Washington Newsline

USTR Proposes an Additional List of Products for Section 301 Tariffs

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MEMORANDUM

As part of the U.S. response to what is said to be China’s unfair trade practices related to the forced transfer of U.S. technology and intellectual property, the Office of the U.S. Trade Representative (USTR) today published a proposed list of products imported from China that could be subject to additional tariffs. Sectors subject to the proposed tariffs include industries such as aerospace, information and communication technology, robotics, and machinery, according to a USTR news release.

The Trade Representative proposes an additional duty of 25 percent on the Chinese products. The USTR is seeking public comment and will hold a public hearing regarding a proposed determination on appropriate action in response to these acts, policies, and practices.

The proposed list is defined by 8-digit subheadings of the Harmonized Tariff Schedule of the United States (HTSUS), covering approximately 1,300 separate tariff lines. The list is set out in the announcement, which can be found here (The list is in the Annex, which starts on page 14).

DATES: To be assured of consideration, comments and responses should be submitted in accordance with the following schedule:

April 23, 2018: Due date for filing requests to appear and a summary of expected testimony at the public hearing and for filing pre-hearing submissions.
May 11, 2018: Due date for submission of written comments.
May 15, 2018: The Section 301 Committee will convene a public hearing in the main hearing room of the U.S. International Trade Commission, 500 E Street SW Washington DC 20436 beginning at 10:00 am.
May 22, 2018: Due date for submission of post-hearing rebuttal comments

CBP Has Posted Its Instructions for Obtaining GSP Refunds

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MEMORANDUM

April 2, 2018

 

Importers should continue to flag GSP-eligible importations with the SPI “A” and pay normal trade relations (column 1) duty rates until the effective date of the Act, April 22, 2018, at which time programming will obviate the duty payment.

 

Refund Programming

Shortly after April 22, 2018, CBP will begin refunding GSP duties without interest, to the importer of record, for goods on entry summaries filed with SPI “A” preceding the tariff number, during the lapse period.

 

Up-to-Date Importer of Record (IOR) Information

It is imperative that all importer of record information in ACE be up-to-date and valid, including the importer’s mailing address and banking information, if the importer is a member of CBP’s ACH refund program. Accurate records will allow refunds to be processed expeditiously.

 

Post-Importation GSP Claims for Importations Prior to Expiration

For importations made prior to expiration, CBP will continue to process post-importation GSP claims via post summary correction (PSC) and protest (19 USC 1514, 19 CFR 174). For importations made subsequent to expiration, CBP will not allow post-importation GSP claims made via PSC or protest.

 

Post-Importation GSP Claims for Importations During the Lapse

An importer may submit a duty refund request (post-importation GSP claim) for entry summaries submitted during the GSP lapse period on which the special program indicator “A” was not transmitted. Refund requests may be submitted as letters, Post Summary Corrections (PSC) or Protests. (Although the refund request may be submitted as a protest, do note that it is not truly a protest.)

 

The GSP refund request should include the following information:

     – Entry number

     – Line number

     – HTSUS number

     – Estimated total refund

     – Signed statement that the goods are eligible for GSP

     – Point of contact name, phone number and email address

Although importers may avail themselves of these post-importation GSP procedures at any time prior to September 19, 2018, CBP will begin processing these claims only after processing those submitted at entry summary. CBP reserves the right to reject claims without the aforementioned information.

 

 

Be advised that the failure to submit a post-importation GSP claim in accordance with the aforementioned requirements is not remediable via protest.

 

***

 

Eligibility

 

In order to benefit from GSP, a good must be either wholly obtained or sufficiently manufactured in a GSP country. Sufficiently manufactured means that all 3rd-country materials have undergone a substantial transformation plus at least 35% of the good’s value has been added in the beneficiary country. Additionally, the good must be “imported directly”.

 

Eligible tariff items are identified by the symbols “A”, “A*” or “A+” in the “Special” sub-column of the HTSUS.

 

    The symbol “A” indicates that all GSP countries are eligible (HTSUS General Note 4(a))

    The symbol “A*” indicates that certain GSP countries are ineligible (HTSUS General Note 4(d))

    The symbol “A+” indicates approximately 1,500 additional tariff items for which only the LDBDCs are eligible (HTSUS General Note 4(b))

FMC Issues Information Demands in Detention & Demurrage Investigation

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Commissioner Rebecca Dye has launched the first phase of her investigation into port demurrage, detention, and free time practices by ordering ocean common carriers to provide information and documents explaining those practices. A similar effort with respect to container terminals at major U.S. ports is also underway.

The Federal Maritime Commission initiated the investigation, Fact Finding 28, under a Commission Order dated March 5, 2018.
The first phase of Commissioner Dye’s investigation involves gathering information from ocean common carriers and marine terminal operators serving a broad section of container ports located throughout the United States. Carriers have been directed to provide detailed information about their detention and demurrage practices, especially regarding circumstances where shippers are not able to retrieve cargo.

“The ultimate resolution of this investigation will have the potential to affect every ocean common carrier calling the United States. It is vital that the information we gather is representative of business and operational practices, as well as market conditions, nationally,” said Commissioner Dye.
Commissioner Dye emphasized that it is critical that shippers, dray truck companies, and other affected parties who can document specific allegations and provide supporting materials of unreasonable port detention and demurrage practices and fees step forward and cooperate with the investigation.
“We expect concerned parties to participate robustly in this investigation. Their cooperation is essential,” said Commissioner Dye.

Correspondence, allegations, and supporting documents can be sent to the Commission via: FF28@FMC.GovFor those preferring to send supporting documents by mail, the address to use is:

  • Commissioner Rebecca Dye
  • Federal Maritime Commission
  • 800 North Capitol Street, Northwest Washington, District of Columbia 20573

An interim report of findings and recommendations is due no later than September 2, 2018.
A final report will be issued to the Commission for consideration, discussion, and vote no later than December 2, 2018.

Gemini Shippers Group Letter to President on proposed tariffs

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Members
Many of you may be following the news about the proposed tariffs on Chinese consumer products as a result of the Section 301 investigation.  There are significant concerns not only about the impact the tariffs will have on imports and consumers, but the potential retaliation by China on U.S. exports.

This week Gemini Shippers Group joined a collection of softgood trade associations to issue a joint  Letter to the President voicing our concerns while urging the Administration to take measured, commercially meaningful actions consistent with  international obligations that benefit U.S. exporters, importers, and investors.

We will continue to advocate for our members in Washington to ensure that US trade policy continues to promote the success of our members.  Please join us in New York on April 19th at our annual members meeting to learn more about this and other international trade and transportation topics.

We will keep members informed as we learn more in these proposed tariff actions.

Best regards
Sara Mayes
President / CEO
Gemini Shippers Group

Federal Maritime Commission Orders Formal Investigation in Detention & Demurrage Case

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The Federal Maritime Commission voted to launch an investigation, headed by Commissioner Rebecca Dye, focused on the practices of vessel operating common carriers and marine terminal operators related to detention, demurrage, and per diem charges.

As the designated Investigative Officer, Commissioner Dye will have broad authority to conduct Fact Finding 28, including the power to issue subpoenas, to hold public and non-public sessions, and to require reports. Under this Order, she is charged with making recommendations for Commission action including investigations of prohibited acts; enforcement priorities; policies; rulemaking proceedings; or other actions warranted by the record developed in the proceeding.

Fact Finding 28 stems from a petition (Petition P4-16) filed at the Commission by the Coalition for Fair Port Practices. In January, the Commission held a two day hearing that explored issues raised in the petition by soliciting testimony from shippers, ocean transportation intermediaries, ocean carriers, truckers, and marine terminal operators.

Acting Chairman Michael A. Khouri said “The Coalition raised substantive issues in both their petition and their testimony at our January hearing investigating carrier and terminal detention and demurrage practices. Various alleged practices were described that—without countervailing or explanatory testimony and evidence—would be troubling from my perspective. However; without any filed complaints by cargo stakeholders, where the crucible of adversary proceedings can bring light and transparency to such practices, I supported this investigatory fact finding so as to more fully develop a tested factual record. Commissioner Dye is uniquely qualified to lead Fact Finding 28, particularly given the work she has done to date examining supply chain reliability and resilience. I have every confidence in the work she will do.”

A final report of Commissioner Dye’s findings and recommendations is due to the Commission no later than December 2, 2018.

Commissioner Dye commented, “I appreciate the confidence of the Commission and look forward to working with our stakeholders to strengthen the Nation’s freight delivery system and increase American competitiveness.”

Commissioner Daniel Maffei stated, “While many questions remain after the hearing, I do believe it effectively established that the practices surrounding detention and demurrage charges can be out-of-date, confusing, inconsistent, and, in my view, often unfair. Today the Commission unanimously takes the first step towards corrective action through a comprehensive Order of Investigation that will bring all the relevant facts to light.”

As the Investigative Officer, Commissioner Dye will examine detention, demurrage, and per diem practices generally, but at a minimum, she will evaluate five key issues:

  • Whether the alignment of commercial, contractual, and cargo interests enhances or aggravates the ability of cargo to move efficiently through U.S. ports
  • When has the carrier or MTO tendered cargo to the shipper and consignee
  • What are the billing practices for invoicing demurrage or detention
  • What are the practices with respect to delays caused by various outside or intervening events
  • What are the practices for resolution of demurrage and detention disputes between carriers and shippers

Letter to Congress on Supporting a Miscellaneous Tariff Bill

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Gemini Shippers Group joined numerous industry groups to again urge support of a Miscellaneous Tariff Bill.

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

The United States Congress
United States Capitol
Washington, DC 20510

Dear Members of Congress:

As associations and businesses of all sizes representing manufacturing and other major sectors of the U.S. economy employing millions of U.S. workers, we urge you to include the “Miscellaneous Tariff Bill Act of 2018” (H.R. 4318 and S. 2108) in the upcoming omnibus spending package.

The Miscellaneous Tariff Bill (MTB) plays an important role in the operations of domestic manufacturers as it corrects, on a temporary basis, historical distortions in the U.S. tariff code by eliminating border tariffs on imported products for which there is no or insufficient domestic production and availability. Such distortions undermine the competitiveness of manufacturers in the United States by imposing unnecessary costs and, in some cases, imposing a higher cost on manufacturers’ inputs than the competing foreign imported finished product.

While Congress had effectively addressed such distortions through the enactment of MTB legislation with strong bipartisan support for three decades, Congress has not passed an MTB since the U.S. Manufacturing Enhancement Act in 2010 expired at the end of 2012. Since 2012, businesses have paid billions of dollars of tariffs on products not even made in the United States, to the detriment of good-paying American jobs and American competitiveness.

Congress now has the opportunity to address this self-imposed tax on U.S. competitiveness. Through a transparent and thorough process created by the American Manufacturing Competitiveness Act of 2016, which passed Congress with near-unanimous bipartisan support, the U.S. International Trade Commission (ITC) scrutinized thousands of petitions for duty-relief and received input from across the manufacturing sector and from the U.S. Department of Commerce and U.S. Customs and Border Protection to determine eligibility under the AMCA requirements. The Miscellaneous Tariff Bill Act of 2018 includes nearly 1,700 petitions that the ITC reported to Congress in August were eligible for duty-relief as products not produced or available in the United States.

Our organizations commend the House of Representatives for its approval of the Miscellaneous Tariff Bill Act of 2018 on January 16 by a unanimous vote of 402-to-0. Manufacturers and other businesses across the country, however, have been paying nearly $1 million per day in tariffs since the beginning of 2018 on products not made or available in the United States, because the full Congress has not yet approved the legislation.

Based on analyses by the National Association of Manufacturers, the Miscellaneous Tariff Bill Act of 2018 would eliminate import tariffs of more than $1.1 billion over the next three years and increase U.S. manufacturing output by more than $3.1 billion, bolstering manufacturers and other businesses in the United States of all sizes in industries ranging from chemicals, agriculture, textiles and footwear to electrical equipment, machinery and sporting equipment.

For nearly five years, manufacturers and other businesses have been held back by out- of-date and distortive import tariffs that are costing billions of dollars. We urge the full Congress to act to eliminate these distortions and improve U.S. competitiveness by including the Miscellaneous Tariff Bill Act of 2018 in the upcoming omnibus spending package.

Sincerely,

Sara Mayes

President / CEO

Federal Maritime Commission Issues Regulatory Reform Priorities Plan

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Federal Maritime Commission Issues Regulatory Reform Priorities Plan

January 12, 2018

The Federal Maritime Commission today released a plan that identifies regulations under its purview that are currently suitable for reform or elimination, and establishes a schedule in which to consider further action on each of the items.

The “Plan for Regulatory Reform of Existing FMC Rules” is the product of the Commission’s Regulatory Reform Task Force, which was established on March 13, 2017, and charged with identifying burdensome, unnecessary, and outdated directives and recommending how they should be remedied. Since last spring, the Regulatory Reform Task Force has undertaken a comprehensive examination of Commission rules and regulations, soliciting the views of the public as part of the process, resulting in the release of today’s strategy for reducing compliance requirements.

The plan outlines the steps to systematically review key regulations under the Commission’s authority for provisions that may be burdensome and no longer necessary to meet the agency’s obligations under the Shipping Act.

“I am pleased with the progress the Regulatory Reform Task Force has made since its launch. In what amounts to a very short period of time, they have established a meaningful list of administrative and regulatory provisions that if amended or eliminated, will result in making it easier for companies to do business while permitting the Commission to maintain competition and integrity for America’s ocean supply chain,” said Acting Chairman Michael A. Khouri.

Each of the items identified as potential reform initiatives will require detailed review by staff working groups with the goal of initiating individual rulemakings. As part of the rulemaking process, public comments will be solicited before further review and analysis is conducted by staff, and a recommendation for consideration by the full Commission is made.

Work on regulatory reform under the plan has already begun. The Commission issued a Notice of Proposed Rulemaking on November 29, 2017 soliciting comments on a plan to amend its rules governing NVOCC Service Arrangements (NSA) and NVOCC Negotiated Rate Arrangements (NRA), making them easier for shippers to use. Comments on that docket are due to the Commission no later than January 29, 2018.

In March 2017, the Commission issued a final rule in Docket 16-05 that significantly reduced regulatory compliance requirements for Service Contracts and NVOCC Service Arrangements in several ways. Most significantly, parties to Service Contracts and NSAs were provided with the ability to allow an amendment to a contract to go into effect upon agreement. Previously, changes to contracts had to be filed at the Commission before becoming effective. The final rule also extends the time in which parties can make corrections to data filed erroneously due to transmission errors, and provides more time to file a service contract correction request.

In February 2017, the Commission transitioned to an online renewal process for Ocean Transportation Intermediary (OTI) licenses and foreign registered Non-Vessel Operating Common Carriers (NVOCCs), reducing the time and effort required for these regulated entities to meet their compliance obligations.

The Commission’s Regulation Reform Plan follows.

46 CFR Part Heading Action Review Timeframe (Calendar years)
Part 531 NVOCC Service Arrangements Review and modify to remove outdated, ineffective, or unnecessary regulations or costs Status: Docket No. 17-10 NPRM publication 11/30/2017; comments due 1/29/2018
Part 532 NVOCC Negotiated Rate Arrangements
Part 506 Civil Monetary Penalty Inflation Adjustment Review and update consistent with OMB guidance.

Status: To be completed by Direct Final Rule by 1/15/2018

Annual updates required by January 15. Last updated in Docket No. 17-01, effective 2/15/17

Part 535 Ocean Common Carrier and Marine Terminal Operator Agreements Subject to the Shipping Act of 1984 Review and modify to remove outdated, ineffective, or unnecessary regulations or costs Status: January 2018, Recommendations to Commission for consideration
Part 504 Procedures for Environmental Policy Analysis Review and update consistent with NEPA and CEQ guidance Status: Review and update in 2018
Part 515 Licensing, Financial Responsibility Requirements, and General Duties for Ocean Transportation Intermediaries Review and modify to remove outdated, ineffective, or unnecessary regulations or costs Status: 2018 Review and modify
Part 540 Passenger Vessel Financial Responsibility Review for modification or repeal Status: 2019 Review for modification or repeal
Part 520 Carrier Automated Tariffs Review and modify to remove outdated, ineffective, or unnecessary regulations or costs Status: 2019 Review and modify
Part 525 Marine Terminal Operator Schedules Review and modify to remove outdated, ineffective, or unnecessary regulations or costs Status: 2019 Review and modify
Part 530 Service Contracts Review and modify to remove outdated, ineffective, or unnecessary regulations or costs

Status: 2019 Review and modify

Modifications last completed in Docket 16-05, effective 5/5/2017, updating Effective date & Implementation/ Filing Requirements/ Amendments, Correction, Cancellation, and Electronic Transmission Errors regulations

 

Letter to Congressional Leadership Urging the Advancement of an Infrastructure Investment Package

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Gemini Shippers Group joined fellow assocations in the Infrastructure Working Group (IWG) in l a joint letter urging Congressional leadership to develop and advance an infrastructure investment package that will improve the safety, reliability and efficiency of our nation’s infrastructure.

 

January 3, 2018

 

The Honorable Mitch McConnell
Majority Leader
U.S. Senate 
The Honorable Paul Ryan
Speaker
U.S. House of Representatives 
The Honorable Charles Schumer
Minority Leader
U.S. Senate 
The Honorable Nancy Pelosi
Minority Leader
U.S. House of Representatives 

 

Dear Majority Leader McConnell, Speaker Ryan and Minority Leaders Schumer and Pelosi:

 

We are a broad collection of associations and organizations working with all levels of government to address our nation’s infrastructure deficit. We encourage you to develop and advance an infrastructure investment package that will improve the safety, reliability and efficiency of our nation’s infrastructure.

 

Substantial and long-term investments in all kinds of infrastructure are needed to expand our economy, grow jobs and compete globally. We appreciate strong bipartisan support for various infrastructure initiatives over the years and hope that past momentum can sustain a more substantial commitment to meet the needs of our economy.

 

We believe that infrastructure must continue to be a leading priority of the 115th Congress and address the following goals:

 

  • Increases direct federal investments, in a broad range of infrastructure sectors over 10 years to achieve a $1 trillion investment,
  • Complements and strengthens existing tools, such as municipal bonds, that successfully deliver infrastructure investments at the federal, state and local levels,
  • Facilitates opportunities for private investment in U.S. infrastructure,
  • Creates efficiencies such as accelerating the federal permitting process,
  • Fixes chronic challenges and addresses reoccurring shortages in key federal infrastructure accounts such as the Highway Trust Fund, and;
  • Encourages active participation among all levels of government and between the public and private sectors without shifting federal responsibilities because no single partner can deliver a well-functioning, national U.S. infrastructure network driven by a long-term vision and funding stability.

 

Passing a comprehensive package that transforms U.S. infrastructure systems beyond the status quo is necessary to maintain U.S. economic competitiveness. We urge you to work across the aisle to develop a proposal that ensures U.S. infrastructure is second to none.

 

Sincerely,

 

Airports Council International – North America

American Apparel and Footwear Association

American Association of Port Authorities

American Association of State Highway and

Transportation Officials

American Bakers Association

American Coatings Association

American Coke and Coal Chemicals Institute

American Composites Manufacturers

Association

American Concrete Pipe Association

American Council of Engineering Companies

American Farm Bureau Federation

American Forest & Paper Association

American Gas Association

American Highway Users Alliance

American Home Furnishings Alliance

American Institute of Architects

American Investment Council

American Iron and Steel Institute

American Petroleum Institute

American Planning Association

American Public Transportation Association

American Public Works Association (APWA)

American Road & Transportation Builders

Association

American Society of Civil Engineers

American Supply Association

American Traffic Safety Services Association

American Wind Energy Association

American Wire Producers Association

American Wood Council

AMT – The Association for Manufacturing

Technology

Associated Equipment Distributors

Associated General Contractors of America

Association for the Improvement of American

Infrastructure (AIAI)

Association of Equipment Manufacturers

Association of Home Appliance

Manufacturers

Association of Metropolitan Planning

Organizations

Bakery Equipment Manufacturers & Allieds

Bond Dealers of America

Brick Industry Association

Building America’s Future

Coalition for America’s Gateways & Trade

Corridors

Common Good

Composite Panel Association

Construction Management Association of

America

Consumer Specialty Products Association

Copper & Brass Fabricators Council

Fabricators and Manufacturers Association,

International

Fashion Accessories Shippers Association

(FASA)

Gemini Shippers Association

Hydraulic Institute

INDA, The Association of the Nonwoven

Fabrics Industry

Industrial Minerals Association – North

America

Institute of Makers of Explosives

Interlocking Concrete Pavement Institute

International Bottled Water Association

International Bridge, Tunnel and Turnpike

Association (IBTTA)

 

International Housewares Association

International Union of Operating Engineers

Irrigation Association

Juvenile Products Manufacturers Association

Laborers Int. Union of North America (LIUNA)

League of American Bicyclists

Metals Service Center Institute

Motor & Equipment Manufacturers

Association

MPIF

National Asphalt Pavement Association

National Association of Clean Water

Agencies (NACWA)

National Association of Counties

National Association of Manufacturers

National Association of Regional Councils

National Association of Trailer Manufacturers

National Corn Growers Association

National Electrical Contractors Association

National Grain and Feed Association

National Ground Water Association

National Hispanic Construction Association

National Industrial Sand Association

National League of Cities

National Lime Association

National Lumber and Building Material

Dealers Association

National Marine Manufacturers Association

National Oilseed Processors Association

National Precast Concrete Association

National Railroad Construction &

Maintenance Association (NRC)

National Retail Federation

National Stone, Sand & Gravel Association

National Utility Contractors Association

National Waste & Recycling Association

National Wooden Pallet and Container

Association

Non-Ferrous Founders’ Society

North America’s Building Trades Unions

Outdoor Power Equipment Institute

Plastic Pipe and Fittings Association

Plastics Industry Association

Plastics Pipe Institute

Plumbing Manufacturers International

Portland Cement Association

Power Transmission Distributors Association

Rail Passengers Association

Railway Engineering-Maintenance Suppliers

Association (REMSA)

Railway Supply Institute

Resilient Floor Covering Institute

Retail Industry Leaders Association

Security Industry Association

SIFMA

The Adhesive and Sealant Council

The Design-Build Institute of America

The Fertilizer Institute

The United States Conference of Mayors

Travel Goods Association (TGA)

Treated Wood Council

TRSA – The Linen, Uniform and Facility

Services Association

U.S. Tire Manufacturers Association

U.S. Travel Association

US Water Alliance

Vinyl Institute

Waterways Council, Inc.

 

 

 

CC: U.S. Senate
CC: U.S. House of Representatives

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