The Office of the U.S. Trade Representative (“USTR”) announced today that it was extending the duty exemptions for only 266 of the 1,035 products on List 3 of the Section 301 tariffs that were scheduled to expire on August 7, 2020.  The 266 individual product line extensions will now expire on December 31, 2020.  The remaining 769 products for which extensions were not extended will now face 25% tariffs at the time of entry, effective August 8, 2020

The list of the products for which the Section 301 exclusions were extended can be found here.

We encourage clients and companies to review the listed exclusions and to contact Husch Blackwell’s International Trade and Supply Chain team with any questions or concerns.

The United States Trade Representative (“USTR”) issued new product exclusions pertaining to the Section 301 List 4A tariffs.  The current tariff is 7.5%.  The new exclusions include one ten-digit HTS subheadings and 9 specific product descriptions that together cover 25 separate exclusion requests.  The full list of excluded products is available here.  According to the USTR, the product exclusions apply retroactively to September 1, 2019 and remain in effect until September 1, 2020.  The exclusions cover various products, including zip ties, decorative glassware, and dust barriers.

We encourage clients and companies to review the listed exclusions and contact Husch Blackwell’s International Trade and Supply Chain team with any questions or concerns.

On August 6, 2020, the U.S. Department of Commerce published a notice initiating new Administrative Reviews for antidumping duty (AD) and countervailing duty (CVD) orders with June anniversary dates. Listed below are the countries and products named in the notice:

AD

  1. Germany: Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel (A-428-845)
  2. India:
  • Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel (A-533-873)
  • Glycine (A-533-883)
  1. Italy: Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel (A-475-838)
  2. Japan:
  • Carbon and Alloy Seamless Standard Line, and Pressure Pipe (Over 4.5 Inches) (A-588-850)
  • Carbon and Alloy Seamless Standard Line, and Pressure Pipe (Under 4.5 Inches) (A-588-851)
  • Glycine (A-588-878)
  1. Spain:
  • Chlorinated Isocyanurates (A-469-814)
  • Finished Carbon Steel Flanges (A-469-815)
  1. Switzerland: Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel (A-441-801)
  2. The People’s Republic of China:
  • Chlorinated Isocyanurates (A-570-898)
  • Tapered Roller Bearing and Parts Thereof, Finished or Unfinished (A-570-601)

 

CVD

  1. India: Glycine (C-533-884)
  2. The People’s Republic of China: High Pressure Steel Cylinders (C-570-978)

 

Husch Blackwell’s International Trade and Supply Chain team has extensive experience in these types of proceedings and encourages those who believe they may be affected to contact us.

On August 3, 2020, the Office of the U.S. Trade Representative (USTR) issued a notice requesting comments on whether to extend specific exclusions on Chinese imports from the Section 301 List 1 that are set to expire on October 2, 2020.  Companies whose products were granted exclusions in notices published on  October 2, 2019, December 17, 2019, and February 11, 2020 are eligible to submit comments. The due date for companies to submit their comments is August 30, 2020. USTR has stated that it will focus its evaluation on whether, despite the first imposition of these additional duties, the particular product remains available only from China. Additionally, USTR encourages companies to specifically address the following in their submission:

  • Whether the particular product and/or a comparable product is available from sources in the United States and/or in third countries.
  • Any changes in the global supply chain since July 2018 with respect to the particular product or any other relevant industry developments.
  • The efforts, if any, the importers or U.S. purchasers have undertaken since July 2018 to source the product from the United States or third countries.
  • Whether the imposition of additional duties on the products will result in sever economic harm to the commenter.

We encourage clients and companies to review the list of excluded products on our Section 301 page and to contact Husch Blackwell’s International Trade and Supply Chain team with any questions or concerns.

On August 4, 2020, Commerce announced in the Federal Register the opportunity to request an annual administrative review for products that are currently subject to antidumping and countervailing duties.

The products and countries that have August anniversary months are the following:

  • Seamless Line and Pressure Pipe from Germany
  • Sodium Nitrite from Germany and China
  • Finished Carbon Steel Flanges from India and Italy
  • Brass Sheet & Strip; Tin Mill Products from Japan
  • Polyethylene Retail Carrier Bags from Malaysia, Thailand, and China
  • Light –Walled Rectangular Pipe and Tube from Mexico, Korea, and China
  • Dioctyl Terephthalate; Large Power Transformers; Low Melt Polyester Staple Fiber from Korea
  • Small Diameter Carbon and Alloy Seamless Standard Line and Pressure Pipe from Romania
  • Ripe Olives from Spain
  • Certain Frozen Fish Fillets from Vietnam
  • Steel Propane Cylinders from Thailand
  • Silicomanganese from Ukraine
  • Various Products from China

As part of this annual review process, Commerce intends to select respondents based on an analysis of U.S. Customs and Border Protection (CBP) data for U.S. imports during the period of review which is released only to legal counsel for interested parties. Any party wishing to participate in the antidumping and countervailing duty review process or who may be affected by duties on the products identified in the Federal Register notice should file a request for review no later than August 31, 2020.  In order to be eligible to participate in the review, a party must either be an exporter or importer of the specific products and during the specific time periods identified in the Federal Register notice.

If your company or your suppliers are affected by these reviews, please contact Husch Blackwell’s International Trade and Supply Chain group for assistance on how the annual review process works.

In Husch Blackwell’s July 2020 Trade Law Newsletter, you’ll learn about the following updates in international trade and supply chain law:

  • President Trump’s Executive Order ends Hong Kong country of origin
  • USTR announces additional duties on cosmetics and handbags from France and delays the effective date until January 2021
  • An update on U.S. Department of Commerce decisions
  • U.S. International Trade Commission – Section 701/731 proceedings
  • An update from U.S. Customs & Border Protection
  • Summary of decisions from the Court of International Trade
  • Updates from the Court of Appeals for the Federal Circuit
  • July export controls and sanctions

If you have questions about our June Trade Law Update, please contact a member of Husch Blackwell’s International Trade & Supply Chain team.

On July 30, 2020, the Coalition of American Chassis Manufacturers (“Petitioners”), filed a petition for the imposition of antidumping and countervailing duties on certain chassis and subassemblies from China.

SCOPE OF THE INVESTIGATION

The merchandise covered by this investigation are chassis and subassemblies thereof, whether finished or unfinished, whether assembled or unassembled, whether coated or uncoated, regardless of the number of axles, designed primarily for use in the carriage of containers, or other payloads (including self-supporting payloads) that can be attached by twistlocks, slide pins or similar attachment devices, for road, marine roll-on/roll-off (RORO) and/or rail transport. Chassis are typically, but are not limited to, rectangular framed trailers with a suspension and axle system, wheels and tires, brakes, a lighting and electrical system, a coupling for towing behind a truck tractor, and a locking system or systems to secure the shipping container or containers attached to the chassis.

Subject merchandise includes, but is not limited to, the following subassemblies:

  • Chassis frames, or sections of chassis frames, including kingpins or kingpin assemblies, bolsters consisting of transverse beams with locking or support mechanisms, goosenecks, drop assemblies, extension mechanisms and/or rear impact guards;
  • Running gear assemblies or axle assemblies for connection to the chassis frame, whether fixed in nature or capable of sliding fore and aft or lifting up and lowering down, which may or may not include suspension(s) (mechanical or pneumatic), wheel end components, slack adjusters, axles, brake chambers, locking pins, and tires and wheels;
  • Landing gear (legs) or landing gear assemblies, for connection to the chassis frame, capable of supporting the chassis when it is not engaged to a tractor; and
  • Assemblies and/or components that connect to the chassis frame or a section of the chassis frame, such as, but not limited to, pintle hooks or B-trains (which include a fifth wheel), which are capable of connecting a chassis to a converter dolly or another chassis.

Importation of any of these subassemblies, whether assembled or unassembled, constitutes an unfinished chassis for purposes of this investigation.

Subject merchandise also includes chassis, whether finished or unfinished, entered with or for further assembly with components such as, but not limited to: hub and drum assemblies, brake assemblies (either drum or disc), axles, brake chambers, suspensions and suspension components, wheel end components, landing gear legs, spoke or disc wheels, tires, brake control systems, electrical harnesses and lighting systems.

Processing of finished and unfinished chassis and components such as trimming, cutting, grinding, notching, punching, drilling, painting, coating, staining, finishing, assembly, or any other processing either in the country of manufacture of the in-scope product or in a third-country does not remove the product from the scope. Inclusion of other components not identified as comprising the finished or unfinished chassis does not remove the product from the scope.

This scope excludes dry van trailers, refrigerated trailers and flatbed trailers. The finished and unfinished chassis subject to this investigation are typically classified in the Harmonized Tariff Schedule of the United States (HTSUS) at subheadings: 8716.39.0090 and 8716.90.5060. While the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise under investigation is dispositive.

 

PETITIONERS

Cheetah Chassis Corporation

225 Lincoln Highway, Suite 202

Fairless Hills, PA 19030

Phone: 215-949-4790

Fax: 215-949-4779

Contact Person: Shari Solomon

Email: ssolomon@diamatrix.net

 

Hercules Enterprises, LLC

321 Valley Rd.

Hillsborough, NJ 08844

Phone: 908-369-0000

Fax: 908-369-0626

Contact Person: Frank Conti

Email: fconti@herculesent.com

 

 Pitts Enterprises, Inc.

5734 Pittsview Hwy

Pittsview, AL 36871

Phone: 800-321-8073

Contact Person: Philip Smitley

Email: philips@pittstrailers.com

 

Pratt Industries, Inc.

11365 Red Arrow Hwy

Bridgman, MI 49106

Phone: 269-465-7676

Fax: 269-465-7677

Contact Person: Kent Musick

Email: kent.musick@prattinc.com

 

Stoughton Trailers, LLC

416 S. Academy Street

Stoughton, WI 53589

Phone: 608-873-2500

Contact Person: Richard G. Raymond

Email: rraymond@stoughtontrailers.com

 

COUNSEL FOR PETITIONERS

Timothy C. Brightbill

Wiley Rein LLP

1776 K Street N.W.

Washington, DC 20006

(202) 719-7000

 

NAMED PRODUCERS/EXPORTERS

For a list of foreign producers/exporters alleged by Petitioner, please see Attachment I .

 

NAMED IMPORTERS

For a list of importers alleged by Petitioner, please see Attachment II

 

ESTIMATED SCHEDULE

Event Earliest Date
Petition Filed July 30, 2020
DOC Initiation August 19, 2020
ITC Preliminary Investigation:
Questionnaires Due August 13, 2020
Request to appear at hearing August 18, 2020
Hearing August 20, 2020
Briefs August 25, 2020
ITC Vote September 14, 2020
DOC Investigation Schedule:
DOC Preliminary Antidumping Determination January 6, 2021
DOC Preliminary Countervailing Determination October 23, 2020
DOC Final Antidumping Determination March 22, 2021
DOC Final Countervailing Determination January 6, 2021
ITC Final AD Determination May 6, 2021
ITC Final CVD Determination February 22, 2021

 

ALLEGED DUMPING MARGINS

China: 211.49%

 

ALLEGED SUBSIDIES

For a list of alleged countervailing duty programs, please see Attachment III

 

IMPORTS OF SUBJECT MERCHANDISE

2017 2018 2019 Jan – Mar 2019 Jan – Mar 2020

China

(8716.39.0090)

Quantity(Units) 41,104 68,751 29,110 8,462 4,019
Value ($1,000) 354,319 573,854 255,810 68,505 40,274
AUV ($/Units) 8,620 8,347 8,788 8,096 10,021

China

(8716.90.5060)

Quantity(KG) 135,029,187 166,193,777 127,629,766 34,733,004 25,269,627
Value ($1,000) 298,321 401,914 340,087 88,971 70,039
AUV ($/KG) 2.21 2.42 2.66 2.56 2.77

 

CONTACT US

For more information concerning this petition and how it may affect your business, please contact Jeffrey Neeley, Nithya Nagarajan, or Stephen Brophy.

On July 29, 2020, Novus International, Inc. (“Petitioner”), filed a petition for the imposition of antidumping duties on methionine from France, Japan, and Spain.

SCOPE OF THE INVESTIGATION

The merchandise covered by this investigation is methionine and precursors to methionine, including dl-Hydroxy analogue of dl-methionine, also known as 2-Hydroxy 4-(Methylthio) Butanoic acid (HMTBa), regardless of purity, particle size, grade, or physical form. Methionine has the chemical formula C5H11NO2S, liquid HMTBa has the chemical formula C5H10O3S, and dry HMTBa has the chemical formula C6H9CaO5S.

Subject merchandise also includes methionine processed in a third country including, but not limited to, refining or any other processing that would not otherwise remove the merchandise from the scope of this investigation if performed in the country of manufacture of the in-scope methionine or precursors of methionine.

Methionine that is otherwise subject to this investigation is not excluded when commingled (i.e., mixed or combined) with methionine from sources not subject to this investigation. Only the subject component of such commingled products is covered by the scope of these investigations.

Methionine is currently classified under subheadings 2930.40.00.00 and 2930.90.46.00 of the Harmonized Tariff Schedule of the United States (HTSUS). Methionine has the Chemical Abstracts Service (CAS) registry numbers 583-91-5, 4857- 44-7, 59-51-8 and 922-50-9. While the HTSUS subheadings and CAS registry number are provided for convenience and customs purposes, the written description of the scope of this investigation is dispositive.

 

PETITIONERS

Novus International, Inc.

20 Research Park Dr.

St. Charles, MO 63304

Website: www.novusint.com

Tel: (314) 576-9886

Contact: Dr. Carla Martin, Esq.

Email: Carla.Martin@novusint.com

 

COUNSEL FOR PETITIONERS

Roger B. Schagrin

Schagrin Associates

900 Seventh Street N.W.

Suite 500

Washington, DC 20001

(202) 223-1700

 

NAMED PRODUCERS/EXPORTERS

For a list of foreign producers/exporters alleged by Petitioner, please see Attachment I .

 

NAMED IMPORTERS

For a list of importers alleged by Petitioner, please see Attachment II .

 

ESTIMATED SCHEDULE

Event Earliest Date
Petition Filed July 29, 2020
DOC Initiation August 18, 2020
ITC Preliminary Investigation:
Questionnaires Due August 12, 2020
Request to appear at hearing August 17, 2020
Hearing August 19, 2020
Briefs August 24, 2020
ITC Vote September 14, 2020
DOC Investigation Schedule:
DOC Preliminary Antidumping Determination January 5, 2021
DOC Final Antidumping Determination March 22, 2021
ITC Final AD Determination May 5, 2021

 

ALLEGED DUMPING MARGINS

France: 17.34%

Spain: 36.43%

Japan: 103.31%

 

IMPORTS OF SUBJECT MERCHANDISE

 

2017 2018 2019 Jan – Mar 2019 Jan – Mar 2020
France
Quantity(Short Tons) 6,285 7,298 5,557 1,396 700
Value ($) 14,180,227 17,102,220 11,552,770 3,170,216 1,570,173
AUV ($/Short Ton) 2,256.11 2,343.37 2,079.09 2,270.81 2,244.57
Spain
Quantity(Short Ton) 13,610 14,198 37,860 9,286 11,966
Value ($) 24,657,146 27,539,900 62,665,757 17,661,412 16,294,743
AUV ($/Short Ton) 1,811.66 1,939.64 1,655.18 1,902.01 1,361.79
Japan
Quantity(Short Ton) 9,262 12,225 17,861 4,235 6,587
Value ($) 22,314,079 26,679,895 31,962,240 8,272,242 9,818,672
AUV ($/Short Ton) 2,409.31 2,182.41 1,789.48 1,953.53 1,490.60

 

CONTACT US

For more information concerning this petition and how it may affect your business, please contact Jeffrey Neeley, Nithya Nagarajan, or Stephen Brophy.

The Office of the U.S. Trade Representative (“USTR”) announced that it will extend certain product exclusions that were scheduled to expire on July 31, 2020 for fourteen (14) specific products subject to Section 301 List 2 tariffs at a rate of 25%.  As a result of these extensions, the exclusions will now expire on December 31, 2020.

The products for which the Section 301 exclusions were extended include the following:

(1) Polytetrafluoroethylene ((C2F4)n), having a particle size of 5 to 500 microns and a melting point of 315 to 329 degrees Celsius (described in statistical reporting number 3904.61.0090);

(2) Polyethylene film, 20.32 to 198.12 cm in width, and 30.5 to 2000.5 m in length, coated on one side with solvent acrylic adhesive, clear or in transparent colors, whether or not printed, in rolls (described in statistical reporting number 3919.90.5060);

(3) Rectangular sheets of high-density or low-density polyethylene, 111.75 cm to 215.9 cm in width, and 152.4 cm to 304.8 cm in length, with a sticker attached to mark the center of each sheet, of a kind used in hospital or surgery center operating rooms (described in statistical reporting number 3920.10.0000);

(4) Gasoline or liquid propane (LP) engines each having a displacement of more than 2 liters but not more than 2.5 liters (described in statistical reporting number8407.90.9010);

(5) Dispensers of hand-cleaning or hand-sanitizing solutions, whether employing a manual pump or a proximity-detecting battery-operated pump, each article weighing not more than 3 kg (described in statistical reporting number 8424.89.9000);

(6) Walk behind rotary tillers, electric powered, individually weighing less than 14 kg (described in statistical reporting number 8432.29.0060);

(7) AC motors, of 18.65 W or more but not exceeding 37.5 W, each with attached actuators, crankshafts or gears (described in statistical reporting number 8501.10.6020);

(8) Position or speed sensors for motor vehicle transmission systems, each valued not over $12 (described in statistical reporting number 8543.70.4500);

(9) Wheel speed sensors for anti-lock motor vehicle braking systems, each valued not over $12 (described in statistical reporting number 8543.70.4500);

(10) Apparatus using passive infrared detection sensors designed for turning lights on and off (described in statistical reporting number 8543.70.9960);

(11) Liquid leak detectors (described in statistical reporting number 8543.70.9960);

(12) Robots, programmable, measuring not more than 40 cm high by 22 cm wide by 27 cm deep, incorporating an LCD display, camera and microphone but without “hands” (described in statistical reporting number 8543.70.9960);

(13) Motorcycles (including mopeds), with reciprocating internal combustion piston engine of a cylinder capacity not exceeding 50 cc, valued not over $500 each (described in statistical reporting number 8711.10.0000);

(14) Digital clinical thermometers (described in statistical reporting number 9025.19.8040 prior to July 1, 2020; described in statistical reporting number 9025.19.8010 or 9025.19.8020 effective July 1, 2020).

USTR requested comments in April on whether it should extend the exclusions, which were originally issued on July 31, 2019. Over 50 products which were previously granted exclusions and were not listed in this extension notice will now expire on July 31, 2020.

To view the full list of extended product exclusions, please click here.

We encourage clients and companies to review the listed exclusions and to contact Husch Blackwell’s International Trade and Supply Chain team with any questions or concerns.

The U.S. Department of State recently published updated guidance pertaining to Section 232 of the Countering America’s Adversaries Through Sanctions Act (“CAATSA”). The revised guidelines subject energy export pipelines originating from Russia, particularly the Nord Stream 2 and TurkStream pipelines, to secondary Section 232 sanctions (not to be confused with Section 232 of the Trade Expansion Act of 1962). The sanctions’ focus is on any persons who, according to the Secretary of State, on or after August 2, 2017 knowingly made an investment or “sells, leases, or provides to the Russian Federation goods or services” which meet the Section 232(a) fair market value thresholds and which “directly and significantly facilitate the expansion, construction, or modernization” of energy export pipelines by Russia.

The U.S. has repeatedly expressed its opposition to the construction of the Nord Stream 2 and TurkStream pipelines, which the U.S. view as means of creating “national and regional dependencies” on Russian energy which Russia exploits to “expand its political, economic, and military influence and undermine U.S. national security and foreign policy interests.”

On July 16, 2020, the U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”) issued two new General Licenses (“GL”) 13O and GL 15I related to GAZ Group, a Russian conglomerate. These General Licenses extend pre-existing authorizations for transactions with GAZ Group that would otherwise be prohibited under OFAC’s Ukraine- and Russia-related sanctions.  Specifically, GL 13O replaces and supersedes GL 13N, while GL 15I replaces and supersedes GL 15H (previously reported on here).  GL 13O authorizes through January 21, 2020 certain transactions necessary to divest or transfer debt, equity, or other holdings in GAZ Group and its 50% or greater owned subsidiaries, while GL 15I authorizes certain other activities involving GAZ Group. GL 15I authorizes the following activities:

  • Research, design, development, production, modification, upgrade, certification, distribution, and marketing;
  • Provision or receipt of services, including warranty, maintenance, logistics, storage, shipping, insurance, security, brokerage, legal, banking and financial (including financing and renegotiation of debt), technical and engineering, advertising, and customer services;
  • Entry into joint ventures, contract manufacturing agreements, supplier contracts, and other new contracts associated with activities authorized by paragraph (a);
  • Payment and receipt of dividends and other funds owed by or to GAZ Group relating to activities authorized by paragraph (a);
  • The conduct of financial transactions associated with activities authorized by paragraph (a); and
  • Activities necessary for compliance with paragraph (f)(1)(i), including financial auditing services.

Neither GL 13O nor GL 15I authorize any transactions otherwise prohibited by 31 C.F.R. Chapter V.   Parties relying on either GL 13O or GL 15I should be aware that each General License imposes certain terms and conditions which must be met in order to qualify for the applicable authorization.  Additionally, both General Licenses include and impose comprehensive and detailed reporting requirements, so persons engaging in transactions or activities under GL 13O or GL 15I should ensure that they document those transactions and activities carefully.

Husch Blackwell continues to monitor the Russia and Ukraine-related sanctions closely and will provide updates as new information becomes available. Should you have any questions or concerns regarding OFAC’s new GLs or the updated CAATSA guidance regarding Russian gas pipelines, please contact Cortney Morgan or Grant Leach of Husch Blackwell’s Export Controls & Economic Sanctions team.