USTR Initiates First Phase of U.S.-EC Beef Hormones MOU (Delays, Rather Than Cancels, Pending Expansion of 100% Duties)

Comments are due by September 12, 2009, and requests for a public hearing are due by August 20, 2009.

U.S. Maintains Current 100% Duties, EC Opens New Beef TRQ in First Phase

USTR explains that under the first phase of the MOU the two sides agreed that:

the EC would open a new duty-free tariff-rate quota (TRQ) for beef in the amount of 20,000 metric tons (which the EC opened on August 1, 2009); and

the U.S. would not increase additional duties above those in effect as of March 23, 2009 on certain EC products and countries.

One-Month Delay of Any Modification of 100% Duties, Pending Developments

Rather than canceling the modifications to the list of European Union (EU) products and countries subject to additional duties that were scheduled to go into effect August 15, 2009¹, the USTR is delaying them for roughly one month, to September 19, 2009.

However, USTR states it will take additional steps before that time in order to continue to implement U.S. obligations under the MOU.

(USTR explains it intends to take further steps to implement U.S. obligations under the first phase of the MOU and to pursue additional market access under subsequent phases² of the MOU, prior to September 19.)

Customs Instructions Included in Notice

While USTR states that further steps are contemplated before September 19, 2009, it does reference the list of modifications that it is delaying until that time and includes certain customs instructions for products entered on or after September 19th as follows:

In order to delay the effective date of the increased duties until September 19, 2009, the USTR has decided that the modifications to the Harmonized Tariff Schedule that are contained in Parts A and B of Annex II [of USTR's March 24, 2009 Federal Register notice which was a correction to its March 18, 2009 notice detailing and partially delaying the modifications to the 100% duty list³] shall be effective with respect to articles entered, or withdrawn from warehouse for consumption, on or after September 19, 2009."

In addition, any merchandise covered under Part B of Annex II (of USTR's March 24th correction of its March 18th notice) that is admitted to a U.S. foreign-trade zone on or after September 19, 2009 must be admitted in "privileged foreign status" as defined in 19 CFR 146.41.

USTR further states that questions concerning customs matters may be directed to Renee Chovanec, International Coordination, Office of International Trade, U.S. Customs and Border Protection, (202) 863-6384.

USTR Seeks Comments on Matters at Issue, Including the Imposition of 100% Duties During First Phase

USTR seeks comments on these matters, including on the imposition of 100% duties on the products currently subject to such duties throughout the remainder of the first phase of the MOU.

List of EU Countries and Products Currently Subject to 100% Duties

The following EU countries and products are currently subject to 100% duties in connection with the Beef Hormone dispute. These 100% duties have been in effect since March 23, 2009 and may be maintained throughout the first phase of the MOU (which ends August 3, 2012).

Articles the product of Austria, Belgium, Denmark, Finland, France, the Federal Republic of Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, or Sweden:

Articles the product of France:

Articles the product of Austria or France:

¹In January 2009, USTR announced modifications to the list of EU products and countries subject to additional duties in connection with the Beef Hormones dispute and partially implemented those modifications on March 23, 2009. The remaining modifications were delayed until April 23, 2009, May 9, 2009, and August 15, 2009, respectively. The delayed modifications include: (i) the imposition of increased duties on additional products, (ii) the application of the increased duties on currently covered products to products of additional EC member States, and (iii) the increase in the level of duties on one of the products on the list (Roquefort cheese to 300%). (See ITT's Online Archives or 05/13/09 news, 09051305, for BP summary of the delay until August 15, 2009, with links to other summaries.)

²The first phase of the MOU ends August 3, 2012. USTR states that under a possible second phase, the EC would expand the beef TRQ to 45,000 metric tons and the U.S., in turn, would suspend all the additional duties imposed in connection with this dispute.

³See ITT's Online Archives or 03/18/09 and 03/25/09 news, 09031810 and 090325993, for BP summaries of USTR detailing and partially delaying its modifications to the list of EU products and countries subject to additional duties in connection with the beef hormones dispute, and its correction to that notice, respectively.

(See ITT's Online Archives or 08/11/09 news, 09081110, for BP summary of the printed HTS Supplement 1 containing errors on beef hormone dispute products. See ITT's Online Archives or 06/23/09 news, 09062305, for BP summary of CIT decision stating that beef hormone sanctions have expired. See ITT's Online Archives or 05/14/09 news, 09051405, for BP summary of the U.S. and EU signing the MOU on the EU-beef hormones dispute.)

- requests for hearing due by August 20, 2009

- comments due by September 12, 2009

USTR notice (D/N USTR-2009-0022, FR Pub 08/13/09) available at http://edocket.access.gpo.gov/2009/pdf/E9-19455.pdf