Trade & Manufacturing - News of Note - August 2016

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ITC Votes to Extend Antidumping Duties on Imports of Porcelain-on-Steel Cooking Ware from China for Five More Years

Liz Owerbach

On July 12, the International Trade Commission (ITC) voted 5-0 to extend the U.S. antidumping duty order (Order) on Porcelain-on-Steel Cooking Ware from China. The Order has been in place since 1986. This proceeding marked the fourth five-year review of the Order, in which the ITC once again found that revoking the Order would be likely to lead to the continuation or recurrence of material injury within a reasonably foreseeable time. The ITC’s vote follows the Department of Commerce determination in June that revocation of the Order would likely lead to continuation or recurrence of dumping. Thus, imports of porcelain-on-steel cooking ware from China will continue to face duties of up to 66.65 percent.

Customs and Border Protection Issues Update on Enforcement of Trade Orders

P. Lee Smith

U.S. Customs and Border Protection (CBP) recently released its AD/CVD Update for April/May 2016. As explained in the January 2015 edition of the Trade & Manufacturing Alert, the AD/CVD Update is part of CBP’s outreach efforts and a way to publicize CBP’s progress on this Priority Trade Issue. Similar to past AD/CVD Updates, the April/May 2016 publication highlighted select enforcement activities conducted by CBP. In particular, CBP highlighted a recent settlement between a defense contractor and the Department of Justice related to a False Claims Act (FCA) action. The FCA action alleged that the contractor misrepresented the content of entries of magnesium from China to evade the payment of antidumping duties. Prior to the civil settlement of FCA action, five former employees and agents of the contractor plead guilty to the criminal offenses related to the magnesium importation scheme. In addition, the Update discussed Commissioner Kerlikowske’s Remarks at the Joint Meeting of the American Iron and Steel Institute and the Metals Service Center Institute.

BIS and DDTC Revise Export Controls Definitions with Cloud Computing in Mind

Betre Gizaw

On June 3, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) and U.S. Department of State’s Directorate of Defense Trade Controls (DDTC) each published final rules updating key definitions in the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR), respectively. Once implemented, these new rules will result in substantive changes to the operation of the EAR and ITAR, notably to decontrol certain encrypted transfers of information. BIS has also published FAQs related to these revisions. These changes are part of the ongoing export control reform efforts initiated under the Obama Administration and are designed to enhance clarity and consistency between the BIS and DDTC regulations. The final rules will go into effect on September 1.

Leaders of U.S., Mexico, and Canada Discuss Global Excess Steel and Aluminum Capacity at North American Leaders’ Summit

Clint Long

On June 29, President Obama, President Peña Nieto of Mexico, and Prime Minister Trudeau of Canada convened the 2016 North America Leaders’ Summit in Ottawa, Canada. The leaders discussed various issues relating to trade and the economy, climate change, and other topics concerning cooperation and collaboration among these three countries. During the summit, the leaders recognized the “negative impact that excess production of steel and aluminum has on companies, workers and trade in North America.” The leaders also “reaffirmed our three governments’ cooperation through the North American Steel Trade Committee (NASTC) to strengthen mechanisms at the Organization for Economic Cooperation and Development and other fora to quickly address government policies that lead to distortions in the steel sector and contribute to excess capacity[.]” These efforts will include “curtailing government subsidies and other supports that artificially maintain or increase steelmaking capacity, enhancing transparency and information sharing about capacity and production developments, and seeking robust policy commitments to address excess capacity and encourage adjustment.”

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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