This bulletin has been prepared especially for
clients of A. N. Deringer, Inc. by:
SERKO SIMON GLUCK & KANE LLP –
Customs & International Trade Law
November 3, 2006
CUSTOMS and BORDER PROTECTION (CBP)
- Possible Increase in Watch Values from U.S.
Insular Possessions: The U.S. Interior
Department’s Office of Insular Affairs is seeking comments by November 20,
2006 whether to institute any changes to the maximum watch/component
values for watches imported under the Insular Watch Program. Currently, duty exemption benefits are
available for qualifying watches with a maximum movement value of $35 and
a value of $800 for the components.
Comments are sought on whether to: 1) leave the maximum values as they
are; 2) raise the maximum values for the movement to $50 and the
components to $1,250; 3) remove all value restrictions; or 4) leave the
movement value at the current level ($35), but index the component values
(gold) to the daily New York
spot gold price.
- Diamond Imports Under Kimberly Process: The U.S. Department of State’s Bureau of
Economic and Business Affairs published an updated list of participating
countries and their exporting authorities participating in the Kimberly
Process Certification Scheme.
Diamonds may not be imported from sources not on the approved list,
and is available at: http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/E6-17894.htm
.
- Classification Changes:
Certain Plasma Displays – Certain gas plasma displays
with electronic assemblies consisting of the address assembly, the scan A &
B assemblies, and other connector assemblies are not to be classified under
subheading 8529.90.53 (2.9%), HTSUS, the provision
for “flat panel screen assemblies.” CBP
states that as these panels do not contain
all three elements required to be classified as “flat panel screen assemblies” (display
device, drive electronics, and control electronics), they are properly
classified under subheading 8529.90.89 (duty free), HTSUS, the provision for “subassemblies
for color television receivers.”
Alloy Steel Powders – CBP states that certain
metal alloy powders mixed with inorganic compounds to make magnetic coatings
used for data storage tapes and injection molding
should not be classified as “other chemical products and preparations of the chemical and allied industries” under
subheading 3824.90.91 (5%), HTSUS. Pursuant
to the Section Notes, as the steel powder predominates by weight, they are
properly classified as “powders of alloy steel” under subheading 7205.21.0000
(duty free), HTSUS.
TRADE TALK
DR-CAFTA FTA – At a recent meeting between the presidents of the U.S. and the Dominican Republic, the two leaders
agreed to accelerate the implementation process for the Dominican
Republic-Central America Free Trade Agreement (DR-CAFTA). The Dominican Republic Congress is currently
considering the FTA implementing legislation.
Expiring
Andean Trade Agreement – Reports
indicate that the U.S.
administration will ask the U.S Congress to extend the Andean Trade Promotion
and Drug Eradication Act (ATPDEA) currently set to expire on December 31,
2006. ATPDEA grants preferential trade
benefits for qualifying goods imported from Bolivia,
Colombia, Ecuador, and Peru.
- AD/CVD
Developments: The U.S. Commerce Department took the
following action:
Cut-to-Length Carbon Steel Plate – Decided
to revoke the countervailing duty (CVD) on certain cut-to-length carbon steel
plate from the United Kingdom, as revocation will not lead to a resumption of
the CVD subsidy.
Stainless Steel Butt-weld Pipe Fittings – Decided to keep in place the antidumping (AD) order on certain stainless steel
butt-weld pipe fittings from Italy, Malaysia, and the Philippines.
- New
Bond Guidelines for High Collection Risks: CBP is
seeking comments by December 26, 2006 to identify factors relating its new
policy of seeking additional bond coverage to protect high risk (subject
to AD or CVD) imports. CBP may
consider an importer’s payment history and ability to pay when
contemplating additional bond thresholds.
After reviewing all received comments, CBP will publish its new
Monetary Guidelines for Setting Bond Amounts; additional information is
available at: http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/E6-17885.htm
.
WORLD TRADE ORGANIZATION (WTO)
- Russia’s WTO Accession Hopes: Russia is hoping it can reach an agreement
with the U.S.
administration shortly in order to allow it to join the WTO by mid-2007,
before President Bush’s “fast track” authority to quickly close trade
deals expires. U.S. Congress will
also have to grant Russia Permanent Normal Trade Relations (PNTR) before Russia can
join to WTO.
- Vietnam’s WTO Accession: A WTO
Working Party recently approved Vietnam’s WTO accession, with
a full membership vote scheduled for November 7, 2006. Vietnam’s National Assembly is
set to ratify the WTO Accession Agreement shortly. However, Vietnam
must still be granted Permanent Normal Trade Relations (PNTR) status by
the U.S.
before it can actually become a WTO member.
- DSB
Established on Auto Parts: Following complaints by the U.S., EU, and Canada,
the WTO established a Dispute Settlement Body (DSB) to review China’s
alleged unfair tariffs charged on imported auto parts.
BUSINESS BRIEFS
- Yuan Reaches Record High Against U.S. Dollar: China set this week the Yuan’s
exchange rate against the U.S. dollar at 7.8781, its highest level
ever. China’s Vice Premier
reiterated plans to continue pushing forward with reforms of the exchange
rate.
Serko Simon
Gluck & Kane LLP
1700 Broadway, 31st Floor
New York, New York
10019
Phone (212) 775-005 Fax (212) 839-9103
Outside of New York
State: 1-800-46-TRADE
E-mail address: serko-simon@customs-law.com On the
internet at: www.customs-law.com
Note: This
information is current as of the date of this document, and is not, nor is it
intended to be, legal advice, which can only be provided by Serko Simon Gluck
&Kane LLP on a case-by-case basis. ©2006
This Trade Alert has been
prepared by Chaim Appel, Technical Advisor.