Didi, Uber yet to submit merger papers to ministry

The Ministry of Commerce said it hasn’t received business declaration from Didi Chuxing and Uber Technologies Inc though both companies announced merger Monday.

Under the deal, Didi Chuxing agreed to acquire the China business of its rival Uber Technologies Inc.

All businesses with large operation scale that may monopolize the market must submit business declaration to the Ministry of Commerce for record, as well as wait for further anti-trust investigation. Companies without such clearance will not be allowed to carry out merger and acquisition in China.

Shen Danyang, the ministry’s spokesman, said as these two companies haven’t submitted business declaration to the ministry, their merger will not become effective and legal.

Didi Chuxing and its previous rival Kuaidi also didn’t submit business declaration to the Ministry of Commerce when they merged last year, according to the ministry.

Read full article here: http://www.chinadaily.com.cn/business/2016-08/02/content_26316244.htm

China FDA stops online med sales

Industry watchdog says that consumers’ interests could not be well safeguarded

Chinese e-commerce giant Alibaba Group Holding Ltd has ceased online sales of medicines on its Tmall platform as the government tightens its control over the country’s nascent e-pharmacy industry.

Tmall, the business-to-consumer site of Alibaba, told its online vendors that the site will stop the online sales of medicines as of August 1, citing changes in government regulation.

Tmall said in a statement that it will “adjust its business model based on the new regulation in order to provide better service to customers within the law”.

The change of regulation put an end to China’s trial of selling drugs products directly to consumers via online third-party platforms. The change of regulation does not apply only to Tmall. Other e-commerce companies involved in selling drugs on third-party platforms, such as Yhd.com have also received the same ban.

A news report posted on the official website of China Food and Drug Administration said that “it is unclear which party (the e-commerce site or the online vendors) should take responsibility when drug products are sold online via third-party platforms”.

“It is difficult to monitor the quality of drug products sold this way and it is not possible to protect the interests of consumers and ensure safe usage of drugs. Therefore, we decided to end the trial operation”, said the report.

Analysts said that the regulation will not significantly hurt Tmall’s medicine business, as only an estimated 20 percent of its sales are drug products. The other 80 percent are health products and medical equipment.

 

Read full article here: http://www.chinadaily.com.cn/business/2016-08/02/content_26307730.htm

Citizen of China Sentenced to 15 Months in Prison for Trafficking in Counterfeit Computer Chips

Department of Justice
U.S. Attorney’s Office
District of Connecticut

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that Daofu Zhang, 40, of Shenzen, China, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 15 months of imprisonment for conspiring to sell counterfeits of sophisticated integrated circuits to a purchaser in the United States.

According to court documents and statements made in court, Zhang and his two co-conspirators each operated businesses in China that bought and sold electronic components, including integrated circuits (“ICs”).  In the summer of 2015, Zhang’s co-conspirator, Xianfeng Zuo asked the other co-conspirator, Jiang Yan, to locate and purchase several advanced ICs made by Xilinx Corp., which had military applications, including radiation tolerance for uses in space.  Yan then asked a U.S. individual to locate the Xilinx ICs and sell them to Yan.  The U.S. individual explained that the ICs cannot be shipped outside the U.S. without an export license, but Yan still wished to make the purchase.  When the U.S. individual expressed concern that the desired ICs would have to be stolen from military inventory, Yan proposed to supply the U.S. source with “fake” ICs that “look the same,” to replace the ones to be stolen from the military.

In November 2015, Zhang shipped from China to the U.S. individual, two packages containing a total of eight counterfeit ICs, each bearing a counterfeit Xilinx brand label.  After further discussions between Yan and the U.S. individual, Yan, Zhang, and Zuo flew together from China to the U.S. in early December 2015 to complete the Xilinx ICs purchase.  On December 10, 2015, the three conspirators drove to a location near Route 95 in Milford, Connecticut, where they planned to meet the U.S. individual, make payment, and take custody of the Xilinx ICs.  Federal agents arrested all three at the meeting location.

Zhang has been detained since his arrest.  On April 15, 2016, he pleaded guilty to one count of conspiracy to traffic in counterfeit goods.

As part of his sentence, Zhang was ordered to forfeit $63,000.

Read full article here:

https://www.justice.gov/usao-ct/pr/citizen-china-sentenced-15-months-prison-trafficking-counterfeit-computer-chips

 

Treasury Sanctions High-Ranking Government Security Official for Role in Violence in the Democratic Republic of the Congo

Action Targets Kinshasa Police Commissioner for Police Violence Against DRC Civilians
WASHINGTON – Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned a Congolese government official, Céléstin Kanyama, pursuant to Executive Order (E.O.) 13413, as amended by Executive Order 13671, which authorizes the designation of persons for specified conduct “contributing to the conflict” in the Democratic Republic of the Congo (DRC).  Specifically, OFAC designated Kanyama for being responsible for or complicit in, or having engaged in, directly or indirectly, the targeting of women, children, or any civilians through the commission of acts of violence, abduction, or forced displacement in the DRC, and for being a leader of an entity that has, or whose members have, engaged in such conduct.  As a result of today’s actions, all assets of the individual designated that are based in the United States or in the control of U.S. persons are frozen, and U.S. persons are generally prohibited from engaging in transactions with him.
Today’s action is not directed at the people of DRC.  It is intended to alter the behavior of individuals involved in violence against civilians.  The United Nations Joint Human Rights Office reported that the beginning of 2015 was marred by “an increase in the number of violations of political rights and public freedoms” committed by DRC government agents, particularly by police.  In several provinces, security forces violently repressed demonstrations organized to oppose a new draft electoral law that many feared would allow President Kabila to run for a third term. Clashes between police and protestors have continued this year.
“As President Kabila’s constitutionally limited term nears its end in December, the regime has engaged in a pattern of repression, including the arrest of opposition members and violent suppression of political protests, all to avoid scheduling national elections,” said John E. Smith, Acting OFAC Director.  “Treasury’s action today sends a clear message that the United States condemns the regime’s violence and repressive actions, especially those of Céléstin Kanyama, which threaten the future of democracy for the people of the Democratic Republic of the Congo.”
Read full article here:
https://www.treasury.gov/press-center/press-releases/Pages/jl0496.aspx

2016 U.S.-China Strategic and Economic Dialogue Joint U.S.-China Fact Sheet – Economic Track

BEIJING – U.S. Treasury Secretary Jacob J. Lew and Chinese Vice Premier Wang Yang today concluded the economic discussions of the eighth U.S.-China Strategic and Economic Dialogue (S&ED). They were joined by leaders from 16 U.S. government agencies, and senior officials representing key Chinese ministries and agencies.
Since its establishment in 2009, the S&ED has served as a platform for the two sides to make progress on core issues in the economic relationship. Through the S&ED, the Administration has secured actions from China that level the playing field for U.S. workers and firms, deepen cooperation on global challenges such as a climate change, and promote critical market-oriented reforms in China.
At this year’s S&ED, the Administration built on this foundation to secure new and strengthened commitments that will ensure China’s economic growth continues to deliver concrete benefits for the American people, including through furthering China’s exchange rate reforms; addressing excess industrial capacity; promoting non-discriminatory trade and investment measures; improving economic transparency; and advancing policies to shift China’s growth model to one driven by household consumption rather than investment and exports.
Key Announcements in the S&ED Economic Track Include:
Exchange Rate Reform:  The United States secured a commitment from China to continue market-oriented exchange rate reform that allows for two-way flexibility and to refrain from competitive devaluation.  Since June 2010, the RMB has appreciated 24 percent on an inflation-adjusted, trade-weighted basis.  Building on the significant progress made to date, the Administration will continue to push for exchange rate reform and transparency as priorities in its bilateral engagement with China.
 
·         China committed to continue market-oriented exchange rate reform, allowing for two-way flexibility of the RMB, and stressed that there is no basis for sustained depreciation of the RMB.
 
·         China also reaffirmed its G20 commitments to avoid competitive devaluation and not target the exchange rate for competitive purposes.  These exchange rate commitments are vital in leveling the playing field for American exports, workers, and firms, and promoting China’s transition to consumption-led growth.
           
Improving Economic Transparency:  At the S&ED, China committed to clearly communicate its economic policies and to improve the transparency and scope of economic and financial data. This will help U.S. firms and investors, in addition to the global economy and financial system, better anticipate and respond to developments in China.
·         Economic and Financial Data:  To aid in assessing the extent of rebalancing toward consumption and services, China committed to publish in the near future a more inclusive monthly indicator of service sector activity as well as work toward improving its quarterly GDP accounting by expenditure. China committed to work toward G20 data standards for fiscal and financial data; and to report comprehensive international banking statistics data to the Bank for International Settlements, making available important information on the world’s largest banking system.
 
·         Energy Data:  China committed to enhance the coverage, accuracy and timeliness of its submissions to the International Energy Forum’s Joint Organizations Data Initiative, and also to make available more complete, reliable, and detailed publications of energy statistics on a more frequent basis, including for its Strategic Petroleum Reserve. More comprehensive and timely energy data from China is important for smooth functioning of global energy markets.
 
·        Financial Regulatory Transparency:  The United States and China also recognized the central importance of the availability of comprehensive and reliable information and transparent regulatory processes in promoting sound and efficient financial markets. Chinese financial regulatory authorities reaffirmed a commitment to publish rules and regulations impacting foreign financial institutions for 30-day comment periods.
Expanding Opportunities for U.S. Firms Through Consumption-Led Growth:  China committed to step up its efforts to rebalance its economy toward household consumption and services, while ensuring that investment is driven by the private sector. In the short-term, China stands ready to complement these reforms and adopt more proactive fiscal policies to expand domestic demand.
·         Developing the Social Safety Net to Support Household Consumption:  China has committed to better align the incentives of all levels of government to support household consumption by improving local taxation so that local governments have the access to revenue to support their growing social welfare spending responsibilities. China committed to strengthen medical and pension benefits for all residents, build more sustainable social security funds, and lower insurance contribution rates.
 
·         Factor Price Liberalization: China further committed to liberalize prices in the electricity, petroleum, natural gas, transport, post and telecommunications, and municipal public utilities sectors.
 
·         Expanding SOE Dividend Contributions and Transparency:  The United States obtained China’s commitment to increase the number of state owned enterprises (SOEs) paying a portion of profits to the government and to report on how those funds collected from all SOEs are spent at every level of government.  Increasing dividend payments from SOEs helps level the playing field for private and foreign firms and reduces excessive SOE investment.
 
Promoting An Open, Predictable, and Transparent Climate for U.S. Firms and Innovation:  Opening up China’s market, removing discriminatory trade and investment barriers and addressing excess industrial capacity in sectors such as steel are vital to ensuring that U.S. workers and firms benefit from the U.S.-China trade relationship.
·         Addressing Excess Capacity:  Addressing distortions in global markets is a top priority for the United States.  Meaningful efforts by China, the largest producer and consumer of steel in the world, to foster an environment in which the market plays a decisive role in allocating resources, are paramount to efforts to reduce excess steel capacity.  China committed to undertake further steps to resolve its domestic excess steel capacity and outlined a package of structural reform policies that would enable its steel industry to be more responsive to market forces.  China committed to adopt measures to strictly contain steel capacity expansion, reduce net steel capacity, eliminate outdated steel capacity, and urge the exit of steel production capacity that falls short of environmental, energy, quality or safety standards.  China is also to better align central government fiscal incentives for local governments with the objective of reducing excess capacity; to actively and appropriately wind down consistently loss-making “zombie enterprises” through a range of efforts, including bankruptcy and liquidation; and to ensure that its central policies, guidance, lending, and support do not target the net expansion of steel capacity.  China also firmly committed to support international efforts to address excess capacity at the OECD and to engage with the United States and others on a potential global steel forum.  The United States and China will continue to communicate and exchange information on excess capacity issues, which will include in the aluminum sector, and plan to hold another Steel Dialogue meeting under the auspices of the U.S.-China Joint Commission on Commerce and Trade.
·         Improving the Approval Process for Agricultural Biotechnology Products: China committed to revise its biotech regulations to be consistent with the outcomes on the administration of biotechnology from President Xi’s State Visit to Washington in September 2015.  China further committed to review applications of agricultural biotechnology products in a timely, ongoing and science-based manner, and to complete biotech approvals following the completion of assessments by the National Biosafety Committee.  The United States committed to prepare a study on the global impact of asynchronous approvals, which both sides will discuss by the end of 2016.
 
·         Making the Aviation System More Efficient:  Recognizing the importance of an efficient aviation system to the safe and secure transport of people and goods, and the strategic role that air transport plays in overall economic development, the United States and China committed to enhance bilateral aviation cooperation through a strategic, whole-of-government, interagency approach, including through existing bilateral mechanisms, such as the U.S.-China Aviation Cooperation Program (ACP).
 
·         Corporate Information: China committed to enhance the availability of enterprise information through public databases operated by the provincial Administrations for Industry and Commerce.
 
·         Industrial Policy: Building upon previous commitments on semiconductor and Strategic Emerging Industries development plans, China committed that all of its industry development plans will treat foreign and domestic enterprises equally.  China also committed to publish for public comment measures implementing the China Manufacturing 2025 Plan, as well as publish draft plans for industrial development funds. China will ensure that industrial development funds operate in a market-based manner.  This commitment will help address industry concerns with the China Manufacturing 2025 Plan.
 
·        Open Trade in Information and Communications Technology (ICT): China affirmed that access to a full range of global technology solutions ordinarily strengthens the cybersecurity of commercial enterprises, building on prior commitments to not impose nationality-based conditions on the purchase, sale, or use of information communications technology products, and reaffirmed other important commitments from President Xi’s State Visit to Washington in September 2015 and the JCCT related to information communications technology cybersecurity policy.
 
Expanding RMB Trading and Clearing Capacity in the United States:  The United States and China agreed on a policy framework for the private sector to further develop RMB trading and clearing capacity in the United States, building on President Xi’s visit to Washington last fall.  This will expand the ability of U.S. firms and investors to access and transact in China’s currency, enhancing their competitiveness in capturing trade and investment opportunities with China. Both sides stressed the importance of maintaining a level playing field between Chinese and foreign financial institutions in RMB trading and clearing services.
·         RQFII Quota:  Firms in the United States will have expanded access to China’s onshore financial markets through an RMB Qualified Institutional Investor (RQFII) quota of RMB 250 billion ($38 billion), the largest in the world after Hong Kong.
·         Clearing Banks:  China will designate RMB clearing banks in the United States as an additional mechanism to clear RMB alongside correspondent bank relationships.
Creating a More Open, Resilient Chinese Financial SystemAn efficient, market-oriented financial system is critical to China’s rebalancing to consumption-led economic growth. China announced measures that enhance transparency and predictability in China’s financial markets, and expand opportunities for U.S. financial services providers and institutional investors.  Supporting global financial stability as China becomes more integrated into global financial markets, U.S. and Chinese financial regulators reached important agreements on strengthening bilateral regulatory cooperation and information-sharing.
·       Expanding Opportunities for U.S. Financial Services Providers:  Following its 2015 S&ED commitment, China is soon to issue regulatory and qualification requirements to allow wholly-foreign owned firms to engage in private securities fund management.  China committed to gradually raise the permitted equity holding for foreign financial services firms in the securities and mutual fund sectors, recognizing the benefits of foreign participation in promoting competition in these sectors. China has decided to issue licenses to U.S. banks to underwrite corporate bonds and serve as bond settlement agents, a significant new opportunity as China expands the access of foreign investors to its bond market.  China will amend regulatory measures to allow foreign futures exchanges to establish representative offices in China. China also committed to further simplify administrative and approval procedures in its securities markets.
 
·         Electronic Payment Services: China announced that the People’s Bank of China issued the Administrative Rules on Bankcard Clearing Institutions, which establish procedures for licensing domestic and foreign suppliers to provide electronic payment services for domestic currency payment card transactions in China.
 
·        More Open and Transparent Capital Markets:  China committed to measures that expand access of foreign institutional investors to its capital markets, and strengthen financial transparency and governance. Building on a 2015 S&ED commitment, China has issued implementing rules to allow direct access to its interbank bond market for foreign institutional investors, including hedging instruments to manage risk. China also committed to simplify the regulation and approval process for the QFII and RQFII programs. The U.S. and China committed to participate in a peer review on implementation of the G20/OECD Principles of Corporate Governance. China will strengthen its corporate governance code, including through measures to protect the rights of minority shareholders, and increase disclosure requirements.  China also committed to strengthen creditor rights for foreign and domestic investors by improving and clarifying bankruptcy procedures.
 
·         Enhancing Financial Stability:  Building on its establishment of a deposit insurance system, China will accelerate regulations and implementation rules for resolution of commercial banks in line with international standards.  A regime to allow for the orderly market exit of financial institutions will be important to promote competition in the banking sector, while also protecting financial stability.  The United States and China also reaffirmed their commitments to meeting their respective conformance periods for the Financial Stability Board’s total loss­ absorbing capacity (TLAC) standard for global systemically important banks (G­SIBs), an essential part of addressing Too Big to Fail. 
 
·         Strengthening Bilateral Regulatory Cooperation to Protect Investors and Promote Efficient Markets:  Reflecting the increasing linkages between our financial markets as China liberalizes capital flows, the U.S. and China committed to strengthen regulatory cooperation in the securities and derivative markets. The U.S. Securities and Exchange Commission (SEC) and the China Securities Regulatory Commission (CSRC) have instituted regular communication to facilitate cross-border enforcement cooperation and other information sharing arrangements.  The Commodity Futures Trading Commission (CFTC) and the CSRC have initiated efforts to have direct and frequent dialogue regarding oversight of futures markets.  The U.S. and China committed to make progress on information sharing related to the supervision and oversight of relevant clearing entities. China welcomed the CFTC’s recent announcement of granting no-action relief to the Shanghai Clearing House.  The Public Company Accounting Oversight Board (PCAOB) continues to work with Chinese authorities to advance cross-border cooperation on oversight of the audits of public companies.
 
Cooperating on Global ChallengesAs the world’s two largest economies, cooperation between the United States and China is vital for tackling many of today’s most pressing global challenges.  These include progress in the development of new international export credit guidelines and re-affirmation of the Paris Club’s role as the principal international forum for restructuring official bilateral debt.  The United States and China also pledged to work together to prioritize efforts to provide public financing for low-carbon technologies, and eliminate inefficient fossil fuel subsidies.
 
·         Disciplining Export Financing:  China and the United States committed to enhancing the effectiveness of the International Working Group on Export Credits (IWG) by seeking reforms to the IWG structure, including the appointment of a Secretary General.  China and the United States also committed to more effective intersessional communication to accelerate the pace of work in the IWG.  Importantly, China committed to provide the IWG with comments on tabled “horizontal” guideline text at the Fall IWG meeting.  These steps will help to advance progress on developing new international export credit guidelines.
 
·         Paris Club:  The United States and China re-affirmed the Paris Club’s role as the principal international forum for restructuring official bilateral debt, noting that the Paris Club should keep pace with the changing landscape of official financing, including by expanding its membership to include emerging creditors. China announced its intention to play a constructive role, including discussions on potential membership. 
·         Promoting a Cleaner Global Economy:  The United States and China committed to cooperate on a number of areas related to climate and energy, including using public resources to finance and encourage the transition toward low-carbon technologies, discussing the role of public finance in supporting low-carbon technologies, climate resilience, and in reducing greenhouse gas emissions internationally, and committing to rationalize and phase out inefficient fossil fuel subsidies by a date certain, strengthened by the commitment to complete a G20 peer review of inefficient fossil fuel subsidies by the G20 Leaders’ Summit in September.
To view this article, please visit https://www.treasury.gov/press-center/press-releases/Pages/jl0485.aspx

Treasury Amends Burmese Sanctions Regulations, Identifies Blocked Companies Owned By Designated Persons, And Delists Several Burmese State-Owned Entities

Today, OFAC added a general license authorizing transactions related to U.S. individuals residing in Burma, extended and expanded an existing general license authorizing trade-related transactions, and updated an existing general license authorizing certain banking services.  As background, an OFAC license is an authorization to engage in a transaction that otherwise would be prohibited.  There are two types of licenses: general licenses and specific licenses.  A general license broadly authorizes a particular type of transaction, subject to certain conditions, without the need to individually apply for a specific license.

 

Please visit the link below for the full update:

https://www.treasury.gov/press-center/press-releases/Pages/jl0458.aspx

NextGen Update: 2016

“NextGen is now. Collaboration between the FAA and the aviation community is enabling the NextGen transformation as never before, and industry and the flying public are reaping the benefits.

The NextGen Update: 2016 provides an overview of where NextGen stands today, and where we’re going in the years to come.”

Review the full update by using the link below:

https://www.faa.gov/nextgen/update/

 

U.S. EXPORT FACT SHEET — February 2016 Export Statistics Released April 5, 2016

EXPORT OVERVIEW:

– In February 2016, U.S. exports of goods and services increased 1.0 percent from January to $178.1 billion; imports

increased 1.3 percent to $225.1 billion over the same period. Exports of travel services reached a monthly record-high in

February, up 1.2 percent to $15.3 billion.

– In February 2016, the monthly U.S. goods and services trade deficit worsened by 2.6 percent to $47.1 billion when

compared to the previous month.

– Year–to-date through February 2016, exports of goods and services were down 5.5 percent from 2015, imports were down

2.1 percent and the balance worsened by 13.1 percent.

– In February, the average import price of crude oil was $27.48 per barrel, down 14.3 percent from the $32.06 recorded in

January and the lowest price per barrel since December 2003. Year-to-date, imports of crude oil totaled $13.2 billion, 41.9

percent below the 2015 level. This decrease is entirely due to a 45.4 percent drop in price.

– The year-to-date U.S. trade deficit in petroleum improved 55.6 percent from the prior year, while the comparable nonpetroleum

goods and services deficit worsened by 33.0 percent.

TRADE SPOTLIGHT: U.S. Trading Companies in 2014

– More than 304,000 U.S. companies exported goods in 2014, down slightly from 2013 but up 10 percent since 2009. Nearly

98 percent (297,519) of these companies were small- or medium-sized with fewer than 500 employees.

– SMEs were responsible for 33 percent of goods exports (by value) in 2014.

– Among all U.S. manufacturers that exported goods in 2014, nearly 97 percent were SMEs and exports from these

companies represented 20 percent of the value of exports from manufacturers.

– In 2014, wholesalers and other non-manufacturing firms (including unclassified firms) made up 76 percent of all SME

exporters, generating 65 percent of total SME exports.

– More than 408,000 U.S. companies engaged in goods trade in 2014.

– Of those companies that engaged in trade, 83,606 both exported and imported merchandise in 2014, of which 78,937 (94

percent) were SMEs.

– SMEs accounted for 97 percent (182,371) of identified importers in 2014.

– SMEs imported $642.9 billion in goods in 2014, which was a 4.0 percent increase from 2013. Known goods imports

overall increased by 3.6 percent in 2014.

– In 2014, 59 percent of all SME exporters (nearly three-fifths) posted sales to only one foreign market.

– Ninety-three percent of all SME exporters do business from a single U.S. location.

– 19 percent of SME exports go to affiliates (related parties) abroad.

– Canada is by far the most popular export destination for SMEs. In 2014, more than 88,000 SME exporting companies

registered sales to Canada.

– In 2014, more than 21,000 SMEs exported goods to South Korea and more than 14,000 SMEs exported goods to Colombia.

– The number of SME exporters sending goods to Korea increased by 972 companies since 2011.

– In 2014, almost 94,000 SMEs exported goods to the European Union.

– California had both the most exporters (75,722) and the most SME exporters (72,591) in 2014.

– The number of SMEs exporting from Illinois grew by approximately 400 between 2013 and 2014, the largest increase

among the 50 states. Mississippi saw the fastest growth in the number of SME exporters, up 9.0 percent in 2014.

U.S. Export Fact Sheets are prepared by ITA’s Office of Trade and Economic Analysis, (202) 482-3809

Click the follwing link for the complete fact sheet: http://trade.gov/press/press-releases/2016/export-factsheet-040516.pdf

Commerce Preliminarily Finds Countervailable Subsidization of Imports of Circular Welded Carbon-Quality Steel Pipe from Pakistan

On April 4, 2016, the Department of Commerce (Commerce) announced its affirmative preliminary

determination in the countervailing duty (CVD) investigation of imports of circular welded carbon quality

steel pipe from Pakistan.

  • The CVD law provides U.S. business and workers with a transparent, quasi-judicial, and

internationally accepted mechanism to seek relief from the market distorting effects caused by

injurious subsidization of imports into the United States, establishing an opportunity to compete on a

level playing field.

  • For the purpose of CVD investigations, a countervailable subsidy is financial assistance from foreign

governments that benefits the production of goods from foreign companies and is limited to specific

enterprises or industries, or is contingent either upon export performance or upon the use of domestic

goods over imported goods.

  • Commerce calculated a preliminary subsidy rate of 64.81 percent for the mandatory respondent,

International Industries Limited. The preliminary subsidy rate is based on facts available and adverse

inferences following Commerce’s preliminary determination that the mandatory respondent and the

Government of Pakistan had not fully cooperated in the investigation. All other exporters/producers

in Pakistan have also been assigned a preliminary subsidy rate of 64.81 percent.

  • As a result of the preliminary affirmative determination, Commerce will instruct U.S. Customs and

Border Protection to require cash deposits based on these preliminary rates.

  • The petitioners in this investigation are Bull Moose Tube Company (MO), EXLTUBE (MO),

Wheatland Tube (IL), and Western Tube & Conduit (CA).

  • The investigation covers welded carbon-quality steel pipes and tube, of circular cross-section, with an

outside diameter (O.D.) not more than nominal 16 inches (406.4 mm), regardless of wall thickness,

surface finish (e.g., black, galvanized, or painted), end finish (plain end, beveled end, grooved,

threaded, or threaded and coupled), or industry specification (e.g., American Society for Testing and

Materials International (ASTM), proprietary, or other), generally known as standard pipe, fence pipe

and tube, sprinkler pipe, and structural pipe (although subject product may also be referred to as

mechanical tubing). Specifically, the term “carbon quality” includes products in which:

(a) iron predominates, by weight, over each of the other contained elements;

(b) the carbon content is 2 percent or less, by weight; and

(c) none of the elements listed below exceeds the quantity, by weight, as indicated:

(i) 1.80 percent of manganese;

(ii) 2.25 percent of silicon;

(iii) 1.00 percent of copper;

U.S. Department of Commerce |International Trade Administration

(iv) 0.50 percent of aluminum;

(v) 1.25 percent of chromium;

(vi) 0.30 percent of cobalt;

(vii) 0.40 percent of lead;

(viii) 1.25 percent of nickel;

(ix) 0.30 percent of tungsten;

(x) 0.15 percent of molybdenum;

(xi) 0.10 percent of niobium;

(xii) 0.41 percent of titanium;

(xiii) 0.15 percent of vanadium; or

(xiv) 0.15 percent of zirconium.

Covered products are generally made to standard O.D. and wall thickness combinations. Pipe multistenciled

to a standard and/or structural specification and to other specifications, such as American

Petroleum Institute (API) API-5L specification, may also be covered by the scope of these

investigations. In particular, such multi-stenciled merchandise is covered when it meets the physical

description set forth above, and also has one or more of the following characteristics: is 32 feet in

length or less; is less than 2.0 inches (50 mm) in outside diameter; has a galvanized and/or painted

(e.g., polyester coated) surface finish; or has a threaded and/or coupled end finish.

Standard pipe is ordinarily made to ASTM specifications A53, A135, and A795, but can also be

made to other specifications. Structural pipe is made primarily to ASTM specifications A252 and

A500. Standard and structural pipe may also be produced to proprietary specifications rather than to

industry specifications.

Sprinkler pipe is designed for sprinkler fire suppression systems and may be made to industry

specifications such as ASTM A53 or to proprietary specifications.

The scope of this investigation does not include:

(a) pipe suitable for use in boilers, superheaters, heat exchangers, refining furnaces and feedwater

heaters, whether or not cold drawn, which are defined by standards such as ASTM A178 or ASTM

A192;

(b) finished electrical conduit, i.e., Electrical Rigid Steel Conduit (aka Electrical Rigid Metal Conduit

and Electrical Rigid Metal Steel Conduit), Finished Electrical Metallic Tubing, and Electrical

Intermediate Metal Conduit, which are defined by specifications such as American National Standard

(ANSI) C80.1-2005, ANSI C80.3-2005, or ANSI C80.6-2005, and Underwriters Laboratories Inc.

(UL) UL-6, UL-797, or UL-1242;

(c) finished scaffolding, i.e., component parts of final, finished scaffolding that enter the United

States unassembled as a “kit.” A kit is understood to mean a packaged combination of component

parts that contains, at the time of importation, all of the necessary component parts to fully assemble

final, finished scaffolding;

(d) tube and pipe hollows for redrawing;

(e) oil country tubular goods produced to API specifications;

(f) line pipe produced to only API specifications, such as API 5L, and not multi-stenciled; and

(g) mechanical tubing, whether or not cold-drawn, other than what is included in the above

paragraphs.

The products subject to this investigation are currently classifiable in Harmonized Tariff Schedule of

the United States (HTSUS) statistical reporting numbers 7306.19.1010, 7306.19.1050, 7306.19.5110,

7306.19.5150, 7306.30.1000, 7306.30.5015, 7306.30.5020, 7306.30.5025, 7306.30.5032,

7306.30.5040, 7306.30.5055, 7306.30.5085, 7306.30.5090, 7306.50.1000, 7306.50.5030,

U.S. Department of Commerce |International Trade Administration

7306.50.5050, and 7306.50.5070. The HTSUS subheadings above are provided for convenience and

U.S. Customs purposes only. The written description of the scope of the investigation is dispositive.

  • In 2014, imports of circular welded carbon-quality steel pipe from Pakistan were valued at an

estimated $17 million.

NEXT STEPS

  • Commerce is scheduled to announce its final determination in this investigation on August 16, 2016,

unless the statutory deadline is extended.

  • If Commerce makes an affirmative final determination, and the U.S. International Trade Commission

(ITC) makes an affirmative final determination that imports of circular welded carbon-quality steel

pipe from Pakistan materially injure, or threaten material injury to, the domestic industry, Commerce

will issue a CVD order. If either Commerce’s or the ITC’s final determination is negative, no CVD

order will be issued. The ITC is scheduled to make its final injury determination approximately 45

days after Commerce issues its final determination, if affirmative.

Click here to review the full press release: http://enforcement.trade.gov/download/factsheets/factsheet-pakistan-circular-welded-carbon-quality-steel-pipe-cvd-prelim-040416.pdf

Commerce Initiates Antidumping Duty Investigation of Imports of Phosphor Copper from the Republic of Korea–Fact Sheet

  • On March 30, 2016, the Department of Commerce (Commerce) announced the initiation of the

antidumping duty (AD) investigation of imports of phosphor copper from the Republic of Korea

(Korea).

  • The AD law provides U.S. businesses and workers with a transparent, quasi-judicial, and

internationally-accepted mechanism to seek relief from the market-distorting effects caused by

injurious dumping of imports into the United States, establishing an opportunity to compete on a level

playing field.

  • For the purpose of AD investigations, dumping occurs when a foreign company sells a product in the

United States at less than its fair value.

  • The petitioner is Metallurgical Products Company (PA).
  • The merchandise covered by this investigation is master alloys1 of copper containing between five

percent and 17 percent phosphorus by nominal weight, regardless of form (including but not limited to

shot, pellet, waffle, ingot, or nugget), and regardless of size or weight. Subject merchandise consists

predominantly of copper (by weight), and may contain other elements, including but not limited to

iron (Fe), lead (Pb), or tin (Sn), in small amounts (up to one percent by nominal weight). Phosphor

copper is frequently produced to JIS H2501 and ASTM B-644, Alloy 3A standards or higher;

however, merchandise covered by this investigation includes all phosphor copper, regardless of

whether the merchandise meets, fails to meet, or exceeds these standards.

  • Merchandise covered by this investigation is currently classified in the Harmonized Tariff Schedule of

the United States (HTSUS) under subheading 7405.00.1000. This HTSUS subheading is provided for

convenience and customs purposes; the written description of the scope of this investigation is

dispositive.

  • In 2015, imports of phosphor copper from Korea were valued at an estimated $4.3 million

See the full fact sheet by visiting http://enforcement.trade.gov/download/factsheets/factsheet-korea-phosphor-copper-ad-initiation-033016.pdf