The U.S. International Trade Commission (USITC) today released The Year in Trade 2017, 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.

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) and U.S. bilateral trade relations with major trading partners in 2017.

The Year in Trade 2017 covers:

• all U.S. antidumping, countervailing duty, safeguard, intellectual property rights infringement, national security, and section 301 cases active in 2017.  In addition, the 2017 report covers Trade Adjustment Assistance and the operation of U.S. trade preference programs, including the U.S. Generalized System of Preferences, the Nepal Trade Preference Act, the African Growth and Opportunity 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 an agreement on fisheries subsidies under the WTO, renegotiation of  the North American Free Trade Agreement, and developments regarding other U.S. FTAs already in effect; and

• bilateral trade issues with 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 2017. Statistical tables highlight U.S. bilateral trade with major trading partners and trade under U.S. trade preference programs and free trade agreements.

The Year in Trade 2017 (USITC Publication 4817, August 2018) is available on the USITC's Internet site. 

An interactive, web-based version of The Year in Trade 2017 will be released in the near future.

This year’s report is the 69th 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.  Other reports in this series dating back to 1948 can also be found on the Commission’s website at https://www.usitc.gov/research_and_analysis/year_in_trade.htm.  

The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain lithography machines and systems and 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 Carl Zeiss SMT GmbH of Oberkochen, Germany, on July 20, 2018.  The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain lithography machines and systems and 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:

Nikon Corporation of Tokyo, Japan;
Nikon Research Corporation of America of Belmont, CA; and
Nikon Precision Inc. of Belmont, CA.

By instituting this investigation (337-TA-1129), 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.

The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain lithography machines and systems and 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 Carl Zeiss SMT GmbH of Oberkochen, Germany, on July 20, 2018.  An amended complaint was filed on August 9, 2018.  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 lithography machines and systems and 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:

Nikon Corporation of Tokyo, Japan;
Nikon Research Corporation of America of Belmont, CA; and
Nikon Precision Inc. of Belmont, CA.

By instituting this investigation (337-TA-1128), 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.

The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain microperforated packaging containing fresh produce (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 Windham Packaging, LLC, of Windham, NH, on July 12, 2018.  The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain microperforated packaging containing fresh produce (II) that infringe a patent 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:

Growers Express, LLC, of Salinas, CA; and
C.H. Robinson Worldwide, Inc., of Eden Prairie, MN.

By instituting this investigation (337-TA-1127), 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.

Nine years after its implementation, the Earned Import Allowance Program (EIAP) is not providing enough incentives to significantly boost Dominican apparel exports to the U.S. market, as intended, reports the U.S. International Trade Commission (USITC) in its publication Earned Import Allowance Program: Evaluation of the Effectiveness of the Program for Certain Apparel from the Dominican Republic; Ninth Annual Review.

The EIAP allows apparel manufacturers in the Dominican Republic who use U.S. fabric to produce certain apparel to earn a credit that can be used to ship eligible apparel made with non-U.S.-produced fabric into the United States duty free. The Dominican Republic-Central America-United States Free Trade Agreement Implementation Act, as amended, requires the USITC, an independent, nonpartisan, factfinding federal agency, to evaluate annually the effectiveness of the EIAP program and make recommendations for improvements.

The USITC's ninth annual review was submitted to the U.S. House of Representatives Committee on Ways and Means and the U.S. Senate Committee on Finance on August 3, 2018.  Highlights of the report follow.

• Of the 13 registered firms, only 4 firms are currently using the program – one less than was reported in the last three annual reviews.

• In 2017, U.S. imports of woven cotton bottoms from the Dominican Republic fell 57 percent by value (from $3.5 million in 2016 to $1.5 million) and 80 percent by quantity (from 745,000 SMEs in 2016 to 154,000 SMEs). U.S. government sources and a former user of the program in the Dominican Republic attributed the decline in U.S. imports under the EIAP to increased imports from Haiti and increased competition from other Western Hemisphere suppliers. Haiti offers lower labor costs and trade preferences under the HOPE/HELP programs, which provide more sourcing flexibility and coverage for a wider range of products than the EIAP, as well as a tariff preference level (TPL) for woven apparel from Haiti that allows the use of third-country fabric up to a specified level.  Also, the decline in U.S. imports under the EIAP likely reflects a significant decline in woven trouser manufacturing capacity in the Dominican Republic, along with a simultaneous shift by U.S. importers to Asian suppliers during the life of the program. Finally, uncertainty surrounding the program's renewal after its expiration on December 1, 2018, may also explain why U.S. imports of woven cotton bottoms under the program reached their lowest level in 2017.

• The recommendations offered during the ninth annual review of the EIAP were virtually the same as those received by the Commission during the previous eighth annual reviews:  1) lowering the 2-for-1 ratio of U.S. to foreign fabric to a 1-for-1 ratio; 2) expanding the program coverage to enable other types of fabrics and apparel items to be included in the EIAP; and 3) changing the requirement that dyeing and finishing of eligible fabrics occur in the United States. 

Earned Import Allowance Program: Evaluation of the Effectiveness of the Program for Certain Apparel from the Dominican Republic; Ninth Annual Review (Inv. No. 332-503, USITC Publication 4809, August 2018) is available on the USITC's Internet site at https://www.usitc.gov/publications/332/pub4809.pdf. 

USITC general factfinding investigations, such as this, 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, and the Senate Committee on Finance. The resulting reports convey the Commission's objective findings and independent analyses on the subject 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 investigations reports are subsequently released to the public, unless they are classified by the requester for national security reasons.

The United States International Trade Commission (USITC) today determined that there is a reasonable indication that a U.S. industry is materially injured by reason of imports of steel racks from China that are allegedly sold in the United States at less than fair value and subsidized by the government of China.

Chairman David S. Johanson and Commissioners Irving A. Williamson, Rhonda K. Schmidtlein, and Jason E. Kearns voted in the affirmative.  Commissioner Meredith M. Broadbent did not participate in these investigations. 

As a result of the Commission’s affirmative determinations, the U.S. Department of Commerce will continue with its antidumping and countervailing duty investigations concerning imports of this product, with its preliminary countervailing duty determination due on or about September 13, 2018, and its preliminary antidumping duty determination due on or about November 27, 2018.

The Commission’s public report Steel Racks from China (Inv. Nos. 701-TA-608 and 731-TA-1420 (Preliminary), USITC Publication 4811, August 2018) will contain the views of the Commission and information developed during the investigations.

The report will be available after September 10, 2018; when available, it may be accessed on the USITC website at:  http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.

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UNITED STATES INTERNATIONAL TRADE COMMISSION
Washington, DC 20436

FACTUAL HIGHLIGHTS

Steel Racks from China
Investigation Nos. 701-TA-608 and 731-TA-1420 (Preliminary)

Product Description:  A steel rack, sometimes referred to as a “storage rack,” is a structure consisting of the following hot-rolled or cold-formed steel structural components: (1) vertical columns connected by braces, (2) load-bearing horizontal beams, and (3) locking devices to secure the beams to the columns.  Certain types of steel racks may also include movable components, such as rails, wheels, rollers, tracks, channels, carts, or conveyors.  Steel racks offer strength and stability for storing heavy loads in readily accessible rack configurations. Hence, they are utilized for short- or long-term holding of products or materials in warehouses, order-fulfillment and distribution centers, big-box retail stores, and manufacturing facilities.

Status of Proceedings:

1.   Type of investigation:  Preliminary countervailing duty and antidumping investigations.
2.   Petitioners:  The Coalition for Fair Rack Imports and its members:  Bulldog Rack Company, Weirton, WV; Hannibal Industries, Inc., Los Angeles, CA; Husky Rack and Wire, Denver, NC; Ridg-U-Rak, Inc., North East, PA; SpaceRAK, a Division of Heartland Steel Products, Inc., Marysville, MI; Speedrack Products Group, Ltd., Sparta, MI; Steel King Industries, Inc., Stevens Point, WI; Tri-Boro Shelving & Partition Corp., Farmville, VA; and UNARCO Material Handling, Inc., Springfield, TN.
3.   USITC Institution Date:  Wednesday, June 20, 2018.
4.   USITC Conference Date:  Wednesday, July 11, 2018.
5.   USITC Vote Date:  Friday, August 3, 2018.
6.   USITC Notification to Commerce Date:  Monday, August 6, 2018.

U.S. Industry in 2017:

1.   Number of U.S. producers:  11.
2.   Location of producers’ plants:  California, Georgia, Illinois, Michigan, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, West Virginia, and Wisconsin.
3.   Production and related workers:  ^[1] 
4.   U.S. producers’ 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 2017:

1.   Subject imports:  $44.1 million.
2.   Nonsubject imports:  ¹
3.   Leading import source:  China.

The U.S. International Trade Commission (USITC) today determined that revoking the existing antidumping and countervailing duty orders on imports of drawn stainless steel sinks from China 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 determinations, the existing antidumping and countervailing duty orders on imports of this product from China will remain in place.

Chairman David S. Johanson and Commissioners Irving A. Williamson, Meredith M. Broadbent, Rhonda K. Schmidtlein, and Jason E. Kearns voted in the affirmative. 

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 these five-year (sunset) reviews.

The Commission’s public report Drawn Stainless Steel Sinks from China (Inv. Nos. 701-TA-489 and 731-TA-1201 (Review), USITC Publication 4810, August 2018) will contain the views of the Commission and information developed during the reviews.

The report will be available by September 4, 2018; when available, it may be accessed on the USITC website at: http://pubapps.usitc.gov/applications/publogs/qry_publication_loglist.asp.

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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) reviews concerning Drawn Stainless Steel Sinks from China were instituted on March 1, 2018.

On June 4, 2018, the Commission voted to conduct expedited reviews.  Chairman Rhonda K. Schmidtlein, Vice Chairman David S. Johanson, and Commissioners Irving A. Williamson and Meredith M. Broadbent concluded that the domestic group response for these reviews was adequate and the respondent group response was inadequate and voted for expedited reviews.  Commissioner Jason E. Kearns did not participate in these adequacy determinations. 

A record of the Commission’s vote to conduct expedited reviews 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.

The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain water filters and components thereof.  The products at issue in the investigation are water filter cartridges for refrigerators, including water filter cartridge assemblies and interconnection subassemblies.

The investigation is based on a complaint filed by Electrolux Home Products, Inc. of Charlotte, NC, and KX Technologies, LLC of West Haven, CT, on June 8, 2018.  An amended complaint was filed on June 28, 2018, and a letter supplementing the amended complaint was filed on July 10, 2018.  The amended complaint, as supplemented, alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain water filters and components thereof 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:

Shenzen Calux Purification Technology Co., Limited, of Guangdong, China;
Ningbo Pureza Limited of Ningbo, China;
JiangSu Angkua Environmental Technical Co., Ltd., of RuGao, China;
Ecopure Filter Co., Ltd., of Qindao, China;
Shenzhen Dakon Purification Tech Co., Ltd., of Guangdong, China;
HongKong Ecoaqua Co., Limited, of Hong Kong, China;
Ecolife Technologies, Inc., of City of Industry, CA; and
Crystala Filters LLC of Patterson, NJ.

By instituting this investigation (337-TA-1126), 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.

The U.S. International Trade Commission (USITC) has voted to institute an investigation of certain height-adjustable desk platforms and 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 Varidesk LLC of Coppell, TX, on June 22, 2018.  The complaint alleges violations of section 337 of the Tariff Act of 1930 in the importation into the United States and sale of certain height-adjustable desk platforms and components thereof that infringe patents asserted by the complainant.  The complainant requests 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:

Albeit LLC of San Francisco, CA;
ATC Supply LLC of Plainfield, IL;
Shenzhen Atc Network Scienology Co., LTD., of Shenzhen, Guangdong, China;
Best Choice Products of Ontario, CA;
Huizhou Chang He Home Supplies Co., Ltd., of Huizhou, Guangdong, China;
Dakota Trading, Inc., of Emerson, NJ;
Designa Inc. of Foshan City, Guangdong Province, China;
Designa Group, Inc., of El Dorado Hills, CA;
Eureka LLC of El Dorado Hills, CA;
LaMountain International Group LLC of El Dorado Hills, CA;
Amazon Import Inc. of El Monte, CA;
Hangzhou Grandix Electronics Co., Ltd., of Hangzhou, Zhejian, China;
Ningbo GYL International Trading Co., Ltd., of Ningbo, Zhejian, China;
Knape & Vogt Manufacturing Co. of Grand Rapids, MI;
JV Products Inc. of Milpitas, CA;
Vanson Distributing, Inc., of Milpitas, CA;
Vanson Group, Inc., of Milpitas, CA;
S. P. Richards Co. DBA Lorell of Smyrna, GA;
Nantong Jon Ergonomic Office Co., Ltd., of Nantong, Jiangsu, China;
Jiangsu Omni Industrial Co., Ltd., of Yangzhou, Jiangsu, China;
OmniMax USA, LLC, of Anna, TX;
Haining Orizeal Import and Export Co., Ltd., of Haining, China;
Qidong Vision Mounts Manufacturing Co., Ltd., of Qidong, Jiangsu, China;
Hangzhou KeXiang Keji Youxiangongsi of Hangzhou, China;
Smugdesk, LLC, of La Puente, CA;
Venditio Group, LLC, of Elkton, FL;
Versa Products Inc. of Los Angeles, CA;
Victor Technology, LLC, of Bolingbrook, IL;
CKnapp Sales, Inc. DBA Vivo of Goodfield, IL;
Wuhu Xingdian Industrial Co., Ltd., of Wuhu, Anhui, China; and
Wuppessen, Inc., of Ontario, CA.

By instituting this investigation (337-TA-1125), 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.

David S. Johanson, Chairman of the United States International Trade Commission (USITC), announced today that Jennifer Andberg has been named Director, Office of External Relations, at the USITC.

Andberg will serve as the agency’s liaison with the Office of the U.S. Trade Representative, executive branch agencies, and foreign embassies.  She will also oversee the work of the agency’s congressional relations and public affairs programs and advise the Commission on external relations matters.

“The Commission is pleased to welcome Jennifer Andberg to the USITC,” said Chairman Johanson.  “She brings with her extensive experience interacting with high-ranking officials in the U.S. federal government, state and local governments, foreign governments, and the business community, as well as building and managing relationships across a wide range of organizations.  We look forward to working with her.”

Before coming to the USITC, Andberg was the Deputy Director of the U.S. Department of Commerce’s Office of Business Liaison (OBL), which is the primary point of contact between the agency’s Secretary and the business community.  In her 18 years as Deputy Director, Andberg oversaw OBL’s team and programs related to private sector engagement, including the development and implementation of comprehensive strategic and operational plans to communicate complex industry, economic, and trade policy positions and evaluate business reaction to these initiatives.  In this role, Andberg was responsible for the execution of more than 40 international business development missions to over 30 countries resulting in billions of dollars in commercial deal signings.  Additionally, she served as the Department of Commerce (Commerce) lead for planning large U.S. government stakeholder engagement initiatives such as the U.S.-Africa Business Forum and the Global Entrepreneurship Summit.

Andberg joined Commerce in 1992. Prior to working in OBL, she worked in the International Trade Administration’s Commercial Service as the Budget and Resource Manager and as a Program Analyst in the Office of Strategic Planning.

Andberg holds a Master of Arts degree from American University’s School of International Service and a Bachelor of Arts degree from Skidmore College. 

The USITC is an independent, nonpartisan, factfinding federal agency.  The agency investigates and makes determinations in proceedings involving imports claimed to injure a domestic industry or violate U.S. intellectual property rights; provides independent analysis and information on tariffs, trade, and competitiveness to the President and the Congress; and maintains the U.S. Harmonized Tariff Schedule.

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