USTR Increases Tariffs on Tungsten Products, Wafers, and Polysilicon, Concluding its Statutory China 301 Four-Year Review - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP

On December 11, 2024, further to its September 19th solicitation of comments, the USTR, has announced increases to 3 subheadings covering certain tungsten products and 2 subheadings covering wafers and polysilicon. The details of these increases, which take effect with respect to goods entered on or after January 1, 2025, are as follows:

Tungsten (Increase to 25%)

• •8101.94.00 (Tungsten, unwrought (including bars and rods obtained simply by sintering)).
• 8101.99.10 (Tungsten bars and rods (o/than those obtained simply by sintering), profiles, plates, sheets, strip and foil).
• 8101.99.80 (Tungsten, articles nesoi).

Wafers / Polysilicon (Increase to 50%)

• 2804.61.00 (Silicon containing by weight not less than 99.99 percent of silicon).
• 3818.00.00 (Chemical elements doped for use in electronics, in the form of discs, wafers etc., chemical compounds doped for electronic use).

This action is the final action taken by the USTR pursuant to its statutory four-year review of existing China 301 duties. It does not impact any future potential tariff actions under the incoming administration.

Please do not hesitate to contact any of our attorneys if we can be of assistance in connection with the above or to consult on potential strategies that companies may wish to consider in order to mitigate the impact of future tariff increases.
 

USTR Initiates Section 301 Investigation on Nicaragua’s Acts, Policies, and Practices Related to Labor Rights, Human Rights, and the Rule of Law- USTR

WASHINGTON – United States Trade Representative Katherine Tai announced today the initiation of an investigation regarding Nicaragua’s acts, policies, and practices related to labor rights, human rights, and the rule of law. The investigation will be conducted under Section 301 of the Trade Act of 1974, as amended. The United States is concerned that Nicaragua is engaging in repressive and persistent attacks on labor rights, human rights, and the rule of law. The investigation initiated today is the first under Section 301 to investigate acts, policies, and practices that may violate labor rights, human rights, and dismantle the rule of law that may burden U.S. commerce and complements a range of actions the United States is taking to mark International Human Rights Day today.
 
“The Biden-Harris Administration is firmly committed to a worker-centered trade policy to ensure our trade partnerships drive a race to the top for all workers and people,” said Ambassador Katherine Tai. “Unfortunately, numerous reports suggest the Government of Nicaragua is engaging in repressive acts that harm Nicaragua’s own workers and people, undermine fair competition, and destabilize our region. USTR will thoroughly investigate the alleged violations of labor rights and human rights, and dismantling of the rule of law.”
 
Numerous credible reports by the U.S. Government, as well as the United Nations Office of the High Commissioner for Human Rights, the Inter-American Commission on Human Rights, the International Labor Organization and the UN Group of Human Rights Experts on Nicaragua, document that the Ortega-Murillo regime in Nicaragua engages in labor rights and human rights violations and dismantling of the rule of law. These actions include: politically-motivated arrests and imprisonments, repression of members of religious groups and non-governmental organizations, extrajudicial killings, cruel, inhuman or degrading treatment, restrictions on freedom of expression and movement, violence against members of marginalized groups, repression of freedom of association and collective bargaining, forced labor, human trafficking, eliminating legislative and judicial independence, spurious seizures of property, arbitrary fines and rulings, and other harmful acts. Such actions exacerbate worker exploitation and diminish economic growth and trade opportunities.
 
The United States has a deep commitment to shared prosperity in the Central American region.  Despite continued U.S. engagement, the Government of Nicaragua has not responded to concerns raised by the United States or others to serious allegations of labor and human rights abuses and the dismantling of the rule of law. Through this investigation, the United States will seek to address and resolve those long-standing and deep-rooted concerns to ensure U.S. companies and workers are treated fairly and with equal respect under a rule of law system.

As explained in a formal notice, USTR is seeking public comments and will hold a public hearing in connection with this investigation.
 
Background 

Section 301 of the Trade Act of 1974, as amended, (Trade Act) is designed to address unfair foreign practices affecting U.S. commerce. Section 301(b) may be used to respond to unreasonable or discriminatory foreign government practices that burden or restrict U.S. commerce. Under Section 302(b) of the Trade Act, the Trade Representative may self-initiate an investigation under Section 301. 
 
The U.S. Trade Representative must seek consultations with the foreign government whose acts, policies, or practices are under investigation. USTR has requested consultations with Nicaragua in connection with the investigation. 

A docket for comments regarding the investigation is available here.

A docket for requests to appear at the public hearing to be held in connection with this investigation is available here.
 

Federal Register Notices:

• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Melamine From Germany: Final Affirmative Countervailing Duty Determination
• Citric Acid and Certain Citrate Salts From the People's Republic of China: Final Results of Antidumping Duty Administrative Review; 2022-2023
• Organic Soybean Meal From India: Final Results and Partial Rescission of Antidumping Duty Administrative Review; 2021-2023
• Melamine From Qatar: Final Affirmative Countervailing Duty Determination and Final Negative Critical Circumstances Determination
• Oil Country Tubular Goods From Argentina: Preliminary Results of Antidumping Duty Administrative Review; 2022-2023
• Melamine From Trinidad and Tobago: Final Affirmative Determination in the Countervailing Duty Investigation
• Sales at Less Than Fair Value; Determinations, Investigations, etc.: Melamine From Germany: Final Affirmative Determination of Sales at Less Than Fair Value
• Melamine From the Netherlands: Final Affirmative Determination of Sales at Less Than Fair Value
• Melamine From Qatar: Final Negative Determination of Sales at Less Than Fair Value and Final Negative Determination of Critical Circumstances
• Melamine From Trinidad and Tobago: Final Affirmative Determination of Sales at Less Than Fair Value and Final Affirmative Determination of Critical Circumstances, in Part
• Melamine From Japan: Final Affirmative Determination of Sales at Less Than Fair Value and Final Affirmative Determination of Critical Circumstances, In Part
• Investigations; Determinations, Modifications, and Rulings, etc.: Quartz Surface Products From China; Scheduling of Expedited Five-Year Reviews
• Certain TOPcon Solar Cells, Modules, Panels, Components Thereof, and Products Containing Same (II); Notice of Institution of Investigation
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Forged Steel Fittings From the People's Republic of China: Final Results of the Antidumping Duty Administrative Review; 2022-2023
• Organic Soybean Meal From India: Final Results of Countervailing Duty Administrative Review; 2021-2022
• Certain Carbon and Alloy Steel Cut-to-Length Plate From the Republic of Korea: Final Results of Countervailing Duty Administrative Review; 2022
• Refillable Stainless Steel Kegs From the People's Republic of China: Notice of Court Decision Not in Harmony With the Final Determination of Antidumping Investigation; Notice of Amended Final Determination; and Notice of Amended Antidumping Duty Order
• Investigations; Determinations, Modifications, and Rulings, etc.: Certain Networking Equipment Supporting NETCONF; Notice of the Commission's Determination To Review and Affirm Order No. 19 Granting Summary Determination Finding No Infringement, Review and Vacate Order No. 23, and Grant in Part Third Party Xenogenic Development, LLC's Motion To Intervene; Termination of the Investigation
• Certain Power Converter Modules and Computing Systems Containing the Same; Notice of a Commission Determination To Review in Part a Final Initial Determination Finding a Violation of Section 337; Request for Written Submissions on the Issues Under Review and on Remedy, the Public Interest, and Bonding
• Silicomanganese From India, Kazakhstan, and Venezuela Determinations
• Paper File Folders From Cambodia and Sri Lanka
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Steel Wire Garment Hangers From the People's Republic of China: Final Results of the Expedited Third Sunset Review of the Antidumping Duty Order
• Polyethylene Terephthalate Resin From the Sultanate of Oman: Final Results of Antidumping Duty Administrative Review; 2022-2023
• Laminated Woven Sacks From the Socialist Republic of Vietnam: Final Results of the Expedited First Sunset Review of the Countervailing Duty Order
• Laminated Woven Sacks From the Socialist Republic of Vietnam: Final Results of Expedited First Sunset Review of the Antidumping Duty Order
• Carbon and Alloy Steel Wire Rod From Ukraine: Rescission of Antidumping Duty Administrative Review; 2023-2024
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Welded Stainless Pressure Pipe From India: Preliminary Results and Partial Rescission of Antidumping Duty Administrative Review; 2022-2023
• Steel Concrete Reinforcing Bar From the Republic of Türkiye: Preliminary Results and Partial Rescission of Countervailing Duty Administrative Review; 2022
• Certain Aluminum Foil From the Republic of Türkiye: Preliminary Results and Partial Rescission of Countervailing Duty Administrative Review; 2022
• Circular Welded Non-Alloy Steel Pipe From the Republic of Korea: Preliminary Results of Antidumping Duty Administrative Review; 2022-2023
• Certain Aluminum Foil From Brazil: Preliminary Results of Antidumping Duty Administrative Review; 2022-2023
• Pure Magnesium From the People's Republic of China: Final Results of Antidumping Duty Administrative Review; 2022-2023
• Oil Country Tubular Goods From the Republic of Korea: Preliminary Results and Rescission, In Part, of Countervailing Duty Administrative Review; 2022
• Certain Aluminum Foil From the Sultanate of Oman: Preliminary Results of Countervailing Duty Administrative Review; 2022
• Chlorinated Isocyanurates From the People's Republic of China: Preliminary Results of the Countervailing Duty Administrative Review and Partial Rescission; 2022
• Certain Aluminum Foil From the Sultanate of Oman: Preliminary Results of Antidumping Duty Administrative Review; 2022-2023
• Certain Aluminum Foil From the Republic of Türkiye: Preliminary Results and Rescission, in Part, of Antidumping Duty Administrative Review; 2022-2023
• Large Diameter Welded Pipe From the Republic of Korea: Final Results of Antidumping Duty Administrative Review; 2022-2023
• Investigations; Determinations, Modifications, and Rulings, etc.: Hard Empty Capsules From Brazil, China, India, and Vietnam
• Certain Products Containing Tirzepatide and Products Purporting To Contain Tirzepatide; Notice of Request for Submissions on the Public Interest
• Certain Electronic Devices, Including Smartphones, Computers, Tablet Computers, and Components Thereof; Notice of a Commission Determination Not To Review an Initial Determination Granting Joint Motion To Terminate the Investigation Based on Arbitration; Termination of Investigation
• Steel Concrete Reinforcing Bar (Rebar) From Belarus, China, Indonesia, Latvia, Moldova, Poland, and Ukraine
   

CBP, U.S. Chamber Urge Holiday Shoppers to Beware of Counterfeits - U.S. Customs & Border Protection

Shop Smart campaign educates consumers to keep Americans and their families safe from fakes.

WASHINGTON – As consumers prepare for holiday shopping, U.S. Customs and Border Protection (CBP) and the U.S. Chamber of Commerce are hitting the airwaves and television networks nationwide to brief consumers on the counterfeit goods industry, equipping shoppers to ‘shop smart’ with the tools needed to spot, avoid, and take action against fakes.

“There are significant health and safety hazards associated with counterfeit products,” said AnnMarie R. Highsmith, Executive Assistant Commissioner for CBP’s Office of Trade. “We’ve seen it all – toys with elevated lead content to cosmetics with nasty ingredients you wouldn’t want on your skin. These aren’t the gifts you want to give to your family.”

Illegal actors exploit the holiday shopping surge to push counterfeits to unsuspecting consumers looking for deals. They often use the proceeds of these goods to support terrorism and other violent and illegal activities that put consumers at risk. The following tips can help keep families safe while ensuring their hard-earned money does not help fund criminal activity:

• Trust your instincts: If a deal seems too good to be true or an online advertisement links to a suspicious-looking website, it is best to use caution.
   
• Prioritize secure payments: When shopping online, only buy from sites that begin with https:// — the 's' stands for secure. Also, check for a lock symbol in your browser to confirm the site's safety.
   
• Examine every detail: When you receive products purchased online, pay close attention to labels, packaging, and contents. Watch out for broken or missing safety seals and unusual packaging, as these could all be signs of fake goods.
   
• Protect your data: Keep all your devices, including computers and smartphones, updated with the latest cybersecurity protections to fend off any potential cyber threats. Stay alert to suspicious websites that may conceal malware.
   
• Say something: Spread awareness among friends, family, and coworkers about counterfeit goods sold on illicit websites. Fake goods should be reported through CBP’s Trade Violations Reporting platform or the National Intellectual Property Rights (IPR) Center. Your actions can make online shopping safer and smarter for all.

“We’re always proud to team up with our colleagues at CBP to provide consumers with tips for safe shopping,” said Tom Quaadman, Senior Vice President for Economic Policy at the U.S. Chamber of Commerce. “Together, business and law enforcement are empowering consumers and families to stay safe this holiday season.”

Counterfeit goods are often made with inferior quality, which leads consumers to purchase and re-purchase the same items, generating excessive waste in U.S. landfills. Consumers are better off buying genuine goods from legitimate businesses, as they are more likely to last longer and to be made with safe materials.

In Fiscal Year 2024, CBP seized more than 32 million counterfeit items. Had these items been genuine, they would have been worth more than $5.4 billion - money that could be supporting law-abiding businesses and entrepreneurs who create jobs and contribute to U.S. economic stability.

For more information on how to shop smart, visit the U.S. Chamber of Commerce’s “Shop Smart” resources, as well as CBP’s Truth Behind Counterfeits website.
 

Dulles Agriculture Specialists Catch Two Dangerous Insect Pests of Distinction – One First-in-Port, One Not Seen in 40 Years - U.S. Customs & Border Protection

STERLING, Va. – U.S. Department of Agriculture entomologists recently confirmed that U.S. Customs and Border Protection agriculture specialists at Washington Dulles International Airport intercepted two insect pests that hold interesting distinction – a first-in-port discovery and one that hasn’t been observed here in 40 years.

CBP agriculture discovered the two insect pests while inspecting a shipment of 188 protea and chamelaucium cut-stem flowers imported from South Africa on October 7. The flowers were destined to an address in King George County, Va. CBP agriculture specialists routinely inspect flower imports to ensure that they are free of pests that pose serious threats to our nation’s agricultural and environmental resources.

Agriculture specialists safeguarded the specimens and sent them to the U.S. Department of Agriculture (USDA) entomologist. The entomologist identified the specimens as Caprhiobia sp. (Lygaeidae), and Oxycarenus maculatus (Protea seed bug). Both pests are known to occur in Africa.

Caprhiobia sp. (Lygaeidae) is a plant bug known to occur in South Africa that that has a voracious appetite and causes extensive damage to vegetation. The USDA entomologist consulted the national pest identifier database and confirmed this as a first-in-port discovery, meaning there has been no previous reported discovery of Caprhiobia sp. (Lygaeidae) in this region.

Oxycarenus maculatus is also known as the Protea seed bug. Seed bugs are a crop pest and poses a serious threat to our nation’s crop industries, such as corn, grains, wheat, cotton, fruit, tree nuts, and vegetables. The USDA entomologist consulted the national pest identifier database and confirmed that this insect pest has not been observed locally since November 1984.

“Invasive insect pests pose a severe threat to our agricultural industries and to our nation’s economic security,” said Marc Calixte, CBP’s Area Port Director for the Area Port of Washington, D.C. “Customs and Border Protection agriculture specialists remain steadfast on our nation’s frontline protecting our natural and agricultural resources from invasive pests and plants, and from animal and plant diseases that could cripple our nation’s economy.”

CBP agriculture specialists have extensive training and experience in the biological sciences and agricultural inspection, and they inspect tens of thousands of international air passengers, and air and sea cargoes being imported to the United States. They are on our nation’s frontlines to ensure our nation’s economic resilience by protecting our critical agricultural resources.

During a typical day last year, CBP agriculture specialists across the nation seized 3,287 prohibited plant, meat, animal byproducts, and soil, and intercepted 231 insect pests at U.S. ports of entry.

CBP's border security mission is led at our nation’s Ports of Entry by CBP officers and agriculture specialists from the Office of Field Operations. CBP screens international travelers and cargo and searches for illicit narcotics, unreported currency, weapons, counterfeit consumer goods, prohibited agriculture, invasive weeds and pests, and other illicit products that could potentially harm the American public, U.S. businesses, and our nation’s safety and economic vitality.
 

DOT Launches Rulemaking to Protect Passengers Stranded by Airline Disruptions - Department of Transportation

Rulemaking builds on Biden-Harris Administration’s enforceable flightrights.gov commitments and automatic refund rule, and would give passengers greater protections during disrupted travel

WASHINGTON – The U.S. Department of Transportation (DOT) today launched a rulemaking to protect passengers stranded by airlines canceling or significantly changing their flights. The Advance Notice of Proposed Rulemaking (ANPRM) seeks public comment on requiring airlines to pay passengers cash compensation, rebook them for free on the next available flight, and cover meals, overnight lodging, and related transportation expenses when a disruption is airline-caused, such as a mechanical issue or an IT airline system breakdown.

“Americans know the importance of a robust airline industry, which is why this country—and U.S. taxpayers — kept U.S. airlines afloat when the COVID pandemic threatened their very existence,” said U.S. Transportation Secretary Pete Buttigieg. “Now that we are on the other side of the pandemic and air travel is breaking records, we must continue to advance passenger protections. This action we’re announcing is another step forward into a better era for commercial air travel—where the flying public is better protected and passengers aren’t expected to bear the cost of disruptions caused by airlines.”

Cancellations and lengthy flight delays can pose significant hardship, stress, and financial cost to travelers. The Government Accountability Office (GAO) found that flight cancellations from July 2021 through April 2022 potentially affected over 15 million passengers and flight delays potentially affected over 116 million passengers. According to data from U.S. airlines submitted to DOT, in both 2022 and 2023, over 60% of three-hour or longer domestic flight delays were airline-caused.

Canada, Brazil, the European Union, the United Kingdom, and other countries have adopted consumer protections that compensate passengers and provide services when an airline causes a significant delay. One study found that the European Union’s compensation and service requirements reduced the likelihood and duration of flight delays.

U.S. airlines received $54 billion in taxpayer bailouts during the COVID-19 pandemic, helping the industry recover and enjoy record travel demand. While no U.S. airline provides cash compensation to passengers for airline-caused disruptions, following DOT actions, several airlines must provide at least $50 in credits or vouchers. Thanks to DOT pressure on airlines, the ten largest U.S. airlines have committed to rebook stranded passengers at no additional cost and cover meals during an airline-caused disruption, and nine have committed to providing lodging and related transportation expenses. However, airlines can change course on their customer service commitments at their discretion, and it is often up to the airlines to determine when they are responsible for a flight delay or cancellation.

Passengers currently face many challenges in holding airlines to their promises because there is no legal obligation for airlines to notify passengers when they are entitled to services promised in the customer service plan, and their policies are generally vague on the details of delivery. Passengers must also typically request these services at the airport in person, and frontline staff may not know if a flight disruption is airline-caused or may not have enough vouchers to provide upfront services to everyone. Airlines generally do not clearly disclose when, what, and how much they will reimburse passengers who pay out of pocket.

The Department’s rulemaking is aimed at addressing these gaps by establishing baseline standards on what airlines are obligated to deliver to stranded passengers during disruptions. The Department is considering the following requirements for airlines when there is a cancellation or lengthy delay due, in whole or in part, to any circumstance within the control of the airline:

• Pay at least $200 in cash compensation: DOT is considering requiring airlines to automatically pay cash compensation to passengers whose trip disruption is caused by an airline. DOT is considering a tiered approach where compensation could range from $200-$300 for domestic delays of at least three hours but less than six, $375-$525 for delays of at least six hours but less than nine, and $750-$775 for delays of nine hours or more. DOT is also considering whether small airlines should pay less than large airlines and whether or not compensation should be required when a passenger is notified a week or two in advance of the cancellation or significant delay.  
   
• Rebook at no additional cost on the next available flight: The Department is considering requiring airlines to offer free rebooking when the passenger’s flight is cancelled, their departure is delayed three hours or more domestically or six hours or more internationally, or if a delay results in a missed connection. DOT is considering requiring rebooking on the next available flight operated by the airline or its branded codeshare partners, and if flights on those airlines are not available within 24 hours, then any carrier that the airline has a commercial agreement to transport the airline’s passengers.  
   
• Cover meals, overnight lodging, and related transportation expenses: DOT is considering requiring airlines to provide meals, overnight lodging, and transportation to and from lodging for stranded passengers and establishing standards regarding what must be covered as part of each service, including how often it must be provided during lengthy disruptions. DOT is considering requiring airlines to automatically pay a minimum reimbursement for each service an affected passenger is entitled to receive when airlines do not provide these services upfront, and passengers do not submit receipts for costs up to a maximum reimbursement threshold per service.

The rulemaking also solicits comment on when to consider a cancellation or delay within an airline’s control; whether airlines should provide free rebooking and certain services, like meals, during significant delays or cancellations regardless of cause, like during extreme weather events; how to incentivize large airlines to provide rebooking reciprocity to small airlines or disincentivize large airline practices that prevent rebooking reciprocity; what notifications should be required to ensure that passengers receive the correct information from the airline in a timely manner; and what customer service standards might be necessary to minimize wait times for passengers affected by a cancellation or delay.

The ANPRM on Airline Passenger Rights is available HERE and provides the public with 60 days to offer comments.

DOT’s Historic Record of Consumer Protection Under the Biden-Harris Administration 

Under Secretary Buttigieg, DOT has advanced the largest expansion of airline passenger rights, issued the biggest fines against airlines for failing consumers, and secured returns of more money to passengers in refunds and reimbursements than ever before in the Department’s history. 

• Automatic Refund Rule: DOT issued a final rule that requires airlines to provide automatic cash refunds to passengers when owed. The rule makes clear that airline passengers are entitled to a refund when their flight is canceled or significantly changed and they no longer wish to take that flight or be rebooked, when their checked baggage is significantly delayed, or when extra services they paid for – like Wi-Fi – are not provided. The rule also requires refunds to be automatic, prompt, in the original form of payment, and in the full amount paid. Key automatic refund requirements for airlines went into effect on May 16, 2024, when President Biden signed the FAA Reauthorization Act of 2024 into law, and the remaining airline refund protections under DOT's rule are effective as of October 28, 2024.
• Passengers can better understand their rights under this new rule by reading this explainer. 
   
• Surprise Airline Junk Fee Rule: DOT issued a final rule to protect consumers from costly surprise airline junk fees. The rule fosters a more competitive airline market by requiring airlines to disclose critical extra fees upfront – like change fees and baggage fees – to ensure consumers can better understand the true cost of their travel. The rule also bans “bait-and-switch” advertising tactics and requires airlines to clearly tell passengers upfront that a seat is included with the cost of their ticket and they do not need to pay extra for one. Airlines have challenged this rule in court, and the court has put a temporary hold on implementation of the rule. The Department will continue to defend this rule and notes that nothing in the Court’s decision prevents airlines from voluntarily complying with this common-sense rule. If the rule were to go into effect, it would save consumers over half a billion dollars every year.
   
• Billions of Dollars Returned to Passengers: Since President Biden took office, DOT has helped oversee the return of almost $4 billion in refunds and reimbursements owed to airline passengers – including more than $600 million to passengers affected by the Southwest Airlines holiday meltdown in 2022 – through enforcement actions.
   
• Stronger Airline Oversight: Under Secretary Buttigieg, DOT has issued nearly $225 million in penalties against airlines for consumer protection violations. Between 1996 and 2020, DOT collectively issued $70 million in penalties against airlines for consumer protection violations. 
   
• Expanded Enforcement Capacity: DOT launched a new partnership with a bipartisan group of state attorneys general to fast-track the review of consumer complaints, hold airlines accountable, and protect the rights of the traveling public. 
   
• Lowest Flight Cancellations in 10+ Years: In 2023, the flight cancellation rate in the U.S. was a record low at under 1.2 percent – the lowest rate of flight cancellations in over 10 years despite a record amount of air travel.
   
•  Inquiries on Privacy Practices and Rewards Programs: DOT is undertaking its first ever industry-wide review of airline privacy practices and its first inquiry into airline rewards programs. 

In addition to finalizing the rules to require automatic refunds and protect consumers from surprise fees, DOT has proposed:

• Banning Family Seating Junk Fees: DOT has proposed to ban family seating junk fees and guarantee that parents can sit with their children for no extra charge when they fly. Before President Biden and Secretary Buttigieg pressed airlines last year, no airline committed to guaranteeing fee-free family seating. Now, four airlines guarantee fee-free family seating, as the Department is working on its family seating junk fee ban proposal. 
   
• Protecting Passengers Who Use Wheelchairs: DOT has proposed to expand the rights for passengers who use wheelchairs and ensure that they can travel safely and with dignity. The Department is actively working on a final rule now. 

For information about airline passenger rights, as well as DOT’s rules, guidance, and orders, visit the Department’s aviation consumer website: https://www.transportation.gov/airconsumer.

FDA Proposes Rule to Require Standardized Testing Methods for Detecting and Identifying Asbestos in Talc-Containing Cosmetic Products - Food & Drug Administration

Today (12/26/24), the U.S. Food and Drug Administration (FDA) announced a proposed rule to establish and require standardized testing methods to detect and identify asbestos in talc-containing cosmetic products. This proposed rule, if finalized, will help protect consumers who use talc-containing cosmetic products from harmful exposure to asbestos. This proposal is part of the agency’s work to fulfill the requirements of section 3505 of the Modernization of Cosmetics Regulation Act of 2022 (MoCRA).

“For many years the FDA has been sampling and testing talc-containing cosmetics for asbestos as well as working with our federal partners on efforts to reduce consumers’ risk of exposure to asbestos, a known human carcinogen, from contaminated talc-containing cosmetic products,” said Linda Katz, M.D., M.P.H., director of the FDA's Office of Cosmetics and Colors. “We have carefully considered the scientific evidence and complex policy issues related to detecting and identifying asbestos in talc and talc-containing cosmetic products.  We believe that the proposed testing techniques are appropriate methods to detect asbestos to help ensure the safety of talc-containing cosmetic products.”

Talc is a naturally occurring mineral that has many uses in cosmetics and other personal care products, such as absorbing moisture, preventing the appearance of caking, making facial makeup opaque, or improving the feel of a product. Asbestos, a known carcinogen, is found in the same rock types as talc deposits and may be inseparable from talc in the mining process. Because there is the potential for contamination of talc with asbestos, it is important to test for the presence of asbestos in talc-containing cosmetic products.

The proposed rule would require manufacturers of talc-containing cosmetic products to test for asbestos using an analytical approach that includes both Polarized Light Microscopy (PLM) (with dispersion staining) and Transmission Electron Microscopy (TEM)/Energy Dispersive Spectroscopy (EDS)/Selected Area Electron Diffraction (SAED) to detect and identify the presence of asbestos. Manufacturers may alternatively rely on a certificate of analysis from the talc supplier. The proposed rule contains provisions that would require manufacturers to keep records to demonstrate compliance with the rule.

If the proposed rule is finalized, cosmetic products would be considered adulterated under the Federal Food, Drug, and Cosmetic Act (FD&C Act) if a manufacturer fails to operate in compliance with either the testing or recordkeeping requirements of the rule. The proposed rule also states that if asbestos is present in a cosmetic product, or in talc used in a cosmetic product, that cosmetic product is adulterated under the FD&C Act; and that if asbestos is present in talc intended for use in a cosmetic, that talc is adulterated under the FD&C Act. The FDA encourages public comment on this proposed rule. The comment period will end 90 days after the date of publication in the Federal Register. After the comment period closes, the FDA will review and consider comments as it develops the final rule.
 

Petitions Filed Requesting the Imposition of Antidumping and Countervailing Duties on Imports of Active Anode Material from the People’s Republic of China - Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP

On December 18, 2024, American Active Anode Material Producers filed a petition requesting the imposition of antidumping and countervailing duties on the imports of Active Anode Material from the People’s Republic of China. The petition alleges dumping margins of 828% – 921%. The petition identifies certain foreign producers/exporters and U.S. importers of the merchandise at issue.

The product within the scope of this investigation is active anode material, whether synthetic, natural, or a blend of synthetic or natural; with or without coating; regardless of whether in powder, dry, liquid, or any other form. Subject merchandise typically has a maximum size of 80 microns. Subject merchandise has an energy density of 330 milliamp hours per gram or greater and a degree of graphitization of 80% or greater. Please see the petition for a more detailed description of the covered merchandise and exclusions.

The projected date of the International Trade Commission’s Preliminary Conference is January 8, 2025. The earliest theoretical date for retroactive suspension of liquidation for AD is February 26, 2025; the date for CVD is January 7, 2025.

Please feel free to contact one of our attorneys for further information, including a complete scope description; complete projected schedule for the AD and CVD investigations; the volume and value of imports; and list of identified foreign exporters and U.S. importers.
 

USTR Initiates Section 301 Investigation on China’s Acts, Policies, and Practices Related to Targeting of the Semiconductor Industry for Dominance - US International Trade Representative

WASHINGTON – United States Trade Representative Katherine Tai announced today the initiation of an investigation regarding China’s acts, policies, and practices related to targeting of the semiconductor industry for dominance. The investigation will be conducted under Section 301 of the Trade Act of 1974, as amended.
 
Evidence indicates that China seeks to dominate domestic and global markets in the semiconductor industry and undertakes extensive anticompetitive and non-market means, including setting and pursuing market share targets, to achieve indigenization and self-sufficiency. China’s acts, policies, and practices appear to have and to threaten detrimental impacts on the United States and other economies, undermining the competitiveness of American industry and workers, critical U.S. supply chains, and U.S. economic security.

“This investigation underscores the Biden-Harris Administration’s commitment to standing up for American workers and businesses, increasing the resilience of critical supply chains, and supporting the unparalleled investment being made in this industry,” said Ambassador Katherine Tai.
 
The investigation will initially focus on China’s manufacturing of foundational semiconductors (also known as legacy or mature node semiconductors), including to the extent that they are incorporated as components into downstream products for critical industries like defense, automotive, medical devices, aerospace, telecommunications, and power generation and the electrical grid. The investigation will also initially assess whether the impact of China’s acts, policies, and practices on the production of silicon carbide substrates (or other wafers used as inputs into semiconductor fabrication) contributes to any unreasonableness or discrimination or burden or restriction on U.S. commerce.
 
As explained in a formal notice, USTR will be seeking public comments and will hold a public hearing in connection with this investigation. A docket for comments regarding the investigation will open on January 6, 2025. 
 
Background 

Section 301 of the Trade Act of 1974, as amended, (Trade Act) is designed to address unfair foreign practices affecting U.S. commerce. Section 301(b) may be used to respond to unreasonable or discriminatory foreign government practices that burden or restrict U.S. commerce. Under Section 302(b) of the Trade Act, the U.S. Trade Representative may self-initiate an investigation under Section 301. 
 
The U.S. Trade Representative must seek consultations with the foreign government whose acts, policies, or practices are under investigation. USTR has requested consultations with China in connection with the investigation.

Federal Register Notices:

• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Ceramic Tile From the People's Republic of China: Rescission of Countervailing Duty Administrative Review; 2023
• Steel Concrete Reinforcing Bars From Belarus, the People's Republic of China, Indonesia, Latvia, Moldova, Poland, and Ukraine: Continuation of Antidumping Duty Orders
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: High Chrome Cast Iron Grinding Media From India; Scheduling of the Final Phase of Countervailing Duty and Antidumping Duty Investigations
• Investigations; Determinations, Modifications, and Rulings, etc.: Float Glass Products From China and Malaysia; Revised Schedule for the Subject Investigations
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Activated Carbon From the People's Republic of China: Amended Final Results of Antidumping Duty Administrative Review; 2022-2023
• Phosphate Fertilizers From the Kingdom of Morocco: Notice of Amended Final Results of Countervailing Duty Administrative Review; 2022
• Circular Welded Carbon Quality Steel Line Pipe From the People's Republic of China: Final Results of the Expedited Sunset Review of the Countervailing Duty Order
• Frozen Warmwater Shrimp From Indonesia: Antidumping Duty Order; Frozen Warmwater Shrimp From Ecuador, India, and the Socialist Republic of Vietnam: Countervailing Duty Orders
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Active Anode Material From China; Institution of Antidumping and Countervailing Duty Investigations and Scheduling of Preliminary Phase Investigations
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Certain Activated Carbon From the People's Republic of China: Amended Final Results of Antidumping Duty Administrative Review; 2022-2023
• Phosphate Fertilizers From the Kingdom of Morocco: Notice of Amended Final Results of Countervailing Duty Administrative Review; 2022
• Circular Welded Carbon Quality Steel Line Pipe From the People's Republic of China: Final Results of the Expedited Sunset Review of the Countervailing Duty Order
• Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Active Anode Material From China; Institution of Antidumping and Countervailing Duty Investigations and Scheduling of Preliminary Phase Investigations
   

$18 Million in Earrings, Necklaces, Bracelets & Watches seized by Louisville CBP - U.S. Customs & Border Protection

LOUISVILLE, Ky — In two days, last week, U.S. Customs and Border Protection (CBP) officers in Louisville seized four shipments containing 962 pieces of counterfeit designer watches, bracelets, necklaces, and earrings. The items were deemed to be counterfeit by CBP’s Centers of Excellence and Expertise, the agency’s trade experts, and if genuine, would have had a combined Manufacturer’s Suggested Retail Price (MSRP) over $18 million.

The shipments arrived from Hong Kong and China on December 17 and 18. When CBP officers examined the shipments to determine the admissibility of the goods, they found 459 bracelets displaying the logos of Cartier, Chanel, Fendi, Hermes, Louis Vuitton, and Van Cleef and Arpels, 43 pairs of earrings with Van Cleef and Arpels and Cartier logos, 20 necklaces with Van Cleef and Arpels logos, and 440 watches bearing the Rolex logo. The items were seized for infringing on the designer’s protected trademarks. The shipment was heading to residences in Arizona, Virginia, Florida and New York and had the items been real, the MSRP for these products would have been $18.81 million.

“Counterfeit items defraud both the consumer and legitimate businesses. Our officers are committed to diligently working to protect our economy and the American consumer,” said LaFonda D. Sutton-Burke, Director, Field Operations, Chicago Field Office. “Customs and Border Protection urges you to protect your families by purchasing authentic consumer products from reputable retailers.”

The illicit trafficking of counterfeit goods offers criminals a complementary source of income and a way through which they can launder money. Additionally, monies received from the sale of counterfeit products can be channeled towards the further production of fake goods or other illicit activities. Additionally, counterfeiting is a hugely profitable business, with criminals relying on the continued high demand for cheap goods coupled with low production costs.

CBP provides basic import information about admissibility requirements and the clearance process for e-commerce goods and encourages buyers to confirm that their purchases and the importation of those purchases comply with state and federal import regulations.

CBP has established an educational initiative to raise consumer awareness about the consequences and dangers often associated with the purchase of counterfeit and pirated goods. Information about the Truth Behind Counterfeits public awareness campaign can be found at https://www.cbp.gov/FakeGoodsRealDangers.

Every year, CBP seizes millions of counterfeit goods from countries around the world as part of its mission to protect U.S. businesses and consumers. These goods include fake versions of popular products, such as smartphones and related accessories, electronics, apparel, shoes, cosmetics, and high-end luxury goods, as well as goods posing significant health and safety concerns, such as counterfeit pharmaceuticals, bicycle and motorcycle helmets, medical devices, supplements and other consumables. Sold online and in stores, counterfeit goods hurt the U.S. economy, cost Americans their jobs, threaten consumer health and safety, and fund criminal activity. Visit the National IPR Coordination Center for more information about IPR including counterfeiting and piracy.

Federal Trade Commission Announces Bipartisan Rule Banning Junk Ticket and Hotel Fees - Federal Trade Commission

Rule targets bait-and-switch pricing for live-event tickets and short-term lodging

The Federal Trade Commission today announced a final Junk Fees Rule to prohibit bait-and-switch pricing and other tactics used to hide total prices and bury junk fees in the live-event ticketing and short-term lodging industries. These unfair and deceptive pricing practices harm consumers and undercut honest businesses.

“People deserve to know up-front what they’re being asked to pay—without worrying that they’ll later be saddled with mysterious fees that they haven’t budgeted for and can’t avoid,” said FTC Chair Lina M. Khan. “The FTC’s rule will put an end to junk fees around live event tickets, hotels, and vacation rentals, saving Americans billions of dollars and millions of hours in wasted time. I urge enforcers to continue cracking down on these unlawful fees and encourage state and federal policymakers to build on this success with legislation that bans unfair and deceptive junk fees across the economy.”

The Junk Fees Rule will ensure that pricing information is presented in a timely, transparent, and truthful way to consumers of live-event tickets and short-term lodging, two industries whose pricing practices the Commission has studied in particular. Consumers searching for hotels or vacation rentals or seats at a show or sporting event will no longer be surprised by a pile of “resort,” “convenience,” or “service” fees inflating the advertised price. By requiring up-front disclosure of total price including fees, the rule will make comparison shopping easier, resulting in savings for consumers and leveling the competitive playing field.

The Commission launched this rulemaking in 2022 by requesting public input on whether a rule could help eliminate unfair and deceptive pricing tactics. After receiving more than 12,000 comments on how hidden and misleading fees affected personal spending and competition, the FTC announced a proposed rule in October 2023 and invited a second round of comments. The Commission received more than 60,000 additional comments which it considered in developing the final rule announced today.

The FTC estimates that the Junk Fees Rule will save consumers up to 53 million hours per year of wasted time spent searching for the total price for live-event tickets and short-term lodging. This time savings is equivalent to more than $11 billion over the next decade.

The Final Rule

The final rule targets specific and widespread unfair and deceptive pricing practices in the sale of live-event tickets and short-term lodging, while preserving flexibility for businesses. It does not prohibit any type or amount of fee, nor does it prohibit any specific pricing strategies. Rather, it simply requires that businesses that advertise their pricing tell consumers the whole truth up-front about prices and fees.

To accomplish this, the Junk Fees Rule requires that businesses clearly and conspicuously disclose the true total price inclusive of all mandatory fees whenever they offer, display, or advertise any price of live-event tickets or short-term lodging. Businesses cannot misrepresent any fee or charge in any offer, display, or ad for live-event tickets or short-term lodging.

In addition, the rule requires businesses to display the total price more prominently than most other pricing information. This means that the most prominent price in an ad needs to be the all-in total price—truthful itemization and breakdowns are fine but should not overshadow what consumers want to know: the real total.

Finally, the rule requires businesses that exclude allowable fees up front to clearly and conspicuously disclose the nature, purpose, identity, and amount of those fees before consumers consent to pay. For instance, businesses that exclude shipping or taxes from the advertised price must clearly and conspicuously disclose those fees before the consumer enters their payment information.

Industries beyond live-event ticketing and short-term lodging are prohibited from deceiving consumers about fees and pricing per longstanding law. The FTC will use its law enforcement authority to continue to rigorously pursue bait-and-switch pricing tactics, such as drip pricing and misleading fees, in other industries through case-by-case enforcement.

The Commission vote approving publication of the final rule was 4-1, with Commissioner Andrew Ferguson dissenting. Chair Lina M. Khan issued a separate statement, as did Commissioner Rebecca Kelly Slaughter. Commissioner Melissa Holyoak issued a concurring statement and Commissioner Andrew Ferguson issued a dissenting statement. The final rule will become effective 120 days after its publication in the Federal Register.

The primary staffers leading development of the final rule are Annette Soberats, Stacy Cammarano, and Karen Mandel in the FTC’s Bureau of Consumer Protection. 
 

TSA Unleashes its 2025 Canine Calendar: Download Now! - TSA

WASHINGTON – The Transportation Security Administration (TSA) today released the 2025 TSA Canine Calendar, an annual tradition honoring the agency’s more than 1,000 explosives detection canines working across the United States. The 2025 TSA Canine Calendar is now available for immediate download.

TSA uses canines as a critical component of its multilayered security strategy. Each year,  about 300 new canine recruits complete an intensive 16-week training program at the TSA Canine Training Center, located at Joint Base San Antonio-Lackland in San Antonio, Texas. During training, these highly skilled canines are paired with their handlers, master the art of detecting a variety of explosives odors, and socialize to adapt to busy transportation environments before reporting to their permanent duty stations.

The 2025 TSA Canine Calendar highlights 13 extraordinary canines selected from more than 80 entries submitted by TSA teams nationwide. Each month features photos and fun facts about these canine heroes. This year’s lineup includes:

• Argo: Baltimore/Washington International Thurgood Marshall Airport (BWI)
• Arina: Phoenix Sky Harbor International Airport (PHX)
• Badger: Chicago O'Hare International Airport (ORD)
• Barni: San Francisco International Airport (SFO)
• Bely: Charleston International Airport (CHS)
• Beny: Boston Logan International Airport (BOS)
• Birdie: Milwaukee Mitchell International Airport (MKE)
• Bruno: Jackson-Medgar Wiley Evers International Airport (JAN)
• Carlo: Kansas City International Airport (MCI)
• Dodo: Portland International Airport (PDX)
• Hary: Richmond International Airport (RIC)
• Kipper: San Diego International Airport (SAN)
• Smokie: Dallas Love Field (DAL)

The calendar features Cutest Canine Contest winner, Barni, a five-year-old German Shorthaired Pointer explosives detection canine at San Francisco International Airport. Barni combines a calm and professional demeanor with a sweet and playful side, and enjoys chasing squirrels, greeting his four-legged co-workers and playing fetch with a squeaky ball.

TSA canines and their handlers are vital in detecting explosives and deterring threats across all transportation modes. These teams exemplify dedication, teamwork, and unwavering commitment to transportation security and keeping the traveling public safe. For a behind the scenes look at what it is like to be an explosives detection canine handler, see our Explosives Detection Canine Handler video.

Visit TSA.gov for more information about TSA’s Explosives Detection Canine Program.