Customs and Trade Weekly Snapshot

Here is a recap of the latest customs and international trade law news:

Customs and Border Protection (CBP)

• EAPA Action: CBP issued the notice of initiation of investigation and implemented interim Measures for EAPA case 7794 filed by CP Kelco U.S., Inc., against U.S. importer, Colony Gums Inc. (Colony Gums) for evasion of the applicable antidumping (AD) order A-570-985 on xanthan gum from China.
• EAPA Action: CBP issued its determination as to evasion by Pitts Enterprises, Inc. (Pitts) in Enforce and Protect Act (EAPA) investigation 7711. Pitts was suspected of evading antidumping duty (AD) order A-570-135 and countervailing duty (CVD) order C-570-136 on certain chassis and subassemblies from the People’s Republic of China (China).
• CBP issues Notice of intent to distribute offset for Fiscal Year 2023 – Pursuant to the Continued Dumping and Subsidy Offset Act of 2000, CBP issued a notice of intent to distribute assessed antidumping or countervailing duties (known as the continued dumping and subsidy offset) for Fiscal Year 2023 in connection with countervailing duty orders, antidumping duty orders, or findings under the Antidumping Act of 1921.
• Nearly 4,000 fraudulent refrigerator water filters seized by CBP at LA/LB Seaport.

Food and Drug Administration (FDA)

• FDA Conducts Retailer Inspection Blitz, Cracks Down on Illegal Sales of Popular Disposable E-cigarettes
• The fiscal year (FY) 2023 Over-the-Counter (OTC) monograph drug facility fees were due June 1, 2023 for qualifying owners of an OTC monograph drug facility, as described in sections 744M and 744L of the Federal Food, Drug, and Cosmetic Act.
• FDA Issues Final Guidance to Industry on Action Level for Inorganic Arsenic in Apple Juice.
• The China Customs Administration (GACC) has established a deadline of June 30th, 2023, for currently registered establishments to complete their registration applications in the China Import Food Enterprise Registration (CIFER) system for certain categories of food products listed in Article 7 of GACC Decree 248.

United States Trade Representative (USTR)

• USTR United States Seeks Mexico’s Review of Alleged Denial of Workers’ Rights at Draxton Facility: United States Trade Representative Katherine Tai announced that the United States has asked Mexico to review whether workers at a Draxton facility in Irapuato, Guanajuato are being denied the rights to freedom of association and collective bargaining.
• S.-EU Joint Statement of the Trade and Technology Council – The fourth Ministerial meeting of the Trade and Technology Council (“TTC”) took place in Luleå, Sweden, on 31 May 2023. On this occasion, the United States and the European Union reiterated the central role of the TTC in the broader transatlantic partnership.
• IPEF Joint Statement for the Trade Pillar, Clean Economy Pillar, and Fair Economy Pillar.

Department of Commerce

• Secretary Raimondo Announces Presidential Proclamation Extending Temporary Suspension of 232 Tariffs on Ukraine Steel.
• Substantial Conclusion of Negotiations on Landmark IPEF Supply Chain Agreement.
• AD/CVD Results of Administrative Review: (Commerce) preliminarily determines that the 38 companies subject to this administrative review of the antidumping duty order on certain magnesia carbon bricks (bricks) from the People’s Republic of China (China) are part of the China-wide entity because none filed a separate rate application (SRA) or a separate rate certification (SRC).
• AD/CVD Results of Administrative Review: Commerce continues to determine that the mandatory respondents, Riverside Plywood Corporation (Riverside) and Jiangsu Senmao Bamboo and Wood Industry Co., Ltd. (Jiangsu Senmao), and 18 other producers and/or exporters of multilayered wood flooring (wood flooring) from the People’s Republic of China (China), received countervailable subsidies during the period of review (POR) January 1, 2020, through December 31, 2020.
• Less-than-fair-value investigation postponed: Commerce is postponing the deadline for issuing the final determination in the less-than-fair-value investigation of paper file folders from the People’s Republic of China (China) until September 29, 2023, and is extending the provisional measures from a four-month period to a six-month period.
• Preliminary Results of Antidumping Duty Administrative Review – The U.S. Department of Commerce (Commerce) preliminarily finds that POSCO, a producer and exporter of carbon and alloy steel wire rod (wire rod) from the Republic of Korea (Korea), did not sell subject merchandise in the United States at prices below normal value during the period of review (POR) May 1, 2021, through April 30, 2022.
• Commerce Secretary Gina Raimondo said the US “won’t tolerate” the recent decision by Chinese authorities to ban chips by Micron Technology Inc. in some critical sectors, using her sharpest language yet to describe Washington’s reaction. U.S. Senator Jim Risch also commented on the matter saying China’s curbs on Micron Technology would send both countries down a “slippery slope” of escalation with no clear end in sight.

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC)

U.S. Congress 

• House Select Committee on the Chinese Communist Party issues recommendations on combatting the challenges posed by China. Measures include lower de minimis level and third-party sanctions.

Federal Trade Commission (FTC)

U.S. Department of Agriculture (USDA)

• The U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) announces the inclusion of a Cut Flower Name Validation List to verify spellings on the APHIS Core Message Set website.

International

• South Korea to Avoid Cashing In on China’s US Chipmaker Ban – South Korea will avoid capitalizing on China’s ban on a US chipmaker, seeing the move by Beijing as an attempt to drive a wedge between Seoul and Washington, according to a person familiar with the situation.
• China Rejects US Claims Over ‘De-Risking’ Not ‘Decoupling’ – President Joe Biden and his European allies have repeatedly stated their desire to “de-risk,” not “decouple” from the Chinese economy in recent months. Chinese state media, officials, and academics have all publicly rejected the distinction in recent weeks.
• The Fed’s Inflation Fight Faces a New Challenge: A Dry Panama Canal – Severe drought has caused water levels in the Gatun Lake (the lake that feeds the locks in the canal) to drop far below normal. The low levels are resulting in weight limits and rising surcharges for vessels.

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