Customs Update: SECURITY PROPOSALS ABOUND, FEW MAKE SENSE?
(Published in the Journal of Commerce on June 6, 2002)
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Customs Update: ATTITUDE IS EVERYTHING?
(Published in the Journal of Commerce on May 1, 2002)
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Customs Update: Will Steel Tariffs Make a Difference?
(Published in the Journal of Commerce on March 25, 2002)
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Commerce Provides Notification of Foreign Law Changes

Export Alert! is a program developed by the Commerce Dept. which notifies interested business when foreign government propose regulations which might influence treatment of U.S. exports. Those interested in receiving notices should sign up on line at

WTO Quotas Integrated, including China and Taiwan -

Given the quota phase-outs agreed to as part of the Uruguay Round, CITA and Customs have published the Stage III integration list which clarifies the quota categories and countries which are eliminated as of January 1, 2002.

A copy of the Federal Register Notices, "Issuing a Directive to the
Commissioner of Customs Establishing the 2002 Limits and Amending Visa Requirements", (Volume 66, Number 249 - Pages 67229-67232, China) and (Volume 66, Number 249 - Pages 67232-67234, Taiwan) can also be accessed on-line at
http//www.access.gpo.gov/su_docs/aces/aces140.html>Issue

A full listing of products scheduled for integration under GATT can be accessed at http//otexa.ita.doc.gov/fedreg/finalfr.stm.

Senate Vote Not Yet Set

Although the House of Representatives passed fast track/normal trade relations by one vote, it remains unclear when the Senate will hold its vote.  Democrats have made clear that to have any chance of Democratic support, Pres. Bush will have to move on assistance to the U.S. steel industry. It remains unclear whether Democrats will also insist that revisions to the Trade Assistance Act and other remedies for the unemployed are conditions for support.

EU May Challenge Steel Dumping Findings

The EU is said to be considering challenging the findings of the International Trade Commission that steel from several countries is being dumped in the U.S. The EU’s objections are said to focus on how the product categories under investigation were defined. A second area of concern has to do with whether the procedures used are appropriately transparent and predictable as required by GATT Article X. The EU is also said to question the finding of injury when imports for the most recent period under investigation declined. Finally, the EU may contend that allowing the 201 proceeding to go forward, in effect, gives double protection because many of the steel products under investigation are already subject to antidumping and counterveiling duties.

The ITC recommended a 20% margin which has not yet been adopted. If it were, approximately 70% of all EU steel would be covered by the order.

No Interest on Export HMT

One of the few questions remaining regarding the harbor maintenance tax on exports was whether the government had to pay interest on the monies refunded to exporters. Under the doctrine of sovereign immunity, a government is immune from suit unless it agrees to allow itself to be sued. In the case of the HMT, there are statutory provisions which allow the collection of duties and user fees to be challenged in court. The Court of International Trade in Swisher resoundingly answered the question about payment of interest by saying - no! A variety of arguments were made, including Constitutional ones, all of which failed to persuade the court. In the end, Judge Restani held there was no statute which authorized the payment of interest in the circumstances presented and so there was no obligation on the part of the government to pay it.

BXA Imposes $496,000 Civil Fine

Fluroware, Inc. (now owned by Entegris, Inc.) agreed to pay a $496,000 fine for 124 instances of exporting diaphragm valves and components to Taiwan and Israel without the required license. $96,000 will be waived if the remaining $400,000 is paid no later than October 2002.

CPSC Requires Reporting of Foreign Problems

The Consumer Product Safety Commission has amended its rules to require importers, manufacturers, distributors and retailers of consumer products to report possible substantial product hazards even if they occur outside the U.S.. See 66 Fed.Reg. No. 211.

FDA Temporarily Expands Services

Along the Southwest land border, the Food & Drug Administration has  begun a study spanning the period October 20, 2001 to April 20, 2002. The purpose of the study is to evaluate whether weekend service should be provided on an on-going basis.

Textiles Clog Up Fast Track

Even though quota categories will end in 2005, textiles and their products continue to play a major role in vote haggling on Capital Hill. To gain the vote of Rep. Jim DeMint (R-NC) in favor of fast track/trade promotion authority, the Republican leadership agreed that no more trade related bills would be brought to a vote until the Trade and Development Act of 2000 (AGOA and CBTPA) was corrected to provide that U.S. knit and woven fabric would qualify for CBTPA benefits only if dyed, finished and printed in the U.S.

Perhaps falling into the category of unintended consequences, the Customs authorization bill and others are being held up as a result.

Vietnam Now Approved

USTR has issued the much anticipated notice confirming that as of December 10, 2001,  Vietnam is now eligible for column one - normal trade relations (formerly called most favored nation) - rates of duty in accord with Presidential Proclamation 7449.