Washington Newsline

Mar 18
2

Gemini Shippers Group  calls on President Trump To Suspend Tariffs In Response to Coronavirus Outbreak

By | Customs & Trade Updates, Washington Newsline | No Comments

Members,
Today Gemini Shippers Group joined the other members of the Americans for Free Trade coalition in calling on President Trump To Suspend Tariffs In Response to Coronavirus Outbreak, Providing Relief to Millions of American Farmers, Manufacturers, and Consumers. A press release and a copy of the letter can be found below.

 

March 18, 2020
The Honorable Donald J. Trump
President of the United States of America
The White House
1600 Pennsylvania Avenue, N.W.
Washington, D.C. 20001

Dear Mr. President:

As you consider emergency measures to mitigate the economic harm from the spread of the
coronavirus, Americans for Free Trade urges you to consider taking swift action on a policy that
would provide tax relief to millions of American farmers, manufacturers, families, and
consumers without having to wait on action from Congress: suspending the additional tariffs
placed on certain imports under Section 301 of the Trade Act of 1974 and Section 232 of the
Trade Expansion Act. These tariffs are taxes that Americans pay.
According to research by Trade Partnership Worldwide LLC, suspending the Section 301 and
232 tariffs currently imposed on imports from China, and China’s associated retaliation, would
provide a boost to the U.S. economy of over $75 billion, or 0.4 percent of U.S. GDP, returning
discretionary income to families, encouraging capital expenditures by private companies, and
instilling market confidence in decisive action to address the current economic situation.
Moreover, as a set of policies that were implemented using executive authority, suspending these
tariffs can be taken quickly and decisively by your Administration without further authorization
steps from Congress.
Americans for Free Trade represents every part of the U.S. economy including manufacturers,
farmers and agribusinesses, forest products, retailers, technology companies, service suppliers,
natural gas and oil companies, importers, exporters, and other supply chain stakeholders, among
them many small and family-owned businesses from across the nation.
Together, we urge you to provide tariff relief as one of the measures to help those hurting
financially from the economic effects resulting from the current public health crisis.

Sincerely,

Accessories Council
ACT | The App Association
Agriculture Transportation Coalition (AgTC)
ALMA, International (Association of
Loudspeaker Manufacturing and Acoustics)
American Apparel & Footwear Association
(AAFA)
American Association of Exporters and
Importers (AAEI)
American Association of Port Authorities
American Bakers Association
American Bridal & Prom Industry Association
(ABPIA)
American Chemistry Council
American Coatings Association, Inc. (ACA)
American Down and Feather Council
American Fly Fishing Trade Association
American Home Furnishings Alliance
American Lighting Association
American Pyrotechnics Association
American Rental Association
American Specialty Toy Retailing Association
American Wind Energy Association
Arizona Technology Council
Arkansas Grocers and Retail Merchants
Association
Association For Creative Industries
Association for PRINT Technologies
Association of American Publishers
Association of Equipment Manufacturers
(AEM)
Association of Home Appliance Manufacturers
Auto Care Association
Beer Institute
Business & Institutional Furniture
Manufacturers Association (BIFMA)
California Retailers Association
Chemical Industry Council of Delaware
(CICD)
Coalition of New England Companies for
Trade (CONECT)
Colorado Retail Council
Columbia River Customs Brokers and
Forwarders Assn.
Computer & Communications Industry
Association (CCIA)
Computing Technology Industry Association
(CompTIA)
Consumer Brands Association
Consumer Technology Association
Council of Fashion Designers of America
(CFDA)
CropLife America
Customs Brokers & Freight Forwarders Assn.
of Washington State
Customs Brokers & Freight Forwarders of
Northern California
Distilled Spirits Council of the United States
Electronic Transactions Association
Fashion Accessories Shippers Association (FASA)
Fashion Jewelry & Accessories Trade Association
Flexible Packaging Association
Florida Ports Council
Florida Retail Federation
Footwear Distributors and Retailers of America (FDRA)
Fragrance Creators Association
Game Manufacturers Association
Gemini Shippers Association
Georgia Retailers
Global Chamber®
Global Cold Chain Alliance
Greeting Card Association
Halloween Industry Association
Hide Council of America
Hobby Manufacturers Association
Home Fashion Products Association
Home Furnishings Association
Household and Commercial Products Association
Idaho Retailers Association
Illinois Retail Merchants Association
Independent Office Products & Furniture
Dealers Association (IOPFDA)
Indiana Retail Council
Information Technology Industry Council (ITI)
International Foodservice Distributors Association
International Housewares Association
International Warehouse and Logistics Association
International Wood Products Association
Internet Association
ISSA – The Worldwide Cleaning Industry Association
Juice Products Association (JPA)
Juvenile Products Manufacturers Association
Licensing Industry Merchandisers’ Association
Los Angeles Customs Brokers and Freight
Forwarders Assn.
Louisiana Retailers Association
Maine Grocers & Food Producers Association
Maine Lobster Dealers’ Association
Maritime Exchange for the Delaware River
and Bay
Maryland Retailers Association
Methanol Institute
Michigan Chemistry Council
Michigan Retailers Association
Minnesota Retailers Association
Missouri Retailers Association
Motor & Equipment Manufacturers
Association
Motorcycle Industry Council
NAPIM (National Association of Printing Ink
Manufacturers)
National Association of Chain Drug Stores
(NACDS)
National Association of Chemical Distributors
(NACD)
National Association of Foreign-Trade Zones
(NAFTZ)
National Association of Home Builders
National Association of Music Merchants
National Association of Printing Ink
Manufacturers
National Association of Trailer Manufacturers
(NATM)
National Confectioners Association
National Council of Chain Restaurants
National Customs Brokers and Freight
Forwarders Association of America
National Foreign Trade Council
National Grocers Association
National Lumber and Building Material
Dealers Association
National Marine Manufacturers Association
National Restaurant Association
National Retail Federation
National Ski & Snowboard Retailers
Association
National Sporting Goods Association
Natural Products Association
New Jersey Retail Merchants Association
North American Association of Uniform
Manufacturers and Distributors (NAUMD)
North Carolina Retail Merchants Association
Ohio Council of Retail Merchants
Outdoor Industry Association
Pacific Coast Council of Customs Brokers and
Freight Forarders Assns. Inc.
Pennsylvania Retailers’ Association
PeopleforBikes
Personal Care Products Council
Pet Industry Joint Advisory Council
Petroleum Equipment & Services Association
Plumbing Manufacturers International
Power Tool Institute (PTI)
Promotional Products Association International
Recreational Off-Highway Vehicle Association
Retail Association of Maine
Retail Council of New York State
Retail Industry Leaders Association
Retailers Association of Massachusetts
RISE (Responsible Industry for a Sound Environment)
RV Industry Association
San Diego Customs Brokers and Forwarders Assn.
SEMI
Snowsports Industries America
Society of Chemical Manufacturers & Affiliates
Software & Information Industry Association (SIIA)
South Dakota Retailers Association
Specialty Equipment Market Association
Specialty Vehicle Institute of America
Sports & Fitness Industry Association
TechNet
Telecommunications Industry Association (TIA)
Texas Retailers Association
Texas Water Infrastructure Network
The Airforwarders Association
The Fertilizer Institute
The Hardwood Federation
The Toy Association
The Vinyl Institute
Travel Goods Association
Truck & Engine Manufacturers Association (EMA)
United States Council for International Business
United States Fashion Industry Association
US Global Value Chain Coalition
US-China Business Council
Virginia Retail Merchants Association
Virginia-DC District Export Council (VA-DC
DEC)
Washington Retail Association
Window and Door Manufacturers Association
World Pet Association, Inc. (WPA)
CC: Ambassador Robert Lighthizer, United States Trade Representative
Secretary Steven Mnuchin, Department of the Treasury
Secretary Wilbur Ross, Department of Commerce
Secretary Sonny Perdue, Department of Agriculture
Administrator Jovita Carranza, Small Business Administration
Director Larry Kudlow, National Economic Council

Mar 17
2

USTR Grants further Exclusions to List 3 for 5  tariff numbers that were subject to the Section 301 List 3

By | Customs & Trade Updates, Washington Newsline | No Comments

Members,

 ( 3/17/2020)  The US Trade Representative granted further exclusions to  List 3 for the section 301 tariff.

These exclusions retroactively apply to the September 24th, 2018 implementation date and remain in effect until August 7th, 2020.

The notice from USCBP is included below:

 

 CSMS #42048963 – GUIDANCE: Section 301 Tranche 3 – $200B Tenth Round of Product Exclusions from China (9903.88.41)

BACKGROUND
The U.S. Trade Representative (USTR) made the decision to grant certain exclusion requests from the Section 301 duty related to goods from China ($200B Action – Tranche 3) 83 FR 47974.
These product exclusions relate to the imposed additional duties announced in 83 FR 47974 on Chinese goods with an annual trade value of approximately $200 billion. The product exclusions will retroactively apply as of the September 24, 2018 with the effective date of the $200 billion action (Tranche 3), and will extend through August 7, 2020.
The exclusions are available for any product that meets the description in the Annex (see attachment), regardless of whether the importer filed an exclusion request. Further, the scope of each exclusion is governed by the scope of the Harmonized Tariff Schedule of the United States (HTSUS) 10-digit headings described in the Annex, and not by the product descriptions set out in any particular request for exclusion.
The functionality for the acceptance of the imported merchandise covered under the second round of products excluded from the Section 301 Tranche 3-$200B Action will be available in the Automated Commercial Environment (ACE) as of 7am eastern standard time, March 16, 2020.

GUIDANCE
The exclusions are reflected in five 10-digit HTSUS subheadings, which covered 75 separate exclusion request. Instructions for importers, brokers, and filers on submitting entries to CBP are set out below.
• In addition to reporting the regular Chapters 39, 40 and 56 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.41 (Articles the product of China, as provided for in U.S. note 20(tt) to this subchapter, each covered by an exclusion granted by the U.S. Trade Representative) for imported merchandise subject to the exclusion).
• Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.41 is submitted.
ADDITIONAL INFORMATION
Imports which have been granted a product exclusion from the Section 301 measures, and which are not subject to the Section 301 duties, are not covered by the Foreign Trade Zone (FTZ) provisions of the Section 301 Federal Register notices, but instead are subject to the FTZ provisions in 19 CFR part 146.
Duty exclusions granted by the USTR are retroactive for imports on or after the initial effective date of September 24, 2018. To request a refund of Section 301 duties paid on previous imports of products granted duty exclusions by the USTR, importers may file a Post Summary Correction (PSC) if within the PSC filing timeframe. If the entry is beyond the PSC filing timeframe, importers may protest the liquidation.
Reminder: When importers, brokers, and/or filers are submitting an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise, refer them to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTS when 98 or 99 HTS are required).

A section of the Annex with the excluded HTS codes can be accesed here:
Section 301 ANNEX 99038841.docx  and is noted below:

  1. Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on September 24, 2018, subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS) is modified:
    1. by inserting the following new heading 9903.88.41 in numerical sequence, with the material in the new heading inserted in the columns of the HTSUS labeled “Heading/Subheading”, “Article Description”, and “Rates of Duty 1-General”, respectively:

 

Heading/ Subheading Article Description Rates of Duty
1 2
General Special
“9903.88.41 Articles the product of China, as provided for in U.S. note 20(tt) to this subchapter, each covered by an exclusion granted by the U.S. Trade Representative . . . . . . . . . . . . . . . . . . . . . The duty provided in the applicable subheading”

 

  1. by inserting the following new U.S. note 20(tt) to subchapter III of chapter 99 in numerical sequence:

“(tt) The U.S. Trade Representative determined to establish a process by which particular products classified in heading 9903.88.03 and provided for in U.S. notes 20(e) and (f) to this subchapter could be excluded from the additional duties imposed by heading 9903.88.03. See 83 Fed. Reg. 47974 (September 21, 2018) and 84 Fed. Reg. 29576 (June 24, 2019). Pursuant to the product exclusion process, the U.S. Trade Representative has determined that the additional duties provided for in heading 9903.88.03 shall not apply to the following particular products, which are provided for in the enumerated statistical reporting numbers:

1)         3923.21.0030
2)         3923.21.0095
3)         3926.20.9050
4)         4015.19.1010
5)         5603.12.0090

  1. by amending the last sentence of the first paragraph of U.S. note 20(e) to subchapter III of chapter 99:

by deleting the word “or” where it appears after the phrase “U.S. note 20(qq) to subchapter III of chapter 99;”

and

  1. by inserting the phrase “; or (10) heading 9903.88.41 and U.S. note 20(tt) to subchapter III of chapter 99” after the phrase “U.S. note 20(ss) to subchapter III of chapter 99”.

 

  1. by amending U.S. note 20(f) to subchapter III of chapter 99;
  1. by deleting the word “or” where it appears after the phrase “U.S. note 20(qq) to subchapter III of chapter 99;”; and
  2. by inserting the phrase “; or (10) heading 9903.88.41 and U.S. note 20(tt) to subchapter III of chapter 99” after the phrase “U.S. note 20(ss) to subchapter III of chapter 99”.

 

  1. by amending the Article Description of heading 9903.88.03:

 

  1. by deleting “9903.88.38 or” and inserting “9903.88.38,” in lieu thereof; and

b. by inserting “or 9903.88.41,” after “9903.88.40,”.

Best regards
Gemini Shippers Group

Mar 12
0

CSMS #41998518 – GUIDANCE: Section 301 Tranche 3 – $200B Ninth Round of Product Exclusions from China

By | Customs & Trade Updates, Washington Newsline | No Comments

CSMS #41998518 – GUIDANCE: Section 301 Tranche 3 – $200B Ninth Round of Product Exclusions from China

BACKGROUND

On February 20, 2020, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 9921 announcing the decision to grant the ninth round of certain exclusion requests from the Section 301 duty related to goods from China ($200B Action – Tranche 3) 83 FR 47974.

These product exclusions relate to the imposed additional duties announced in 83 FR 47974 on Chinese goods with an annual trade value of approximately $200 billion.  The product exclusions announced in 85 FR 9921 retroactively apply as of the September 24, 2018 effective date of the $200 billion action (Tranche 3), and will extend through August 7, 2020.

The exclusions are available for any product that meets the description as set out in Annex A to Federal Register Notice 85 FR 9921, regardless of whether the importer filed an exclusion request.  Further, the scope of each exclusion is governed by the scope of the Harmonized Tariff Schedule of the United States (HTSUS) 10-digit headings and product descriptions in the Annex; not by the product descriptions set out in any particular request for exclusion.  For ease of reference, a link to the entire Federal Register Notice is embedded in this message.

The functionality for the acceptance of the ninth round of products of China excluded from Section 301 duties will be available in the Automated Commercial Environment (ACE) as of 7am eastern time, March 12, 2020.

GUIDANCE

Instructions for importers, brokers, and filers on submitting entries to CBP containing products granted exclusions by the USTR from the Section 301 measures as set out in 85 FR 9921 are as follow:

In addition to reporting the regular Chapters 28, 29, 40, 42, 44, 52, 54, 55, 56, 60, 65, 73, 76, 82, 83, 84, 85 and 94 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.40 (Articles the product of China, as provided for in U.S. note 20(ss) to this subchapter, each covered by an exclusion granted by the U.S. Trade Representative) for imported merchandise subject to the exclusion).
Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.40 is submitted.
ADDITIONAL INFORMATION

Imports which have been granted a product exclusion from the Section 301 measures, and which are not subject to the Section 301 duties, are not covered by the Foreign Trade Zone (FTZ) provisions of the Section 301 Federal Register notices, but instead are subject to the FTZ provisions in 19 CFR part 146.

Duty exclusions granted by the USTR are retroactive for imports on or after the initial effective date of September 24, 2018.  To request a refund of Section 301 duties paid on previous imports of products granted duty exclusions by the USTR, importers may file a Post Summary Correction (PSC) if within the PSC filing timeframe.  If the entry is beyond the PSC filing timeframe, importers may protest the liquidation.

Reminder: When importers, brokers, and/or filers are submitting an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise, refer them to CSMS 39587858 (Entry Summary Order of Reporting for Multiple HTS when 98 or 99 HTS are required).

For ease of reference, a summary of Section 301 duties and product exclusion notifications are provided below:

Questions from the importing community concerning ACE entry rejections involving product exclusions should be referred to their CBP Client Representative.  Questions related to Section 301 entry-filing requirements, please refer to CSMS message #40969690 (Information on Trade Remedy Questions and Resources) https://content.govdelivery.com/accounts/USDHSCBP/bulletins/27125da

Related CSMS Messages: #48134749, 40003027, 40002982, 40001360, 19-000052, 41702837, 41179115, 41052773, 41538917, 40984510, 40901928, 49710742, 40330403, 40208881, 40969690, 40564257, 39587690, 39587858, 39473933, 39268267, 93169565, 38840764, 19-000332, 19-000260, 19-000244, 19-000238, 19-000236, 19-000212

Feb 19
0

USTR Issues More Product Exclusions From Third Tranche of Section 301 Tariffs

By | Customs & Trade Updates, Washington Newsline | No Comments
USTR Issues More Product Exclusions From Third Tranche of Section 301 Tariffs
The Office of the U.S. Trade Representative issued another set of product exclusions from the third group of Section 301 tariffs on goods from China. The new exclusions from the tariffs include “one 10-digit HTSUS subheading,” which covers 6 requests, and “46 specially prepared product descriptions, which cover 61 exclusion requests,” according to the notice. The product exclusions apply retroactively to Sept. 24, 2018, the date the third set of tariffs took effect. The exclusions will remain in effect until Aug. 7, 2020.

 

Feb 18
0

Section 301 $200B – Tranche 3 Seventh Round of Product Exclusions from China

By | Customs & Trade Updates, Industry News, Washington Newsline | No Comments

Members

USCBP announced the following update on section 301 product exclusion today.

CSMS #41702837 – GUIDANCE: Section 301 $200B – Tranche 3 Seventh Round of Product Exclusions from China

On January 6, 2020, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 549 announcing the decision to grant the seventh round of certain exclusion requests from the 10 percent duty, and later amended to 25 percent duty, assessed under the Section 301 investigation related to goods from China ($200B Action – Tranche 3).

These product exclusions relate to the imposed additional duties announced in 83 FR 47974 on Chinese goods with an annual trade value of approximately $200 billion. The product exclusions announced in this notice retroactively apply as of the September 24, 2018 effective date of the $200 billion action (Tranche 3), and will extend through August 7, 2020.

The exclusions are available for any product that meets the description as set out in Annex A to Federal Register Notice 85 FR 549, regardless of whether the importer filed an exclusion request. Further, the scope of each exclusion is governed by the scope of the Harmonized Tariff Schedule of the United States (HTSUS) 10-digit headings and product descriptions in the Annex; not by the product descriptions set out in any particular request for exclusion. For ease of reference, a link to the entire Federal Register Notice is embedded in this message.

The functionality for the acceptance of the seventh round of products excluded from Section 301 duties is available in the Automated Commercial Environment (ACE) as of January 14, 2020.

GUIDANCE
Instructions for importers, brokers and filers on submitting entries to CBP containing products granted exclusions by the USTR from the Section 301 measures as set out in 85 FR 549 are as follow:

  • In addition to reporting the regular Chapters 34, 40, 42, 44, 54, 55, 56, 58, 73, 76, 79, 82, 84, 85, 87, 90 and 94 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.37 (Articles the product of China, as provided for in U.S. note 20(pp) to this subchapter, each covered by an exclusion granted by the U.S. Trade Representative) for imported merchandise subject to the exclusion.
  • Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.37 is submitted.

ADDITIONAL INFORMATION
Duty exclusions granted by the USTR are retroactive for imports on or after the initial effective date of September 24, 2018. To request a refund of Section 301 duties paid on previous imports of products granted duty exclusions by the USTR, importers may file a Post Summary Correction (PSC) if within the PSC filing timeframe. If the entry is beyond the PSC filing timeframe, importers may protest the liquidation.

Reminder: When submitting an entry summary in which a heading or subheading in Chapter 99 is claimed on imported merchandise, refer to CSMS #39587858 (Entry Summary Order of Reporting for Multiple HTS when 98 or 99 HTS are Required).

Imports which have been granted a product exclusion from the Section 301 measures, and which are not subject to the Section 301 duties, are not covered by the Foreign Trade Zone (FTZ) provisions of the Section 301 Federal Register notices, but instead are subject to the FTZ provisions in 19 CFR part 146.

For ease of reference, a summary of Section 301 duties and product exclusion notifications are provided below:

For more information related to the seventh round of products of China excluded from Section 301 duties, please refer to 85 FR 549, issued January 6, 2020.

Questions from the importing community concerning ACE entry rejections involving product exclusions should be referred to their CBP Client Representative. Questions related to Section 301 entry-filing requirements, please refer to CSMS message #40969690 Information on Trade Remedy Questions and Resources.

 

Feb 04
0

CSMS #41538917 – GUIDANCE: Decrease in Section 301 Duties on Certain Products of China; $300B-Action -Tranche 4A

By | Customs & Trade Updates, Washington Newsline | No Comments

Tooday, U.S. Customs and Border Protection issued a CSMS message with guidance for the List 4A tariff reduction which will take effect on February 14 – CSMS #41538917 – GUIDANCE: Decrease in Section 301 Duties on Certain Products of China; $300B-Action -Tranche 4A. Details of this message are posted below:

Cargo Systems Messaging Service

  CSMS #41538917 – GUIDANCE: Decrease in Section 301 Duties on Certain Products of China; $300B-Action -Tranche 4A

On August 20, 2019, the United States Trade Representative (USTR) published a Modification of Section 301 Action in 84 FR 43304 introducing another imposition of additional tariffs on products of China with an annual trade value of approximately $300 billion which is referred to as Tranche 4. The tariff subheadings subject to additional duties under Tranche 4 are separated into two lists with different effective dates – List 1, Trance 4A, covered by Annexes A and B, became effective September 1, 2019. The tariff subheadings subject to additional duties under list two (Tranche 4B) are addressed in Annexes C and D.

On January 22, 2020, USTR published in the Federal Register (85 FR 3714) the determination to modify the action being taken in the Section 301 Investigation for the additional duty rate to decrease from 15 percent to 7.5 percent for the products of China covered by the $300 billion tariff action Tranche 4/Annex A. Additionally, the assessment of additional duties on products of Annex C of the $300 billion section 301 trade remedy are suspended indefinitely per 84 FR 69447 (December 18, 2019).

GUIDANCE:
Products Covered by Tranche 4, Annex A (Described in Annex B) –
duty decrease from 15 percent ad valorem to 7.5 percent, effective February 14, 2020

Per 85 FR 3714, the decrease in import duties for Chinese goods covered by the Tranche 4, Annex A list of products subject to the Section 301 action are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 AM eastern daylight time on February 14, 2020.

Any article classified in a subheading covered by Annex A that is a product of China and that is entered, or withdrawn from warehouse for consumption, on or after February 14, 2020 is subject to the decreased Section 301 ad valorem duty rate of 7.5 percent, in addition to the general (Column 1) rate of duty for the imported merchandise. Therefore, in addition to any regular chapter reporting requirements, the following HTS number and duty rate must be reported:

 HTS                     Duty Rate 

9903.88.15           7.5 percent

Merchandise covered by Tranche 4A/Annex A that was admitted to a foreign trade zone under Privileged Foreign status will be subject to tariff classification at the rate of duty and tax in force on the date of filing the application for privileged foreign status. See 19 CFR 146.65(a)(1).

Immediate delivery procedures are not applicable.

For more information related to the decrease in duties imposed on the tariff subheadings for the products of China covered by the $300 billion tariff action Tranche 4, Annex A, refer to 85 FR 3714, issued January 22, 2020.

For questions on this and other trade remedy issues, please see Cargo Systems Messaging Service (CSMS) #40969690 – Information on Trade Remedy Questions and Resources.

Best regards

Gemini Shippers Group

Jan 15
0

FMC meeting update January 2020 – Final Rules to be Published Implementing Shipping Act Amendments and Revising Procedures

By | Washington Newsline | No Comments

 

Posted January 15, 2020

The Federal Maritime Commission today held its first meeting of 2020, publicly welcoming its newest member, voting to publish two final rules, and receiving in closed session a briefing on developments in the U.S. liner trades.

The Commission voted to issue a Final Rule implementing the Frank LoBiondo Coast Guard Authorization Act of 2018. The rule updates Commission regulations to:

  • Clarify that persons that advertise or hold themselves out as Ocean Transportation Intermediaries (OTIs) must be licensed as OTIs and meet associated financial responsibility requirements
  • Expand the prohibition on common carriers knowingly and willfully accepting or transporting cargo for OTIs that do not have a tariff or do not meet financial responsibility requirements
  • Make clear that OTI licensing and financial responsibility requirements do not apply to a person performing OTI services on behalf of an OTI for which it is a disclosed agent
  • Make comments submitted to the Commission regarding filed ocean common carrier and marine terminal operator agreements confidential
  • Include provisions on “nonpublic collaborative discussions” between Commissioners

The above rule permits the Commission to consider policy issues more efficiently, more effectively address deceptive business practices of unlicensed OTIs, and creates an atmosphere that encourages even more candid comments from the public in response to filed confidential agreements.

The Commission also voted to issue a final rule that modifies hearing procedures governing the denial, revocation, or suspension of an ocean transportation intermediary license. More specifically, it designates that the Commission’s Administrative Law Judge will preside over such hearings and sets out clear procedures for the hearings. The changes in these rules will streamline the OTI hearing process and is another example of the commitment of the Federal Maritime Commission to continually seek ways to ease the regulatory compliance burden while continuing to protect the interests of the public and the integrity of the marketplace.

The rule modifying OTI hearing procedures will be published next week in the Federal Register and will become effective 30 days following publication. The rule implementing provisions of the Frank LoBiondo Coast Guard Authorization Act of 2018 must be reviewed by the Office of Information and Regulatory Affairs before it can be published in the Federal Register.

During closed session, Commissioners were briefed on global and domestic economic outlooks; developments and risks in the container shipping industry; and what challenges the industry faces in the coming year. The Commission was informed that US-China trade volumes were down by more than 5% during the first half of 2019 and that simultaneously, Southeast Asian nations have realized significant growth in export volumes to the United States. Monitoring if and how trade volumes and carrier service shift in response to developments in global trade policy will be a key part of the ongoing work of the Federal Maritime Commission in 2020.

Finally, Commissioner Carl W. Bentzel participated in his first Commission meeting since being sworn-in on December 9, 2019.

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