The U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”) recently issued General License 13E (“GL 13E”), authorizing certain activities involving Nynas AB, a Swedish manufacturer of specialty oils owned in part by PDVSA, Venezuela’s state-owned oil company, which would normally be prohibited by Executive Order 13850 (“E.O. 13850”).  The notice issued by OFAC indicates that Nynas AB “is engaged with OFAC on a proposed corporate restructuring that could potentially result in significant changes to Nynas AB’s ownership and control.”  As a result, the general license is being extended until May 14, 2020 to allow Nynas AB additional time to “complete the engagement.”

Effective April 3, 2020, GL 13E replaces and supersedes GL 13D by extending certain authorized transactions through May 14, 2020 where the only Government of Venezuela entities involved are Nynas AB or any of its subsidiaries.  Companies which relied on GL 13D for transactions should now reference GL 13E. OFAC notes that GL 13E does not authorize the following:

  • Any exportation or reexportation of any goods, services, or technology, directly or indirectly, by U.S. persons wherever located or from the United States to the Government of Venezuela, other than to Nynas AB or any of its subsidiaries;
  • Any transactions or dealings related to the exportation or reexportation of diluents, directly or indirectly, to Venezuela;
  • Any transactions or dealings related to the purchase or acquisition of Venezuelan-origin petroleum or petroleum products, directly or indirectly, by Nynas AB or any of its subsidiaries; and
  • Any transactions or activities otherwise prohibited by the Venezuelan Sanctions Regulations, or any other part of 31 C.F.R. Chapter V.

Husch Blackwell continues to monitor the U.S. sanctions on Venezuela and will provide updates as more information becomes available.  Should your company have any questions regarding GL 13E or the Venezuela sanctions in general, please contact Cortney Morgan or Grant Leach of our Export Controls & Economic Sanctions team.

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

  • CBP Changes Course: No Longer Accepting Requests to Defer Duty Payments
  • CBP Announces that Importers of Garlic and Pipe Fittings are Evading AD and CVD Duties
  • Court of International Trade Assigns 3-Judge Panel to Section 232 Steel and Aluminum Derivatives Tariff Appeals
  • Canada Approves U.S.-Mexico-Canada Agreement (USMCA)
  • 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
  • March export controls and sanctions

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

What might not be so obvious in this COVID-19 environment, which we have grown to associate with shortages, is that counterintuitively there are issues beginning to appear dealing with the opposite situation. The Journal of Commerce has reported that “[t]he container shipping industry is marshaling a response to signs of a building import backlog as some retailers and manufacturers fail to pick up containers because warehouses are full or closed due to not being deemed essential service providers responding to coronavirus disease 2019 (COVID-19).” This is a development with implications to all stakeholders in the supply chain and will have some impact on retailers/manufacturers, ocean carriers, ocean transportation intermediaries, and warehouses.

Continue Reading COVID-19 Impacts on Demurrage and Detention

[APRIL 3 UPDATE] U.S. lawmakers of both parties in the House and the Senate, including House Minority Leader Kevin McCarthy (R-CA) and Sens. Pat Toomey (R-PA) and Dianne Feinstein (D-CA), have urged the Trump Administration to suspend tariff collections for at least 90 days to assist businesses that are hurting from the economic crisis caused by the COVID-19 pandemic.  U.S. Customs and Border Protection (CBP) said earlier in March that it would accept applications from companies to delay duty payments, but now says it will no longer accept those requests.  The bipartisan group of lawmakers sent a letter dated March 26, 2020 to Treasury Secretary Steven Mnuchin, urging him to issue a directive to CBP to defer all tariffs for at least 90 days, or until the crisis passes.  If CBP defers all tariffs for at least 90 days, it could provide struggling businesses with much needed cash-on-hand to continue functioning and paying employees.

However, during the regular evening Coronavirus Task Force press conference on Tuesday March 31, 2020, Trump indicated that he is not amenable to any abatement of duties during the health crisis, asserting that the tariffs are being paid for by countries like China rather than U.S. businesses and consumers.   While admitting that “there is nothing wrong with doing it”, he also stated that since no executive order has been presented to him, the White House has not taken any action.  However, it is important to note that even if deferral measures are approved, CBP is expected to only limit the deferral to regular duties, taxes, and fees.  The Trump Administration has been considering an executive order that would defer tariff payments on some imports, but would not outright cancel the duties.  According to the New York Times, the most recent discussions in the administration have included a 30 day referral, rather than a 90 day one.  This would mean that special tariffs and duties, such as Section 232 tariffs on steel and aluminum, Section 301 tariffs on imports from China, and antidumping and countervailing duties may or may not be deferred.

As a follow up to Husch Blackwell’s post earlier this week, White House Economic Advisor Larry Kudlow stated in an April 3, 2020 interview that any  duty deferrals are not likely and that the administration has decided not to defer duties at this time, because such an action was “too complicated” and “might send the wrong signals.”

Husch Blackwell is closely monitoring U.S. trade actions and will provide updates as more information becomes available.  If your company has any questions about possible import duty deferrals, please contact our International Trade and Supply Chain team.

On Monday, March 30, 2020, trade ministers of the G20 countries issued a joint statement stating that any emergency measures taken in response to the coronavirus pandemic must be temporary and consistent with World Trade Organization (WTO) rules.  Several governments, including India and Germany, have already implemented export restrictions on medical supplies, and there are concerns throughout supply chains that government responses to the pandemic could result in unnecessary and cumbersome trade barriers.  The G20 trade leaders attempted to ease those concerns by pledging to comply with WTO rules, but notably did not pledge to avoid new trade restrictions as they did in response to the 2008 Global Financial Crisis. Analysts had also hoped that G20 countries would commit to temporarily suspending all tariffs on key medical goods, but that does not seem to have resulted from this week’s discussions.

Husch Blackwell continues to monitor governments’ responses to the coronavirus pandemic and how they may impact global trade and logistics. If your company has any questions or concerns about navigating global trade during these uncertain times, please contact our International Trade and Supply Chain team.

UPDATED: April 1, 2020 – Several U.S. executive branch agencies along with federal courts are instituting significant operational changes.  These changes have either already been implemented or are anticipated at the U.S. government agencies and courts which manage international trade-related concerns in the coming weeks due to personnel and public safety concerns over the COVID-19 health crisis. Husch Blackwell has provided an agency-by-agency summary below based upon the currently available information with respect to each agency’s status.  The Office of Personnel Management (“OPM”) announced last week, and until further notice, that federal offices nationwide are open but “maximum telework flexibilities” are in place for all eligible employees “pursuant to direction from agency heads.”

Agencies Handling Trade Remedy Proceedings

U.S. Department of Commerce (Commerce) – Commerce has not yet published a formal notice of its operating status; however, it is known that meetings with visitors from outside of the agency have been canceled in the past week.  Additional information relating to Commerce’s status is available here.  Commerce has also issued certain contractor-specific guidance here.

U.S. Department of Commerce, Enforcement and Compliance (E&C)announced that it is temporarily modifying certain requirements for serving documents with business proprietary information in AD/CVD cases through May 19, 2020.  E&C will provide a “Get BPI Releases” link in ACCESS that will make BPI documents available for all APO-authorized lead attorneys and their proxies for a period of 14 days.  Daily BPI Release digest emails will be sent to notify parties when BPI documents are available on ACCESS for viewing.  The announcement encouraged parties to agree to and avail of email service of public documents and public versions in order to facilitate the transition of service of BPI documents through the ACCESS portal.

U.S. International Trade Commission (ITC)The ITC stated that it will continue to be open but will monitor the situation.  The Secretary’s office has communicated with most parties and will accept only electronic filings during this time.  Filings must be made through the ITC’s Electronic Document Information System (EDIS) at https://edis.usitc.gov.  No in-person, paper-based filings or paper copies of any electronic filings will be accepted until further notice.  Limited access will be granted only to visitors who have a statutory matter, and all visitors are restricted to the first floor of the ITC building.  In addition, electronic service of documents containing business proprietary information will be served electronically via the ITC’s electronic portal and similarly any document releases by the ITC containing business proprietary information will be released electronically.

Section 337 Hearings – Administrative law judges (ALJs) have been ordered to postpone any hearings scheduled in the next 60 days.  All discovery will continue and any essential outside participation by staff will be decided on a case-by-case basis.

Title VII (Antidumping and Countervailing Duty) Matters – All antidumping and countervailing duty preliminary phase staff conferences have been cancelled for the next 60 days.  All ITC Title VII votes will be conducted by notation; there will be no in-person vote for the next 60 days.  Regarding hearings for final phase Title VII investigations, five-year (sunset) reviews, and those held under Section 332 and Section 131, the ITC has decided not to hold in-person hearings and interested parties will be invited instead to answer written questions issued by the ITC with certified written responses.

Other Agency Meetings, Seminars and Briefings – All scheduled in-person meetings with outside persons have been cancelled or postponed for the next 60 days.

Agencies Handling Other Customs and Trade Matters

U.S. Trade Representative (USTR) – The Office of the U.S. Trade Representative has offered no updates with respect to its current or future operating status.

U.S. Customs and Border Protection (CBP) – CBP refers users to DHS.gov/coronavirus for information related to the COVID-19 pandemic, where it states that “all air, land and sea Ports of Entry (POEs), CBP Officers (CBPOs) and Border Patrol Agents (BPAs) continue to identify and refer individuals with symptoms of COVID-19 or a travel history to China, Iran, or certain European countries in the past 14 days to CDC or local public health officials for enhanced health screening.”

As has been occurring for several weeks, the rerouting of all flights with passengers, who have recently been in China, Iran, and certain European countries, continues through select airports with established resources, procedures and personnel.  A February 3, 2020 bulletin explained that “[c]rew, and flights carrying only cargo (i.e., no passengers or non-crew), are excluded” from U.S. Department of Homeland Security’s arrival restrictions imposed on February 2, 2020.  It has also been reported that “CBP continues to process cargo at its normal rate as there has been no identified threat as it relates to cargo shipments” and that “vessels or embarked crew members or passengers that have recently been in China will have their arrivals fully vetted to safeguard the American public, yet facilitate trade.  This safety protocol is not anticipated to slow down the movement of cargo.”  CBP has cancelled or postponed several upcoming trade conferences, including the 2020 Trade Symposium.

Effective March 21, 2020, the United States and Canada imposed restrictions on “non-essential travel” between the two countries applying mainly for tourism and recreational purposes.  Similar restrictions on non-essential travel between the United States and Mexico also went into effect on March 21.

Due to policies and precautions affected in response to the COVID-19 outbreak, the Office of Export Enforcement is accepting initial, supplemental and final self-disclosures electronically via the BIS_VSD_Intake email box.  Please be advised that once operations are returned to normal, OEE anticipates a return to regular submission protocols as outlined in the Export Administration Regulations, Section 764.5.  Until that time, please direct any questions relating to Voluntary Self Disclosures to the OEE Investigations unit at BIS_VSD_INTAKE@bis.doc.gov.

Duty Deferral Requests – CBP is approving, on a case-by-case basis, requests for extended deadlines to pay duties, taxes and fees due to COVID-19.  See our previous post here.  CBP is also considering a more formal duty deferral policy in response to COVID-19, but none has been announced to date.

Binding Ruling Requests – The CBP National Commodity Specialist Division is still accepting binding ruling requests, but “paper binding ruling requests and requests that include or necessitate a sample may be delayed in processing and/or issuance,” according to CBP’s CSMS message.  Filers are encouraged to use the eRulings website for ruling requests and to include detailed “photographs or short videos of the product to be submitted in lieu of samples,” it said.  “However, we recognize that certain commodities require a sample in order for a determination to be made.  In such cases, delays may occur.  The National Import Specialist assigned to work on your ruling will reach out to you to discuss your options and whether a determination can be made without a sample.”

Customs Information on Trade Remedy Question and Resources: CSMS #40969690 Updated on March 30, 2020:

CBP updated its trade remedy resources and questions on Monday March 30, 2020.  CBP has stated that in order to assist the trade community with compliance with trade remedy questions and concerns under Section 201, 232, and 301, it is providing a summary list of resources for information with specific trade remedy questions.  CBP suggests visiting https://www.cbp.gov/trade/remedies for information on trade remedy compliance information, including:

  • Entry filing requirements on imports of goods subject to Section 201, 232, and 301 import duties;
  • Entry filing requirements on imports of goods subject to Section 232 duty exclusions approved by the U.S. Department of Commerce, and Section 301 exclusions approved by the Office of the U.S. Trade Representative; and
  • Section 232 product exclusions approved by the U.S. Department of Commerce, which are active in CBP’s Automated Commercial Environment (ACE) (updated on a weekly basis). See https://www.cbp.gov/document/publications/active-section-232-product-exclusions-ace.

For other topics, CBP has created a specific list of offices and/or websites:

Subject Contact
Other entry filing requirements for Section 201, 232 and 301 not addressed on https://www.cbp.gov/trade/remedies Email traderemedy@cbp.dhs.gov
ACE entry filing problems/rejects Your assigned ACE client representative
Other entry-specific questions, such as entry date (including IT date), HTS classification, country of origin Contact the Import Specialist Team at your assigned Center of Excellence of Expertise at https://www.cbp.gov/trade/centers-excellence-and-expertise-information/cee-directory
Questions related to whether one or more items are subject to Section 201, 232, 301 or an exclusion

Refer to the trade remedy website on CBP.gov at https://www.cbp.gov/trade/remedies

and/or

Request a classification ruling at https://www.cbp.gov/trade/rulings/ruling-letters

Quota Email the Quota Branch at HQQUOTA@cbp.dhs.gov
Free Trade Agreements Email the Trade Agreements Branch at FTA@cbp.dhs.gov
Questions on Section 232 exclusion requests denied for HTSUS concerns only Email section232assistance@cbp.dhs.gov

 

Additionally, CBP has released a list containing HS classifications for reference for COVID-19 medical supplies titled “CBP COVID-19 HTS Guidance.

Agencies Handling Export Controls and Sanctions Issues

U.S. Department of Commerce – The Bureau of Industry and Security (BIS) has not issued a formal notice of its operating status, but does have guidance for Commerce employees posted on its website as noted above.  BIS has announced the cancellation of its Annual Export Control Forum originally scheduled to take place April 1-2, 2020 in Los Angeles.  As of now, BIS’s Annual Update Conference 2020 is still scheduled to take place in Washington, DC on June 29 – July 1.

U.S. Department of the Treasury –Treasury has yet to publish a formal notice of its operating status; however, the “public engagement” schedule for the next several weeks is currently empty, suggesting that all outside meetings have been cancelled.  The Office of Foreign Assets Control (OFAC) has not indicated yet whether its operations have been affected.

U.S. Department of State – The Directorate of Defense Trade Controls (DDTC) has announced that its core functions across its Licensing, Compliance, Policy, and Management continue to operate.  “However, staffing and other adjustments across the Department and interagency are being made” as the agency follows OPM guidance.

  • Licensing activities: All electronic application systems are currently operating as normal, and new licenses continue to be accepted for processing. However, a longer than normal processing time should be expected.
  • Registration, CJ Requests and General Correspondence: These filings via the DECCS system continue and are being processed as they are submitted; responses may be delayed by the current operational environment.

DDTC has established a new option for industry to submit disclosures and related information (e.g., exhibits, extension requests, responses to DTCC inquires) by allowing submissions via email to DTCC-CaseStatus@state.gov.  In the event that a disclosure cannot be submitted via email, DDTC indicates that the continued use of regular U.S. mail is acceptable.

U.S. Census Bureau – The majority of U.S. Census Bureau employees are operating remotely via telework.  During this time, call centers and email inboxes will remain open to assist customers’ daily trade needs.  However, the agency will have limited access to physical mail.  For those companies that are submitting a Voluntary Self-Disclosure (VSD) or data request, please make the submission electronically to the Trade Regulations Branch (TRB) in a password-protected file to emd.askregs@census.gov (for VSDs) or Data User & Trade Outreach Branch (DUTOB) to tmd.outreach@census.gov (for data requests). Additionally, such submissions may be sent to Census’ secure fax at 301-763-8835.

Federal Courts

U.S. Court of International Trade (CIT) – According to the CIT’s statement of March 12, it appears that there have been no adjustments in CIT operations, except as listed below.

  • People who have traveled to China, Iran, Ireland, South Korea, the United Kingdom, or any of the 26 countries located in the Schengen Area of Europe within the last 14 days; reside or have had close contact with someone who has traveled to one of these areas within the last 14 days; have been asked to self-quarantine by any hospital or health agency; or have been diagnosed with, or have had contact with, anyone who has been diagnosed with COVID-19, must inform the court security officers upon entering the courthouse and will be denied permission to enter. Attorneys who are so affected who are scheduled to appear before the CIT in the near future must notify the court so that appropriate safeguard measures can be taken.  Attorneys may appear via teleconference or videoconference with the approval of the presiding judge.  These restrictions will remain in place until further notice.

U.S. Court of Appeals for the Federal Circuit (CAFC) – Per a public advisory notice and an administrative order, the CAFC began restricting public access to the National Courts Building complex on March 16, 2020.  On March 19, the Court issued an updated public advisory stating that all cases scheduled for argument during the April 2020 sitting will now be conducted by telephone conference and no in-person hearings will be held.  Individuals, including pro se litigants and couriers wishing to deliver or to file case documents, must submit these items either by mail or by deposit in the court’s night box.  Mail and third-party commercial deliveries will be limited to the lobby.  Any other deliveries must be coordinated ahead of time with relevant court staff.

U.S. Supreme CourtThe Court announced in an order that out of concern for the health and safety of the public and Supreme Court employees, the Supreme Court Building will be closed to the public effective at 4:30pm on March 12, 2020, until further notice.  The building will remain open for official business, and case filing deadlines have not been extended generally under Rule 30.1, but did address the extension of many filing deadlines in its order.  Oral arguments scheduled for the March session have been postponed.

 

 

On March 31, 2020, Petitioners Brooklyn Bedding, Corsicana Mattress Company, Elite Comfort Solutions, FXI, Inc., Innocor, Inc., Kolcraft Enterprises, Inc., Leggett & Platt, Incorporated, the International Brotherhood of Teamsters, and United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO (“USW”) (collectively, the “Mattress Petitioners”) filed a petition for the imposition of antidumping and countervailing duties on imports of Mattresses from Cambodia China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam.

 

SCOPE OF THE INVESTIGATION

The products covered by these petitions are all types of youth and adult mattresses. The term “mattress” denotes an assembly of materials that at a minimum includes a “core,” which provides the main support system of the mattress, and may consist of innersprings, foam, other resilient filling, or a combination of these materials. Mattresses may also contain (1) “upholstery,” the material between the core and the top panel of the ticking on a single-sided mattress, or between the core and the top and bottom panel of the ticking on a double-sided mattress; and/or (2) “ticking,” the outermost layer of fabric or other material (e.g., vinyl) that encloses the core and any upholstery, also known as a cover. The scope of these petitions is restricted to only “adult mattresses” and “youth mattresses.” “Adult mattresses” are frequently described as “twin,” “extra-long twin,” “full,” “queen,” “king,” or “California king” mattresses. “Youth mattresses” are typically described as “crib,” “toddler,” or “youth” mattresses. All adult and youth mattresses are included regardless of size or size description.

The scope encompasses all types of “innerspring mattresses,” “non-innerspring mattresses,” and “hybrid mattresses.” “Innerspring mattresses” contain innersprings, a series of metal springs joined together in sizes that correspond to the dimensions of mattresses. Mattresses that contain innersprings are referred to as “innerspring mattresses” or “hybrid mattresses.” “Hybrid mattresses” contain two or more support systems as the core, such as layers of both memory foam and innerspring units.

“Non-innerspring mattresses” are those that do not contain any innerspring units. They are generally produced from foams (e.g., polyurethane, memory (viscoelastic), latex foam, gel-infused viscoelastic (gel foam), thermobonded polyester, polyethylene) or other resilient filling.

Mattresses covered by the scope of these petitions may be imported independently, as part of furniture or furniture mechanisms (e.g., convertible sofa bed mattresses, sofa bed mattresses imported with sofa bed mechanisms, corner group mattresses, day-bed mattresses, roll-away bed mattresses, high risers, trundle bed mattresses, crib mattresses), or as part of a set in combination with a “mattress foundation.” “Mattress foundations” are any base or support for a mattress. Mattress foundations are commonly referred to as “foundations,” “boxsprings,” “platforms,” and/or “bases.” Bases can be static, foldable, or adjustable. Only the mattress is covered by the scope if imported as part of furniture, with furniture mechanisms, or as part of a set, in combination with a mattress foundation.

Excluded from the scope of these petitions are “futon” mattresses. A “futon” is a bi-fold frame made of wood, metal, or plastic material, or any combination thereof, that functions as both seating furniture (such as a couch, love seat, or sofa) and a bed. A “futon mattress” is a tufted mattress, where the top covering is secured to the bottom with thread that goes completely through the mattress from the top through to the bottom, and it does not contain innersprings or foam. A futon mattress is both the bed and seating surface for the futon.

Also excluded from the scope are airbeds (including inflatable mattresses) and waterbeds, which consist of air- or liquid-filled bladders as the core or main support system of the mattress.

Further, also excluded from the scope of these petitions are any products covered by the existing antidumping duty orders on uncovered innerspring units from China or Vietnam. See Uncovered Innerspring Units from the People’s Republic of China: Notice of Antidumping Duty Order, 74 Fed. Reg. 7661 (Feb. 19, 2009); Uncovered Innerspring Units From the Socialist Republic of Vietnam, 73 Fed. Reg. 75391 (Dec. 11, 2008).

Additionally, also excluded from the scope of these petitions are “mattress toppers.” A “mattress topper” is a removable bedding accessory that supplements a mattress by providing an additional layer that is placed on top of a mattress. Excluded mattress toppers have a height of four inches or less.

The products subject to these petitions are currently properly classifiable under HTSUS subheadings: 9404.21.0010, 9404.21.0013, 9404.29.1005, 9404.29.1013, 9404.29.9085, and 9404.29.9087. Products subject to these petitions may also enter under HTSUS subheadings: 9404.21.0095, 9404.29.1095, 9404.29.9095, 9401.40.0000, and 9401.90.5081. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise subject to these petitions is dispositive.

PETITIONER

Brooklyn Bedding

4455 W Camelback Road

Phoenix, AZ 85031

Contact: 602-446-8337

Email: john@brooklynbedding.com

Company Contact: John Merwin

 

Corsicana Mattress Company

1420 W Mockingbird Lane

Dallas, TX 75247

Contact: 800-323-4349

Email: sfallen@corsicanamattress.com

Company Contact: Stuart Fallen

 

Elite Comfort Solutions (ECS)

24 Herring Road

Newman, GA 30265

Contact: 417-358-8131

Email: amy.dearmond@leggett.com

Company Contact: Amy DeArmond

 

FXI, Inc. and Innocur, Inc.

Rose Tree Corporate Center II Media, PA 19063

Contact: 610-744-2102

Email: aprusky@fxi.com

Company Contact: Andrew Prusky

 

Kolcraft Enterprises Inc.

1100 West Monroe Street

Chicago, IL 60607

Contact: 312-361-6342

Email: tkoltun@kolcraft.com

Company Contact: Thomas Koltun

 

Leggett & Platt, Incorporated

1 Leggett Road

Carthage, MO 64836

Contact: 417-358-8131

Email: amy.dearmond@leggett.com

Company Contact: Amy DeArmond

 

International Brotherhood of Teamsters

25 Louisiana Avenue NW

Washington DC 20001

Contact: 202-437-2254

Email: mdolan@teamster.org

Company Contact: Michael F. Dolan

 

United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industial and Service Workers International Union (USW)

1155 Connecticut Avenue NW, #500

Washington DC 20036

Contact: 202-288-2573

Email: rhouseman@usw.org

Company Contact: Roy Houseman

 

COUNSEL FOR PETITIONERS

Yohai Baisburd

CASSIDY LEVY KENT (USA) LLP

900 19TH Street, NW, Fourth Floor

Washington, DC 20006

(202)-567-2300

 

NAMED PRODUCERS/EXPORTERS

For a list of foreign products/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 March 31, 2020
DOC Initiation April 20, 2020
ITC Preliminary Investigation:
Questionnaires Due April 14, 2020
Request to appear at hearing April 20, 2020
Hearing April 21, 2020
Briefs April 27, 2020
ITC Vote May 18, 2020
DOC Preliminary Antidumping Determination September 7, 2020
DOC Preliminary Countervailing Determination June 24, 2020
DOC Final Antidumping Determination November 23, 2020
DOC Final Countervailing Determination September 7, 2020
ITC Final AD Determination January 5, 2021
ITC Final CVD Determination October 22, 2020

 

ALLEGED DUMPING MARGIN

Cambodia: 708.10%

Indonesia: 706.28%

Malaysia: 47.97%

Serbia: 191.09%

Thailand: 773.49%

Turkey: 620.07%

Vietnam: 1,008.28%

ALLEGED SUBSIDIES

For a list of the alleged subsidies, please see Attachment III.

 

IMPORTS OF SUBJECT MERCHANDISE

 

2017 2018 2019
Cambodia
Quantity 3,786 4,012 510,536
Value ($) 238,347 258,436 35,635,264
AUV ($/Quantity) 61.49 64.42 69.80
 
China
Quantity 4,599,325 5,932,074 1,866,099
Value ($) 473,866,822 621,363,226 199,257,288
AUV ($/Quantity) 103.03 104.75 106.78
 
Indonesia
Quantity 1 3 940,076
Value ($) 555 935 112,250,131
AUV ($/Quantity) 555 311.67 119.41
 
Malaysia
Quantity 0 2 368,632
Value ($) 0 628 42,126,386
AUV ($/Quantity) N/A 314 114.28
 
Serbia
Quantity 0 0 281,366
Value ($) 0 0 25,984,818
AUV ($/Quantity) N/A/ N/A 92.35
 
Thailand
Quantity 10 0 193,334
Value ($) 2,848 0 20,564,976
AUV ($/Quantity) 284.80 N/A 106.37
Turkey
Quantity 259 461 241,382
Value ($) 45,112 89,234 21,370,019
AUV ($/Quantity) 174.18 193.57 88.53
 
Vietnam
Quantity 727 3,582 1,688,440
Value ($) 74,979 323,294 186,632,480
AUV ($/Quantity) 103.13 90.26 110.54

 

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 April 1, 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.  As part of this annual review process, Commerce intends to select respondents based on U.S. Customs and Border Patrol (CBP) data for U.S. imports during the period of review.  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 April 30, 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 cases, please contact Husch Blackwell’s International Trade and Supply Chain group for assistance on how the annual review process works.

On Friday, March 20, 2020 Customs announced that it was accepting requests for short-term relief from payment of estimated duties, taxes and fees due to the COVID-19 emergency, as discussed here.

Nevertheless, on March 26, 2020, Customs issued “Additional Guidance for Entry Summary Payments Impacted by COVID-19” that revised the information and policy in the earlier announcement.  In its “Additional Guidance” Customs stated that it was no longer accepting requests for additional days for payment of estimated duties, taxes and fees, but commented that CBP retains the right to allow additional days for payment in narrow circumstances, such as physical inability to file entry or payments, based on technology outages or port closures.

Single payments, daily and periodic monthly statement payments of estimated duties, taxes and fees that should have been tendered from 3/20/2020 through 3/26/2020, payment must be initiated by 3/27/2020.  Trade members who did not pay Customs for estimated duties, taxes and fees from 3/20/2020 through 3/26/2020 must initiate payment by 3/27/2020.

Separate from reversing its policy on a limited number of “additional days” for duty relief, we also reported that CBP was considering a more extended 90-day tariff relief plan.  Recent reporting, though, indicates that this 90-day tariff relief plan has been shelved.  We understand that a number of senior administration officials (including Treasury Secretary Mnuchin and economic adviser Larry Kudlow) were in favor of granting the relief, but were outweighed by others within the Administration (Peter Navarro) as well as influential individuals in the private sector aligned with more protectionist policies.

Husch Blackwell is currently monitoring the situation closely and encourages those who may be affected to reach out to us. Our trade lawyers are available to discuss this possibility as it develops and assist with case-by-case requests for relief. Please contact Robert Stang, Cortney Morgan, Nithya Nagarajan or Jeffrey Neeley for further information.

 

On March 27, 2020, Petitioner Worthington Industries filed a petition for the imposition of antidumping and countervailing duties on imports of Certain Non-Refillable Steel Cylinders from the People’s Republic of China.

 

SCOPE OF THE INVESTIGATION

The scope of the imported merchandise that the Petitioner intends to cover in this investigation is as follows:

The merchandise covered by these petitions is certain nonrefillable steel cylinders meeting the requirements of, or produced to meet the requirements of, U.S. Department of Transportation (“USDOT”) Specifications 39, TransportCanada Specification 39M, or United Nations pressure receptacle standard ISO 11118 and otherwise meeting the description provided below (“nonrefillable steel cylinders”). The subject non-refillable steel cylinders are portable and range from 300-cubic inch (4.9 liter) water capacity to 1,526-cubic inch (25 liter) water capacity. Subject non-refillable steel cylinders may be imported with or without a valve and/or pressure release device and may be filled or unfilled at the time of importation.

Specifically excluded are seamless non-refillable steel cylinders.

Also excluded from the scope of these petitions are non-refillable steel cylinders filled at the time of importation whose content is subject to another antidumping and/or countervailing duty order’ At the time of filing this petition, there are existing antidumping duty orders on Hydrofluorocarbon Blends from the People’s Republic of China and 1, 1, 1, 2-Tetrafluoroethane (R-134A) from the People’s Republic of China. See Hydrofluorocarbon Blends From the People’s Republic of China: Antidumping Duty Order, 81 Fed. Reg. 55,436 (Dep’t Commerce Aug. 19, 2016); 1, 1, 1, 2 Tetrafluoroethane (R-134a) from the People’s Republic of China: Antidumping Duty Order, 82 Fed. Reg. 18,422 (Dep’t Commerce Apr. 19, 2017). In the case of non-refillable steel cylinders entering the United States filled with merchandise covered by the scope of these orders or future antidumping and/or countervailing duty orders covering the gas or material content of the nonrefillable steel cylinders, such other orders control. In the case of non-refillable steel cylinders entering the United States filled with merchandise not covered by the scope of any other antidumping and/or countervailing duty order, the scope of this petition controls.

The merchandise subject to these petitions is properly classified under statistical reporting numbers 731.00.0060  and 7311.00.0090 of the Harmonized Tariff Schedule of the United States (HTSUS). The merchandise may also under HTSUS statistical reporting number 7310.29.0025. Although the HTSUS statistical reporting numbers are provided for convenience and customs purposes, the written description of the merchandise is dispositive.

PETITIONER

Worthington Industries

200 West Old Wilson Bridge Road

Columbus, OH 43085

Phone: 614-438-3210

Contact: Dale Brinkman, Vice President – Administration, General Counsel and Secretary

Email : Dale.Brinkm an@worthingtonindustries.com

Website : https ://worthingtonindustries.com/Home

 

COUNSEL FOR PETITIONERS

Paul C. Rosenthal

KELLEY DRYE & WARREN LLP

3050 K Street, N.W., Suite 400

Washington, D.C. 20007

(202) 342-8400

 

NAMED PRODUCERS/EXPORTERS

For a list of foreign products/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 March 27, 2020
DOC Initiation April 16, 2020
ITC Preliminary Investigation:
Questionnaires Due April 10, 2020
Request to appear at hearing April 15, 2020
Hearing April 17, 2020
Briefs April 22, 2020
ITC Vote May 13, 2020
DOC Preliminary Antidumping Determination September 3, 2020
DOC Preliminary Countervailing Determination June 22, 2020
DOC Final Antidumping Determination November 17, 2020
DOC Final Countervailing Determination September 3, 2020
ITC Final AD Determination January 1, 2021
ITC Final CVD Determination October 19, 2020

 

ALLEGED DUMPING MARGIN

People’s Republic of China: 60.78%

 

ALLEGED SUBSIDIES

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

 

IMPORTS OF SUBJECT MERCHANDISE

 

2017 2018 2019
China
Quantity(Number) 3,995,579 4,502,136 4,633,794
Value ($) 90,022,169 95,848,037 71,773,265
AUV ($/Quantity) 22.53 21.29 15.49

 

 CONTACT US

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