Washington Newsline

Jan 12
0

Executive Order on Imposing Sanctions with Respect to Additional Sectors of Iran

By | Customs & Trade Updates, Washington Newsline | No Comments
Executive Order on Imposing Sanctions with Respect to Additional Sectors of Iran
The White House

By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.) (NEA), section 212(f) of the Immigration and Nationality Act of 1952 (8 U.S.C. 1182(f)), and section 301 of title 3, United States Code,

I, DONALD J. TRUMP, President of the United States of America, find that Iran continues to be the world’s leading sponsor of terrorism and that Iran has threatened United States military assets and civilians through the use of military force and support to Iranian-backed militia groups.  It remains the policy of the United States to deny Iran all paths to a nuclear weapon and intercontinental ballistic missiles, and to counter the totality of Iran’s malign influence in the region.  In furtherance of these objectives, it is the policy of the United States to deny the Iranian government revenues, including revenues derived from the export of products from key sectors of Iran’s economy, that may be used to fund and support its nuclear program, missile development, terrorism and terrorist proxy networks, and malign regional influence.

In light of these findings and in order to take further steps with respect to the national emergency declared in Executive Order 12957 of March 15, 1995, I hereby order:

Section 1.  (a)  All property and interests in property that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person of the following persons are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in:  any person determined by the Secretary of the Treasury, in consultation with the Secretary of State:

(i)    to operate in the construction, mining, manufacturing, or textiles sectors of the Iranian economy, or any other sector of the Iranian economy as may be determined by the Secretary of the Treasury, in consultation with the Secretary of State;

(ii)   to have knowingly engaged, on or after the date of this order, in a significant transaction for the sale, supply, or transfer to or from Iran of significant goods or services used in connection with a sector of the Iranian economy specified in, or determined by the Secretary of the Treasury, in consultation with the Secretary of State, pursuant to, subsection (a)(i) of this section;

(iii)  to have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, any person whose property and interests in property are blocked pursuant to this order; or

(iv)   to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to this order.

(b)  The prohibitions in this section apply except to the extent provided by statutes, or in regulations, orders, directives, or licenses that may be issued pursuant to this order, and notwithstanding any contract entered into or any license or permit granted before the date of this order.

Sec. 2.   (a)  The Secretary of the Treasury, in consultation with the Secretary of State, is hereby authorized to impose on a foreign financial institution the sanctions described in subsection (b) of this section upon determining that the foreign financial institution has, on or after the date of this order, knowingly conducted or facilitated any significant financial transaction:

(i)   for the sale, supply, or transfer to or from Iran of significant goods or services used in connection with a sector of the Iranian economy specified in, or determined by the Secretary of the Treasury, in consultation with the Secretary of State, pursuant to, section 1(a)(i) of this order; or

(ii)  for or on behalf of any person whose property and interests in property are blocked pursuant to section 1 of this order.

(b)  With respect to any foreign financial institution determined by the Secretary of the Treasury, in consultation with the Secretary of State, in accordance with this section to meet the criteria set forth in subsection (a) of this section, the Secretary of the Treasury may prohibit the opening, and prohibit or impose strict conditions on the maintaining, in the United States of a correspondent account or a payable-­through account by such foreign financial institution.

(c)  The prohibitions in subsection (b) of this section apply except to the extent provided by statutes, or in regulations, orders, directives, or licenses that may be issued pursuant to this order, and notwithstanding any contract entered into or any license or permit granted before the date of this order.

Sec. 3.  The unrestricted immigrant and nonimmigrant entry into the United States of aliens determined to meet one or more of the criteria in section l(a) of this order would be detrimental to the interests of the United States, and the entry of such persons into the United States, as immigrants or nonimmigrants, is hereby suspended, except where the Secretary of State determines that the person’s entry would not be contrary to the interests of the United States, including when the Secretary so determines, based on a recommendation of the Attorney General, that the person’s entry would further important United States law enforcement objectives.  In exercising this responsibility, the Secretary of State shall consult the Secretary of Homeland Security on matters related to admissibility or inadmissibility within the authority of the Secretary of Homeland Security.  Such persons shall be treated in the same manner as persons covered by section 1 of Proclamation 8693 of July 24, 2011 (Suspension of Entry of Aliens Subject to United Nations Security Council Travel Bans and International Emergency Economic Powers Act Sanctions).

The Secretary of State shall have the responsibility for implementing this section pursuant to such conditions and procedures as the Secretary has established or may establish pursuant to Proclamation 8693.

Sec. 4. I hereby determine that the making of donations of the types of articles specified in section 203(b)(2) of IEEPA (50 U.S.C. 1702(b)(2)) by, to, or for the benefit of any person whose property and interests in property are blocked pursuant to section 1 of this order would seriously impair the President’s ability to deal with the national emergency declared in Executive Order 12957, and I hereby prohibit such donations as provided by section 1 of this order.

Sec. 5. The prohibitions in section 1 of this order include:

(a)  the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any person whose property and interests in property are blocked pursuant to this order; and

(b)  the receipt of any contribution or provision of funds, goods, or services from any such person.

Sec. 6.  (a)  Any transaction that evades or avoids, has the purpose of evading or avoiding, causes a violation of, or attempts to violate any of the prohibitions set forth in this order is prohibited.

(b)  Any conspiracy formed to violate any of the prohibitions set forth in this order is prohibited.

Sec. 7.   For the purposes of this order:

(a)  The term “entity” means a partnership, association, trust, joint venture, corporation, group, subgroup, or other organization;

(b)  the term “foreign financial institution” means any foreign entity that is engaged in the business of accepting deposits, making, granting, transferring, holding, or brokering loans or credits, or purchasing or selling foreign exchange, securities, commodity futures or options, or procuring purchasers and sellers thereof, as principal or agent.  The term includes, but is not limited to, depository institutions, banks, savings banks, money service businesses, trust companies, securities brokers and dealers, commodity futures and options brokers and dealers, forward contract and foreign exchange merchants, securities and commodities exchanges, clearing corporations, investment companies, employee benefit plans, dealers in precious metals, stones, or jewels, and holding companies, affiliates, or subsidiaries of any of the foregoing.  The term does not include the international financial institutions identified in 22 U.S.C. 262r(c)(2), the International Fund for Agricultural Development, the North American Development Bank, or any other international financial institution so notified by the Secretary of the Treasury;

(c)  the term “Government of Iran” includes the Government of Iran, any political subdivision, agency, or instrumentality thereof, including the Central Bank of Iran, and any person owned or controlled by, or acting for or on behalf of, the Government of Iran;

(d)  the term “Iran” means the Government of Iran and the territory of Iran and any other territory or marine area, including the exclusive economic zone and continental shelf, over which the Government of Iran claims sovereignty, sovereign rights, or jurisdiction, provided that the Government of Iran exercises partial or total de facto control over the area or derives a benefit from economic activity in the area pursuant to international arrangements;

(e)  the term “knowingly,” with respect to conduct, a circumstance, or a result, means that a person has actual knowledge, or should have known, of the conduct, the circumstance, or the result;

(f)  the term “person” means an individual or entity; and

(g)  the term “United States person” means any United States citizen, permanent resident alien, entity organized under the laws of the United States or any jurisdiction within the United States (including foreign branches), or any person in the United States.

Sec. 8. For those persons whose property and interests in property are blocked pursuant to this order who might have a constitutional presence in the United States, I find that because of the ability to transfer funds or other assets instantaneously, prior notice to such persons of measures to be taken pursuant to this order would render those measures ineffectual.  I therefore determine that for these measures to be effective in addressing the national emergency declared in Executive Order 12957, there need be no prior notice of a listing or determination made pursuant to this order.

Sec. 9.  The Secretary of the Treasury, in consultation with the Secretary of State, is hereby authorized to take such actions, including the promulgation of rules and regulations, and to employ all powers granted to the President by IEEPA as may be necessary to carry out the purposes of this order.  The Secretary of the Treasury may, consistent with applicable law, redelegate any of these functions within the Department of the Treasury.  All departments and agencies of the United States shall take all appropriate measures within their authority to implement this order.

Sec. 10. (a)  Nothing in this order shall be construed to impair or otherwise affect:

(i)   the authority granted by law to an executive department or agency, or the head thereof; or

(ii)  the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

(b)  This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

(c)  This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

Sec. 11.  This order shall not apply with respect to any person for conducting or facilitating a transaction for the provision (including any sale) of agricultural commodities, food, medicine, or medical devices to Iran.

Sec. 12.  Nothing in this order shall prohibit transactions for the conduct of the official business of the United Nations (including its specialized agencies, programmes, funds, and related organizations) by employees, grantees, or contractors thereof.

Sec. 13.  The measures taken pursuant to this order are in response to actions of the Government of Iran occurring after the conclusion of the 1981 Algiers Accords, and are intended solely as a response to those later actions.

DONALD J. TRUMP
THE WHITE HOUSE,
January 10, 2020.

 

 

 

Dec 20
0

Federal Maritime Commission Issues Order in Petition No. P3-18

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Commission Issues Order in Petition No. P3-18

The Federal Maritime Commission issued an Order today partially granting Petition No. P3-18 for exemption filed by the World Shipping Council, seeking regulatory relief from 46 U.S.C. 40502(b) and (d).

The Order grants an exemption from the requirement to publish the essential terms of service contracts, and denies a requested exemption from the requirement to file service contracts with the Commission.

The Commission voted during a public meeting on September 26, 2019 to proceed with this Order and a proposed rule that will implement the exemption from essential terms publication. In accordance with her vote at that time, Commissioner Rebecca F. Dye dissented today from the Commission’s Order, stating she would have granted the petition in its entirety. A proposed rule will be issued for comment in the new year

Nov 21
0

Gemini Shippers Group joins multi-association letter on preventing counterfeit goods.

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Gemini Shippers Group , joined a multi-trade association letter sponsored by the Toy Association to the House Judiciary Committee bringing attention to the need for the US government to continue to address the issues of counterfeit goods

====================================================================================================================

Dear Chairman Nadler, Ranking Member Collins:

On behalf of the undersigned organizations representing U.S. rights holders and manufacturers, both large and small, we would like to thank the House Judiciary Committee for its vigorous support in bringing attention to the significant issue of the sale of unsafe counterfeits on ecommerce marketplaces.

While ecommerce has provided many opportunities for legitimate companies to grow and reach new consumers, it has also contributed significantly to a disturbing rise in illicit trade. The current online marketplace structure incentivizes a “hands off” approach to ensuring the quality, safety and authenticity of the products sold. The drive to quickly provide more products at cheaper prices has come at a significant cost—counterfeit products damage businesses, disregard regulatory protection and, at worst, threaten consumer health and safety. To effectively combat this, we encourage the committee to pursue legislation that would change the incentive structure by holding marketplaces to the same liability standard as brick-and-mortar stores in an effort to ensure the compliance of products sold on their sites.
As identified in a recent Organisation for Economic Cooperation and Development (OECD) report, trade in fake goods has grown steadily in the last few years, exceeding $500 billion and accounting for 3.3% of global trade. In this environment, the most robust efforts to address the sale of illicit goods have thus far been ineffective. Barring significant changes, marketplaces will continue to be rife with unsafe knockoffs that threaten U.S. consumers and businesses.
Trade in counterfeits, knockoffs and other intellectual property infringing items not only damages legitimate U.S. businesses, but also fuels other illicit crimes and poses significant safety risks for U.S. consumers. That’s why any solution must extend beyond merely addressing the trade in fakes and encompass measures that ensure the quality of the products we, as consumers, purchase every day. Consumers should have the same assurance that the products they purchase are compliant regardless of whether they are bought online or in a brick and mortar store. We represent companies that invest substantial resources to ensure the safety and quality of the products they sell, and U.S. laws hold our members accountable to do so. It’s time a system is established that evens the playing field.
To that end, we encourage Congress to establish a system that promotes accountability. We join together to support for legislation that makes third party intermediaries, including online marketplaces, liable for ensuring that products sold on their platforms comply with U.S. laws and regulations. We also encourage Congress to increase the requirements necessary for individuals to sell on ecommerce marketplaces by establishing a minimum threshold for submission and validation of identification, banking, and product authentication documentation. In tandem, these solutions would result in a greater assurance that the products U.S. consumers are purchasing are authentic and, more importantly, safe.
Moreover, many online marketplaces at present do not enforce effective policies for repeat infringers, including termination of sellers and all their related accounts and listings. For this reason, we also ask that Congress explore having online marketplaces implement a “three strike” or similar system that permanently bans bad actors from conducting illicit business on their platforms.
We are ready to work with you and members of the Committee to further raise awareness and develop solutions to combat the sale of counterfeits online. Please feel free to reach out to any one of the associations listed below to discuss how we can support this effort.

Oct 03
0

Section 301 updates for October 3rd, 2019

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USTR issued two Federal Register notices granting new exclusions for about 200 HTS lines that fall under List 1 and List 2.  CBP will provide additional guidance for the exclusions in the coming days.

  • List 1 Exclusions – Retroactive to July 6, 2018 and will expire on October 2, 2020.
  • List 2 Exclusions – Retroactive to August 23, 2018 and will expire on October 2, 2020.

USTR is still working through their process on the proposed increase of the tariffs on Lists 1-3 from 25 to 30 percent.  The tariff increases were supposed to take effect on October 1, but was delayed to October 15 based upon a tweet from President Trump.  USTR has said that they will publish a Federal Register soon regarding the proposed increase.  As a reminder, the proposed increase in the tariffs were subject to notice and comments.  AFT submitted comments in opposition to the proposed increase.  We will share the FR notice as soon as it’s published.

Sep 20
2

Gemini Shippers Group joined members of American for Free Trade coalition in the following letter to the US Trade Representative

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

Gemini Shippers Group joined members of American for Free Trade coalition in the following letter to the US Trade Representative.

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

 

Submitted via www.regulations.gov.

September 20, 2019
The Honorable Robert E. Lighthizer
United States Trade Representative
600 Seventeenth Street, N.W.
Washington, D.C. 20508

Re: Request for Comments Concerning Proposed Modification of Action Pursuant to
Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer,
Intellectual Property, and Innovation (Docket Number USTR-2019-0015)

Dear Ambassador Lighthizer,

On behalf of the Americans for Free Trade coalition, we are writing to strongly oppose
the proposed increase of the China 301 tariffs on Tranches 1-3 from 25 percent to 30 percent. We
agree that China and other trading partners must be held accountable for trade violations.
However, the use of broadly applied tariffs has not resulted in change in policy and is continuing
to harm U.S. businesses, workers and consumers.

Our coalition represents every part of the U.S. economy, including manufacturers,
farmers and agribusinesses, retailers, technology companies, service suppliers, natural gas and
oil companies, importers, exporters and other supply chain stakeholders. Collectively, we
support tens of millions of American jobs through our vast supply chains.

According to data released by our coalition, American businesses paid an additional $6.8
billion in tariffs in July 2019 alone, the most recent month data is available from the U.S. Census
Bureau. This represents a $6.8 billion tax increase to U.S. companies. The data also shows that
U.S. exports have continued a downward spiral because of China’s retaliatory tariffs.
We continue to hear and see story after story about the negative impacts of the tariffs on
businesses large and small. Because of increased costs and ongoing uncertainty surrounding the
U.S.- China trade relationship, many companies are being forced to hold back on planned
investments, refrain from hiring new employees or pass along price increases to their customers.
While the economy remains strong, there continue to be clouds on the horizon that could result
in further weakening.

USTR asks specifically whether or not the additional duties would be “practicable or
effective” to obtain the elimination of China’s acts, policies and practices, and whether
increasing the tariff rate would cause disproportionate economic harm to U.S. interests, including
small- or medium-sized businesses and consumers. To date, the tariffs have not been a
practicable or effective tool in obtaining changes to China’s acts. We do not believe an increase
of 5 percent, or any other increase that may be planned, will be effective. However, we do
believe the planned tariff increase, or any other, will cause economic harm to U.S. interests.
This is especially true of small- and medium-sized businesses that bear the brunt of the tariff
increases. These companies especially have less flexibility to mitigate the impact of the tariffs by
shifting sourcing, absorbing the tariff or passing the tax increase on to their customers.
We call upon the administration to forgo the tariff increase on Tranches 1-3 and use the
upcoming October negotiating session as an opportunity to achieve a path forward on a final deal
with China that will address the ongoing trade issues and remove the tariffs.

Sincerely,

Accessories Council
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 Down and Feather Council
American Fly Fishing Trade Association
American Home Furnishings Alliance
American Lighting Association
American Petroleum Institute
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 Equipment Manufacturers (AEM)
Association of Home Appliance Manufacturers
Auto Care Association
Beer Institute
BSA | The Software Alliance
California Retailers Association
Carolina Loggers Association
Chemical Industry Council of Delaware (CICD)
Coalition of New England Companies for Trade (CONECT)
Coalition of Services Industries (CSI)
Colorado Retail Council
Columbia River Customs Brokers and Forwarders Assn.
Computer & Communications Industry Association (CCIA)
Computing Technology Industry Association (CompTIA)
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
Grocery Manufacturers Association
Halloween Industry Association
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 Bottled Water Association (IBWA)
International Foodservice Distributors Association
International Housewares Association
International Precious Metals Institute
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
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 Electrical Manufacturers Association (NEMA)
National Fisheries Institute
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 Forwarders 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)

U.S. Hide, Skin and Leather Association
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)

Sep 18
2

Have your team join the fight against tariffs – Employee Petition Tool now live

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

The Tariffs Hurt the Heartland campaign has developed an Employee Petition Tool to allow your employees, vendors and customers to sign a letter opposing the tariffs that will be delivered to the White House and Congress. The letter will be issued when we have a critical mass of signatures. Only signers names, city and state will appear on the final letter.

We strongly encourage you to share this tool with your employees, customers and other vendors so they can make their voice heard.

Jul 08
0

USTR Notice of Product Exclusions: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation

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

The following notice was published in the Federal Register today

Notice of Product Exclusions: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation

AGENCY: Office of the United States Trade Representative.

ACTION: Notice of product exclusions.

SUMMARY: Effective July 6, 2018, the U.S. Trade Representative (Trade
Representative) imposed additional duties on goods of China with an annual trade value
of approximately $34 billion (the $34 billion action) as part of the action in the Section
301 investigation of China’s acts, policies, and practices related to technology transfer,
intellectual property, and innovation. The Trade Representative’s determination included
a decision to establish a product exclusion process. The Trade Representative initiated the
exclusion process in July 2018, and stakeholders have submitted requests for the
exclusion of specific products. In December 2018, March 2019, April 2019, May 2019,
and June 2019, the Trade Representative granted exclusion requests. This notice
announces the Trade Representative’s determination to grant additional exclusion
requests, as specified in the Annex to this notice. The Trade Representative will continue
to issue decisions on pending requests on a periodic basis.
DATES: The product exclusions announced in this notice will apply as of the July 6,
2018 effective date of the $34 billion action, and will extend for one year after the
publication of this notice. U.S. Customs and Border Protection will issue instructions on
entry guidance and implementation.

FOR FURTHER INFORMATION CONTACT: For general questions about this
notice, contact Assistant General Counsels Philip Butler or Megan Grimball, or Director
of Industrial Goods Justin Hoffmann at (202) 395-5725. For specific questions on
customs classification or implementation of the product exclusions identified in the
Annex to this notice, contact traderemedy@cbp.dhs.gov.

SUPPLEMENTARY INFORMATION:
A. Background
For background on the proceedings in this investigation, please see the prior
notices issued in the investigation, including 82 FR 40213 (August 23, 2017), 83 FR
14906 (April 6, 2018), 83 FR 28710 (June 20, 2018), 83 FR 33608 (July 17, 2018), 83
FR 38760 (August 7, 2018), 83 FR 40823 (August 16, 2018), 83 FR 47974 (September
21, 2018), 83 FR 65198 (December 19, 2018), 83 FR 67463 (December 28, 2018), 84 FR
7966 (March 5, 2019), 84 FR 11152 (March 25, 2019), 84 FR 16310 (April 18, 2019), 84
FR 21389 (May 14, 2019), and 84 FR 25895 (June 4, 2019).
Effective July 6, 2018, the Trade Representative imposed additional 25 percent
duties on goods of China classified in 818 8-digit subheadings of the Harmonized Tariff
Schedule of the United States (HTSUS), with an approximate annual trade value of $34
billion. See 83 FR 28710. The Trade Representative’s determination included a decision
to establish a process by which U.S. stakeholders may request exclusion of particular
products classified within an 8-digit HTSUS subheading covered by the $34 billion
action from the additional duties. The Trade Representative issued a notice setting out the
process for the product exclusions, and opened a public docket. See 83 FR 32181 (the
July 11 notice).

Under the July 11 notice, requests for exclusion had to identify the product
subject to the request in terms of the physical characteristics that distinguish the product
from other products within the relevant 8-digit subheading covered by the $34 billion
action. Requestors also had to provide the 10-digit subheading of the HTSUS most
applicable to the particular product requested for exclusion, and could submit information
on the ability of U.S. Customs and Border Protection to administer the requested
exclusion. Requestors were asked to provide the quantity and value of the Chinese-origin
product that the requestor purchased in the last three years. With regard to the rationale
for the requested exclusion, requests had to address the following factors:
 Whether the particular product is available only from China and specifically whether
the particular product and/or a comparable product is available from sources in the
United States and/or third countries.
 Whether the imposition of additional duties on the particular product would cause
severe economic harm to the requestor or other U.S. interests.
 Whether the particular product is strategically important or related to “Made in China
2025” or other Chinese industrial programs.
The July 11 notice stated that the Trade Representative would take into account whether
an exclusion would undermine the objective of the Section 301 investigation.
The July 11 notice required submission of requests for exclusion from the $34
billion action no later than October 9, 2018, and noted that the Trade Representative
would periodically announce decisions. In December 2018, the Trade Representative
granted an initial set of exclusion requests. See 83 FR 67463. The Trade Representative
granted a second, third, fourth and fifth set of exclusions in March 2019, April 2019, May
2019, and June 2019. See 84 FR 11152, 84 FR 16310, 84 FR 21389, and 84 FR 25895.
The Office of the United States Trade Representative regularly updates the status of each
pending request and posts the status within the webpages for the respective tariff action
they apply to at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariffactions.

B. Determination to Grant Certain Exclusions
Based on the evaluation of the factors set out in the July 11 notice, which are
summarized above, pursuant to sections 301(b), 301(c), and 307(a) of the Trade Act of
1974, as amended, and in accordance with the advice of the interagency Section 301
Committee, the Trade Representative has determined to grant the product exclusions set
out in the Annex to this notice. The Trade Representative’s determination also takes into
account advice from advisory committees and any public comments on the pertinent
exclusion requests.
As set out in the Annex to this notice, the exclusions are reflected in 110 specially
prepared product descriptions, which cover 362 separate exclusion requests.
In accordance with the July 11 notice, the exclusions are available for any product
that meets the description in the Annex, regardless of whether the importer filed an
exclusion request. Further, the scope of each exclusion is governed by the scope of the
product descriptions in the Annex to this notice, and not by the product descriptions set
out in any particular request for exclusion.
Paragraph A, subparagraphs (3) – (5) are conforming amendments to the HTSUS
reflecting the modification made by the Annex to this notice.

Paragraph B of the Annex to this notice modifies U.S. note 20(k)(26) to
subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States, as
set out in the Annex of the notice published at 84 FR 21389 (May 14, 2019).
In order to clarify the periodic revisions to the HTSUS, paragraph C of the Annex
modifies the text to U.S. note 20(m)(27) to subchapter III of chapter 99 of the
Harmonized Tariff Schedule of the United States, as set out in the Annex of the notice
published at 84 FR 25895 (June 4, 2019).
Paragraphs D and E of the Annex to this notice correct a typographical error in
U.S. notes 20(m)(53) and 20(m)(54) to subchapter III of chapter 99 of the Harmonized
Tariff Schedule of the United States, as set out in the Annex of the notice published at 84
FR 25895 (June 4, 2019).
As stated in the July 11 notice, the exclusions will apply as of the July 6, 2018
effective date of the $34 billion action, and extend for one year after the publication of
this notice. U.S. Customs and Border Protection will issue instructions on entry guidance
and implementation.
The Trade Representative will continue to issue determinations on pending
requests on a periodic basis.
Joseph Barloon,
General Counsel,
Office of the U.S. Trade Representative.

ANNEX

A. 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 July
6, 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 9903.88.11 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
“9903.88.11 Articles the product of China, as provided for
in U.S. note 20(n) to this subchapter, each
covered by an exclusion granted by the U.S.
Trade Representative . . . . . . . . . . . . . . . . . . . . . The duty
provided in
the
applicable
subheading”

2. by inserting the following new U.S. note 20(n) to subchapter III of chapter 99 in
numerical sequence:
“(n) The U.S. Trade Representative determined to establish a process by which
particular products classified in heading 9903.88.01 and provided for in U.S. notes
20(a) and 20(b) to this subchapter could be excluded from the additional duties
imposed by heading 9903.88.01. See 83 Fed. Reg. 28710 (June 20, 2018) and 83 Fed.
Reg. 32181 (July 11, 2018). Pursuant to the product exclusion process, the U.S. Trade
Representative has determined that the additional duties provided for in heading
9903.88.01 shall not apply to the following particular products, which are provided
for in the enumerated statistical reporting numbers:

(1) Heat exchangers, the foregoing comprising parts of goods of heading 8402
and each fitted for heat recovery steam generator (described in statistical
reporting number 8402.90.0010)
(2) Drums, exhaust stacks, and inlet duct panel assemblies of heat recovery steam
generators (described in statistical reporting number 8402.90.0090)
(3) Water tanks for steam or other vapor generating boilers (described in
statistical reporting number 8402.90.0090)
(4) Compression-ignition engines with maximum power exceeding 50 kW but not
exceeding 120 kW, each valued over $6,000 but not over $9,500 per unit
(described in statistical reporting number 8408.90.9010)
(5) Compression-ignition engines, exceeding 149.2 kW but not exceeding 373
kW and valued over $9,800 but not over $12,000 (described in statistical
reporting number 8408.90.9020)
(6) Aircraft gas turbine compressor cases of steel and Inconel alloy, each valued
over $3,000 but not over $4,000 (described in statistical reporting number
8411.99.9090)
(7) Engine stationary seal air supports of Inconel alloy, each measuring over 35
cm but not over 35.5 cm in outer diameter and over 3.5 cm but not over 4 cm
in width (described in statistical reporting number 8411.99.9090)
(8) Direct acting and spring return pneumatic actuators, each rated at a maximum
pressure of 10 bar and valued over $68 but not over $72 per unit (described in
statistical reporting number 8412.39.0080)
(9) Spring-operated motors, each valued over $3,000 but not over $3,600
(described in statistical reporting number 8412.80.1000)
(10) Gear-type hydraulic fluid power pumps, handheld, battery powered, the
foregoing not over 5 cm in width and valued not over $6 per unit (described in
statistical reporting number 8413.60.0030)
(11) Centrifugal water pumps incorporating thermal cut-offs, each with discharge
outlet 5.08 cm or more in diameter, valued over $66 but not over $72 per unit
(described in statistical reporting number 8413.70.2015)
(12) Motor vehicle oil pump housings (described in statistical reporting number
8413.91.9010)
(13) Impellers (described in statistical reporting number 8413.91.9095)
(14) Parts of oil and gas extraction beam pumps, other than hydraulic power pumps
(described in statistical reporting number 8413.91.9095)
(15) Pedestals of pump assemblies (described in statistical reporting number
8413.91.9095)
(16) Pump bases, of plastic, designed to protect the pump impellers from
obstructions (described in statistical reporting number 8413.91.9095)
(17) Pump casings and bodies (described in statistical reporting number
8413.91.9095)
(18) Pump covers (described in statistical reporting number 8413.91.9095)
(19) Pump expellers (described in statistical reporting number 8413.91.9095)
(20) Pump grease cups and grease cup adapters (described in statistical reporting
number 8413.91.9095)
(21) Pump liners (described in statistical reporting number 8413.91.9095)
(22) Pump manifolds (described in statistical reporting number 8413.91.9095)
(23) Pump parts, of plastics, each valued not over $3 (described in statistical
reporting number 8413.91.9095)
(24) Pump shaft castings, of steel (described in statistical reporting number
8413.91.9095)
(25) Pump throatbushes (described in statistical reporting number 8413.91.9095)
(26) Pump volutes (described in statistical reporting number 8413.91.9095)
(27) Structural pump bases, of stainless steel (described in statistical reporting
number 8413.91.9095)
(28) Compressors, other than screw type, used in air conditioning equipment in
motor vehicles, each valued over $88 but not over $92 per unit (described in
statistical reporting number 8414.30.8030)
(29) Compressors, other than screw type, of a kind used in household refrigerators,
air conditioners and heat pumps, rated at more than 1/4 horsepower but not
more than 1 horsepower, each valued not over $150 (described in statistical
reporting number 8414.30.8050)
(30) Fork-lift trucks, propane gas powered, having a rated lift capacity over 9.5
metric tons but not exceeding 33 metric tons (described in statistical reporting
number 8427.20.8090)
(31) Motor grader weighing more than 14 metric tons but not over 21 metric tons
(described in statistical reporting number 8429.20.0000)
(32) Self-propelled pneumatic compactors, each weighing over 14 metric tons but
not over 28 metric tons (described in statistical reporting number
8429.40.0040)
(33) New articulated shovel loaders, wheeled, each with 4-wheel drive, rear
mounted engine and a bucket capacity of under 1.5 m
, rated at not over 26
horsepower (described in statistical reporting number 8429.51.1015)
(34) Integrated tractor shovel loaders, each with 4 wheel drive, a bucket capacity of
at least 3.8 m3
but less than 5.2 m3
and an operating weight of 17.5 metric tons
or more but not over 20 metric tons (described in statistical reporting number
8429.51.1040)
(35) Shovel loaders with an operating weight of from 30 metric tons to 36 metric
tons (described in statistical reporting number 8429.51.1045)
(36) Shovel loaders with an operating weight of from 30 metric tons to 36 metric
tons (described in statistical reporting number 8429.51.1050)
(37) Rubber track shovel loaders having a lift capacity not over 375 kg (described
in statistical reporting number 8429.51.5010)
(38) Grooved wire rope drum valued over $350 (described in statistical reporting
number 8431.10.0010)
(39) Escalator drive assemblies consisting of a motor, planetary gear and gearbox
(described in statistical reporting number 8431.31.0040)
(40) Escalator steps (described in statistical reporting number 8431.31.0040)
(41) Parts of passenger or freight elevators consisting of any of the following:
elevator emergency brake and speed governor apparatus, scissor lift
assemblies, telescoping boom lift assemblies or articulating boom lift
assemblies (described in statistical reporting number 8431.31.0060)
(42) Counterweights for log handling equipment (described in statistical reporting
number 8431.39.0070)
(43) Backhoe counterweights each weighing more than 400 kg but not more than
600 kg (described in statistical reporting number 8431.49.9044)
(44) Excavator crawler shoes (described in statistical reporting number
8431.49.9044)
(45) Seeder or spreader baffle and baffle assemblies (described in statistical
reporting number 8432.90.0060)
(46) Seeder or spreader frames (described in statistical reporting number
8432.90.0060)
(47) Seeder or spreader handles (described in statistical reporting number
8432.90.0060)
(48) Seeder or spreader hopper assemblies (described in statistical reporting
number 8432.90.0060)
(49) Seeder or spreader hopper grates (described in statistical reporting number
8432.90.0060)
(50) Seeder or spreader impellers (described in statistical reporting number
8432.90.0060)
(51) Chipper/shredder machines, electrically powered (described in statistical
reporting number 8436.80.0090)
(52) Chipper/shredder machines, gasoline powered, valued less than $250 per unit
(described in statistical reporting number 8436.80.0090)
(53) Malt production equipment (described in statistical reporting number
8436.80.0090)
(54) Horizontal lathes, electrically powered not over 1.5 horsepower (described in
statistical reporting number 8458.19.0020)
(55) Feeder and vibratory flow equipment and parts thereof designed for use in
screening or sorting machines; housings and noise reduction enclosures; the
foregoing described in statistical reporting number 8474.90.0010)
(56) Press machines for bamboo or other materials of a woody nature (described in
statistical reporting number 8479.30.0000)
(57) Electric wire coil-winder machines (described in statistical reporting number
8479.81.0000)
(58) Insulated mixing chambers of stainless steel, each having a capacity of 5 m3
to
25 cubic meters (described in statistical reporting number 8479.82.0040)
(59) Check valves of steel having an internal diameter not less than 4.8 cm or
exceeding 62.5 cm (described in statistical reporting number 8481.30.2090)
(60) Bodies of pressure-reducing valves other than hand-operated or check valves
and valves classified in 8481.20, such bodies of brass (described in statistical
reporting number 8481.90.9060)
(61) Bodies of valves other than hand-operated or check valves and valves
classified in 8481.20, such bodies measuring over 18 cm but not exceeding 19
cm in length, valued over $55 but not over $65 per unit (described in
statistical reporting number 8481.90.9060)
(62) Flanged wheel hub bearing units with ball bearings, each having an inner
diameter exceeding 2.2 cm but not exceeding 2.8 cm (described in statistical
reporting number 8482.10.5016)
(63) Wheel hub angular contact bearing units, not flanged, valued over $2 but not
over $10 per unit (described in statistical reporting number 8482.10.5024)
(64) Inner bearing rings (described in statistical reporting number 8482.99.0500)
(65) Non-toothed gears for office printers, each valued not over $7 (described in
statistical reporting number 8483.40.9000)
(66) Non-grooved pulleys, each incorporating a deep groove roller bearing
(described in statistical reporting number 8483.50.9080)
(67) Non-grooved pulleys, zinc plated, each valued not over $3 (described in
statistical reporting number 8483.50.9080)
(68) Hubs for conveyor pulleys with an outside diameter of more than 5 cm but not
more than 56 cm (described in statistical reporting number 8483.90.8080)
(69) Handles for machinery (described in statistical reporting number
8487.90.0080)
(70) Electric motors of a width exceeding 7.5 cm but not exceeding 7.8 cm
(described in statistical reporting number 8501.10.4060)
(71) DC motors, each valued over $125, with attached stranded copper cord
(described in statistical reporting number 8501.31.2000)
(72) AC motors, multi-phase, each of an output exceeding 75 kW but less than
149.2 kW (described in statistical reporting number 8501.53.4080)
(73) AC generators, each weighing over 250 kg but not more than 1 metric ton and
valued not over $2,400 (described in statistical reporting number
8501.62.0000)
(74) Transformers designed to control horizontal motion of electron beams in
cathode-ray tubes (described in statistical reporting number 8504.33.0020)
(75) Static converter covers, bases and housings (described in statistical reporting
number 8504.90.9650)
(76) Furnace casings (described in statistical reporting number 8514.90.8000)
(77) Structural components for industrial furnaces (described in statistical reporting
number 8514.90.8000)
(78) Manually operated rework stations, including soldering/desoldering stations
(described in statistical reporting number 8515.19.0000)
(79) Machines and apparatus for arc (including plasma arc) welding, each valued
not over $500 (described in statistical reporting number 8515.39.0020)
(80) Hand-held transceivers (except Citizen’s Band and except low-power
radiotelephonic operating on frequencies from 49.82 MHz to 49.90 MHz),
valued not over $70 each (described in statistical reporting number
8525.60.1030)
(81) Fixed capacitors valued not over $4 per unit (described in statistical reporting
number 8532.10.0000)
(82) Fixed oil-filled capacitors rated at 1 kV to 25 kV (described in statistical
reporting number 8532.10.0000)
(83) Tantalum capacitors having a conductive polymer cathode, valued not over $4
per unit (described in statistical reporting number 8532.21.0050)
(84) Tantalum capacitors, each measuring 7.3 mm by 4.3 mm by 1.9 mm and
valued not over $4 (described in statistical reporting number 8532.21.0050)
(85) Aluminum electrolytic capacitors, each valued not over $2.50 (described in
statistical reporting number 8532.22.0085)
(86) Contactors, for a voltage not exceeding 60 V and with contacts rated at or
more than 10 A, each valued not over $18 (described in statistical reporting
number 8536.41.0045)
(87) Rotary switches, rated at over 5 A, measuring not more than 5.5 cm by 5.0 cm
by 3.4 cm, each with 2 to 8 spade terminals and an actuator shaft with Dshaped cross section (described in statistical reporting number 8536.50.9025)
(88) Rotary switches, single pole, single throw (SPST), rated at over 5 A, each
measuring not more than 14.6 cm by 8.9 cm by 14.1 cm (described in
statistical reporting number 8536.50.9025)
(89) Momentary contact switches rated at or under 5 A, each designed for use as a
motor vehicle overdrive switch (described in statistical reporting number
8536.50.9031)
(90) Momentary contact switches rated at or under 5 A, valued not over $4 per unit
(described in statistical reporting number 8536.50.9031)
(91) Rocker switches, for a voltage not exceeding 1,000 V, designed for use in
motor vehicles (described in statistical reporting number 8536.50.9065)
(92) Molded buttons (described in statistical reporting number 8538.90.6000)
(93) Molded housings and covers (described in statistical reporting number
8538.90.6000)
(94) Tanks for dead tank circuit breakers, of aluminum (described in statistical
reporting number 8538.90.8120)
(95) Aluminum anodes for use with machines and apparatus for electroplating,
electrolysis or electrophoresis (described in statistical reporting number
8543.30.9080)
(96) Chlorine generator chambers containing titanium plates for use with machines
and apparatus for electroplating, electrolysis or electrophoresis (described in
statistical reporting number 8543.30.9080)
(97) Zinc anodes for use with machines and apparatus for electroplating,
electrolysis or electrophoresis (described in statistical reporting number
8543.30.9080)
(98) Weather station sets, each consisting of a monitoring display and outdoor
weather sensors, having a transmission range of not over 140 m and valued
not over $50 per set (described in statistical reporting number 9015.80.8080)
(99) Veterinary ultrasound device with black-and-white image quality used as a
medical diagnostic tool (described in statistical reporting number
9018.12.0000)
(100) Microwave ablation antennas, whether or not with attached controls, as parts
of ablation systems used to ablate live tumors (described in statistical
reporting number 9018.90.6000)
(101) Parts and accessories of electro-surgical instruments and appliances, other
than extracorporeal shock wave lithotripters (described in statistical reporting
number 9018.90.6000)
(102) Smoke evacuation pencils with accompanying tubing and hoses designed to
integrate smoke evacuation into electrosurgery by combining both features
into a single handpiece, which is designed to apply mono-polar electrosurgical
energy to target tissue in a surgical setting while simultaneously evacuating
smoke from the surgical site (described in statistical reporting number
9018.90.6000)
(103) Suction coagulators, consisting of a hand-piece with mechanical and/or
electrical controls and a disposable shaft, used for the coagulation of tissue
and aspiration of fluids during surgical procedures (described in statistical
reporting number 9018.90.6000)
(104) Vessel sealing and dividing devices that use electrical energy to separate and
seal tissue during open or laparoscopic surgical procedures, consisting of a
handpiece with mechanical and/or electrical controls, and a bipolar electrode
intended to deliver electrosurgical current from a system generator directly to
tissues for cutting/coagulation/ablation (described in statistical reporting
number 9018.90.6000)
(105) Dental X-ray alignment and positioning apparatus, each valued over $5,000
(described in statistical reporting number 9022.90.6000)
(106) Multi-leaf collimators of radiotherapy systems based on the use of X-ray
(described in statistical reporting number 9022.90.6000)
(107) Overhead tube suspension used to hold and position X-ray generating
equipment (described in statistical reporting number 9022.90.6000)
(108) Instruments and apparatus that chemically analyze food to detect the presence
of gluten or peanuts, valued at less than $55 per unit (described in statistical
reporting number 9027.80.4530)
(109) Picoammeters with recording devices (described in statistical reporting
number 9030.39.0100)
(110) Humidistats, each with outdoor sensor, such humidistats valued not over $40
each (described in statistical reporting number 9032.89.6070)”
3. by amending the last sentence of the first paragraph of U.S. note 20(a) to
subchapter III of chapter 99 by:
a. deleting the word “or” where it appears after the phrase “U.S. note 20(k)
to subchapter III of chapter 99;”; and
b. inserting “; or (6) heading 9903.88.11 and U.S. note 20(n) to subchapter
III of chapter 99” after the phrase “U.S. note 20(m) to subchapter III of
chapter 99”, where it appears at the end of the sentence.
4. by amending the first sentence of U.S. note 20(b) to subchapter III of chapter 99
by:
a. deleting the word “or” where it appears after the phrase “U.S. note 20(k)
to subchapter III of chapter 99;”; and
b. inserting “; or (6) heading 9903.88.11 and U.S. note 20(n) to subchapter
III of chapter 99” after the phrase “U.S. note 20(m) to subchapter III of
chapter 99”, where it appears at the end of the sentence.
5. by amending the Article Description of heading 9903.88.01:
a. by deleting “9903.88.08 or”;
b. by inserting in lieu thereof “9903.88.08, ”; and
c. by inserting “or 9903.88.11,” after “9903.88.10,”.
B. 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 July
6, 2018, U.S. note 20(k)(26) to subchapter III of chapter 99 of the Harmonized
Tariff Schedule of the United States is modified by deleting “DC electric motors,
of an output of less than 18.65 W, valued over $4, other than brushless (described
in statistical reporting number 8501.10.4060)” and inserting “Electric motors of a
width exceeding 7.5 mm but not exceeding 43 mm (described in statistical
reporting number 8501.10.4060)” in lieu thereof.
C. 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 July
6, 2018, U.S. note 20(m)(27) to subchapter III of chapter 99 of the Harmonized
Tariff Schedule of the United States is modified by deleting “8427.10.8090” and
inserting “8427.10.8070 and 8427.10.8095” in lieu thereof.
D. 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 July
6, 2018, U.S. note 20(m)(53) to subchapter III of chapter 99 of the Harmonized
Tariff Schedule of the United States is modified by deleting “8404.40.4000” and
inserting “8504.40.4000” in lieu thereof.
E. 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 July
6, 2018, U.S. note 20(m)(54) to subchapter III of chapter 99 of the Harmonized
Tariff Schedule of the United States is modified by deleting “8504.40.0000” and
inserting “8504.40.4000” in lieu thereof.
[FR Doc. 2019-14562 Filed: 7/8/2019 8:45 am; Publication Date: 7/9/2019]

 

Jul 08
0

Gemini Shippers Group offers testimony and comments in Support of H.328, an Act Relative to the Sale of Children’s Jewelry.

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

July 8th , Boston, Massachusetts

Gemini Shippers Group, head of the Fashion Jewelry & Accessories Trade Association (FJATA) Brent Cleaveland, offered the following testimony in support of Massachusetts bill H.328

Comments in Support of H.328,
an Act Relative to the Sale of Children’s Jewelry.

Dear Committee Member:

The Fashion Jewelry & Accessories Trade Association (FJATA), together with its parent companies, the Fashion Accessories Shippers Association (FASA) and Gemini Shipping, support H.328, an act that would regulate the sale of children’s jewelry to guarantee that children’s products are safe. FJATA is the voice of the jewelry and accessories industries, representing over 325 manufacturers, suppliers, and retailers, from small independent businesses to large multi-national corporations. FJATA supports national, uniform safety standards that are based on sound science and reflect peer-reviewed approaches to accessing risk. We are pleased to comment in support of H.328, and share this important information that promotes science-based standards ensuring safe children’s jewelry and accessories.

FJATA supports science-based standards for children’s jewelry. We agree that solubility testing is essential because it reflects what could be potentially absorbed upon accidental ingestion or mouthing of a component part of a piece of jewelry. We therefore support this bill which is based on extensive technical research conducted by the Consumer Product Safety Commission (CPSC), as well as research sponsored by our industry. This research represents the best available science on which technical requirements for children’s jewelry safety should be based. The ASTM F2923-14 International Children’s Jewelry Safety Standard establishes requirements based on this research.

Many of our members and their customers distribute children’s jewelry in Massachusetts and thus are vitally interested in assuring that legislation reflects best available technical data.

Our Commitment to Product Safety: The ASTM Children’s Jewelry Safety Standard

FJATA chairs the ASTM International F15.24 Subcommittee on Children’s Jewelry Safety. We are proud that a broad group of stakeholders came together and developed a standard that addresses all known hazards and risks found in the use and abuse of children’s jewelry and
accessories. Throughout the development process the committee worked closely with consumer groups, industry members, retailers, CPSC staff, testing laboratories and other stakeholders.
Balloting and a thorough peer review was completed and the standard is now known as ASTM F2923-14. This Children’s Jewelry Safety Standard includes provisions that establish the following requirements for children’s jewelry:

• Limits on lead in paint/surface coatings and substrate, consistent with current federal law and requirements of the Consumer Product Safety Improvement Act passed by Congress in 2008.
• Migration limits for heavy metals (except lead) in paint and surface coatings, identical to those in the ASTM F-963 toy safety standard, as mandated by Congress.
• A total content screening limit for cadmium in all metal (including precious metal) and plastic components of jewelry, coupled with migration standards for plastic or metal components that exceed the screening limit. The migration tests vary depending on whether potential exposures relate to possible ingestion (in which case acid extraction tests are required), or to mouthing (in which case a simulated saliva test is required).
• Exemptions from the cadmium limits for all other materials (crystal, glass, gemstones, natural materials, etc.) given the absence of data suggesting an exposure risk.
• Limits on nickel migration, consistent with international jewelry standards.
• Requirements for magnets and batteries in jewelry.
• Guidelines on identifying children’s jewelry.

The technical basis for the proposed cadmium limits in the ASTM Children’s Jewelry Safety Standard includes research conducted by the CPSC and described in its report. Notably, this research failed to identify a relationship between total cadmium content and migratable cadmium. In fact, the CPSC concluded that “soluble cadmium migration is not generally proportional to cadmium content” and that “product composition factors such as element content and coatings have a larger effect on cadmium migration than does total cadmium content.”

The CPSC requested that the ASTM Children’s Jewelry Committee carefully consider this technical research. In doing so, the committee was able to derive an extremely conservative screening level of 300 ppm based on assumptions derived from worst-case migration rates from metal jewelry subjected to a 24-hour acid extraction test simulating accidental ingestion. The CPSC has acknowledged that there is no reason to believe that metal or plastic components that contain less than 300 ppm cadmium are likely to present an exposure risk. Under the standard, migration testing is required for plastic or metal components that exceed the screening limit using test methods appropriate for the material and type of exposure involved.

The approach reflected in the Children’s Jewelry Safety Standard for cadmium – a total content screening limit for accessible metal or plastic components, coupled with migration testing – provides a common-sense risk-based approach to addressing potential risks while avoiding bans on safe products while reducing testing costs.

The Need for Nationally Consistent Standards

FJATA members are strongly committed to protecting the safety of their customers, especially children. We have always supported national, risk-based standards for safe children’s jewelry based on its view that science and facts should form the basis for national product safety standards. The ASTM Children’s Jewelry Safety Standard reflects the best available science for jewelry and enjoys strong stakeholder support. We therefore urge you to recognize the ASTM Children’s Jewelry Safety Standard F2923-14 and vote in support of H.328.

Adopting our recommendations as outlined here will protect consumers with tough, strong standards that are based on science, reduce burdens on industry, protecting jobs and employment, and promote both interstate commerce and international trade. FJATA and its members have a unique perspective on how H.328 affects the jewelry and accessories industries, and appreciates the opportunity to provide you with these views.

Sincerely,

Brent Cleaveland

Brent Cleaveland
Executive Director, FJATA

Jun 17
0

Gemini Shippers Group leads off latest round of section 301 hearing in DC today

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

Gemini Shippers Group was chosen as the first speaker at today’s section 301 hearings in Washington DC this morning.

You can lean more about the hearings here.

To download a copy of Gemini Shippers Groups written testimony please see the click: USTR201900040001 Gemini Shippers Group Submission.

Panels will speak over the next 7 days and we will provide members updates as the testimony progresses.

 

 

 

 

Jun 15
0

Section 232 Bill update

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

Several U.S. senators are working on a bill that would allow Congress to veto tariffs that are assessed on goods said to harm national security.    Two bills were introduced by Pat Toomey of Pennsylvania and Rob Portman of Ohio, both Republicans on the Finance Committee, but there are differences between the two bills.   At a trade association meeting on June 13th, Chuck Grassley, R-Iowa, James Lankford, R-Oklahoma, and Chris Coons, D-Delaware, discussed the bills and are hopeful that there will be a hearing to reconcile the differences.   Senate Majority Leader, Mitch McConnell, R-Kentucky, will not allow the bills to be introduced until there is agreement.   It’s also unlikely that the President will sign a bill that limits his authority to impose tariffs.

One senator said that calling auto imports ‘a threat to national security’ is ridiculous.  Senators from both parties feel that the issues with China’s handling of intellectual property and forced technology transfer, as well as their poor record of compliance with the World Trade Organization, are shared by politicians on both sides of the aisle.   Some officials believe that China believes it can wait until Trump is no longer president and negotiate better terms.    However, this is not just a Republican issue and there is no guarantee that tariffs will go away under a different administration.

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