Search results for: covid-19 USITC

On May 4, 2020, the U.S. International Trade Commission (USITC) released the results of its investigation to identify imported products related to the COVID-19 pandemic response. The report and database identify 112 U.S. Harmonized Tariff System (HTS) numbers covering a “mix of COVID-19 related” goods, including test kits/instruments;  disinfectants and sterilization products; pulse oximeters and equipment for medical imaging, diagnostics and oxygen therapy; medicines/pharmaceuticals; non-PPE medical consumables and hospital supplies; and personal protective equipment.  Of the 112 identified HTS numbers, the report determined that products in 76 of the numbers are imported duty-free, with 36 subject to some form of a general duty rate. Notably, 55 of the HTS numbers are subject to additional duty rates in the ongoing China Section 301 investigation, with 39 headings subject to 25 percent additional tariffs and 16 subject to 7.5 percent additional tariffs when the products are imported from China.

The investigation was requested by Congress (see Trump and Trade Update of April 8, 2020) and provides trade-related information for each product. Specifically, the USITC produced a database that provides the following information for each product it identified:

  • the 10-digit HTS number for the imported article and its description;
  • the general duty rate;
  • any special or additional rates of duty imposed on the article, the dates on which the rates were imposed, and the authorities under which they were imposed;
  • whether any such duties have been suspended and, if so, the date of suspension as well how long suspension is scheduled to last;
  • the total range of duty rates imposed on such articles, including any special or additional rate of duty; and
  • the major countries of origin for each HTS number identified, and the import value of that HTS number for each country for the years 2017-2019.

COVID-19 Related Goods: U.S. Imports and Tariffs (Investigation No. 332-576, USITC publication 5047, April 2020) is available on the USITC’s website at https://www.usitc.gov/publications/332/pub5047.xlsx.  The USITC will provide any updated data runs on its website through June 30, 2020. Because many of the HTS numbers encompass goods not related to COVID-19, the report is careful to note, the data may substantially overstate the value of U.S. imports of such related goods.

In response to the report and data, House Ways and Means Committee Chairman Richard E. Neal (D-MA) called for a 90-day suspension of all tariffs on products identified by the USITC and relevant to the COVID-19 pandemic response. He added that such tariff suspensions “must be subject to a straightforward and easily administrable process for affected stakeholders to object.”  Chairman Neal’s complete analysis of the USITC’s report is available here. Senate Finance Committee Chairman Chuck Grassley (R-Iowa) stated that the report “is excellent work by the ITC to centralize trade-related information on products that may be needed to respond to the ongoing pandemic. It will help inform policymaking both in Congress and in the Administration.”

The USITC is an independent, nonpartisan, factfinding federal agency, and this general factfinding investigation and the resulting database convey the USITC’s objective findings and independent analyses with no recommendations on policy or other matters.

On December 22, 2020, the U.S. International Trade Commission (USITC) released a report providing information on the U.S. industries producing COVID-19 related goods and the market, trade and supply chain challenges and constraints affecting the availability of such goods. The report follows an earlier report that identified such goods treating and responding to the COVID-19 pandemic. That report identified the goods’ source countries, tariff classifications and applicable duty rates. For additional details on this earlier report, see Update of May 5, 2020.

The December 2020 report was prepared at the request of the U.S. House of Representatives’ Committee on Ways and Means and the U.S. Senate Committee on Finance  (see Update of August 24, 2020) and focuses primarily on the availability of goods from the onset of the COVID-19 pandemic through September 2020. The report notes that “some of the initial supply chain challenges have eased but a number remain. The improvement is attributable in part to U.S. manufacturers’ launching or boosting production, increased imports of critical COVID-19 related goods, and a better understanding of the virus. However, as the pandemic continues, difficulties remain, and for certain COVID-19 related goods, supply constraints are not expected to wane until 2022.” The report analyzes four key industry sectors: medical devices, personal protective equipment, pharmaceuticals, soaps and cleaning compounds. The report also includes case studies on ventilators, N95 respirators, surgical masks, surgical and isolation gowns, medical and surgical gloves, test kits, vaccines and hand sanitizers. These studies provide information on supply chain challenges and constraints, including a discussion of factors affecting domestic production and factors affecting imports of finished goods and key inputs.

According to the USITC:

  • U.S. demand for all products covered in the case studies substantially increased in the first half of 2020, as compared to 2019, leading to significant shortages.
  • The United States produced all goods covered in the case studies before the pandemic, as well as many of the inputs. The U.S. industry supplied only a relatively small share of the domestic market for certain medical PPE, such as medical gloves and gowns, but supplied a large share of the domestic market for goods like ventilators, vaccines, N95 respirators, and hand sanitizers.
  • U.S. imports of most COVID-19 related goods covered in the case studies increased substantially beginning around April or May 2020, depending on the product.
  • Some of the initial supply chain challenges have eased, such as those for ventilators, but a number remain, including for many PPE items.
  • The major factors affecting domestic production of COVID-19 related goods include the availability and costs of inputs, the time and cost of bringing additional production capacity online (including purchasing and installing new machinery), and the time needed to recruit and train new workers.
  • The most significant factor affecting imports was that global demand significantly exceeded available supply of many COVID-19 related goods, making it difficult for U.S. importers to procure sufficient quantities.

The U.S. International Trade Commission (ITC) announced on August 21, 2020 that it has initiated a Section 332 general factfinding investigation on COVID-19 related industry sectors and particular products. The investigation, COVID-19 Related Goods: The U.S. Industry, Market, Trade, and Supply Chain Challenges, was requested by the U.S. House of Representatives’ Committee on Ways and Means and the U.S. Senate Committee on Finance in an August 13, 2020 letter. In a final report due by December 15, 2020, the ITC will provide to Congress:

  • a brief overview of key U.S. industry sectors producing COVID-19 related goods, including, but not limited to, medical devices; personal protective equipment; and medicines (pharmaceuticals). The overview will include, to the extent practicable, information on U.S. production, employment and trade.
  • case studies on key products within each relevant industry sector, including N95 respirators, ventilators, vaccines and COVID-19 test kits. The case studies will focus on products for which there were reported shortages in the first half of 2020, including those affected by supply chain fragility, blockages or barriers, and will include information on:
  • the U.S. industry, market and trade, including, to the extent available:
    • the product, including key components and the production process;
    • the size and characteristics of the U.S. market;
    • the U.S. manufacturing industry, including key producers of finished goods and intermediate inputs, the extent of U.S. production and employment; and
    • U.S. imports of finished goods and inputs, including leading source countries and supplying firms; and
  • supply chain challenges and constraints, including, but not limited to:
    • factors affecting domestic production, including, to the extent practicable, regulatory requirements that may impact entry into the market; and
    • foreign trade barriers and restrictions and other factors that may affect U.S. imports of finished goods or inputs needed for domestic production.

In preparing the report, the ITC is seeking public comment from all interested parties and will hold a public hearing in connection with the investigation.  The hearing will be held on September 23, 2020 by videoconference. Key dates involving the hearing are:

  • September 11, 2020: Deadline for filing requests to appear at the public hearing.
  • September 14, 2020: Deadline for filing pre-hearing briefs and statements.
  • September 23, 2020: Public hearing.
  • September 30, 2020: Deadline for filing post-hearing briefs and statements only on issues raised at the hearing.

All filings, including requests to appear at the hearing, must be made through the ITC’s Electronic Document Information System (EDIS, https://edis.usitc.gov) on ITC Docket no. 332-580. No in-person paper-based filings or paper copies of any electronic filings are currently being accepted by the ITC. In lieu of or in addition to participating in the hearing, interested parties may file written submissions concerning this investigation until October 2, 2020. All submissions made in this investigation, except for confidential business information, will be available for public inspection.

Our firm’s International Trade group participates regularly in ITC proceedings; please contact us if your company is interested in providing comments in this investigation.

UPDATED: April 6, 2020 – Major operational changes continue at trade-related U.S. government agencies and courts due to personnel and public safety concerns over the COVID-19 outbreak in the United States. Below is currently available information on their status. Overall, the Office of Personnel Management has announced that as of March 16, 2020, and until further notice, federal offices nationwide are open but “maximum telework flexibilities” are in place for all eligible employees “pursuant to direction from agency heads.”

Trade Agencies and Court Status

U.S. Department of Commerce – While Commerce has published no formal notice of its operating status, it is known that the main Commerce building was closed on March 31 until further notice. Access to the Herbert C. Hoover building is now restricted to only necessary security and maintenance staff, and “mission critical” employees are in contact with their supervisors. The International Trade Administration (ITA) has temporarily modified its antidumping and countervailing duty (AD/CVD) cases to facilitate the serving of documents through electronic means. Effective March 24, 2020 and until May 19, 2020, documents containing business proprietary information (BPI) may be served on opposing counsel via ITA’s online ACCESS data portal instead of the normal requirement for hard-copy “in-person” service. Further, the Bureau of Industry and Security (BIS) has canceled its export control forums scheduled for April 2020.

U.S. Department of the Treasury – While Treasury has published no formal notice of its operating status, the “public engagement” schedule remains empty, indicating that all outside meetings and events have been canceled. The Office of Foreign Assets Control (OFAC) has not indicated yet whether its operations have been affected.

U.S. Department of State – The Directorate of Defense Trade Controls (DDTC) has stated that its core activities across its Licensing, Compliance, Policy, and Management offices continue to function within the parameters and adjustments that have been made as the agency follows OPM guidance.

  • Licensing activities: All electronic application systems are currently in normal operational mode and new licenses continue to be accepted for processing; however, a longer than normal processing time should be expected.
  • Registration, Commodity Jurisdiction Requests and General Correspondence: These filings via the Defense Export Control and Compliance System (DECCS) continue and are being processed as they are submitted; responses may be delayed by the current operational environment.

DDTC states that it has established a new option for industry to submit disclosures and related information (e.g., exhibits, extension requests and responses to DTCC inquires) by allowing submissions via email to DTCC-CaseStatus@state.gov. In the event that a disclosure cannot be submitted via email, DDTC indicates that the continued use of regular U.S. mail is acceptable.

U.S. Trade Representative (USTR) – The Office of the U.S. Trade Representative has still offered no update on its operating status within the Executive Office of the President.

U.S. International Trade Commission (ITC) – The ITC stated that it is open for business while it continues to monitor the situation. Since March 17, all ITC employees have been teleworking full-time. The secretary’s office will accept only electronic filings during this time. Filings must be made through the ITC’s Electronic Document Information System (EDIS) at https://edis.usitc.gov. No in-person, paper-based filings or paper copies of any electronic filings will be accepted until further notice. The ITC building is now closed to the public entirely through at least April 24, 2020.

  • Section 337 Hearings: Administrative law judges (ALJs) have been ordered to postpone any hearings until after May 12, 2020. All discovery will continue and any essential outside participation by staff will be decided on a case-by-case basis.
  • Title VII Matters: Until further notice, no in-person preliminary phase Title VII (antidumping and countervailing duty) staff conferences will be held for new and ongoing investigations. Instead, interested parties will have the opportunity to provide opening remarks, witness testimony, and responses to staff questions through written submissions, in addition to post conference briefs. Information and guidance will be provided to parties by the investigative staff in each affected investigation. All ITC Title VII votes will be conducted by notation; there will be no in-person vote for the next 60 days. Until further notice, no in-person hearings will be held for final phase Title VII investigations, five-year (sunset) reviews, and those held under Section 332 and Section 131. In lieu of in-person hearings, staff will provide specific information and guidance to parties in each affected investigation on alternative means of providing information to the commission. Interested parties will be invited to provide opening remarks, written testimony, and responses to questions issued by the commission with certified written responses; parties may also be invited to participate in virtual or telephonic closing and/or rebuttal statements. The ITC has prepared a COVID-19 related set of FAQs.
  • Electronic service of documents has temporarily been implemented for most ITC issuances. Public documents will continue to be made available via the ITC’s electronic record, EDIS. In addition, temporarily, confidential documents will be made available to authorized parties via Box (box.com). Service of confidential documents will be considered effected upon notification via email to other parties/counsel in ongoing investigations that the documents are available for download.
  • Agency Meetings, Seminars and Briefings: All scheduled in-person meetings with outside persons have been cancelled or postponed.

U.S. Customs and Border Protection (CBP) – CBP refers users to DHS.gov/coronavirus for information related to the COVID-19 pandemic, where it states that “all air, land and sea Ports of Entry (POEs), CBP Officers (CBPOs) and Border Patrol Agents (BPAs) continue to identify and refer individuals with symptoms of COVID-19 or a travel history to China, Iran, or certain European countries in the past 14 days to CDC or local public health officials for enhanced health screening.”

In order to streamline communications and support the trade community, CBP launched the CBP COVID-19 Updates and Announcements web page specifically dedicated to the most recent trade-related information and messaging on the impacts of COVID-19. Information found on the web page includes Federal Register notices and Cargo Systems Messaging Service communications related to COVID-19, as well as updates and announcements in trade programs and cargo security.

DHS continues to state that the “routing of all flights with passengers who have recently been in China, Iran, and certain European countries through select airports with established resources, procedures and personnel is an important, prudent step DHS is taking actively to decrease the strain on public health officials screening incoming travelers and protecting the American public.”

U.S. Census Bureau – Many U.S. Census Bureau employees are operating remotely via telework. During this time, call centers and email inboxes will remain open to assist customers’ daily trade needs. However, the agency will have limited access to physical mail. For those companies that are submitting a Voluntary Self-Disclosure (VSD) or data request, please make the submission electronically to the Trade Regulations Branch (TRB) in a password-protected file to emd.askregs@census.gov (for VSDs) or Data User & Trade Outreach Branch (DUTOB) to tmd.outreach@census.gov (for data requests). Additionally, such submissions may be sent to the bureau’s secure fax at 301-763-8835.

U.S. Court of International Trade (CIT) – According to CIT’s statement of April 2, 2020, courthouse access has been temporarily restricted until further notice. The staff of the Office of the Clerk is available by telephone and email. The court’s CM/ECF system continues to be operational during this time and unless otherwise ordered, all filing deadlines will remain in effect.

Any filings that are permitted by the Rules of the Court to be made by mail or delivery should be addressed to:

Office of the Clerk – Case Management
U.S. Court of International Trade
One Federal Plaza
New York, NY 10278

Any filings that are permitted by the Rules of the Court to be made in person should be brought to the court security officers at the courthouse. The court notes “that there will be delays in processing documents that are mailed or delivered to the courthouse.”

U.S. Court of Appeals for the Federal Circuit – Per a public advisory notice and an administrative order, the Federal Circuit began restricting public access to the National Courts Building complex on March 16, 2020. On March 19, the court issued an updated public advisory stating that all cases scheduled for argument during the April 2020 sitting will now be conducted by telephone conference and no in-person hearings will be held.

The Clerk’s Office has issued new guidance on how counsel may accomplish service outside of CM/ECF, which is most frequently required when serving pro se parties or confidential materials. Individuals, including pro se litigants and couriers wishing to deliver or to file case documents, must submit these items either by mail or by deposit in the court’s night box. Mail and third-party commercial deliveries will be limited to the lobby. Any other deliveries must be coordinated ahead of time with relevant court staff.

Useful U.S. Government Website Links

The U.S. government has established multiple websites to assist the public:

U.S. Government International Trade-Related Websites

International Resources

Additional Resources

Thompson Hine has launched a multidisciplinary COVID-19 Task Force to monitor the latest developments and guidance from public health officials and assess the potential impacts on our clients and their businesses. The COVID-19 Task Force page on our website provides a centralized location for recent publications, webinars, articles and resources that you may find helpful.

UPDATED: April 6, 2020 – Major operational changes continue at trade-related U.S. government agencies and courts  due to personnel and public safety concerns over the COVID-19 outbreak in the United States. Below is currently available information on their status. Overall, the Office of Personnel Management has announced that as of March 16, 2020, and until further notice, federal offices nationwide are open but “maximum telework flexibilities” are in place for all eligible employees “pursuant to direction from agency heads.”

U.S. Department of Commerce – While Commerce has published no formal notice of its operating status, it is known that the main Commerce building was closed on March 31 until further notice.  Access to the Herbert C. hoover building is now restricted to only necessary security and maintenance staff, and “mission critical” employees are in contact with their supervisors. The International Trade Administration (ITA) has temporarily modified its antidumping and countervailing duty (AD/CVD) cases to facilitate the serving of documents through electronic means.  Effective March 24, 2020 and until May 19, 2020, documents containing business proprietary information (BPI) may be served on opposing counsel via ITA’s online ACCESS data portal instead of the normal requirement for hard copy “in-person” service. Further, the Bureau of Industry and Security (BIS) has canceled its export control forums scheduled for April 2020.

U.S. Department of the Treasury – While Treasury has published no formal notice of its operating status, the “public engagement” schedule remains empty, indicating that all outside meetings and events have been canceled. The Office of Foreign Assets Control (OFAC) has not indicated yet whether its operations have been affected.

U.S. Department of State – The Directorate of Defense Trade Controls (DDTC) has posted that its core activities across its Licensing, Compliance, Policy, and Management continue to function within the parameters and adjustments that have been made as the agency follows OPM guidance.

  • Licensing activities: All electronic application systems are currently in normal operational mode, and new licenses continue to be accepted for processing; however, a longer than normal processing time should be expected.
  • Registration, CJ Requests and General Correspondence: These filings via the DECCS system continue and are being processed as they are submitted; responses may be delayed by the current operational environment.

DDTC states that it has established a new option for industry to submit disclosures and related information (e.g., exhibits, extension requests, responses to DTCC inquires) by allowing submissions via email to DTCC-CaseStatus@state.gov. In the event that a disclosure cannot be submitted via email, DDTC indicates that the continued use of regular U.S. mail is acceptable.

U.S. Trade Representative (USTR) – The Office of the U.S. Trade Representative has still offered no update on its operating status within the Executive Office of the President.

U.S. International Trade Commission (ITC) – The ITC stated that it is open for business while it continues to monitor the situation. Since March 17, all ITC employees have been teleworking full-time.  The secretary’s office will accept only electronic filings during this time. Filings must be made through the ITC’s Electronic Document Information System (EDIS) at https://edis.usitc.gov. No in-person, paper-based filings or paper copies of any electronic filings will be accepted until further notice. The ITC building is now closed to the public entirely through at least April 24, 2020.

  • Section 337 Hearings – Administrative law judges (ALJs) have been ordered to postpone any hearings until after May 12, 2020. All discovery will continue and any essential outside participation by staff will be decided on a case-by-case basis.
  • Title VII Matters –Until further notice, no in-person preliminary phase Title VII (antidumping and countervailing duty) staff conferences will be held for new and ongoing investigations. Instead, interested parties will have the opportunity to provide opening remarks, witness testimony, and responses to staff questions through written submissions, in addition to post conference briefs. Information and guidance will be provided to parties by the investigative staff in each affected investigation. All ITC Title VII votes will be conducted by notation; there will be no in-person vote for the next 60 days. Until further notice, no in-person hearings will be held for final phase Title VII investigations, five-year (sunset) reviews, and those held under Section 332 and Section 131. In lieu of in-person hearings, the Commission staff will provide specific information and guidance to parties in each affected investigation on alternative means of providing information to the Commission. Interested parties will be invited to provide opening remarks, written testimony, and responses to questions issued by the Commission with certified written responses; parties may also be invited to participate in virtual or telephonic closing and/or rebuttal statements. The ITC has prepared a COVID-19 related set of FAQs.
  • Electronic service of documents has temporarily been implemented for most ITC issuances. Public documents will continue to be made available via the ITC’s electronic record, EDIS.  In addition, temporarily, confidential documents will be made available to authorized parties via Box (www.box.com). Service of confidential documents will be considered effected upon notification via email to other parties/counsel in ongoing investigations that the documents are available for download.
  • Agency Meetings, Seminars and Briefings – All scheduled in-person meetings with outside persons have been cancelled or postponed.

U.S. Customs and Border Protection (CBP) – CBP refers users to DHS.gov/coronavirus for information related to the COVID-19 pandemic, where it states that “all air, land and sea Ports of Entry (POEs), CBP Officers (CBPOs) and Border Patrol Agents (BPAs) continue to identify and refer individuals with symptoms of COVID-19 or a travel history to China, Iran, or certain European countries in the past 14 days to CDC or local public health officials for enhanced health screening.”

In order to streamline communications and support the trade community, CBP launched the CBP COVID-19 Updates and Announcements webpage specifically dedicated to the most recent trade-related information and messaging on the impacts of COVID-19. Information found on the web page includes Federal Register Notices and Cargo Systems Messaging Service communications related to COVID-19, as well as updates and announcements in trade programs and cargo security.

DHS continues to state that the “routing of all flights with passengers who have recently been in China, Iran, and certain European countries through select airports with established resources, procedures and personnel is an important, prudent step DHS is taking actively to decrease the strain on public health officials screening incoming travelers and protecting the American public.”

U.S. Census Bureau – Many U.S. Census Bureau employees are operating remotely via telework. During this time, call centers and email inboxes will remain open to assist customers’ daily trade needs. However, the agency will have limited access to physical mail.  For those companies that are submitting a Voluntary Self-Disclosure (VSD) or data request, please make the submission electronically to the Trade Regulations Branch (TRB) in a password-protected file to emd.askregs@census.gov (for VSDs) or Data User & Trade Outreach Branch (DUTOB) to tmd.outreach@census.gov (for data requests). Additionally, such submissions may be sent to Census’ secure fax at 301-763-8835.

U.S. Court of International Trade (CIT) – According to CIT’s statement of April 2, 2020, courthouse access has been temporarily restricted until further notice.  The staff of the Office of the Clerk is available by telephone and email. The Court’s CM/ECF system continues to be operational during this time and unless otherwise ordered, all filing deadlines will remain in effect.

Any filings that are permitted by the Rules of the Court to be made by mail or delivery should be addressed to:

Office of the Clerk – Case Management
U.S. Court of International Trade
One Federal Plaza
New York, NY 10278

Any filings that are permitted by the Rules of the Court to be made in person should be brought to the Court Security Officers at the courthouse.  The Court notes “that there will be delays in processing documents that are mailed or delivered to the courthouse.”

U.S. Court of Appeals for the Federal Circuit – Per a public advisory notice and an administrative order, the Federal Circuit began restricting public access to the National Courts Building complex on March 16, 2020. On March 19, the Court issued an updated public advisory stating that all cases scheduled for argument during the April 2020 sitting will now be conducted by telephone conference and no in-person hearings will be held.

The Clerk’s Office has issued new guidance on how counsel may accomplish service outside of CM/ECF, which is most frequently required when serving pro se parties or confidential materials. Individuals, including pro se litigants and couriers wishing to deliver or to file case documents, must submit these items either by mail or by deposit in the court’s night box. Mail and third-party commercial deliveries will be limited to the lobby. Any other deliveries must be coordinated ahead of time with relevant court staff.