Resources Profile - Sunil Abraham

The Department of Trade and Industry in the United Kingdom has updated its website to include a page offering guidance to exporters as to the application of export controls. This webpage also provides useful links to national, European Union and United Nations legislation governing export controls as well as interpretation guidelines.

Export control regulations have as their primary objective to ensure that strategic and controlled goods, technology and software do not fall into the hands of importers or traders where there is a concern that they would be put to an improper use. An example would be the control of the movement of military equipment, weapons, goods that can be used for both civilian and military purposes and certain technology's such as encryption and decryption software.

Please visit this new webpage on the following link:

http://www.dti.gov.uk/europeandtrade/strategic-export-control/help-advice/page33913.html

The U.S. Department of Commerce's (DOC) International Trade Commission (ITC) issued a press release Wednesday announcing that the ITC has determined that imports of certain lined paper school supplies from China, India and Indonesia are being sold in the United States at less than fair value.

"As a result of the Commission's affirmative determinations, the U.S. Department of Commerce will issue countervailing duty orders on imports of these products from India and Indonesia and antidumping duty orders on imports of these products from China, India, and Indonesia," ITC stated.

An antidumping order will normally instruct the Bureau of Customs and Border Protection (Customs) to collect cash deposits on subject imports at the applicable rates. The dumping and countervailing duty orders would put into effect final determinations issued in August by the Department of Commerce's International Trade Administration (ITA).

The ITA described the products included in the investigations as "lined paper products are typically school supplies that feature straight horizontal and/or vertical lines on 10 or more paper sheets, including single- and multi-subject notebooks, composition books, wireless notebooks, loose-leaf or glued filler paper, graph paper, and laboratory notebooks. (HTSUS 4820.10.2050, 4810.22.5044, 4811.90.9090, 4820.10.2010, 4820.10.2020)."

In a fact sheet issued August 1, 2006, the ITA announced its affirmative final determinations in the antidumping and countervailing duty investigations on lined paper products from India. ITA determined that Indian producers/exporters have sold lined paper products in the United States at 3.91 to 23.17 percent less than fair market value, and that Indian producers/exporters of lined paper products have received net countervailable subsidies ranging from 1.67 (de minimis) to 10.24 percent.

In an ITA fact sheet issued August 10, 2006, the ITA announced its affirmative final determinations in the antidumping and countervailing duty investigations on lined paper products from Indonesia. ITA stated that from 2004 to 2005, imports of lined paper products from Indonesia increased 23 percent by volume and were valued at an estimated $22.4 million in 2005, and determined that the dumping duty rate for manufacturers not specified in the investigation as having specifically calculated rates to be 97.85 percent.

ITA issued a press release on August 31, 2006 stating that ITA found that Chinese companies are selling lined paper products at 76.70 percent to 258.21 percent less than fair market value, and that from 2004 to 2005, imports of lined paper products from China increased by 25 percent in volume and were valued at an estimated $345 million in 2005. An ITA fact sheet issued that day stated that the dumping duty rate for manufacturers not specified in the investigation as having specifically calculated rates will be assessed the China-wide rate of 258.21 percent.

The ITA documents related to this investigation can be accessed on-line at: http://ia.ita.doc.gov/ia-highlights-and-news.html

The United States International Trade Commission (ITC) has published an investigation report titled "Proposed Modifications to the Harmonized Tariff Schedule of the United States," which presents to the Office of the President the results of ITC investigation No. 1205-6. The investigation recommends a large number changes to the Harmonized Tariff Schedule of the United States (HTSUS) that are intended to take effect on or near January 1, 2007.

The report includes background information on the international Harmonized System (HS) and the procedures involved in its modification, a discussion of proposed modifications requested by the Bureau of Customs and Border Protection (Customs), an appendix presenting all of the proposed HTSUS modifications, cross-reference tables and appendices concerning written submissions.

The recommended changes to the HTSUS nomenclature are substantial. Alterations have been made to 83 of the HTSUS chapters, and two-hundred forty headings have been reconstructed. Subheadings covering information technology, textiles, motor vehicle parts and industrial products are significantly affected, with Chapters 84, 85 and 90 the most heavily impacted. Certain section and chapter notes have been changed, many subheadings have been deleted or divided and several new subheadings have been inserted.

The HTSUS changes recommended in the report are provided to the 8-digit tariff classification number. Customs requires classification to the 10-digit level to determine admissibility and duty status on entries of imports into the commerce of the United States, and under the Customs Modernization or ?Mod? Act, the importer of record is responsible for using reasonable care to classify and determine the value of imported merchandise.

The WCO developed the Harmonized Commodity Description and Coding System (HS) in 1988 as a standardized nomenclature for international trade. Governments and organizations in almost 200 countries and nations utilize the Harmonized System (HS) to monitor controlled goods, international trade compliance, rules of origin and customs duties. Every four to six years, the HS commodity classification is reviewed and amended by the WCO at the six-digit level. The current HS nomenclature is under its third major revision, which is scheduled to go into effect January 1, 2007.

In the Overview section of "Proposed Modifications to the Harmonized Tariff Schedule of the United States," ITC stated that the investigation is required as part of the requirements section 1205 of the Omnibus Trade and Competitiveness Act of 1988.

"Section 1205 requires the Commission to keep the Harmonized Tariff Schedule of the United States (HTS) under continuous review and to recommend to the President modifications to the HTS in order to reflect amendments to the Harmonized Commodity Description and Coding System (the Harmonized System or HS) that are periodically recommended by the World Customs Organization (WCO), formally named the Customs Cooperation Council (CCC), for adoption, and as other circumstances warrant," ITC stated.

ITC stated that Section 1206 of the Omnibus Act authorizes the President to proclaim modifications to the HTSUS based on the ITC investigation, but requires that he can only proclaim the modifications after the expiration of a 60-legislative day (not calendar day) period, which begins on the date the President submits a report containing all modifications and their reasons to the Committee on Ways and Means in the U.S. House of Representatives and to the Committee on Finance in the U.S. Senate. If the 60-day period ends and the President signs an implementing proclamation, the proclamation must be published in the Federal Register and another 15-day period must pass before the HTSUS changes can take effect.

The Recommendations section of the ITC's proposed modifications investigation report explained that Section 1205(d) of the Omnibus Trade Act provides that ITC cannot recommend a modification to the U.S. tariff schedule unless the change:
"(1) is 'consistent with the Harmonized System Convention or any amendment thereto recommended for adoption;'
"(2) is 'consistent with sound nomenclature principles;' and
"(3) 'ensures substantial rate neutrality.'"
"Any modification that would change a rate of duty must be consequent to, or necessitated by, recommended nomenclature changes," ITC added. "Finally, the recommended modifications 'must not alter existing conditions of competition for the affected U.S. industry, labor, or trade.'"

"Proposed Modifications to the Harmonized Tariff Schedule of the United States" can be accessed on-line at: http://hotdocs.usitc.gov/docs/tata/hts/Pub3851.pdf