Countervailing Duties

U.S.:   

The Commerce Department International Trade Administration (ITA) preliminarily found China is providing countervailable subsidies to producers/exporters of utility-scale wind towers ranging from 13.74% to 26% (Utility Scale Wind Towers from China, ITA) (29 ITR 936; 6/7/12). 

ITA announced an affirmative preliminary countervailing duty determination on imports and large residential washers from Korea finding Korean producers/exporters received countervailable subsidies of .22% to 70.58% (Large Residential Washers from Korea, ITA) (29 ITR 941; 6/7/12). 

ITA preliminarily found that Vietnam is providing countervailable subsidies to exporters/producers of steel wire garment hangers at rates ranging from 11.03% to 21.25% (Steel Wire Garment Hangers from Vietnam, ITA) (29 ITR 941; 6/7/12).

Dumping

U.S.:    

The Commerce Department announced a preliminary determination that certain blends of honey and rice syrup are circumventing the anti-dumping duty order on honey from China (77 Fed. Reg. 37,378; 29 ITR 1077; 6/28/12). 

China:  

The Chinese Ministry of Commerce (MOFCOM) is ending its investigation of an anti-dumping case against exports of U.S. dried distiller grains to China (29 ITR 1079; 6/28/12). 

Export Controls

U.S.:    

The Departments of Commerce and State published a new rule to create a common definition for the term “specially designed” for consistent application under the International Trafficking Arms Regulations (ITAR) (77 Fed. Reg. 36,428) and the Export Administration Regulations (EAR) (77 Fed. Reg. 36,409); (29 ITR 1007; 6/21/12). 

The Departments of Commerce and State published proposed rules on the migration of less sensitive items from Category IX on the U.S. Munitions List (USML) covering military training equipment to the Commerce Control List (CCL) of the EAR into the new 600 series of the Export Control Classification Numbers (ECCN) scheme resulting in a more precise definition with respect to generic parts, components, accessories and attachments and the possible availability of the new license exception for Strategic Trade Authorization (STA) (29 ITR 1010; 6/21/12). 

Regional Agreements

Peru:    

The four largest Latin-American countries are implementing the Pacific Alliance in an economic and trade block including Chile, Colombia, Mexico and Peru with Costa Rica and Panama in the process of joining the group  (29 ITR 987; 6/14/12). 

Automotive

China:  

According to the Ministry of Information Technology new quality, safety and performance standards for all electric vehicles came into effect July 1 to cover electric vehicles with ranges of more than 50 miles and maximum speeds of 50 miles per hour or more (29 ITR 929; 6/7/12). 

Dumping Safeguards

U.S.:    

The International Trade Commission (ITC) adopted final rules governing the conduct of ITC Safeguard investigations under statutes implementing certain bilateral free trade agreements (“FTAs”) with Australia, Baleen, Chile, Colombia, the Dominican Republic and five central American countries, Jordan, Korea, Morocco, Oman, Panama, Peru and Singapore (29 ITR 1079; 6/28/12). 

Export Control

U.S.:   

Rules have been published regarding the migration of less sensitive items from Category X of the USML to the less restrictive CCL (77 Fed. Reg. 33,698) addressing new classification factors through increased use of technical parameters such as density, size, speed and temperature controlling such items as body armor, helmets, anti-gravity and pressure suits, goggles, spectacles, transportable shelters and controlled parts and components (29 ITR 967; 6/14/12). 

Intellectual Property

U.S.:    

House Bill (HR 6012) is proposed to stop the flow of counterfeit microchips into the U.S. (29 ITR 1056; 6/28/12). 

WTO Membership

Russia: 

A draft bill was approved to ratify the protocol for the entry of Russia into the World Trade Organization (WTO) (29 ITR 940; 6/14/12). 

Taxation

Brazil:   

The Ministry of Finance revoked a measure taken in 2010 to reduce a 6% tax charged only on foreign loans with terms of up to 5 years (Operations Tax) to be charged only on loans with terms of up to two years (29 ITR 1032; 6/21/12.

Foreign Investments

Canada:

The Investment Canada Regulations propose an amendment to raise the threshold for government review of a proposed foreign investment to one billion dollars (Canadian) to improve its foreign investment review framework (29 ITR 931; 6/7/12). 

Sanctions

U.S.:    

The Senate Foreign Relations Committee approved S.1039 (“Magnitsky Act”) to be combined with S.3285 which bill would grant Russia Permanent Normal Trade Relations (PNTR) and require the Secretaries of State and Treasury to compose a list of persons responsible for “gross violations of human rights” anywhere in the world to be subjected to sanctions in the form of visa denials and asset freezes in response to actions attributed to Russian authorities who allegedly victimized Magnitsky through human rights abuse resulting in his death (29 ITR 1061; 6/28/12).

Dumping

WTO:         

The World Trade Organization (WTO) affirmed that a Chinese dumping investigation that led to imposition of duties on imports of U.S. grain-oriented flat-rolled electrical steel (GOS) violated global trade rules agreed by WTO (29 ITR 839; 5/24/12).

Environment

WTO:         

The Appellate Body of the WTO overturned two key findings in the dispute panel ruling that partially backed the complaint of Mexico against U.S. “Dolphin-Friendly” labeling requirements of U.S. law as discriminatory against Mexican origin tuna (29 ITR 841; 5/24/12).

Customs

U.S.:           

The Court of International Trade (CIT) dismissed an action by the Customs and Border of Protection (CBP) that brought an action for negligence when the initial administrative action lodged a claim for “gross negligence” holding that CBP had failed to state a claim properly under the statute (US v. Nitek Electronics, Inc., Ct. Int’l Trade, No. 11-000078; SLIP Op. 12-50, 4/13/12; 29 ITR 804; 5/17/12).

Intellectual Property

U.S.:           

A U.S. alfalfa seed distributor established facts justifying the issuance of an injunction extending to prohibit the use of a trademark in Saudi Arabia and other countries by finding that it was a valid public interest to prevent a U.S. based party from creating confusion in foreign markets by enforcing the relevant contractual obligations entered between the two U.S. companies.  (See Services Inc. vs Winsor Grain, Inc., E.D. CAL., No. 1:10-CV-02185-AWI-GSA, 4/12/12; 29 ITR 725; 5/3/12).

Customs

U.S.:    

The House Homeland Security Committee backed HR 4251 to strengthen maritime security programs and to require the Department of Homeland Security to complete a detailed supply chain security plan (29 ITR 968; 6/14/12). 

Sanctions

U.S.:    

The Treasury Department imposed sanctions under a 2005 Executive Order designating the Syria International Islamic Bank as ineligible for trade with U.S. persons for acting for or on behalf of the Commercial Bank of Syria, and the Syrian Lebanese Commercial Bank which are institutions subject to U.S. and international sanctions (29 ITR 943; 6/7/12). 

*Excerpts from Economic and Financial Indicators published by The Economist, June 30, 2012

Sources:  BLR – Bloomberg Law Reports Antitrust & Trade; BNA – BNA, Inc., Highlights: International Trade Daily (ITD), International Trade Reporter (ITR), International Trade Reporter Decisions (ITRD), TMIJ-Tax Management International Journal; IL – International Lawyer, SMU School of Law; FT – Financial Times; TE – The Economist Magazine; GATM – German American Trade Magazine of the German American Chamber of Commerce; WSJ – Wall Street Journal; ILN/ABA-International Law News, American Bar Association; International Law News, ILN (American Bar Association; LB-Lehman Brown China Business Insights International Accountants; and Lehman, Lee & Xu; China Patents in the News, January 2012.

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