CBP issued two new withhold release orders due to suspicions of goods made by forced labor, said CBP's list of such orders (here). The March 29 orders, the first since 2000, apply to "Soda Ash, Calcium Chloride, Caustic Soda, and Viscose/Rayon Fiber" made by "Tangshan Sanyou Group Co. Ltd. and its Subsidiaries" and "Potassium, Potassium Hydroxide, [Potassium] Nitrate" made by "Tangshan Sunfar Silicon Company," CBP said. The orders follow the recent elimination of an exemption to a ban on imported goods made by forced labor (see 1602260049). CBP received information "Tangshan Sanyou Group and its subsidiaries utilize convict labor in the production of the merchandise," it said in a news release (here). Senate Finance Ranking Member Ron Wyden, D-Ore, voiced approval of one of the orders on March 29 (see 1603290036).
Senate Finance Ranking Member Ron Wyden, D-Ore., commended CBP for blocking on March 29 a shipment of Chinese soda ash suspected of being made with forced or child labor, according to a Wyden statement (here). The Trade Facilitation and Trade Enforcement Act of 2015 closes loopholes on goods made with forced or child labor and this is the first time CBP has held a shipment pending a forced-labor determination since 2001, the Wyden said. “The Senate sent a strong message that there is no place for products made by slave labor in the United States, and today CBP followed suit by stepping up enforcement against forced prisoner-made goods,” Wyden said in the statement. “Eliminating these morally repugnant products from the market is the right thing to do, and it will help U.S. workers and products compete on even footing with other nations.” CBP previously said it is heavily reliant on outside reports for the agency's enforcement of the forced labor provisions (see 1602260049).
Competition between Chinese garlic exporters recently spilled over into Los Angeles federal district court, with both sides alleging manipulation of antidumping duty rates in order to obtain a commercial advantage. Harmoni International and its Chinese subsidiary, Zhengzhou Harmoni, allege a constellation of Chinese companies, many with common ownership, are working a racketeering scheme designed to fraudulently obtain lower AD rates, while artificially inflating Harmoni’s. Those companies contend that it is Harmoni that has been engaging in rate manipulation by colluding with the coalition of domestic garlic distributors that originally requested AD duties on garlic.
The Trade Facilitation and Trade Enforcement Act of 2015 (here), signed into law Feb. 24, includes an overhaul of current law on drawback, including provisions for substitute drawback at the eight-digit level and a uniform five-year deadline for claims. It also increases the de minimis limit to $800, exempts container residue from duties, and eliminates an exemption from import bans on goods produced with forced labor. Finally, the law holds CBP to stricter reliquidation timelines, and fixes legislation enacted last year that would have resulted in higher tariffs on recreational performance outerwear.
Changes to CBP's regulations for the de minimis threshold will be the first regulatory undertaking for the agency as it begins to implement the new customs reauthorization law (see 1602250021), said Maria Luisa Boyce, CBP’s senior advisor for trade engagement, who discussed the law on a Feb. 26 conference call. While the de minimis changes will be moving quickly in order to meet the Congressional timeline, there's still a number of decisions to be made and CBP said it planned to further discuss the issue with industry the following week.
The Senate voted 75-20 on Feb. 11 to approve the conference report of the Trade Facilitation and Trade Enforcement Act of 2015 (HR-644), a major step toward reauthorizing CBP and changing a number of customs processes. The House passed the conference report in December, and Senate approval means the bill will next go to President Barack Obama, who hasn't raised any objections. Several provisions in the bill would take effect 180 days after Obama signs it into law.
The conference report of the Trade Facilitation and Trade Enforcement Act of 2015, HR-644, passed the Senate on Feb. 11 by a landslide vote of 75-20, marking a major step toward reauthorizing CBP and changing a number of customs processes. The House passed the conference report in December (see 1512110029), and Senate approval means the bill will next go to President Barack Obama, who hasn't raised any objections. Industry and lawmaker reactions to the approval of the bill, which would go into effect 180 days after the President signs it into law, was largely positive.
Thirty-five retail and advocacy entities urged the agency to downgrade Uzbekistan back to Tier 3 in the State Department’s 2016 Trafficking in Persons (TIP) Report, claiming a lack of action on its commitments to end forced labor, in a Jan. 30 letter (here) to the agency. The 2015 TIP report improved the country to Tier 2 Watch List. “Any other placement would reward the government of Uzbekistan in spite of its continued, flagrant disregard of its national laws and international commitments,” the association, dubbed the “Cotton Campaign,” said in its letter. “The Tier 3 placement would, on the other hand, communicate the need to end forced labor to the government of Uzbekistan.
The Commerce Department unveiled state-by-state reports on the industry benefits posed by the Trans-Pacific Partnership on Nov. 12. The reports (here) cover each of the 50 U.S. states individually. Commerce Secretary Penny Pritzker, alongside U.S. Trade Representative Michael Froman, championed those export opportunities on a conference call on the same day. The tariff cuts to U.S. exports in the pact will boost U.S. production and employment, while raising U.S. wages, the reports and officials said.
Five former Democratic National Committee chairmen urged lawmakers to back implementation legislation for the Trans-Pacific Partnership in an open letter released in recent days (here). Those former officials include Don Fowler, Paul Kirk, Ed Rendell, Roy Romer and David Wilhelm. A TPP pact will open critical new markets for U.S. exports and put in place regulatory requirements that benefit U.S. companies, said the letter. “The deal eliminates 18,000 foreign taxes on American goods and services — a huge step forward to ensuring that American businesses have a chance to play by the same rules as foreign businesses,” it said, repeating a common argument made by U.S. Trade Representative Michael Froman since TPP negotiations wrapped up on Oct. 5.