INTERNATIONAL BUSINESS AND TRADE

Customs

U.S.:          

The U.S. Customs and Border Protection (CBP) agency is finalizing a test to set the tariff classification criteria for certain footwear with textile material on the outer sole which will be subject to lower duty rates under the HTS U.S. heading 6405 compared to footwear with a plastic or rubber outer sole (30 ITR 1799; 11/21/13).

INTERNATIONAL AGREEMENTS AND INVESTMENTS

Dumping

U.S.:         

The International Trade Commission (ITC) published a notice indicating that U.S. industry is materially injured by imports of certain steel threaded rod from India and Taiwan allegedly dumped in the U.S. market and allegedly subsidized by India (78 Fed. Reg. 66,382; 30 ITR 1731; 11/7/13).

Foreign Investment

U.N.:          

The U.N. Conference on Trade and Development (UNCTAD) reported that Foreign Direct Investment (FDI) inflows increased to $745 billion over the first six months of 2013 which is a 3.8% increase over the same period in 2012 (30 ITR 1718; 11/7/13).

Government Procurement

E.U.:

The European Parliament ratified the terms of the World Trade Organization (WTO) revised Government Procurement Agreement (GPA) (30 ITR 1814; 11/21/13).

LEGISLATIVE DEVELOPMENTS

Customs

U.S.:       

The Simple Entry (SE) test which is aimed to ease the entry process and reduce transaction costs to obtain release for air cargo has been modified and expanded (78 Fed. Reg. 66,039; 30 ITR 1717; 11/7/13).

As a result of concerns voiced by the trade community U.S. CBP has delayed enforcement of a "residual cargo" manifest rule that would require residue within containers to be "classified, entered and manifested" (30 ITR 1803; 11/21/13).

The U.S. CBP test concerning the processing of post summary corrections to entry summaries will allow filers greater access to data (78 Fed. Reg. 69,434; 30 ITR 1798; 11/21/13).

Environment

U.S.:          

The Environmental Protection Agency (EPA) initiated a rule making procedure to propose that hazardous waste shipments comply with procedures from the Organization for Economic Cooperation and Development of the United Nations (OECD) which currently applies to trans-boundary shipments for recycling between the U.S. and most OECD members (30 ITR 1713; 11/7/13).

Exports

Canada: 


The government proposes to amend the rules regarding its exporting process for certain controlled goods and technology under its Dual Use Goods and Technology General Export Permit No. 41 to export to certain destinations (30 ITR 1782; 11/14/13).
 

Import Policy

Brazil:         

The Brazilian Chamber of Diagnostic Laboratories (CCDL) and the Brazilian Association of High Technology Hospital Equipment (ABIMED) succeeded in obtaining a federal court injunction suspending enforcement of the ANVISA foreign facility inspection requirement imposed in 2010 by the health sector regulator requiring a foreign based manufacturing facility inspection prior to approving drugs and health equipment for import into Brazil (30 ITR 1745; 11/7/13).

Trade

Mexico:       

The Senate voted in favor of a tax reform measure that would make changes to customs practices and raise the value added tax (VAT) on maquiladoras (30 ITR 1742; 11/7/13). 

LEGAL DEVELOPMENTS

Bilateral Agreements

U.S.:

Chevron Corp. may seek enforcement of its $100 million judgment against Ecuador in any federal district in the United States (Chevron Corp. v. Republic of Ecuador, 2013 BL 299602, D.C., No. 1:12-cv-01247-JEB, 10/29/13; 30 ITR 1728; 11/7/13).

Countervailing Duties

U.S.:          

The Court of International Trade (CIT) upheld the Commerce Department calculation of countervailing duties on imports of pneumatic off-the-road tires from China (GPX Int'l Tire Corp v. US, Ct. Int'l Trade No. 08-00285, 10/30/13; 30 ITR 1727; 11/7/13).

Dumping

U.S.:          

The CIT ruled that the revised dumping margin of the Commerce Department for calculations on imports of Chinese wood and bedroom furniture were reasonable (Home Meridian Int'l, Inc., v. U.S., 2013 BL 316528, Ct. Int'l Trade No. 11-00325; Slip Op. 13-140; 11\14\13; 30 ITR 1808; 11/21/13).

The CIT upheld the revised anti-dumping rates for two Thai exporters of polyethylene retail carrier bags from Thailand according to the revisions of the Commerce Department (Thai Plastic Bags INDUS., Co., v. U.S., 2013 BL 31430, Ct. Int'l Trade, No. 11-00408; Slip Op. 13-139; 11/13/13; 30 ITR 1808; 11/21/13).

A Houston based businessman pleaded guilty to illegally brokering sales of containers of Chinese honey known to be misrepresented as originating from India or Malaysia to avoid anti-dumping duties and will spend three years in prison and be assessed a $2.89 Million fine (U.S. v. Jun Yang, 13 CR 139; 30 ITR 1810; 11/21/13).
 

Export Controls

U.S.:

A Belgium businessman, Nicholas Kaiga, has been charged with export control violations on the grounds he attempted to ship aluminum tubes to Iran which items are controlled for nuclear proliferation purposes under the International Emergency Economic Powers Act (IEEPA) and for making false statements on export forms in violation of the Export Administration Act (U.S. v. Kaiga, N.D. Ill. No. 13 CR 00531, 10/31/13; 30 ITR 1731; 11/7/13).

Sanctions

U.S.:          

The Ford Motor Company will not be liable for breaking its contract with a Syrian auto dealer after a presidential executive order would have made performance illegal (Ford Motor Company v. Ghreiwati Auto, 2013, BL 30866 E.D. MICH., No. 2:12-CV-14313-NGE-MJH, 11/7/13; 30 ITR; 1767; 11/14/13).

The Court of International Trade (CIT) held that the Commerce Department must reassess the civil penalty against LaFidael, Inc. which has been determined to have been grossly negligent in misclassifying items imported into the U.S. by using the incorrect Harmonized Tariff Schedule (HTS) classification since the assessment should have been based on the dutiable value and not the domestic value of the imported merchandise (U.S. v. LaFidael, Inc., Ct. Int'l Trade No. 12-00397, 10/30/13; 30 ITR 1727; 11/7/13).

EXPORTS AND PROCUREMENT

Trade Controls

U.S.:          

Under the International Traffic and Arms Regulations (ITAR) a controlled technology is listed as one of the general items within the U.S. Munitions List (USML) and may be further identified as Technical Data or Defense Services in support of a Defense Article; under the Export Administration Regulations (EAR) a controlled technology is one listed in the ten general item categories of the Commerce Control List (CCL) and may be further identified as software or technology with any of foregoing items possibly requiring an export license from the relevant U.S. agency unless an exclusion, exemption or exception applies to a licensing requirement (27 WorldECR Nov/Dec 2013).

Transportation

Canada:       

The government proposed amendments to its regulatory system for transportation of dangerous goods to harmonize it with new standards in the U.S. and existing internationally proposing amendments to its Transportation of Dangerous Goods Act of 1992 (30 ITR 1825; 11/21/13).

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