U.S. International Trade Commission

September 26, 2019
News Release 19-095
Inv. No(s). 337-TA-1176
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 (I).  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 (I) 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;
MediaTek lnc. of Hsinchu, Taiwan;
MediaTek USA Inc. of San Jose, CA;
Qualcomm Inc. of San Diego, CA;
Xilinx, Inc., of San Jose, CA;
Avnet, Inc., of Phoenix, CA;
Digi-Key Corporation of Thief River Falls, MN;
Mouser Electronics, Inc., of Mansfield, TX;
TCL Corporation of Guangdong, China
TCL Multimedia Technology Holdings of Shenzhen, Guangdong Province, China;
Hisense Co. Ltd. of Qingdao, China;
Hisense USA Corp. of Suwanee, GA;
Hisense Import & Export Co. Ltd. of Qingdao, China;
Hinsense Electric Co., Ltd., of Qingdao, China;
Hisense International Co., Ltd., of Qingdao, China;
Hisense Group Co., Ltd., of Qingdao, China;
Qingdao Hisense Communication Co., Ltd., of Qingdao, Shandong, China;
Google LLC of Mountain View, CA;
Motorola Mobility LLC of Chicago, IL;
BLU Products of Doral, FL; and
OnePlus Technology Co., Ltd., of Shenzhen, Guangdong, China.

By instituting this investigation (337-TA-1176), 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.

September 24, 2019
News Release 19-094
Inv. No(s). 332-572
Contact: Peg O'Laughlin, 202-205-1819

The U.S. International Trade Commission (USITC) today released a public version of its confidential report on possible modifications to the Generalized System of Preferences (GSP).

The investigation, Generalized System of Preferences: Possible Modifications, 2018 Review (Investigation No. 332-572), was requested by the U.S. Trade Representative (USTR).

The USITC, an independent, nonpartisan, factfinding federal agency, submitted a confidential version of the report to the USTR on September 9, 2019. The public version released today contains only the unclassified sections, with any business confidential information deleted.

As requested, the USITC provided advice as to the probable economic effect on total U.S. imports, on U.S. industries producing like or directly competitive articles, and on U.S. consumers of the removal from eligibility of two HTS subheadings for certain GSP countries.

The removals in consideration are:

• 3907.61.00 (Polyethylene terephthalate, having a viscosity number of 78 ml/g or higher) from Pakistan,
• 3907.69.00 (Polyethylene terephthalate, having a viscosity number less than 78 ml/g) from Pakistan.

In addition, the USITC provided advice on whether any industry in the United States is likely to be adversely affected by competitive need limitation waivers for two HTS subheadings for certain GSP countries and advice as to the probable economic effect on total U.S. imports, as well as on consumers, of the requested waivers. The USITC also provided advice as to whether a like or directly competitive article was produced in the United States in any of the preceding three calendar years for these articles. "Competitive need limitations" represent the maximum import level of a product that is eligible for duty-free treatment under the GSP.  Once the limit is reached, trade is considered "competitive," benefits are no longer needed, and imports of the article become ineligible for GSP treatment, unless a waiver is granted.  With respect to the competitive need limit in section 503(c)(2)(A)(i)(I) of the 1974 Act, the USITC, as requested, will use the dollar value limit of $185 million. The HTS subheadings in consideration are:

• 3823.11.00 (Stearic acid) from Indonesia,
• 9001.50.00 (Spectacle lenses of materials other than glass, unmounted) from Thailand.

Finally, the USITC provided advice as to the probable economic effect on U.S. imports, on U.S. industries producing like or directly competitive articles, and on U.S. consumers of the redesignation of three HTS subheadings for certain GSP countries. The USITC also provided advice as to whether a like or directly competitive article was produced in the United States in any of the preceding three calendar years for these articles. The HTS subheadings in consideration are:

• 0603.13.00 (Orchids, fresh cut) from Thailand,
• 4412.10.05 (Plywood, veneered panels and similar laminated wood, of bamboo) from Indonesia,
• 4412.31.4155 (Plywood sheets n/o 6mm thick, with specified tropical wood outer ply, with face ply nesoi, not surface covered beyond clear/transparent) from Indonesia.

Generalized System of Preferences: Possible Modifications, 2018 Review (Investigation No. 332-572, USITC publication 4972, September 2019) is available on the USITC's Internet site at https://www.usitc.gov/sites/default/files/publications/332/pub4972.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.

September 24, 2019
News Release 19-093
Inv. No(s). 332-573
Contact: Peg O'Laughlin, 202-205-1819

The U.S. International Trade Commission (USITC) is seeking input for an investigation on the impact that policies related to maximum residue levels (MRLs) of pesticides have on international agricultural trade.

The investigation, Global Economic Impact of Missing and Low Pesticide Maximum Residue Levels, was requested by the U.S. Trade Representative (USTR) in a letter received on August 30, 2019.

As requested, the USITC, an independent, nonpartisan, factfinding federal agency, will assess the global economic impact of national policies and regulations related to maximum residue levels (MRLs) for plant protection products. The report will document the challenges exporters face in meeting importing country MRLs, such as when they are lower or missing, and provide quantitative and qualitative information about the effects of such measures.

The report will include information requested in the eight bullets of the request letter. The requests in these bullets include, but are not limited to:

• an overview of the role of plant protection products and their MRLs in relation to global production, international trade, and food safety for consumers;


• a description of approaches to setting national and international MRLs;


• information about how MRLs for plant protection products are developed and administered in major markets;


• an economic literature review;


• case studies describing the costs and effects of MRL compliance and non-compliance for producers in foreign countries and the United States; and


• quantitative and qualitative assessment of the economic effects of MRL-related policies at the national level and for small and medium-sized farms.

The investigation will yield two volumes.  The USITC expects to transmit volume 1 of its report on April 30, 2020, and volume 2 on November 2, 2020, as requested. Both volumes will be released to the public.

The USITC is seeking input for its new investigation from all interested parties. The USITC will hold a public hearing in connection with the investigation at 9:30 a.m. on October 29, 2019. Requests to appear at the public hearing in connection with the investigation should be filed no later than 5:15 p.m. on October 17, 2019, with the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington D.C. 20436.

The USITC also welcomes written submissions for the record. Written submissions should be addressed to the Secretary to the Commission at the above address and should be submitted at the earliest practical date but not later than 5:15 p.m. on December 13, 2019, for volume 1, and 5:15 p.m. on June 5, 2020, for volume 2. All written submissions, except for confidential business information, will be available for public inspection.

Further information on the scope of this investigation and appropriate submissions appears in the USITC’s notice of investigation, dated September 23, 2019. The notice can be obtained from the USITC Internet site (www.usitc.gov) or by contacting the Office of the Secretary at the above address at 202-205-2000.

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 report conveys 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.

September 20, 2019
News Release 19-092
Inv. No(s). 332-345
Contact: Peg O'Laughlin, 202-205-1819

The United States is the world's largest services market and was the world’s leading exporter and importer of services in 2017, reports the U.S. International Trade Commission (USITC) in its new publication Recent Trends in U.S. Services Trade, 2019 Annual Report.

The USITC, an independent, nonpartisan, factfinding federal agency, compiles the report annually. Each year's report presents a qualitative and quantitative overview of U.S. trade in services and highlights some of the services sectors and geographic markets that contribute substantially to recent services trade performance.

This year’s report focuses on distribution services and includes chapters on three specific industries: logistics services, maritime transport services, and retail services. Each chapter analyzes global market conditions in the industry, examines recent trade performance, and summarizes the industry’s outlook.

The report describes trade in services via cross-border transactions through 2017 and via affiliate sales through 2016 (latest available data). Highlights include:

• In 2017, the value of U.S. commercial services exports was $778.4 billion (15 percent of global services exports), while imports totaled $520.4 billion (10 percent of global services imports). Preliminary data also indicate that in 2018, U.S. services exports increased by 3.4 percent to $805.7 billion, while imports rose by 4.3 percent to $544.3 billion.  Distribution services accounted for 6 percent of U.S. cross-border services, and 12 percent of services imports.
• Within the services sector, sales by foreign affiliates of U.S. firms – the leading channel by which many U.S. services are delivered to foreign markets – totaled $1.4 trillion in 2016 while the value of services purchased from foreign-owned affiliates in the United States totaled $876.9 billion. Distribution services accounted for about 29 percent of total sales by foreign affiliates of U.S. firms and 30 percent of total purchases from foreign-owned firms located in the United States.
• The contribution of private sector distribution services to U.S. gross domestic product (GDP) was $2.7 trillion in 2017, accounting for 17 percent of U.S. private sector GDP. From 2016 to 2017 distribution services grew by 3.2 percent, faster than the 2.1 percent growth rate experienced by private sector GDP as a whole. Distribution services were also a leading contributor to U.S. private sector employment in 2017, accounting for 21.1 percent of the private sector workforce, or 25 million full-time equivalent (FTE) employees. Wholesale trade was the largest category of distribution services, accounting for 41 percent of distribution services’ contribution to U.S. private sector GDP, followed by retail trade (39 percent). From 2016 to 2017, GDP in wholesale trade grew by roughly 2 percent, while retail trade and transportation and warehousing each grew by 4 percent.
• Distribution services encompass a wide range of activities that facilitate the movement of goods through the supply chain—from producer to end consumer.  Several industries in the distribution services sector have experienced consolidation through mergers and acquisitions over the past several years. The emergence of e-commerce over the last 10–15 years has also resulted in significant innovation in the delivery of distribution services. Further, a growing number of traditional retailers are developing the capability to analyze the data produced by customer’s interactions with their websites and apps, including data on browsing habits and purchasing activity.

The USITC hosted its 12th annual services roundtable on November 7, 2018. The discussion, summarized in the report, focused on how services trade is affected by tariffs, World Trade Organization commitments, other rules and agreements for trade in goods, and related crosscutting issues, and differences in the services economies of developed and emerging markets.

Recent Trends in U.S. Services Trade, 2019 Annual Report (Investigation No. 332-345, USITC publication 4975, September 2019) is available on the USITC's Internet site at https://www.usitc.gov/publications/industry_econ_analysis_332/2019/recent_trends_us_services_trade_2019_annual_report.htm.

September 18, 2019
News Release 19-091
Inv. No(s). 731-TA-1415
Contact: Peg O'Laughlin, 202-205-1819

September 17, 2019
News Release 19-090
Inv. No(s). 337-TA-1174
Contact: Peg O'Laughlin, 202-205-1819

The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain toner cartridges, components thereof, and systems containing 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 Brother Industries, Ltd., of Aichi-ken, Japan; Brother International Corporation (U.S.A.) of Bridgewater, NJ; and Brother Industries (U.S.A.), Inc., of Bartlett, TN, on August 19, 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 toner cartridges, components thereof, and systems containing same that infringe patents asserted by the complainants. The complainants request that the USITC issue a general exclusion order, or in the alternative a limited exclusion order, and cease and desist orders.

The USITC has identified the following as respondents in this investigation:

• AMI Brothers, Inc., of San Bruno, CA;
• An An Beauty Limited of Kowloon, Hong Kong;
• Aster Graphics, Inc., of Riverside, CA;
• Aztech Enterprises Limited of Kowloon, Hong Kong;
• Billiontree Technology USA Inc. of City of Industry, CA;
• Carlos Imaging Supplies, Inc., of Hacienda Heights, CA;
• Cartridge Evolution, Inc., of Brooklyn, NY;
• Do it Wiser, LLC, of Wilmington, DE;
• Eco Imaging Inc. of Irvine, CA;
• Ecoolsmart Co. of Rowland Heights, CA;
• EPrinter Solution LLC of Pomona, CA;
• E-Z Ink Inc. of Brooklyn, NY;
• Globest Trading Inc. of Ontario, CA;
• Greencycle Tech, Inc., of South El Monte, CA;
• Hongkong Boze Co., Ltd., of Kowloon, Hong Kong;
• I8 International, Inc., of City of Industry, CA;
• IFree E-Commerce Co. of Kowloon, Hong Kong;
• Ikong E-Commerce of Walnut, CA;
• Intercon International Corp of Brea, CA;
• IPrint Enterprise Limited of Kowloon, Hong Kong;
• LD Products, Inc., of Kowloon, Hong Kong;
• Linkyo Corp. of La Puente, CA;
• Mangoket LLC of Alhambra, CA;
• New Era Image LLC of Corona, CA;
• OW Supplies Corp. of Corona, CA;
• Solong E-Commerce Co., LLC, of Wan Chai, Hong Kong;
• Smartjet E-Commerce Co., LLC, of Wan Chai, Hong Kong;
• Super Warehouse Inc. of Blaine, WA;
• Theresa Meng of Brooklyn, NY;
• Triple Best LLC of San Diego, CA;
• V4ink, Inc., of Diamond Bar, CA; and
• Zhuhai Xiaohui E-Commerce Co., Ltd., of Xiangzhou District, Zhuhai, China.

By instituting this investigation (337-TA-1174), 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.

September 17, 2019
News Release 19-089
Contact: Peg O'Laughlin, 202-205-1819

The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain bone cements and bone cement accessories. 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 Zimmer, Inc., and Zimmer US, Inc., both of Warsaw, IN, on August 19, 2019. The complaint alleges violations of section 337 of the Tariff Act of 1930 based upon the importation into the United States and the sale of certain bone cements and bone cement accessories by reason of the misappropriation of trade secrets, false advertising, and tortious interference, the threat or effect of which is to destroy or substantially injure an industry in the United States. 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:

Heraeus Medical GmbH of Wehrheim, Germany; and

Heraeus Medical LLC of Yardley, PA.

By instituting this investigation (337-TA-1175), 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.

September 16, 2019
News Release 19-087
Inv. No(s). 731-TA-1427
Contact: Peg O'Laughlin, 202-205-1819

The United States International Trade Commission (USITC) today determined that the establishment of a U.S. industry is materially retarded by reason of imports of refillable stainless steel kegs from Mexico that the U.S. Department of Commerce (Commerce) has determined are sold in the United States at less than fair value.

Chairman David S. Johanson and Commissioners Rhonda K. Schmidtlein and Jason E. Kearns voted in the affirmative.  Commissioners Randolph J. Stayin and Amy A. Karpel did not participate in this vote.

As a result of the USITC’s affirmative determination, Commerce will issue an antidumping duty order on imports of this product from Mexico. 

The Commission also made a negative finding concerning critical circumstances with regard to imports of this product from Mexico.  As a result, imports of refillable stainless steel kegs from Mexico will not be subject to retroactive antidumping duties.

The Commission’s public report Refillable Stainless Steel Kegs from Mexico (Inv. No. 731-TA-1427 (Final), USITC Publication 4976, October 2019) will contain the views of the Commission and information developed during the investigation.

The report will be available by October 23, 2019; when available, it may be accessed on the USITC website at: https://www.usitc.gov/commission_publications_library.

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UNITED STATES INTERNATIONAL TRADE COMMISSION

Washington, DC 20436

FACTUAL HIGHLIGHTS

Refillable Stainless Steel Kegs from Mexico

Investigation No. 731-TA-1427 (Final)

Product Description:  Refillable stainless steel kegs are approximately cylindrically shaped containers made from stainless steel (regardless of finish, gauge, thickness, or grade, and whether or not covered by or encased in other materials) and designed to hold, transport, and dispense beer, wine, and other liquids. These kegs are compatible with a ''D Sankey'' extractor (spear) for dispensing, cleaning, and refilling, and have a nominal liquid volume capacity of 10 liters or more. They may be imported either assembled or unassembled, with or without all components (including spears, couplers or taps, necks, collars, and valves), and filled or unfilled. Specifically excluded are: (1) vessels or containers that are not approximately cylindrically shaped; (2) stainless steel kegs, vessels, or containers that have either a ''ball lock'' or a ''pin lock'' valve system; (3) spears, couplers or taps, necks, collars, and valves that are not imported with the subject merchandise; and (4) filled stainless steel kegs designated by the Commissioner of Customs as "Instruments of International Traffic" within the meaning of Section 332(a) of the Tariff Act of 1930, as amended.

Status of Proceedings:

1. Type of investigation:  Final phase antidumping duty investigation.
2. Petitioners:  American Keg Company LLC, Pottstown, PA.
3. USITC Institution Date: September 20, 2018.
4. USITC Hearing Date:  August 14, 2019.
5. USITC Vote Date:  September 16, 2019.
6. USITC Notification to Commerce Date:  October 3, 2019.

U.S. Industry in 2018:

1. Number of U.S. producers:  One.
2. Location of producer’s plants:  Pennsylvania.
3. Production and related workers:  ¹
4. U.S. producer’s U.S. shipments:  ¹
5. Apparent U.S. consumption:  ¹
6. Ratio of subject imports to apparent U.S. consumption:  ¹

U.S. Imports in 2018:

1. Subject imports:  $93.7 million.
2. Nonsubject imports:  ¹
3. Leading import sources:  China, Germany, and Mexico.

September 13, 2019
News Release 19-086
Inv. No(s). 731-TA-1140-1142
Contact: Peg O'Laughlin, 202-205-1819

September 13, 2019
News Release 19-085
Inv. No(s). 731-TA-919
Contact: Peg O'Laughlin, 202-205-1819

The U.S. International Trade Commission (USITC) today determined that revoking the existing antidumping duty order on imports of certain welded large diameter line pipe from Japan would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time. 

As a result of the Commission’s affirmative determination, the existing antidumping duty order on imports of this product from Japan will remain in place. 

Chairman David S. Johanson and Commissioners Rhonda K. Schmidtlein, and Jason E. Kearns voted in the affirmative. Commissioners Randolph J. Stayin and Amy A. Karpel did not participate in this vote.

Today’s action comes under the five-year (sunset) review process required by the Uruguay Round Agreements Act.  See the attached page for background on this five-year (sunset) review.

The Commission’s public report Certain Welded Large Diameter Line Pipe from Japan (Inv. No. 731-TA-919 (Third Review), USITC Publication 4973, September 2019) will contain the views of the Commission and information developed during the review.

The report will be available by October 21, 2019; when available, it may be accessed on the USITC website at: https://www.usitc.gov/commission_publications_library.

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BACKGROUND

The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the USITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies (Commerce) and of material injury (USITC) within a reasonably foreseeable time.

The Commission’s institution notice in five-year reviews requests that interested parties file responses with the Commission concerning the likely effects of revoking the order under review as well as other information.  Generally within 95 days from institution, the Commission will determine whether the responses it has received reflect an adequate or inadequate level of interest in a full review.  If responses to the USITC’s notice of institution are adequate, or if other circumstances warrant a full review, the Commission conducts a full review, which includes a public hearing and issuance of questionnaires.

The Commission generally does not hold a hearing or conduct further investigative activities in expedited reviews.  Commissioners base their injury determination in expedited reviews on the facts available, including the Commission’s prior injury and review determinations, responses received to its notice of institution, data collected by staff in connection with the review, and information provided by the Department of Commerce.

The five-year (sunset) review concerning Welded Large Diameter Line Pipe from Japan was instituted on September 4, 2018.

On December 10, 2018, the Commission voted to conduct a full review. Chairman David S. Johanson and Commissioners Irving A. Williamson, Meredith M. Broadbent, Rhonda K. Schmidtlein, and Jason E. Kearns concluded that both the domestic and the responded group responses were adequate and voted for a full review. 

A record of the Commission’s vote to conduct a full review is available from the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436.  Requests may be made by telephone by calling 202-205-1802.