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News Release 19-106
Inv. No(s). 337-TA-1181
Contact: Peg O'Laughlin, 202-205-1819
The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain lithium-ion battery cells, battery modules, battery packs, components thereof, and products containing the same. The products at issue in the investigation are described in the Commission’s notice of investigation.
The investigation is based on a complaint filed by LG Chem, Ltd., of Seoul, Republic of Korea; LG Chem Michigan Inc. of Holland, MI; and Toray Industries, Inc., of Tokyo, Japan, on September 26, 2019. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain lithium-ion battery cells, battery modules, battery packs, components thereof, and products containing the same that infringe patents asserted by the complainants. The complainants request that the USITC issue a limited exclusion order and cease and desist orders.
The USITC has identified the following as respondents in this investigation:
SK Innovation Co., Ltd., of Seoul, Republic of Korea; and
SK Battery America, Inc., of Atlanta, GA.
By instituting this investigation (337-TA-1181), the USITC has not yet made any decision on the merits of the case. The USITC’s Chief Administrative Law Judge will assign the case to one of the USITC’s administrative law judges (ALJ), who will schedule and hold an evidentiary hearing. The ALJ will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.
The USITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation. USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.
News Release 19-105
Inv. No(s). 332-565
Contact: Peg O'Laughlin, 202-205-1819
The U.S. International Trade Commission (USITC) today released a report on the effects on the U.S. economy of duty suspensions and reductions enacted under the American Manufacturing Competitiveness Act (AMCA).
The report, American Manufacturing Competiveness Act: Effects of Temporary Duty Suspensions and Reductions on the U.S. Economy, was triggered by the September 13, 2018, enactment of the Miscellaneous Tariff Bill Act of 2018 (MTB Act of 2018).
As required by the AMCA, the USITC, an independent, nonpartisan, factfinding federal agency, prepared a report concerning the effects on the U.S. economy of duty suspensions and reductions enacted pursuant to AMCA.
The USITC’s report provides a broad assessment of the economic effects of duty suspensions and reductions on U.S. producers, purchasers, and consumers, as well as case studies looking at the effects on groups of products covered by the MTB Act of 2018. The report also includes recommendations from interested parties with respect to those domestic industry sectors that might benefit from permanent duty suspensions or reductions, with a particular focus on inequities created by tariff inversions. Much of the information in this report comes from a survey conducted by the Commission after the duty suspensions and reductions became effective.
Main Findings:
- As of March 2019, over 90 percent of firms responding to the Commission’s questionnaire imported or planned to import goods under the Harmonized Tariff Schedule 9902 headings (provisions) that provide temporary duty suspensions and reductions; about one-third of these firms have increased or planned to increase imports. Between November 2018 and May 2019, importers saved $179 million in duties on imports of $5.4 billion.
- As of March 2019, many responding firms stated they had not had enough time to take full advantage of the duty suspensions and reductions. Some respondents also reported that section 301 tariffs on products of China have lessened the positive impacts of the duty relief.
- As a result of the duty relief, nearly a quarter of responding manufacturers reported a decrease in production costs. Among all respondents, many expected future increases in sales volumes, number of customers, and investment in new product development. Compared with larger firms, more responding small and medium-sized enterprises (SMEs) reported that the duty relief has had positive effects on virtually all business operations.
- Chemicals firms account for the largest share of 9902 headings and imports. Thus, the largest number of responding firms reporting benefits from the duty relief are in the Chemicals group.
- The results of the Commission’s economic modeling suggest that the temporary duty relief will lead to a small increase in output, welfare, and gross domestic product (GDP) in the United States. Moreover, the average price of goods imported under the 9902 provisions will likely decline, although not by the full amount of the duty reduction.
American Manufacturing Competiveness Act: Effects of Temporary Duty Suspensions and Reductions on the U.S. Economy (Investigation No. 332-565, USITC Publication 4987, October 2019) is available on the USITC website at: https://www.usitc.gov/publications/332/pub4987.pdf.
USITC general factfinding investigations cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analyses on the subjects investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigation reports are subsequently released to the public, unless they are classified by the requester for national security reasons.
News Release 19-104
Inv. No(s). 163-1
Contact: Peg O'Laughlin, 202-205-1819
The U.S. International Trade Commission (USITC) today released The Year in Trade 2018, its annual overview of developments regarding the administration of U.S. trade laws and trade agreements.
The USITC's The Year in Trade is one of the government's most comprehensive reports available regarding activities related to U.S. trade policies, agreements, and trade laws. This report is the 70th in a series of annual reports submitted to the U.S. Congress under section 163(c) of the Trade Act of 1974 (19 U.S.C. 2213(c)) and its predecessor legislation.
The publication reviews U.S. international trade laws and actions under these laws, activities of the World Trade Organization (WTO), and developments regarding U.S. free trade agreements (FTAs), FTA negotiations, and U.S. bilateral trade relations with major trading partners in 2018.
The Year in Trade 2018 covers:
- all U.S. antidumping, countervailing duty, safeguard, intellectual property rights infringement, national security and section 301 cases active in 2018. In addition, the 2018 report covers the operation of U.S. trade preference programs, including the U.S. Generalized System of Preferences, the African Growth and Opportunity Act, the Nepal Trade Preferences Act, and the Caribbean Basin Economic Recovery Act, including initiatives for Haiti;
- WTO dispute settlement decisions and other significant activities in the WTO, the Organisation for Economic Co-operation and Development, and the Asia-Pacific Economic Cooperation forum;
- negotiations on U.S. FTAs with the European Union, the United Kingdom, Japan, and on the United States-Canada-Mexico Agreement, negotiations on modifications to the U.S.-Korea FTA, and developments regarding the North American Free Trade Agreement and other U.S. FTAs already in effect; and
- bilateral trade issues with selected major U.S. trading partners -- the European Union, China, Canada, Mexico, Japan, South Korea, India, and Taiwan.
The report also provides an overview of U.S. trade in goods and services during 2018. Statistical tables highlight U.S. bilateral trade with major trading partners and trade under U.S. trade preference programs and free trade agreements.
An interactive, web-based version of The Year in Trade 2018 will be released later this month on October 17, 2019.
The Year in Trade 2018 (USITC Publication 4986, October 2019) will be posted on the USITC's Internet site at https://www.usitc.gov/publications/332/pub4986.pdf. Other reports in this series dating back to 1948 can also be found on the Commission's website at https://www.usitc.gov/annual_reports_archive.
News Release 19-102
Inv. No(s). 337-TA-1180
Contact: Peg O'Laughlin, 202-205-1819
The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain wireless communication devices and related components thereof. The products at issue in the investigation are described in the Commission’s notice of investigation.
The investigation is based on a complaint filed by Innovation Sciences LLC of Plano, TX, on August 9, 2019. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain wireless communication devices and related components thereof that infringe patents asserted by the complainant. The complainant requests that the USITC issue a limited exclusion order and cease and desist orders.
The USITC has identified the following as respondents in this investigation:
Resideo Technologies, Inc., of Austin, TX;
HTC Corporation of Tayouan, Taiwan; and
HTC America, Inc., of Seattle, WA.
By instituting this investigation (337-TA-1180), the USITC has not yet made any decision on the merits of the case. The USITC’s Chief Administrative Law Judge will assign the case to one of the USITC’s administrative law judges (ALJ), who will schedule and hold an evidentiary hearing. The ALJ will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.
The USITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation. USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.
News Release 19-101
Inv. No(s). 332-569
Contact: Peg O'Laughlin, 202-205-1819
The U.S. International Trade Commission (USITC) today released a report that catalogs the trade-related barriers perceived to be affecting exports of U.S. small and medium-sized enterprises (SMEs) to the United Kingdom (UK).
The report, U.S. SME Exports: Trade-related Barriers Affecting Exports of U.S. Small and Medium-sized Enterprises to the United Kingdom, was requested by the U.S. Trade Representative (USTR).
As requested, the USITC, an independent, nonpartisan, factfinding federal agency, catalogued trade-related barriers that U.S. SMEs perceive as disproportionately affecting their exports to the UK, as compared to larger U.S. exporters to the UK.
The report focuses on barriers identified by SMEs that hinder their ability to export to the UK. The USITC collected primary qualitative information and data to analyze both tariff and nontariff measures that may affect U.S. SME exports to the UK. The report includes suggestions from SMEs and relevant literature for actions that would help address some of the identified barriers and enhance the participation of U.S. SMEs in U.S.-UK trade.
Main Findings:
- SMEs believe they are particularly affected by a number of specific crosscutting trade-related barriers imposed by a European Union (EU) or UK government law or policy; these include tariffs and taxes, customs procedures, intellectual property measures, and temporary entry provisions. Further, SMEs noted various market-related barriers that they perceive as affecting their ability to export to the UK market, including logistical and finance-related issues, and difficulties in entering or participating in the UK market.
- Standards, technical regulations, and conformity assessment procedures are most often cited by SMEs as limiting their exports to the UK. The most frequently cited SME concern is that the UK often does not recognize the standards set by U.S. standards bodies, which forces many U.S. firms to seek dual U.S. and UK certifications before they can export their products.
- SMEs producing manufactured goods reportedly face numerous regulatory measures related to standards and regulations, which include labeling, licensing, and certification. U.S. agrifood SMEs also identified a variety of nontariff barriers that they face in the UK with respect to labeling requirements, sanitary and phytosanitary (SPS) requirements, geographical indications and wine names, packaging rules, food safety requirements, and certifications.
- There are limited trade-related barriers for U.S. service exports to the UK. However, the largest hardships U.S. SMEs engaged in the professional services industry say they face are temporary entry provisions, and licensing and credential issues. SMEs that export computer services reportedly encounter issues related to data protection and privacy laws, cybersecurity, and customs requirements.
U.S. SME Exports: Trade-related Barriers Affecting Exports of U.S. Small and Medium-sized Enterprises to the United Kingdom (Investigation No. 332-569, USITC Publication 4953, September 2019) is available on the USITC's website at https://www.usitc.gov/publications/332/pub4953.pdf.
USITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analyses on the subjects investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requester. General factfinding investigation reports are subsequently released to the public, unless they are classified by the requester for national security reasons.
News Release 19-100
Inv. No(s). 337-TA-1179
Contact: Peg O'Laughlin, 202-205-1819
The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain pouch-type battery cells, battery modules, and battery packs, components thereof, and products containing the same. The products at issue in the investigation are described in the Commission’s notice of investigation.
The investigation is based on a complaint filed by SK Innovation Co., Ltd., of Seoul, Republic of Korea, and SK Battery America, Inc., of Atlanta, GA, on September 3, 2019. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain pouch-type battery cells, battery modules, and battery packs, components thereof, and products containing the same that infringe a patent asserted by the complainants. The complainants request that the USITC issue a limited exclusion order and cease and desist orders.
The USITC has identified the following as respondents in this investigation:
LG Chem, Ltd., of Seoul, Republic of Korea; and
LGChem Michigan, Inc., of Holland, MI.
By instituting this investigation (337-TA-1179), the USITC has not yet made any decision on the merits of the case. The USITC’s Chief Administrative Law Judge will assign the case to one of the USITC’s administrative law judges (ALJ), who will schedule and hold an evidentiary hearing. The ALJ will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.
The USITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation. USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.
News Release 19-099
Inv. No(s). 1205-13
Contact: Peg O'Laughlin, 202-205-1819
The U.S. International Trade Commission (USITC) today instituted an investigation that will lead to recommendations to the President on necessary modifications to the U.S. Harmonized Tariff Schedule (HTS) to implement recent amendments to the global Harmonized System (HS).
By statute, the USITC is required to recommend to the President modifications to the HTS to conform the HTS to amendments made to the HS. The USITC is instituting this investigation, Recommended Modifications in the Harmonized Tariff Schedule, 2020, to consider recommendations to make to the President.
The HS is the international product naming system that is used to categorize and monitor global trade in goods. The U.S. HTS and the classification systems of 155 other countries are based on the HS, and they are modified to reflect any changes to the HS. The USITC is responsible for maintaining the U.S. HTS.
On June 28, 2019, the World Customs Organization (WCO) approved a package of amendments to the HS. A copy of the package of the WCO amendments can be viewed here.
In this investigation, the USITC, an independent, nonpartisan, factfinding federal agency, will develop proposed modifications to the HTS to reflect the WCO’s amendments to the HS and to reflect a WCO classification opinion regarding blanched peanuts. The USITC expects to issue preliminary draft modifications to the HTS for public comment in March 2020. Following the public comment period, the USITC will finalize the necessary modifications to the HTS and submit a report to the President in October 2020.
Further information about the investigation can be found in the notice of investigation (link to notice), dated October 1, 2019, which can be obtained from the USITC Internet site (www.usitc.gov).
News Release 19-098
Inv. No(s). 332-227
Contact: Peg O'Laughlin, 202-205-1819
The overall effect of the Caribbean Basin Economic Recovery Act (CBERA) on the U.S. economy generally, and U.S. import, industries, and consumers continues to be negligible, while the effect on beneficiary countries is small but positive, reports the U.S. International Trade Commission (USITC) in its publication Caribbean Basin Economic Recovery Act: Impact on U.S. Industries and Consumers and on Beneficiary Countries, Twenty-fourth Report, 2017-18.
The USITC, an independent, nonpartisan, factfinding federal agency, recently issued its 24th biennial report monitoring U.S. imports under CBERA. The CBERA program, operative since January 1, 1984, affords preferential tariff treatment to most products of the 17 designated Caribbean countries that received CBERA benefits during the period covered in the report.
The latest USITC report covers the impact of CBERA, as modified by the Caribbean Basin Trade Partnership Act of 2000 (CBTPA), and the HOPE and HELP Acts, on the United States, with particular emphasis on calendar year 2018. CBERA requires the USITC to prepare a biennial report assessing both the actual and the probable future effect of CBERA on the U.S. economy generally, on U.S. industries, and on U.S. consumers. The report also covers the impact of the preference program on the beneficiary countries. The following are highlights from the latest report.
- The overall effect of CBERA imports on the U.S. economy generally and on U.S. imports, industries, and consumers continued to be negligible in 2018. For U.S. industries in particular, the overall effect of the program on domestic production, employment, and operating profits was also negligible. The USITC identified two U.S. industries -- methanol and t-shirts -- that most likely have faced negative effects due to competition from CBERA imports.
- U.S. imports receiving preferential treatment under CBERA totaled $1.7 billion in 2018, an increase of 9.1 percent from $1.5 billion in 2017. The value of U.S. imports under CBERA declined between 2012 and 2016, but increased in both 2017 and 2018. The change was driven primarily by increasing imports of two products: methanol from Trinidad and Tobago, and apparel from Haiti. Petroleum-related products accounted for 29.9 percent of imports under CBERA in 2018, with Trinidad and Tobago’s methanol supplying 89 percent of such imports. Textiles and apparel, supplied mainly by Haiti, accounted for 56 percent of U.S. imports under CBERA in 2018, with cotton T-shirts supplying 30.1 percent of those imports. The remaining imports were agricultural products and other mining and manufactured products, comprising 7.9 percent and 6.2 percent of imports under CBERA, respectively.
- Special CBERA provisions for Haiti have had a strong, positive effect on export earnings and job creation in Haiti's apparel sector. Apparel assembly is Haiti's largest manufacturing activity and the country's largest source of manufacturing jobs. CBERA -- enhanced by CBTPA and the HOPE and HELP Acts -- has been an important factor in promoting apparel production in Haiti and apparel exports to the U.S. market.
CBERA has encouraged several beneficiary countries to develop niche exports to the United States, including polystyrene from The Bahamas, fruits and fruit juices from Belize, and electronic products from St. Kitts and Nevis.
- Investment for the near-term production and export of CBERA-eligible products is expected to have negligible impact on U.S. competitive industries as well as on the U.S. economy.
- Exporting CBERA-eligible goods is a challenge for many CBERA beneficiaries because of supply-side constraints, including inadequate infrastructure and an increasing focus on the export of services.
- The future effect of CBERA on the U.S. economy and domestic industries will likely remain small. CBERA countries generally are, and are likely to remain in the near term, small suppliers to the U.S. market. Most of the effect of CBERA on the U.S. economy occurred shortly after the program’s implementation in 1984, as well as after implementation of each major enhancement to CBERA.
Caribbean Basin Economic Recovery Act: Impact on U.S. Industries and Consumers and on Beneficiary Countries, Twenty-fourth Report, 2017-18 (Inv. No. 332-227, USITC Publication 4985, September 2019) is available at https://www.usitc.gov/publications/332/pub4985.pdf.
USITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the House Committee on Ways and Means, or the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analyses on the subjects investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the USITC submits its findings and analyses to the requestor. General factfinding investigation reports are subsequently released to the public, unless they are classified by the requestor for national security reasons.
News Release 19-097
Inv. No(s). 337-TA-1178
Contact: Peg O'Laughlin, 202-205-1819
The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain collapsible and portable furniture. The products at issue in the investigation are described in the Commission’s notice of investigation.
The investigation is based on an amended complaint filed by GCI Outdoor, Inc., of Higganum, CT, on August 29, 2019. The amended complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain collapsible and portable furniture that infringe patents asserted by the complainant. The complainant requests that the USITC issue a limited exclusion order and cease and desist orders.
The USITC has identified the following as respondents in this investigation:
Denovo Brands, LLC, of Bentonville, AR;
Zhenli (Zhangzhou) Industrial Co., Ltd., of Zhangzhou, Fujian, China;
Fujian Zenithen Consumer Products Co., Ltd., of Fuzhou, Fujian, China;
Zenithen Hong Kong Ltd. of Causeway Bay, Hong Kong;
Zenithen USA LLC of Upland, CA;
Westfield Outdoor, Inc., d/b/a Westfield Outdoors of Indianapolis, IN;
MacSports Inc. of La Verne, CA; and
Meike (Qingdao) Leisure Products Co., Ltd. of Qing Dao, China.
By instituting this investigation (337-TA-1178), the USITC has not yet made any decision on the merits of the case. The USITC’s Chief Administrative Law Judge will assign the case to one of the USITC’s administrative law judges (ALJ), who will schedule and hold an evidentiary hearing. The ALJ will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.
The USITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation. USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.
News Release 19-096
Inv. No(s). 337-TA-1177
Contact: Peg O'Laughlin, 202-205-1819
The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain semiconductor devices, products containing the same, and components thereof (II). The products at issue in the investigation are described in the Commission’s notice of investigation.
The investigation is based on a complaint filed by Globalfoundaries U.S. Inc. of Santa Clara, CA, on August 26, 2019. The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain semiconductor devices, products containing the same, and components thereof (II) that infringe patents asserted by the complainant. The complainant requests that the USITC issue a limited exclusion order and cease and desist orders.
The USITC has identified the following as respondents in this investigation:
Taiwan Semiconductor Manufacturing Co., Ltd., of Hsinchu, Taiwan;
TSMC North America of San Jose, CA;
TSMC Technology, Inc., of San Jose, CA;
Broadcom Inc. of San Jose, CA;
Broadcom Corporation of San Jose, CA;
NVIDIA Corporation of Santa Clara, CA;
Apple Inc. of Cupertino, CA;
Arista Networks, Inc., of Santa Clara, CA;
ASUSTeK Computer Inc. of Taipei, Taiwan;
Cisco Systems, Inc., of San Jose, CA; and
Lenovo Group Ltd. of Beijing, China.
By instituting this investigation (337-TA-1177), the USITC has not yet made any decision on the merits of the case. The USITC’s Chief Administrative Law Judge will assign the case to one of the USITC’s administrative law judges (ALJ), who will schedule and hold an evidentiary hearing. The ALJ will make an initial determination as to whether there is a violation of section 337; that initial determination is subject to review by the Commission.
The USITC will make a final determination in the investigation at the earliest practicable time. Within 45 days after institution of the investigation, the USITC will set a target date for completing the investigation. USITC remedial orders in section 337 cases are effective when issued and become final 60 days after issuance unless disapproved for policy reasons by the U.S. Trade Representative within that 60-day period.