Country: Germany and Korea.
Nature of Notice: Sunset review determinations that revocation of antidumping duty orders would likely lead to continuation or recurrence of dumping at margins of 9.35% to 12.85%.

Agency: International Trade Commission.
Commodity: Steel wire garment hangers.
Country: Taiwan.
Nature of Notice: Final affirmative antidumping injury determination.
Details: The ITA will soon issue an AD duty order on this merchandise. 

Customs Broker Licenses Revoked

U.S. Customs and Border Protection has announced the revocation of hundreds of customs broker licenses for failure to file the triennial status report and applicable fee. The full list can be found here

FMC to Discuss OTIs, Tariff Filing Exemption at Dec. 12 Meeting


The Federal Maritime Commission will hold an open meeting Dec. 12 in Washington, D.C. Topics of discussion will include the following.

- licensing, financial responsibility requirements and general duties for ocean transportation intermediaries

- the tariff filing exemption for non-vessel-operating common carrier negotiated rate arrangements

- use of alternative dispute resolution in enforcement proceedings  

Potential IPR Probe of Electronic Devices Evaluated for Public Interest Issues


The International Trade Commission is requesting comments no later than Dec. 14 on any public interest issues raised by a Section 337 intellectual property rights infringement complaint filed on behalf of Ericsson against certain electronic devices, including wireless communication devices, tablet computers, media players and televisions, and components thereof. Comments should address whether the issuance of exclusion orders and/or cease and desist orders pursuant to this complaint would affect the public health and welfare in the U.S., competitive conditions in the U.S. economy, the production of like or directly competitive articles in the U.S., or U.S. consumers. In particular, the ITC is interested in comments that:

- explain how the articles potentially subject to the orders are used in the U.S.;

- identify any public health, safety or welfare concerns in the U.S. relating to the potential orders;

- identify like or directly competitive articles that the complainant, its licensees or third parties make in the U.S. that could replace the subject articles if they were to be excluded;

- indicate whether the complainant, the complainant’s licensees and/or third-party suppliers have the capacity to replace the volume of articles potentially subject to the requested orders within a commercially reasonable time; and

- explain how the requested orders would impact U.S. consumers. 

Ocean Transportation Intermediary License Revocations, Reissuances, Applicants


OTI Licenses Revoked. The Federal Maritime Commission has given notice that the following ocean transportation intermediary licenses have been revoked. A revocation may occur after a license is surrendered voluntarily by the OTI or for failure to maintain a valid bond.

- license #:3135: N & N Safeway Shipping Company, Carson, Calif.
- license #:4243F: Bauhinia International Corp., South Ozone Park, N.Y.
- license #:018498N: Utopia Worldwide Inc., Valley Stream, N.Y.
- license #:021628N: A & S Shipping Company Inc., Miami, Fla.
- license #:022844F: World Freight Solutions Inc., Mobile, Ala.
- license #:023505NF: Savannah Logistical Services LLC d/b/a Savannah Logistical Services d/b/a SLS, Pooler, Ga.
- license #:004027F: U.S. Airfreight Inc., Doral, Fla.
- license #:022988F: World Class Solutions LLC, Doral, Fla.

OTI Licenses Reissued. The Federal Maritime Commission has given notice that the following ocean transportation intermediary licenses have been reissued.

- license #:022069F: Unique Logistics International (ATL) LLC, Atlanta, Ga.
- license #:015574N: WW Messenger & Shipping Co., Orange, N.J.

OTI License Applicants. The Federal Maritime Commission has provided notice that the following applicants have filed applications for licenses as non-vessel-operating common carrier and/or ocean freight forwarder ocean transportation intermediaries. Persons knowing of any reason why any of these applicants should not receive a license are requested to contact the FMC.

- Air 7 Seas Transport Logistics Inc., Milpitas, Calif.
- All International Solutions Inc., Gardena, Calif.
- BestOcean Worldwide Logistics Inc., Diamond Bar, Calif.
- D & D Transport Inc., Meridian, Miss.
- DCI Transport LLC, Cumming, Ga.
- EL Palmar International Inc., Miami, Fla.
- Embarque Los Hidalgos LLC, Paterson, N.J.
- Enter To USA LLC, Miami, Fla.
- Interchez Global Services Inc., Stow, Ohio
- J. F. Hillebrand USA Inc., Rahway, N.J.
- Kingz International Logistics Inc., Garland, Texas
- P. J. Caputo Shipping Co. Inc., Staten Island, N.Y.
- Paramount Enterprises International Inc., Exton, Pa.
- Premier Van Lines Inc., Escondido, Calif.
- Starship International Inc., Coconut Creek, Fla.
- Transnuclear Inc., Columbia, Md. 

DOC Working to Increase Exports of Environmental Technologies


The Department of Commerce is soliciting through Dec. 31 input from U.S. businesses capable of exporting certain environmental technologies. This information will be used in the development of a Web-based “U.S. Environmental Solutions Toolkit,” which is designed to be used by foreign environmental officials and foreign end-users of environmental technologies that will outline U.S. approaches to a series of environmental problems and highlight participating U.S. vendors of relevant U.S. technologies. These technologies include glycol dehydrators, absorption towers, flash tanks, diesel oxidation catalysts, diesel particulate filters, low NOx burners, and selective catalytic and non-catalytic reduction.

Ex-Im Bank Considers Financing Exports of Aircraft to Southeast Asia

The Export-Import Bank of the United States has received an application for final commitment for a long-term loan or financial guarantee in excess of $100 million that will support the export of commercial aircraft to Indonesia and/or Malaysia. These aircraft will be used to provide short- and medium-haul airline service in Indonesia and Malaysia and between these countries and others in Asia. Comments on this proposed transaction are due no later than Jan. 2, 2013.

 

U.S., EU Sign Deal to Promote Transatlantic Trade Among Small Businesses


The International Trade Administration and the European Commission Directorate-General for Enterprise and Industry signed this week a memorandum of understanding aimed at promoting international trade and business cooperation between small and medium-sized enterprises in the U.S. and the European Union. The MOU will guide U.S.-EU cooperation on small business trade promotion activities, which will include joint trade shows, cooperation on small business events, small business networking opportunities and the promotion of business partnering opportunities. It will also facilitate the undertaking of specific initiatives to address market access and other barriers that constrain the growth of SME trade and investment.

The next step will be to “quickly formulate a work plan and constitute an appropriate working group to advance a robust agenda coming out of the MOU,” said Assistant Secretary of Commerce Michael Camunez. “We want to work closely with the private sector to better understand the trade promotion, trade finance and market access challenges SMEs are facing—especially those SMEs that are at the forefront of introducing innovative and transformative products and services that are bona fide engines of job creation.” Camunez identified several areas on which the ITA is or will be focusing under the MOU, including developing a common template for third-market IPR toolkits that both the U.S. and the EU have developed, establishing an appropriate mechanism to help SMEs deal with standards and regulatory problems, considering practical mechanisms (such as crowd-funding) that specifically address the trade financing needs of SMEs, and better linking SMEs to known regional innovation and manufacturing clusters on both sides of the Atlantic. 

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