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ICYMI: Court of International Trade Tells Commerce to Verify Exporter’s Nonuse of China’s EBCP

The Court of International Trade (CIT) ruled in a recent opinion that it is  unreasonable for the Commerce Department not to attempt verification of an exporter’s certificates proclaiming nonuse of China’s Export Buyer’s Credit Program (EBCP) when the exporter did not submit certificates for all its customers.

The ruling stems from an administrative review of a 2012 countervailing duty order on solar cells from China. In February 2022, Commerce initiated its Ninth Administrative Review of the order. In March 2022, the International Trade Administration (ITA) selected Risen Energy Co, a developer, manufacturer, and distributor of solar photovoltaic application products, as a mandatory respondent.

Risen reported that none of its customers used the EBCP during the period of review, and submitted non-use certificates for all but one of its U.S. customers. However, in the final results, Commerce included the Government of China’s EBCP in its calculation of Risen’s countervailing duty rate. Commerce stated that the Government of China did not provide all of the information initially requested, namely the one missing non-certificate. Therefore, Commerce concluded that Risen had failed to provide sufficient record evidence to determine non-use. Risen appealed the decision to the CIT arguing that the decision was not based on substantial evidence.

Judge Jane Restani heard the case and remanded the review of the countervailing duty order so that Commerce can attempt to verify Risen’s non-use certificates. Judge Restani stated that the conclusion that Risen failed to provide sufficient evidence based on their inability to account for a […]

Trade News: New Petition Filed Against Tungsten Shot from China

Tungsten Parts Wyoming, Inc. filed the petition for the imposition of antidumping and countervailing (AD/CVD) duties on the imports of tungsten shot from China.

Unlike most AD/CVD petitions, the domestic industry has not yet been established, as the petitioner only began production last year. Thus, instead of arguing that Chinese imports are injuring the industry, the petitioner is claiming that the domestic industry has been “materially retarded” by reason of the allegedly unfair Chinese imports.

Full list of exporters. Full list of importers.

Background on AD/CVD Investigations

Antidumping duty (“AD”) and countervailing duty (“CVD”) investigations are brought jointly by the U.S. International Trade Commission (“USITC”) and the U.S. Department of Commerce (“Commerce”). AD investigations are triggered when a domestic industry alleges that it has been injured by competing imports of particular goods from specific countries being sold at less than a fair value. Meanwhile, CVD investigations are triggered when a domestic industry alleges that it has been injured by competing imports that are being unfairly subsidized by their governments. 

Scope of the Investigation

This investigation pertains to certain tungsten shot. The physical characteristics of the covered product are tungsten shot that are 92.6 percent or greater tungsten by weight. Merchandise is covered regardless of the combination of compounds that comprise the non-tungsten material and whether or not the tungsten shot is additionally coated with another material, including but not limited […]

DHS Announces New High Priority Sectors for UFLPA Enforcement

The Department of Homeland Security’s (DHS) Forced Labor Enforcement Task Force (FLETF) released an update to the Strategy to Prevent the Importation of Goods Mined, Produced, or Manufactured with Forced Labor in the People’s Republic of China.

Strategy Background

DHS released the first publication of the UFLPA Strategy in June 2022. The strategy outlines a multi-pronged approach to combating forced labor in global supply chains.The strategy includes a comprehensive assessment of the risk of importing goods with forced labor in the PRC, high priority sectors for enforcement, guidance to importers, recommendations to accurately identify affected goods, and more. DHS released the first update to the publication in August of 2023.

The Latest Update  

The update builds on two years of the Administration’s enforcement of the UFLPA. The latest strategy identified new high priority sectors for enforcement – aluminum, polyvinyl chloride (PVC), and seafood. These industries were identified due to higher risk of forced labor or state labor transfer of Uyghurs and other ethnic minorities from the Xinjiang Uyghur Autonomous Region (XUAR).

Entities in these sectors will now be prioritized for review for enforcement actions such as inclusion on the UFLPA Entity List, sanctions, export limitations, and visa restrictions.

Other products previously identified as high priority such as apparel, cotton and cotton products, silica-based products including polysilicon, and tomatoes remain high priority sectors.

The latest updates also outline how the FLETF has significantly advanced their objectives through several initiatives, such as strong enforcement by U.S. Customs and Border Protection (CBP); expansion of the UFLPA Entity List; […]

Cuba Policy Shift: Administration Eases Restrictions on Small Businesses

On May 28, 2024, the Biden administration announced new measures easing restrictions on independent small businesses in Cuba. The announcement follows a recent decision by the State Department to remove Cuba from the list of countries deemed uncooperative on counterterrorism. 

The Administration criticized the Cuban government in the announcement, saying: “We know the Cuban economy is in dire straits amid recurring shortages of fuel, electricity, increasingly even food. It’s clear the communist experiment of Cuba has failed, the government is no longer able to provide for its citizens’ most basic needs.” 

The new measures implemented by the Department of Treasury’s Office of Foreign Assets Control (OFAC) include four main parts:

1. Authorized Internet-Based Services and Software.

Cuban small businesses will now be able to access additional internet-based services such as video conferencing, social media, maps, e-learning, automated translation, and other online services. 

U.S.-based entities will be allowed to provide cloud-based services to these small businesses. OFAC is also authorizing the export or reexport of Cuban-origin software and mobile applications from the United States to third countries.

2. Re-defining “Self-Employment.”

OFAC is scrapping the term “self-employed individual” and replacing it with a new term: “independent private sector entrepreneur.” The new term will still cover traditional self-employed individuals such as business owners, but it will also cover private cooperatives or small businesses that are wholly owned by such individuals. 

White House Announces Further Section 301 Tariff Hikes on Chinese Goods

Today the White House announced sweeping new tariffs on Chinese goods. The tariffs will apply to a range of sectors including semiconductors, steel and aluminum, batteries, and medical products.

Electric vehicles were a focus of the announcement, with tariffs to increase from 25% to 100% this year.

Impacted Industries

The new tariffs apply to $18 billion worth of Chinese imports in the following sectors:

  • Steel and aluminum – increase from 0-7.5% to 25% in 2024
  • Semiconductors – increase from 25% to 50% by 2025
  • Electric vehicles (TVs) – increase from 25% to 100% in 2024
  • Batteries
    • Lithium-ion EV batteries – increase from 7.5% to 25% in 2024
    • Lithium-ion non-EV batteries – increase from 7.5% to 25% in 2026
    • Battery parts – increase from 7.5% to 25% in 2024
    • Natural graphite and permanent magnets – increase from 0% to 25% in 2026
    • Certain critical minerals – increase from 0% to 25% in 2024
  • Solar cells – increase from 25% to 50% in 2024
  • Ship-to-shore cranes – increase from 0% to 25% in 2024
  • Medical products
    • Syringes and needles – increase from 0% to 50% in 2024
    • Certain PPE products – increase from 0-7.5% to 25% in 2024
    • Rubber medical gloves – increase from 7.5% to 25% in 2026

Why Now?

The announcement follows a statutorily required two-year government review of “Section 301” duties that were first imposed during the Trump Administration. The Special 301 review considers the current state of global IP protection and enforcement, unfair innovation policies, and market access barriers. In the […]

By |2024-05-14T11:19:37-04:00May 14, 2024|China|0 Comments
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