The Office of the U.S. Trade Representative is seeking comments on whether to reinstate certain previously extended exclusions to the Section 301 tariffs on Chinese goods that mostly expired Dec. 31, says Friday’s Federal Register. USTR will evaluate the possible reinstatement of each exclusion on a “case-by-case basis,” focusing on whether a particular product remains available only from China, despite the imposition of the tariffs that began with the List 1 duties in September 2018, said the agency. USTR also wants to know what supply chain changes have happened in the past three years and what efforts importers have made to source products from countries other than China, including from the U.S. Any exclusions that are reinstated will be retroactive to Tuesday, when USTR’s public docket for comments opens. The docket closes Dec. 1. USTR Katherine Tai said this week that reinstating a "targeted" exclusion process would be a near-term component of the Biden administration's trade policy toward China (see 2110040025).

Intel is optimistic about the results of last week’s inaugural meeting in Pittsburgh of the EU-U.S. Trade and Technology Council (see 2110010037) because it has “significant operations on both sides of the Atlantic, including semiconductor plants and R&D centers,” blogged Chief Trade Officer Jeff Rittener Tuesday. “The conversations that took place take us one step closer to alignment on regulatory policies to help reduce trade barriers.” The TTC established a multilateral approach to export controls as a top priority for “supporting a global level-playing field,” he said. “A harmonized export control regime among like-minded transatlantic partners would ensure products are available in an increasingly digital world.” The regime has “significant potential for increased cooperation and harmonization between the U.S. and the EU, especially as narratives such as technological sovereignty and open strategic autonomy shape dialogues,” said Rittener. “Both entities should make sure that any new controls are smart controls that meet the national security objectives of the EU and U.S.”

The National Retail Federation took a hard line on the Biden administration staying the course on Section 301 tariffs on Chinese imports while seeking to reengage Beijing in bilateral trade talks (see 2110040025). U.S. businesses “continue to be severely impacted by the tariffs put into place by the previous administration,” said David French, NRF senior vice president-government relations. “The continuation of these harmful tariffs worsens the challenges thousands of retailers must navigate, especially at a time when many are only beginning to emerge from the serious economic damage they have suffered as a result of the global pandemic,” he said Monday. “It is critical the administration initiate immediate discussions with China so we can level the international playing field and bring an end to the global supply chain disruption.” The U.S. plans to “directly engage with China” to hold Beijing accountable for its phase one trade deal commitments, while keeping the existing tariffs in place but launching a “targeted” new tariff exclusion process, U.S. Trade Representative Katherine Tai told a Center for Strategic and International Studies conference Monday.

The FCC released best practices for the disposal of Huawei and ZTE gear removed as part of the rip and replace program, in a notice listed in Friday’s Daily Digest. These include "procedures to effectuate equipment removal, data destruction, media sanitization, storage, transportation, physical destruction and recycling, and also cover the selection of certified data sanitization services, equipment destruction services, and electronic waste (e-waste) recycling services,” the Wireline Bureau public notice said: While voluntary, these practices will help companies meet their disposal obligations efficiently, while also ensuring the safe and secure removal and disposal of covered communications equipment and services that pose a national security threat.” Carriers “can employ alternative compliance measures, but risk the Commission subsequently finding that such measures are not in compliance with section 1.50004(j) of its rules,” the PN said. The Rural Wireless Association raised concerns some of its members are already in the process of disposing of gear, staff said. The FCC will keep in mind these providers “could not have known the best practices” in the PN and will “take this into account when evaluating compliance,” the bureau said. Choice of vendor is optional, but the notice recommends using a “U.S. disposal company” registered with the State Department’s Directorate of Defense Trade Controls.

Stakeholders unveiled their wish lists for the EU-U.S. Trade and Technology Council, before the TTC's first meeting Wednesday in Pittsburgh. The council had planned to approve an agreement on the way forward at the meeting, the European Commission told us. The joint EU-U.S. TTC statement sets out five areas of joint work -- investment screening, export controls, AI, semiconductors and global trade challenges -- and establishes 10 working groups. The export control panel will hold a joint virtual event for stakeholders Oct. 27. The American Chamber of Commerce for the EU set out priorities Tuesday for working groups it expects to be established. It seeks a "transparent and open stakeholder engagement mechanism" to ensure outcomes are supported by business. The European Consumer Organisation said consumer groups "support the voluntary exchange of best practices and information between regulators" as long as it doesn't weaken EU ambitions to better safeguard consumers. It said the EU recently tried to improve the transparency of its cooperation with third countries: "This is a positive process that should continue." The Information Technology Industry Council made requests, saying the TTC's work "can be best supported by a successor agreement to the Privacy Shield." Chips "should top the EU-US partnership agenda," Intel blogged.

The White House denied any prisoner swap in the release from Canadian custody of Huawei Chief Financial Officer Meng Wanzhou and the repatriation of Canadians Michael Kovrig and Michael Spavor from Chinese imprisonment a few hours apart Friday (see 2109250001). “There is no link,” Press Secretary Jen Psaki told a media briefing Monday. “We can’t determine how the Chinese or others manage their business over there,” she said. “But we have an independent Justice Department that made independent decisions -- law enforcement decisions. At the same time, we have made no secret about our push to have the two Michaels released. That’s certainly positive news and good news.”

Imported Apple products should be subject to a withhold release order (WRO) from Customs and Border Protection and be blocked at the ports from entering the U.S. due to possible involvement of Chinese forced labor in their production, said the Campaign for Accountability (CfA) in a Monday filing. The seizure of Apple imports "credibly tied to forced labor would be consistent with" other recent CBP enforcement actions, said the nonprofit. "There is now compelling evidence that Apple iPhones, computers, and other products should be added to the list." CfA believes "there is sufficient evidence to conclude that Apple, the world’s most valuable company, is in violation of the Tariff Act," said Executive Director Michelle Kuppersmith. By issuing a WRO and preventing the importation of Apple products linked to forced labor, CBP "has the power to compel Apple into action beyond its blanket, face-saving denials,” she said. Lawmakers asked Apple in June to work closely with CBP to be sure iPhones and other products are free of forced-labor entanglements. Apple didn't comment Monday but claimed previously its supply chains are free of forced labor. "Apple’s repeated claims to have 'thoroughly investigated' the forced labor issue are suspect, given the evidence that such factory inspections appear to be challenging, if not impossible, in China," CfA said. The group made the filing through CBP's e-Allegations portal to report suspected trade law violations. Recent Department of Homeland Security records said CBP typically accepts or rejects WRO petitions within 30 days.

Leaders of Quad countries Australia, India, Japan and the U.S. ended their summit in Washington with the commitment to “fostering an open, accessible, and secure technology ecosystem, based on mutual trust and confidence,” said the White House Friday. Design, development, governance and use of technology “should be an equitable and inclusive process that neither involves nor results in unfair discriminatory action,” it said. “Technology should not be misused or abused for malicious activities such as authoritarian surveillance and oppression, for terrorist purposes, or to disseminate disinformation.” The countries agree that “resilient, diverse, and secure technology supply chains” for hardware, software and services “are vital to our shared national interests,” it said. “Close cooperation on supply chains with allies and partners who share our values will enhance our security and prosperity, and strengthen our capacity to respond to international disasters and emergencies,” said the statement. “We welcome all nations to join us in pursuit of this shared vision for technologies.” China gave strong indications Monday it won't accept the invitation anytime soon. "Relevant countries should abandon the outdated Cold War zero-sum mentality and ideological bias, stop forming closed and exclusive cliques and do more to promote solidarity and cooperation," said a Foreign Affairs Ministry spokesperson.

The chip shortage is “impacting many items” at Costco, especially the in-stock availability of computers, tablets and videogame consoles, said Costco Chief Financial Officer Richard Galanti on a call Thursday for fiscal Q4 ended Aug. 29. “This will likely extend into 2022,” he said. “We're ordering as much as we can,” as early as possible, he said. “Inflationary factors abound” from higher labor and freight costs, exacerbated by “container shortages and port delays,” he said. “We continue to work to mitigate cost increases in a variety of different ways and hold down and/or mitigate our price increases passed onto the members.” Costco has chartered three “ocean vessels” for the next year to transport containers between Asia and North America, “and we've leased several thousand containers for use on these ships,” said Galanti. “Every ship can carry 800 to 1,000 containers at a time and we'll make approximately 10 deliveries during the course of the next year.” Costco's electronics sales in the quarter were "very good," but up against a tough comparison with a year earlier when "we had really outsized sales," said the CFO.

The U.S. and Australia agree “resilient, diverse, and secure supply chains are essential” for economic prosperity and national security and are “committed to strengthening bilateral and multilateral cooperation in critical sectors,” they said in a joint statement at the conclusion of their “ministerial consultations” Thursday. Both countries also are committed “to creating supply chain policies that mitigate negative environmental efforts and are designed to result in supply chains that incorporate and facilitate climate action,” they said. The U.S. and Australia “confirmed their continued commitment to harnessing the full potential of data and the digital economy,” they said. They plan to continue working with international partners “to promote rules that support the free flow of international data, including personal information,” they said. Secretary of State Antony Blinken hosted the talks. Defense Secretary Lloyd Austin also participated, as did Australian Foreign Affairs Minister Marise Payne and Defense Minister Peter Dutton.