On June 29, 2021, U.S. Immigration and Customs Enforcement announced that more than two million counterfeit N95 masks purchased by the State of Maine were seized June 16, by Homeland Security Investigations (HSI) Special Agents. The seizure was the result of an ongoing investigation being conducted by multiple HSI Offices and United States Attorney’s Offices across the United States.
Read more HERE.
One June 24, 2021, the U.S. International Trade Commission published in the Federal Register (86 FR 33354) Polyester Textured Yarn From Indonesia, Malaysia, Thailand, and Vietnam; Scheduling of the Final Phase of Antidumping Duty Investigations. The investigation followed petitions filed by Nan Ya Plastics Corporation, America (Lake City, SC) and Unifi Manufacturing, Inc. (Greensboro, NC).
Read more on this case from Agathon Associates HERE
On June 24, 2021, Secretary of Homeland Security Alejandro N. Mayorkas announced that DHS’s U.S. Customs and Border Protection (CBP) issued a Withhold Release Order against Hoshine Silicon Industry Co. Ltd., a company located in China’s Xinjiang Uyghur Autonomous Region. The Withhold Release Order instructs personnel at all U.S. ports of entry to immediately begin to detain shipments containing silica-based products made by Hoshine and its subsidiaries.
The Withhold Release Order applies to silica-based products made by Hoshine and its subsidiaries as well as to materials and goods (such as polysilicon) derived from or produced using those silica-based products. Silica is a raw material that is used to make components for solar panels, electronics, and other goods.
Read more HERE
On June 24, 2021, the Foreign Trade Zone Board published in the Federal Register (86 FR 33218) Foreign-Trade Zone 38-Spartanburg County, South Carolina; Application for Production Authority; Teijin Carbon Fibers, Inc.; Extension of Rebuttal Comment Period.
The rebuttal period for the amended application for production authority within FTZ 38 on behalf of Teijin Carbon Fibers, Inc., in Greenwood, South Carolina, submitted by the South Carolina State Ports Authority (85 FR 49359, August 13, 2020), is being extended to July 2, 2021, based on a request from the applicant, to allow additional time for the submission of rebuttal comments.
This controversial FTZ application has been under consideration since 2019, as Agathon Associates previously reported.
On June 23, 2021, The Honourable Marc Garneau, Minister of Foreign Affairs, issued the following statement on the announcement of the closure of the Hong Kong newspaper, Apple Daily:
“The forced closure of the newspaper, Apple Daily, as a result of charges under the National Security Law for Hong Kong is a significant blow to freedom of the press and freedom of speech in Hong Kong, and makes it clear that the powers under the National Security Law are being used as a tool to suppress media freedom and punish dissidents.
“These freedoms are universal human rights guaranteed under Hong Kong’s Basic Law, and are in line with international standards.
“Canada is a steadfast supporter of the One Country, Two Systems principle and Hong Kong’s high degree of autonomy. The ouster of a major media organization under the National Security Law significantly degrades these principles, guaranteed under the Sino-British Joint Declaration.”
Description: This recall involves La Paloma “Girl’s Nightgowns.” They are 100% cotton and were sold in sizes 2 through 9 and in the following prints: Little Wings, Paloma Stripe, Evergreen, Scandi Shapes, and Holly Horse. The long-sleeved nightgowns have an elastic pleated neckline and wrists. “100% Cotton. Made ethically in China. Turn inside out, machine wash cool with like colors tumble dry low. Do not bleach or iron” is printed on the care label.
Remedy: Consumers should immediately stop using the recalled children’s nightgowns and contact La Paloma for a full refund. La Paloma is contacting all known purchasers directly.
Incidents/Injuries: None reported
Sold At: Online at shoplapaloma.com from November 2020 through December 2020 for about $58.
Importer(s): La Paloma, of Austin, Texas
Manufactured In: China ' target='_blank'>CLICK HERE.
More information and photos CLICK HERE.
On June 24, 2021, the Department of Commerce's Bureau of Industry and Security (BIS) added five Chinese entities to the Entity List for accepting or utilizing forced labor in the implementation of the People’s Republic of China’s campaign of repression against Muslim minority groups in the Xinjiang Uyghur Autonomous Region (XUAR). This action targets these entities’ ability to access commodities, software, and technology subject to the Export Administration Regulations (EAR), and is part of a U.S. Government-wide effort to take strong action against China’s ongoing campaign of repression against Muslim minority groups in the XUAR.
The entities to be added to the Entity List in connection with participating in the practice of, accepting, or utilizing forced labor involving Uyghurs and other Muslim minority groups in the XUAR are:
This Entity List rule supplements other Entity List designations in October 2019, June 2020, and July 2020. Including the rule announced today, these actions have added 53 parties specifically implicated in human rights abuses of ethnic minorities from Xinjiang, and 15 of these which were implicated in human rights abuses related to forced labor of ethnic minorities from Xinjiang.
The Entity List is a tool utilized by BIS to restrict the export, reexport, and transfer (in-country) of items subject to the EAR to persons (individuals, organizations, companies) reasonably believed to be involved, or to pose a significant risk of becoming involved, in activities contrary to the national security or foreign policy interests of the United States. Additional license requirements apply to exports, re-exports, and transfers (in-country) of items subject to the EAR to listed entities, and the availability of most license exceptions is limited.
On June 24. 2021 the Department of Homeland Security, Department of Commerce, and Department of Labor announced measures to address the People’s Republic of China’s ongoing human rights abuses and use of forced labor in Xinjiang.
Among today's actions, the U.S. Department of Labor adds polysilicon from China to ‘List of Goods Produced by Child Labor or Forced Labor.’ Polysilicon used in the production of solar panels.
U.S. Customs and Border Protection has selected Ms. AnnMarie R. Highsmith as Executive Assistant Commissioner and Mr. John P. Leonard as Deputy Executive Assistant Commissioner of the Office of Trade.
Read more HERE.
A client of Agathon Associates is in need of carding and woolen system spinning of polyester fiber. For an introduction, email David Trumbull at david@agathonassociates.com.
On June 18, 2021, the Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, issued the following statement regarding Canada’s request for a dispute settlement panel under Chapter 31 of the Canada-United States-Mexico Agreement (CUSMA) with respect to the United States safeguard tariffs on solar products from Canada: “As we build back better from the challenges of the COVID-19 pandemic and urgently address climate change, Canada and the United States must be aligned and work together on the development of sustainable and equitable energy transitions and clean energy innovation. “It is in this context that Canada has requested a dispute settlement panel to address the United States safeguard tariffs of 18% on Canadian solar products. These tariffs are unwarranted and damaging to the global competitiveness of our long-established, secure, and deeply integrated supply chains. “Moving forward with Canada’s request for a dispute settlement panel on these tariffs will help ensure the timely resolution of this issue.” “Canada and the United States share a long-standing mutually beneficial relationship, and our ongoing partnership will contribute to a strong, sustainable recovery, and benefit workers and businesses on both sides of the border.”
On June 21, 2021, Canada, the EU, the UK, and the US released the following statement:
"We are united in our deep concern regarding the Lukashenko regime’s continuing attacks on human rights, fundamental freedoms, and international law.
"Today, we have taken coordinated sanctions action in response to the May 23rd forced landing of a commercial Ryanair flight between two EU member states and the politically motivated arrest of journalist Raman Pratasevich and his companion Sofia Sapega, as well as to the continuing attack on human rights and fundamental freedoms. We are committed to support the long-suppressed democratic aspirations of the people of Belarus and we stand together to impose costs on the regime for its blatant disregard of international commitments.
"We are united in calling for the regime to end its repressive practices against its own people. We are disappointed the regime has opted to walk away from its human rights obligations, adherence to democratic principles, and engagement with the international community. We are further united in our call for the Lukashenko regime to: cooperate fully with international investigations into the events of May 23rd; immediately release all political prisoners; implement all recommendations of the independent expert mission under the Organization for Security and Cooperation in Europe’s (OSCE) Moscow Mechanism; and enter into a comprehensive and genuine political dialogue between the authorities and representatives of the democratic opposition and civil society, facilitated by the OSCE."
Weatherhaven Resources Inc., Blaine, Washington, has been awarded a maximum $200,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract under solicitation SPE1C1-18-R-0003 for commercial shelters. This was a competitive acquisition with 15 responses received. This is a one-year base contract with three one-year option periods. Location of performance is Washington, with a June 17, 2022, ordering period end date. Using military services are Army, Air Force, Navy and Marine Corps. Type of appropriation is fiscal 2021 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency, Troop Support, Philadelphia, Pennsylvania (SPE1C1-21-D-1475).
Federal Prison Industries Inc., Washington, D.C., has been awarded a maximum $17,810,400 modification (P00010) exercising the second one-year option period of a one-year base contract (SPE1C1-19-D-F027) with four one-year option periods for coveralls. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Locations of performance are Georgia, Arizona, Mississippi and Washington, D.C., with a June 20, 2022, ordering period end date. Using military service is Navy. Type of appropriation is fiscal 2021 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.
ASTM has undertaken routine five year reviews of the following standards
Revision of D3562 - 14 Standard Performance Specification for Woven Drycleanable Coat Fabrics
Revision of D3780 - 14 Standard Performance Specification for Men’s and Boys’ Woven Dress Suit Fabrics and Woven Sportswear Jacket, Slack, and Trouser Fabrics
Revision of D3782 - 14 Standard Performance Specification for Men’s and Boys’ Knitted Dress Suit Fabrics and Knitted Sportswear Jacket, Slack, and Trouser Fabrics
Revision of D4119 - 14 Standard Performance Specification for Men’s and Boys’ Knitted Dress Shirt Fabrics
Revision of D4155 - 14 Standard Performance Specification for Women’s and Girls’ Woven Sportswear, Shorts, Slacks, and Suiting Fabrics
Revision of D4156 - 14 Standard Performance Specification for Women’s and Girls’ Knitted Sportswear Fabrics
On Wednesday June 23rd at noon, Michael Woody, of the Rhode Island Textile Innovation Network, will be chatting with Michelle Farrington and Natasha Spackey from AFFOA (Advanced Functional Fabrics of America). They’ll be discussing AFFOA’s current business model, and how they facilitate partnerships to develop advanced textiles. Should be an interesting discussion. They have some heavy hitter members, as you can see by clinking on this link to the membership page of their website: http://go.affoa.org/members/
On Wednesday, July 24th, also at lunchtime, RITIN will profile Polaris MEP’s new Center Director, Kathie Mahoney. Although most of us are well-acquainted with Polaris, Kathie will be walking us through updates on workforce training and hiring, a key challenge for many of our textile companies today.
To register for either session (or, preferably, both), click on this link to the RITIN website: https://ritin.org/news/
On June 15, 2021, the Foreign-Trade Zones Board published in the Federal Register (86 FR 31695) [B–45–2021] Foreign-Trade Zone (FTZ) 281—Miami- Dade County, Florida; Notification of Proposed Production Activity; Intel Corporation (Kitting, Assembly and Packaging of Computer Electronics), Miami, Florida.
The request indicates that textile bags will be admitted to the zone in privileged foreign status (19 CFR 146.41), thereby precluding inverted tariff benefits on such items.
On June 15, 2021, the United States and the European Union announced a cooperative framework to address the large civil aircraft disputes. The agreement moves away from past confrontation in pursuit of a cooperative future by suspending the tariffs related to this dispute for five years. The U.S. and the EU also agreed to clear principles, including their shared intent that any financing for the production or development of large civil aircraft on market terms.
Pentaq Manufacturing Corp., Sabana Grande, Puerto Rico, has been awarded a maximum $24,041,215 modification (P00011) exercising the first one-year option period of a one-year base contract (SPE1C1-20-D-1258) with four one-year option periods for various types of trousers. This is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract. Location of performance is Puerto Rico, with a June 16, 2022, ordering period end date. Using military services are Army and Air Force. Type of appropriation is fiscal 2021 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.
On June 8, 2021, the Biden-Harris Administration announced key findings from the reviews directed under Executive Order (E.O.) 14017 “America’s Supply Chains,” as well as immediate actions the Administration will take to strengthen American supply chains to promote economic security, national security, and good-paying, union jobs here at home.
The report outlines proposed actions to address:
The report also acknowledged the need to "Combat unfair trade practices."
National Industries for the Blind, Alexandria, Virginia, has been awarded a maximum $7,575,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for physical fitness uniform pants. This is a one-year base contract with four one-year option periods. Locations of performance are North Carolina, Tennessee, and Virginia, with a June 9, 2022, ordering period end date. Using military service is Army. Type of appropriation is fiscal 2021 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-21-D-B112).
On March 31, 2021, two passengers returning together from Turkey were asked by U.S. Customs and Border Protection (CBP) officers if they had anything to declare. Initially, they did not declare anything, but during a secondary inspection they declared $2,000 worth of “gifts.” Officers inspected their seven large duffel bags for smuggled contraband and found an estimated MSRP value (i.e., if genuine goods) of $552,000 of counterfeit designer apparel.
More than 550 counterfeit items of varying protected trademarks were seized from the passengers, including from well-known brands like Adidas, Burberry, Chanel, Gucci, Louis Vuitton, Nike, and Versace.
Read more HERE.
Jacqueline Campbell, Consumer Product Safety Commission Office of Hazard Identification and Reduction, will be presenting a webinar on wearable technology and integrating safety into the product design process as part of the American Association of Textile Chemists and Colorists (AATCC) webinar series on electronic textiles (e-textiles). The webinar will take place July 28, 2021 at 11:00 a.m. EDT. For additional information, contact Jacqueline Campbell at jcampbell@cpsc.gov.
Brought to you by the Office of Textiles and Apparel (OTEXA) at the International Trade Administration, the Market Diversification Tool can help identify potential new export markets.
OTEXA is dedicated to increasing the international competitiveness of the U.S. textiles, apparel, footwear, and travel goods industries.
Based on the products you export and the markets you currently export to, the tool uses an algorithm to rank potential markets you may want to consider as future export markets.
The algorithm used to develop the ranking does three main things:
On June 7, 2021, in Opening Remarks Before the House Committee on Foreign Affairs, Secretary of State Antony J. Blinken hinted as a continued responses to China's attempts to dominate international organizations, stating:
"As China and others work hard to bend international organizations to their worldview, we need to ensure that these organizations instead remain grounded in the values, principles, and rules of road and rules of the world that have made our shared progress possible for so many decades."
On June 2, 2021, United States Trade Representative Katherine Tai announced the conclusion of the one-year Section 301 investigations of Digital Service Taxes (DSTs) adopted by Austria, India, Italy, Spain, Turkey, and the United Kingdom. The final determination in those investigations is to impose additional tariffs on certain goods from these countries, while suspending the tariffs for up to 180 days to provide additional time to complete the ongoing multilateral negotiations on international taxation at the OECD and in the G20 process.
As reported March 31, 2021, the U.S. planned to impose 25% tariffs on:
On Junae 8, 2021, U.S Customs and Border Protection published in the Federal Register (86 FR 30467) notice that the Commercial Customs Operations Advisory Committee (COAC) will hold its quarterly meeting on Wednesday, June 23, 2021. The meeting will be open to the public via webinar only. There is no on- site, in-person option for this quarterly meeting.
Agenda
The COAC will hear from the current subcommittees on the topics listed below and then will review, deliberate, provide observations, and formulate recommendations on how to proceed:
1. The Secure Trade Lanes Subcommittee will present the following updates: The Trusted Trader Working Group will provide an update on the progress of the White Paper on the Implementation of CTPAT Trade Compliance Requirements for Forced Labor; the In-Bond Working Group will provide an update on the progress with the technical enhancements being addressed through the Trade Support Network and the review of regulatory recommendations incorporated within the COAC In-Bond Modernization White Paper to create future efficiency and process development; the Export Modernization Working Group will present their White Paper on Export Operations for the 21st Century along with proposed recommendations; and, the Remote and Autonomous Cargo Processing Working Group will provide an update on the development of a draft White Paper identifying the potential impact of Remote and Autonomous Vehicles to CBP Cargo Processing Operations.
2. The Next Generation Facilitation Subcommittee will provide an update on the following working groups and task force activities: First, the Re-Imagined Entry Processes (RIEP) Working Group has begun a series of deep-dive sessions to review the entire entry process and examine when entry data becomes available. The intent of these sessions is to determine the points along the supply-chain where the data is first available in order to enhance the facilitation and security of the entry process and may provide some strategic recommendations in this area. Next, the One U.S. Government Working Group will provide an update on the following key project: The automation of electronic documents that are currently required at time of entry and the Partner Government Agency Disclaim Handbook. Finally, CBP will provide an update on the progress of the E-Commerce and 21st Century Customs Framework Task Forces.
3. The Intelligent Enforcement Subcommittee will provide a status update on the following: The Bond Working Group will report on the continued work with CBP on the Monetary Guidelines of Setting Bond Amounts, the status of the risk-based bonding initiative, and recommendations on the eBond Pilot; the Antidumping/Countervailing Duty (AD/CVD) Working Group will discuss the ongoing challenges associated with the growing number of AD/CVD cases; the Intellectual Property Rights (IPR) Process Modernization Working Group will provide updates on past recommendations to further the modernization of IPR processes; and, the Forced Labor Working Group will provide an update related to the progress of the three subgroups outlined in the Statement of Work: Informed Compliance Fact Sheet Subgroup, Emerging Traceability Subgroup, and Forced Labor Report and Metrics Subgroup.
4. The Rapid Response Subcommittee will provide an update on the progress of its two working groups. First, the USMCA Working Group hasidentified specific topics for review with the USMCA Center as the anticipated publication of the new regulations approaches. The topics for discussion include export guidance, e-signatures, and the marking rules in part 102 of title 19 of the Code of Federal Regulations (19 CFR part 102). Second, the Broker Exam Modernization Working Group will provide an update on recent exam modernization activities.
San Antonio Shoe, San Antonio, Texas, has been awarded a maximum $25,423,460 fixed-price, indefinite-delivery/indefinite-quantity contract for men’s and women’s athletic shoes. This was a competitive acquisition with three responses received. This is a two-year contract with no option periods. Location of performance is Texas, with a June 2, 2023, ordering period end date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2021 through 2023 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-21-D-1458).
Andrew Lock, Consumer Product Safety Commission Laboratory Sciences, will be participating in the ASTM E05.15 committee meetings on fire standards to discuss furniture flammability standards development from 2:00 p.m. 4:00 p.m. EST, June 9, 2021. The meeting is online. For more information contact Andrew Lock (preferred:alock@cpsc.gov or 301-987-2099).
As Agathon Associates reported in December polyester textured yarn antidumping cases are moving forward.
On June 3, 2021, the U.S. Department of Commerce published in the Federal Register (86 FR 29742) Polyester Textured Yarn From Indonesia: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures.
On June 3, 2021, the U.S. Department of Commerce published in the Federal Register (86 FR 29746
) Polyester Textured Yarn From Thailand: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures.
On June 3, 2021, the U.S. Department of Commerce published in the Federal Register (86 FR 29748
) Polyester Textured Yarn From Malaysia: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures.
On June 3, 2021, the U.S. Department of Commerce published in the Federal Register (86 FR 29750
) Polyester Textured Yarn From the Socialist Republic of Vietnam: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures.
Original Footwear LLC, Arecibo, Puerto Rico, has been awarded a maximum $7,923,201 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for safety boots. This is a one-year base contract with four one-year option periods. This was a competitive acquisition with two responses received. Location of performance is Puerto Rico, with a May 1, 2022, performance completion date. Using customer is Coast Guard. Type of appropriation is fiscal 2021 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-21-D-1454).
Aurora Industries, Camuy, Puerto Rico, has been awarded a maximum $10,676,667 modification (P00010) exercising the second one-year option period of a one-year base contract (SPE1C1-19-D-1166) with two one-year option periods for advanced combat unisex shirts. This is a firm-fixed-price, indefinite-quantity contract. Location of performance is Puerto Rico, with a June 4, 2022, ordering period end date. Using military service is Army. Type of appropriation is fiscal 2021 through 2022 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.
On May 27, 2021, the Senate passed the ENDLESS FRONTIER ACT including a process for exclusion of articles from Section 301 duties.
TITLE III--IMPROVING TRANSPARENCY AND ADMINISTRATION OF TRADE PROGRAMS
AND OVERSIGHT AND ACCOUNTABILITY OF TRADE AGENCIES
SEC. 73001. PROCESS FOR EXCLUSION OF ARTICLES FROM DUTIES
UNDER SECTION 301 OF THE TRADE ACT OF 1974.
(a) Establishment of General Exclusion Process.--
(1) In general.--Title III of the Trade Act of 1974 (19
U.S.C. 2411 et seq.) is amended by inserting after section
305 the following:
``SEC. 305A. PROCESS FOR EXCLUSION OF ARTICLES FROM DUTIES.
``(a) Analysis of Alternative Action.--Subject to
subsection (d), before taking action under section 301(b),
the Trade Representative shall analyze the impact of the
action on United States entities, particularly small
entities, and consumers in the United States with a goal of
mitigating the impact of duties on United States entities and
consumers in the United States, including by evaluating
alternatives or modifications to particular actions.
``(b) Process for Exclusion From Duties.--
``(1) In general.--Subject to subsection (d), the Trade
Representative shall establish and maintain a process for
exclusion requests from duties under section 301(b) unless
the Trade Representative determines and certifies to the
appropriate congressional committees that maintaining an
exclusion process--
``(A) would impair the ability of the United States to
maintain effective pressure to remove unreasonable or
discriminatory practices burdening commerce in the United
States; or
``(B) is impractical due to the low value of the duties
imposed.
``(2) Briefing.--If the Trade Representative makes a
certification under paragraph (1), not later than 3 days
before making the certification, the Trade Representative
shall brief the appropriate congressional committees
regarding the reasons for the certification.
``(3) Continued certification.--If the Trade Representative
makes a certification under paragraph (1) with respect to
duties under section 301(b), not less frequently than once
every 180 days while those duties are in effect, the Trade
Representative shall determine and certify to the appropriate
congressional committees that the reasons for forgoing an
exclusion process with respect to those duties continue to be
present.
``(c) Implementation of Exclusion Process.--
``(1) In general.--In implementing an exclusion process
required under subsection (b)(1), the Trade Representative
shall consider whether and which criteria described in
paragraph (2), and such other criteria as the Trade
Representative considers appropriate under the circumstances,
are appropriate to apply in the exclusion process.
``(2) Criteria described.--The criteria described in this
paragraph for exclusion of articles from duties under section
301(b) include the following:
``(A) Whether the failure to grant the exclusion would
result in severe economic harm to the requester.
``(B) Whether the article or a reasonable substitute is not
commercially available to the requester.
``(C) Whether the imposition of the duty with respect to
the article would unreasonably increase consumer prices for
day-to-day items consumed by low- or middle-income families
in the United States.
``(D) Whether the imposition of the duty would have an
unreasonable impact on manufacturing output of the United
States.
``(E) Whether the imposition of the duty would have an
unreasonable impact on the ability of an entity to fulfill
contracts or to build critical infrastructure.
``(F) Whether the failure to grant the exclusion is likely
to result in a particular entity or entities having the
ability to abuse a dominant market position.
``(d) Exclusion of Certain Duties.--This section shall not
apply to duties imposed under section 301(b) pursuant to a
dispute resolution process under the World Trade
Organization.
``(e) Publication of Notice.--Subject to subsection (d),
not later than 90 days after imposing any duty under section
301(b), the Trade Representative, in consultation with such
other Federal agencies as the Trade Representative considers
appropriate, shall publish a notice in the Federal Register
regarding the criteria that the Trade Representative will
apply and the evidence it will evaluate in determining
whether a request for exclusion from such duty satisfies the
requirements of the exclusion process under subsection
(b)(1).
``(f) Definitions.--In this section:
``(1) Appropriate congressional committees.--The term
`appropriate congressional committees' means--
``(A) the Committee on Finance of the Senate; and
``(B) the Committee on Ways and Means of the House of
Representatives.
``(2) Severe economic harm.--The term `severe economic
harm', with respect to an exclusion from duties requested by
a United States entity, includes circumstances under which
failure to grant the exclusion would--
``(A) render the business of the entity unprofitable; or
``(B) result in a significant number or proportion of the
workers employed by the entity becoming totally separated
from employment.
``(3) Small entities.--The term `small entities' has the
meaning given the term `small entity' in section 601 of title
5, United States Code.
``(4) United states entity.--The term `United States
entity' means an entity organized under the laws of the
United States or of any jurisdiction within the United
States, including a foreign branch of such an entity.''.
(2) Clerical amendment.--The table of contents for the
Trade Act of 1974 is amended by inserting after the item
relating to section 305 the following:
``Sec. 305A. Process for exclusion of articles from duties.''.
(b) Establishment of Exclusion Process for Certain Duties
Relating to People's Republic of China.--
(1) In general.--Notwithstanding any other provision of
law, the United States Trade Representative shall establish a
process pursuant to which United States entities and
associations of those entities may request the exclusion of
articles from duties described in paragraph (2).
(2) Duties described.--The duties described in this
paragraph are duties imposed pursuant to the investigation
initiated under section 301 of the Trade Act of 1974 (19
U.S.C. 2411) on August 18, 2017, and with respect to which
notice was published in the Federal Register on August 24,
2017 (82 Fed. Reg. 40213).
(3) Implementation of exclusion process.--In implementing
the process established under paragraph (1) for exclusion of
articles from duties described in paragraph (2), if the
exclusion of the article can likely be administered by U.S.
Customs and Border Protection--
(A) the Trade Representative shall exclude that article
from the imposition of such a duty if the Trade
Representative determines, following a request from a United
States entity or an association of those entities, that the
failure to grant the exclusion would result in severe
economic harm to the requester;
(B) unless the Trade Representative determines that
granting the exclusion would impair the ability of the United
States to maintain effective pressure to remove an
unreasonable or discriminatory practice burdening United
States commerce, the Trade Representative shall exclude that
article from the imposition of such a duty if the Trade
Representative determines following a request from a United
States entity or an association of those entities that--
(i) the article or a reasonable substitute is not
commercially available to the requester;
(ii) the imposition of the duty with respect to the article
would unreasonably increase consumer prices for day-to-day
items consumed by low- or middle-income families in the
United States;
(iii) the imposition of the duty would have an unreasonable
impact on manufacturing output of the United States;
(iv) the imposition of the duty would have an unreasonable
impact on the ability of an entity to fulfill contracts or to
build critical infrastructure; or
(v) the failure to grant the exclusion is likely to result
in a particular entity or entities having the ability to
abuse a dominant market position; and
(C) the Trade Representative may identify other criteria
relevant to determining whether the article shall be excluded
from the imposition of such a duty.
(4) Timeframe of exclusion and renewal.--
(A) Period of exclusion.--An exclusion of an article
requested under paragraph (1) from duties described in
paragraph (2)--
(i) shall be for a period of 18 months; and
(ii) shall be decided--
(I) not later than 90 days before the duty is due to be
paid; or
(II) if the Trade Representative determines that the
request presents exceptionally complex issues or requires
additional evidence, not later than 120 days before the duty
is due to be paid.
(B) Renewal.--The Trade Representative shall allow
applications for renewal of an exclusion under paragraph (1)
to be submitted not later than 90 days before the exclusion
is set to expire.
(C) Failure to act.--If the Trade Representative fails to
decide an exclusion request under subparagraph (A)(ii) during
the appropriate period set forth under that subparagraph, the
exclusion request will be deemed to have been granted until
the date that is 30 days after the Trade Representative
publishes in the Federal Register a decision not to grant the
request.
(5) Written reasoning.--
(A) In general.--If the Trade Representative denies a
request for an exclusion under paragraph (1), the Trade
Representative shall provide to the requester of the
exclusion a reasoned determination for denying the request.
(B) Substantial evidence.--A determination under
subparagraph (A) shall be supported by substantial evidence
from the administrative record.
(6) Review.--
(A) In general.--Not later than 180 days after the date of
the enactment of this Act, and annually thereafter, the
Comptroller General of the United States shall conduct an
audit of the exclusion process established under paragraph (1).
(B) Elements of audit.--Each audit required by subparagraph (A) shall--
(i) include a review of the process for--
(I) receiving and reviewing exclusion requests under
paragraph (1);
(II) determining eligibility for an exclusion;
(III) applying relevant criteria for an exclusion; and
(IV) making determinations regarding whether to grant an
exclusion;
(ii) examine the information provided to applicants prior
to seeking an exclusion, as well as throughout the exclusion
application process; and
(iii) analyze the timeliness of decisions, the consistency
of decisions, and the internal review process for making
decisions with respect to an exclusion.
(7) Regulations.--
(A) Implementation of process.--Not later than 120 days
after the date of the enactment of this Act, The Trade
Representative, in consultation with such other Federal
agencies as the Trade Representative considers appropriate,
shall prescribe regulations regarding the criteria that the
Trade Representative will apply and the evidence the Trade
Representative will evaluate in deciding whether any of the
conditions in paragraph (3) have been satisfied with respect
to an exclusion request under paragraph (1).
(B) Severe economic harm.--The Trade Representative shall
prescribe regulations regarding the definition of severe
economic harm under paragraph (8), including by setting forth
the evidence necessary to establish that a business is
unprofitable, that workers will be separated, and other
circumstances in which severe economic harm may be
demonstrated.
(8) Definitions.--In this subsection:
(A) Severe economic harm.--The term ``severe economic
harm'', with respect to an exclusion from duties requested by
a United States entity or an association of those entities,
includes circumstances under which failure to grant the
exclusion would--
(i) render the business of the entity or entities
unprofitable; or
(ii) result in a significant number or proportion of the
workers employed by the entity or entities becoming totally
separated from employment.
(B) United states entity.--The term ``United States
entity'' means an entity organized under the laws of the
United States or of any jurisdiction within the United
States, including a foreign branch of such an entity.
(c) Treatment of Certain Exclusions Relating to People's
Republic of China.--
(1) Reauthorization of exclusions.--All covered duty
exclusions shall be reinstituted for entries filed on or
before December 31, 2022.
(2) Retroactive application for certain liquidations and
reliquidations.--
(A) In general.--Notwithstanding section 514 of the Tariff
Act of 1930 (19 U.S.C. 1514) or any other provision of law
and subject to subparagraph (B), any entry of a covered
article on which duties were paid under section 301(b) of the
Trade Act of 1974 (19 U.S.C. 2411(b)) and to which a covered
duty exclusion would have applied if the entry were made on
December 31, 2020, that was made--
(i) after December 31, 2020, and
(ii) before the date of the enactment of this Act,
shall be liquidated or reliquidated as though such entry
occurred on such date of enactment.
(B) Requests.--A liquidation or reliquidation may be made
under subparagraph (A) with respect to an entry of an article
only if a request therefor is filed with U.S. Customs and
Border Protection not later than 180 days after the date of
the enactment of this Act that contains sufficient
information to enable U.S. Customs and Border Protection--
(i) to identify and reconstruct the entry, if necessary; and
(ii) to verify that the article is a covered article.
(C) Payment of amounts owed.--Any amounts owed by the
United States pursuant to the liquidation or reliquidation of
an entry of a covered article under subparagraph (A) shall be
paid, without interest, not later than 90 days after the date
of the liquidation or reliquidation (as the case may be).
(3) Definitions.--In this subsection:
(A) Covered article.--The term ``covered article'' means an
article that qualifies for a covered duty exclusion from
duties paid under section 301(b) of the Trade Act of 1974 (19
U.S.C. 2411(b)) that was not granted by the United States
Trade Representative within 180 days of the date of
liquidation of an entry containing such an article.
(B) Covered duty exclusion.--The term ``covered duty
exclusion'' means a specific article exclusion that was--
(i) granted in the investigation initiated under section
301 of the Trade Act of 1974 (19 U.S.C. 2411) on August 18,
2017, and with respect to which notice was published in the
Federal Register on August 24, 2017 (82 Fed. Reg. 40213); and
(ii) published in the Federal Register.
(C) Entry.--The term ``entry'' includes a withdrawal from
warehouse for consumption.
Since the 1980s congress has, from time to time, enacted temporary duty suspensions relating to articles not available from domestic sources. A long list of duty suspenstion provisions are bundled into a single bill, which may, or may not, be officially named the "Miscellaneous Tariff Bill," but which is always refered to as the MTB.
The last MTB was passed in September 2018 and provided for temporary suspensions of duties through December 31, 2020. Those expired duty suspensions included 74 relating to textile fiber, yarn, or fabric. On May 27, 2021, the Senate passed its version of MTB renewal. Of the 74 expired provisions, the Senate bill renews 45 with no changes, renews 12 with modifications to the article description, renews two with changes to the rate of duty (in some cases the MTB does not fully eliminate the tariff, rather it merely reduces the rate). The remaing 15 are not renewed. Additionally, the Senate bill creates 46 new duty suspensions relating to textiles.
Now attention moves to the House.
Agathon Associates has done a detailed analysis of the Senate MTB, to receive it please email David Trumbull at david@agathonassociates.com.