This bulletin has been prepared especially for
clients of A. N. Deringer, Inc. by:
SERKO SIMON GLUCK & KANE LLP –
Customs & International Trade Law
January 4, 2007
CUSTOMS and BORDER PROTECTION (CBP)
- Vietnam 2007 Quota Announced: The U.S. Committee for the
Implementation of Textile Agreements (CITA) announced the 2007 import
limits for Vietnamese textiles and apparel. Although import limits will be lifted
once Vietnam
officially becomes a World Trade Organization (WTO) member on January 11,
2007, exports prior to that date are subject to quota, visa, and ELVIS
requirements.
- Ukraine Quota Suspended: As the bilateral textile agreement
between the U.S. and Ukraine
expired on December 31, 2006, textile exports are no longer subject to
quota and visa requirements.
However, quotas may be reinstated should the two countries agree to
extend their bilateral textile agreement at a future date.
- Certain Products to Lose GSP Eligibility: Certain products that are currently
eligible for preferential treatment under the Generalized System of
Preferences (GSP), and have reached
their Competitive Need Limitations (CNL), may lose their GSP eligibility from
July 1, 2007. Under the current GSP
program, if a product has reached its CNL, i.e., if imports of a
particular product from a specific country are either more than $125
million or exceed 50% of total U.S. imports of that product,
the President may waive the CNL restrictions to allow continued GSP
benefits. However, under recently
signed legislation extending the GSP program, the President will be required
to revoke these waivers when in effect for at least five years if the
product from a specific country exceeds 150% of the annual trade cap or
compromises 75% of all U.S.
imports of that product. The U.S.
Trade Representative (USTR) preliminary listed the following
products/countries which may be subject to these limitations: 1) brakes,
brake pads, and ferrozirconium from Brazil; 2) kola nuts from Cote
d’Ivoire; 3) gold jewelry and brass lamps from India; 4) gold jewelry from
Thailand; 5) wiring harnesses from Philippines; and 6) methanol from
Venezuela. The USTR will publish
the final list in February.
TRADE TALK
·
Free Trade
Developments:
Panama – The U.S.
and Panama
recently completed negotiations for a free trade agreement (FTA), subject to
further negotiations with regard to labor details. More than 88% of U.S. exports will enjoy duty free
treatment as soon as the FTA comes into effect with most of the remainder being
phased in over a 10-year period.
Additional AGOA Benefits – CITA announced that certain
handmade, handloomed, and folklore articles from Niger
(from January 3, 2007), Tanzania
(from January 10, 2007), and Mali
(from January 16, 2007) will enjoy additional preferential duty free treatment under
the African Growth and Opportunity Act (AGOA).
·
Fair Trade
Developments: The U.S. Commerce Department
recently took the following action:
Coated Free Sheet Paper – Preliminarily found that
coated free sheet paper from China,
Indonesia, and Korea are being sold at less than fair value in
the U.S.
and are injuring domestic producers.
Polyester Staple Fiber – Preliminarily determined
that certain polyester staple fiber is being sold at less than fair value in
the U.S.
and assessed an AD rate of between 4.39% and 44.3% (China-wide).
·
Comments
Sought on Applying CV Duties on Non-market Economies: Following the filing of a CVD case on coated
free sheet paper from China, the first CVD case filed on Chinese goods in 15
years, the U.S. International Trade Administration (ITA) is seeking public comments by January
16, 2007 on whether it should alter its current policy of not applying CVD
duties on non-market economies such as China and India.
WORLD
TRADE ORGANIZATION (WTO)
- Vietnam: Vietnam is scheduled to become the WTO’s 150th
member on January 11, 2007.
- “Zeroing”
Calculations: The ITA announced that following a WTO
Dispute Settlement Body finding against “zeroing” calculations, it is
changing the methodology it uses when calculating the weighted average
dumping margin in certain AD investigations. In certain investigations, it will use
offsets for non-dumped exports when making average to average
comparisons.
In
a related note, the U.S. Trade Representative (USTR) is seeking comments by February
28, 2007 on a complaint filed by Mexico
at the WTO against the U.S. practice
of “zeroing” in general, and specifically, its use during the AD investigation
of stainless steel sheet and strip coils from Mexico.
BUSINESS BRIEFS
·
China Trade
Developments:
Currency Exchange Rate – In its latest semi-annual report to Congress, the
U.S. Treasury Department declined to name any country, including China, as a
currency manipulator. While acknowledging
the continued trade distortions that the artificially low value of the Yuan has
on U.S. trade, the Treasury
Department noted the cautious approach China is taking to liberalize trade
in the Yuan. During the recent visit to China by the
U.S. Treasury Secretary, Chinese authorities reiterated their intent to
liberalize the Yuan’s exchange rate but did not set forth any concrete commitments.
China Trading Policy – Two recently released reports, the U.S.-China Economic and Security Review Commission and the USTR’s
annual report to Congress on China’s WTO commitments, were both critical of
China’s trade policies and belated commitments to its WTO requirements. The U.S.-China Economic Commission report
focused, among others, on China’s
woeful enforcement of intellectual property rights (IPR), the huge
counterfeiting problem across many different categories, and the apparent
failure of the current export control regime to stop China from acquiring military capabilities. The USTR’s report focused on IPR enforcement,
China’s
favoring of domestic businesses, regulatory intervention in the agricultural
market, and lack of transparency regarding the publishing of trade related
laws. The reports can be viewed at: http://www.ustr.gov/assets/Document_Library/Reports_Publications/2006/asset_upload_file688_10223.pdf
and http://www.uscc.gov/annual_report/2006/06_annual_report.php
.
LEGISLATIVE DEVELOPMENTS
·
Wool Labeling Fairness Act: The U.S.
Senate recently passed the Wool Suit Fabric Labeling Fairness and International
Standards Conforming Act (H.R. 4583) establishing a
legal standard for the labeling of wool and cashmere
products and adopting international standards for “superfine” wool
designations.
COURT CASES
·
Improper NAFTA Claim Ends in Default Judgment: In United States v. Jean Roberts of California,
Inc., the U.S. Court of International Trade (CIT) entered a judgment by
default in favor of the U.S. to recover civil penalties amounting to
$242,375.46, twice the amount of the loss of duties, for the alleged negligence
in claiming NAFTA preferential treatment when the imported merchandise did not
qualify for such treatment. Importer
claimed NAFTA duty free treatment for woven blankets when in fact the blankets
were knitted and not eligible for duty free treatment. Judgment by default was entered in favor of
the government after the importer failed to secure representation by counsel as
entreated by the CIT.
·
No Trademark Protection for In-transit Goods in the
EU:
The European Court of Justice (ECJ) recently ruled that trademark
protection can not be invoked over goods in transit through a country if there
is no risk that the goods will actually be marketed in that country. The case arose after an importer shipped
trademarked goods from Poland
to Ireland through Germany. The German authorities seized the goods while
they were passing through their territory after receiving a complaint from a
German company which owned the trademark in Germany. The Irish importer owned the same trademark
in Ireland,
the ultimate destination of the goods.
After a German court found in favor of the German trademark owner, the
Irish importer appealed, and the German court requested clarification from the
ECJ. The ECJ ruled that it is irrelevant
whether the goods actually infringed on a protected trademark, as long as there
is no chance that the goods will be sold in that territory, it was in transit
and protected from removal by a customs seal, they can not be seized for
trademark infringement.
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. ©2007