A plastic-covered paperboard album set to hold CDs and DVDs is classifiable as a duty-free album for collectibles, not as a storage container or box file, Customs and Border Protection said in a recent tariff classification ruling: The album set, imported by Target, is a composite good made up of three album binders and a slipcase, each made of paperboard coated in polyvinyl chloride.
Developing countries could boost their economies by billions of dollars if they signed on to the 1996 Information Technology Agreement, reported the Information Technology and Innovation Foundation Monday. The ITA eliminates tariffs on hundreds of information and communication technology products for its current 82 signatory countries, but some developing countries haven’t signed because they don’t want to give up income generated by targeted tariffs, ITIF said. Economic growth and associated increase in tax revenue that would accompany ITA “would bolster Argentina’s economic growth by an estimated 1.52 percent, or $12.7 billion in additional output, in the 10th year; Cambodia’s by 0.98 percent or $320 million; Chile’s by 0.23 percent or $920 million; Kenya’s by 1.29 percent or $1.4 billion; Pakistan’s by 1.30 percent or $4.6 billion; and South Africa’s by 0.17 percent or $770 million.” ITIF said Chile and South Africa would see a smaller economic impact from signing on because “these countries already have relatively low tariff rates on ITA-covered ICT products.”
President Donald Trump's Thursday notice to Congress that he plans to renegotiate the North American Free Trade Agreement spurred tech groups to recommend the White House address copyright-related issues in any update of the 1994 deal. NAFTA hasn't changed, “while our economy and businesses have changed considerably,” said U.S. Trade Representative Robert Lighthizer in a letter to House and Senate leaders: “Many chapters are outdated and do not reflect modern standards. For example, digital trade was in its infancy when NAFTA was enacted. In addition, and consistent with the negotiating objectives in the Trade Priorities and Accountability Act, our aim is that NAFTA be modernized to include new provisions to address” IP rights and other issues. The administration can begin renegotiation 90 days after notifying Congress, the White House said. Commerce Secretary Wilbur Ross hailed the move as a sign that “free and fair trade is the new standard for U.S. trade deals.” The Telecommunications Industry Association believes it's a “timely opportunity” to update the agreement “by incorporating new rules of digital trade and related policies that will make internet-based services and other digital products more affordable and accessible,” said Senior Vice President-Government Affairs Cinnamon Rogers: “It is essential to maintain existing elements of the agreement that have contributed to U.S. leadership" in information and communications technology. NAFTA “was negotiated before the emergence of the Internet as an engine for international commerce, and consequently lacks rules protecting and promoting digital trade,” said BSA|The Software Alliance. Any inclusion of a chapter in the renegotiated NAFTA on copyright "must have mandatory language on copyright limitations and exceptions, including fair use,” the Re:Create Coalition said.
Arris filed a Tariff Act Section 337 complaint at the International Trade Commission earlier this month, seeking a ban on imports of Sony consumer electronic devices that allegedly infringe its patents. Sony allegedly is importing patent-infringing TVs, including Android TVs, gaming consoles such as the PlayStation 4, smartphones and tablets, including Sony’s Xperia line, and network-enabled Blu-Ray/DVD players. The ITC seeks comments by May 23, it said in Monday's Federal Register. Sony didn't comment Tuesday.
The Senate on an 82-14 vote confirmed Robert Lighthizer as U.S. trade representative Thursday (see here), the last of President Donald Trump’s Cabinet nominees to be confirmed, after partisan tensions over a legislative waiver to exempt Lighthizer from a foreign representation prohibition for USTRs complicated his path. Tech groups welcomed the action. Lighthizer (see 1703220015) was an attorney for Skadden Arps from 1985 to 2017, where he represented large U.S. companies and coalitions in antidumping and countervailing duty cases and at the World Trade Organization. He also was deputy USTR 1983-85. Republican Sens. Ben Sasse of Nebraska and John McCain of Arizona earlier this week voiced concerns about the then-nominee. Issuing supportive statements: BSA|The Software Alliance, CTA, the Internet Association and Telecommunications Industry Association.
The International Trade Commission began a Tariff Act Section 337 investigation into allegations that imports of Hytera two-way radio equipment infringe patents held by Motorola Solutions, the ITC said. “The products at issue in the investigation are ‘push-to-talk’ radio devices and related support devices such as repeaters, base stations, and dispatch stations.” The commission said Friday it will consider issuing a limited exclusion order and cease and desist orders banning import and sale of infringing products. Hytera "will defend itself against these allegations, and we are fully confident that we will prevail," the company said on its website. Motorola sees Hytera’s trade practices as "both unscrupulous and unlawful," said General Counsel Mark Hacker in a Friday news release.
The International Trade Commission voted to begin a Tariff Act Section 337 investigation on imports of LTE wireless communication devices imported by Blu Products, the ITC said in Monday's Federal Register. In a complaint filed in March (see 1703270059), LG Electronics said Blu’s Dash, Energy, Life, Neo, Pure, Speed, Studio, Vivo, Win and R1 HD mobile phone products infringe its patents. As the technologies are essential to the LTE communication standard, LG committed to license use of the patents on fair terms, and Blu hasn't responded to LG’s attempts to negotiate a fair and reasonable licensing deal, LG said. Blu didn't reply to our queries.
CTA lauded Reps. Erik Paul, R-Minn., and Suzan DelBene, D-Wash., Monday for forming the Congressional Digital Trade Caucus. The caucus will promote “a free and open internet to support the digital needs of manufacturers and service providers” and “free cross-border data flows” and no data localization requirements, a DelBene news release said. It hopes to ensure “trading partners allow open online and cloud platforms by not requiring them to filter speech” and kill “requirements that businesses transfer technology, source code or encryption keys,” it said. The caucus “will help ensure that the administration's stated goal of strengthening trade agreements -- for instance by adding provisions on cross border data flows, fair use and intermediary liability protections -- will become a new standard for negotiations,” CTA President Gary Shapiro said. “This new bipartisan caucus will ensure continued American leadership in the digital economy by promoting trade policies that harness the power of the internet and technology to reach new customers around the world,” Paulsen said.
The Trump administration may launch Section 232 investigations that could result in additional tariffs on semiconductors and other goods, Commerce Secretary Wilbur Ross said, according to a report in The Wall Street Journal. The investigations would determine the effects of imports of each product and their effects on national security, potentially resulting in tariffs or other import and export restraints.
Customs and Border Protection again said a redesign of network switches imported by Arista Networks falls outside of an International Trade Commission limited exclusion order, Arista said in an SEC filing. Arista is in litigation with Cisco over patent infringement allegations (see 1701170063). The ruling, sent to Arista April 7, is a reversal for CBP, after the agency revoked a similar finding in January. "CBP has issued instructions to the U.S. ports to permit entry of the Company’s redesigned products for consumption and sale," Arista said Tuesday. The ruling followed an "inter partes process" that included "extensive briefing by both parties and a hearing during which both parties presented their arguments," Arista emailed.