October 2015

All Quiet in D.C. (for two days)

There are few things that can quell the swirl of politics that keep Washington, D.C. spinning. A visit from the Pope is one of them. Does the Pope support international trade? We think he does— he imported a Fiat 500 just for the trip! Thousands enjoyed his brief and thankfully safe visit. Comments or suggestions on our publication? The editorial staff of the Foreign-Trade ‘Zine, the eMagazine of Foreign-Trade News would love to hear from you. E-mail not displaying properly or links not working? Please open the .pdf version attached to this email for your convenience.

Top Story - Has TPP Already Claimed Its First Victims?

Mitsubishi Motors confirmed plans to end output at its sole North American plant in Normal, Illinois, and serve the U.S. market from factories in Japan and Thailand. The timing of the announcement, just weeks before what had been expected to be the last round of TPP negotiations, signals the closure may be related to the negotiations currently underway to complete the Trans-Pacific Partnership (TPP.) TPP is near agreement on a plan to reduce duties between the U.S. and Japan, which may include automobiles just as the Korean FTA with the United States does. Eliminating the 2.5% duty on imported automobiles from Japan and other member countries of the TPP, with 35% - 50% of parts sourced from other low-cost countries (e.g. China), would provide additional incentive to produce US vehicles in a TPP-member country - anywhere but the United States. That is because plants inside the United States would have no way to eliminate the 2.5% duty on imported parts, giving a financial advantage to overseas production. The plant will cease production by the end of November, with 1,200 UAW jobs lost.

Customs Seizes Military Trucks Set For Export

U.S. Customs and Border Protection officers at the Galveston seaport seized military trucks set to be exported without the appropriate license. The two military trucks, which were shipped separately, were enroute to Guatemala. Exporters must have a specific license to export military vehicles and other equipment specially designed for military use. When officers searched for the required export license, it was not available. The exporter later admitted a license was not issued for the vehicle’s export. Export licenses for these types of shipments are obtained through the Department of Commerce’s website for export licenses.

Bureau of Industry and Security

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) imposed a $3.5 million penalty on Streit USA, of South Carolina, Streit Group, UAE, Streit Middle East, UAE, and two corporate officers, to settle charges that they sold U.S. origin vehicles retrofitted with ballistic steel and bullet proof glass to various end users in multiple countries without the required licenses. Guerman Goutorov, the Chairman and CEO of Streit Group and Streit Middle East, was individually charged for his role in causing, aiding, and abetting in unlicensed transfers and reexports. In addition, the now president of Streit USA, Eric Carlson, was charged with causing, aiding and abetting in a false statement to the U.S. government for his role in relation to a pending export license application. The vehicles are controlled under the Export Administration Regulations for national security reasons. All of the parties are subject to a three year suspended Denial Order and the corporate entities must complete audits covering the next three years. (more)

Department of Energy

The 180-day ‘grace’ period for applying for specific authorization for previously generally authorized activities, and reporting ongoing activities related to the transfer of nuclear technology to foreign countries or nationals under the new §810 regulations, ends very soon on August 24th. If your company participates in the nuclear industry, it is important that you review your compliance plan against the new regulations in order to make adjustments if necessary prior to that date. In particular there are clarified reporting requirements even if your organization transfers technology under a General Authorization provision.

U.S. Foreign-Trade Zones Board Activity

Voestalpine Texas, LLC received authorization of production activity for hot briquetted iron within Subzone 122T in Portland, Texas (more)

Deere-Hitachi Construction Machinery Corporation submitted a notification of proposed production activity in FTZ 230 for producing hydraulic excavators in Kernersville, North Carolina (more)

DNP Imagingcomm America Corporation submitted a notification of proposed production activity in Subzone 33E for producing thermal transfer ribbon master rolls in Mount Pleasant, Pennsylvania (more)

Swarovski Lighting, Ltd. received authorization of production activity for lighting fixtures and parts in FTZ 54 in Clinton County, New York (more)

CNH Industrial America, LLC submitted a notification of proposed production activity in FTZ 119 for producing agricultural equipment and related subassemblies and attachments in Benson, Minnesota (more)

Outokumpu Stainless USA, LLC reapplied for subzone status for its 1,998 acre site currently designated as Subzone 82I in Calvert, Alabama (more)

Robertet, Inc. received authorization of production activity for fragrance compounds within FTZ 44 in Mount Olive, New Jersey (more)

Custom Quality Services submitted a notification of proposed production activity in FTZ 29 for liquor kitting in Louisville, Kentucky (more)

Mitsubishi Caterpillar Forklift America Inc. submitted a notification of proposed production activity in FTZ 84 for producing forklift trucks in Houston, Texas (more)

Bauer Manufacturing Inc. submitted a notification of proposed production activity in FTZ 265 for stationary oil & gas rigs in Conroe, Texas (more)

CNH Industrial America, LLC submitted a notification of proposed production activity in Subzone 133E for producing agricultural and construction equipment, subassemblies and kits in Burlington, Iowa (more)

Cummins, Inc. applied for expansion to add two additional sites to the current on in Subzone 77E in Memphis, Tennessee (more)

FTZ 182 applied to expand its Alternative Site Framework Zone with an additional magnet site in Fort Wayne, Indiana (more)