Privacy Shield, the trans-Atlantic data transfer pact just approved by the European Commission, is "a good thing," wrote Michelle Dennedy, Cisco chief privacy officer, in a Tuesday blog post. She said the new self-certification agreement (see 1607120001), unlike its predecessor, safe harbor, provides checks and balances in U.S. government access to data and improves transparency and accountability of companies. Cisco intends to sign up for Privacy Shield, said Dennedy, but the company will continue to offer other mechanisms like model contractual clauses (see 1607060009). "As much as this may feel like a big compliance headache, one thing is certain," she said. "Both sides of the Atlantic take the need to address EU privacy concerns very seriously. Ultimately, it will drive trust in business and confidence with customers, regulators and citizens alike, and that is always a good thing."
The FCC issued guidance on the July 1 suspension of Form 740 filing requirements. The agency temporarily waived the Form 740 requirements until the end of the year for imported RF devices due to the transition to automated commercial environment for customs. "This suspension only eliminates the filing requirements; all other requirements related to importation and to compliance with equipment authorization rules for radio frequency equipment continue to apply," the FCC said Wednesday.
Secretary of Commerce Penny Pritzker will speak Friday at the Aspen Institute's Aspen Ideas Festival, the Department of Commerce said Wednesday. Pritzker is expected to discuss “opportunities for growth in the digital economy, as well as the challenges it presents for both governments and businesses,” Commerce said in a news release. Pritzker's session with Aspen Institute President Walter Isaacson also is expected to address cybersecurity, workforce training and policy issues the next presidential administration will need to address, Aspen said. Pritzker will speak at noon MDT.
The Electronic Components Industry Association and other trade groups stopped an industry recommendation from going forward for a Customs and Border Protection pilot program to test a new approach to gray market imports, said the ECIA in a Sunday news release. It said the ECIA, Semiconductor Industry Association and U.S. Chamber of Commerce opposed the recommendation during a recent Commercial Customs Operations Advisory Committee (COAC) Intellectual Property Rights (IPR) Working Group session. Gray market products are imported goods that were intended for sale outside the U.S. The proposed "Known Importer Program" for gray market products "would have established a known importer status for unauthorized sellers to bypass detention and inspection of shipments at the borders," said the ECIA. "The proposal called for trade associations to administer the program by designating which of its members met the program’s criteria for a known importer. The proposal, if it had been adopted, would have set up a pilot program to test the concept for importers of electronic components." The COAC is made up of industry members that make recommendations to CBP, which ultimately decides whether a COAC-endorsed initiative will be taken up. CBP and a co-chair of the COAC Trade Enforcement and Revenue Collection Subcommittee, which the IPR Working Group is part of, didn't comment Tuesday. "This proposal would have seriously impaired the integrity of the authorized distribution channel for electronic components," said Robin Gray, ECIA general counsel. "Our zealous opposition to the proposal was clearly a determining factor in the [IPR working group's] decision not to recommend the program."
Customs and Border Protection said a Fossil-brand watch that includes Bluetooth wireless connectivity should be classified based on its watch function and not the ability to connect to a smartphone. The decision was announced in a recently released ruling, HQ H268657, dated March 28. "Physical characteristics and wireless functions of the Grant Connect Watch substantially differ from those of other 'smart watches' previously classified by CBP." Users can't view or use the data on the watch itself and "the device is not capable of independently collecting, storing, or processing data when 'unpaired' from a smartphone -- functions that both the Apple Watch and Samsung Gear Live are capable of performing when used in 'paired' and 'unpaired' configurations," CBP said. Wireless features are "limited" and it lacks a "pre-installed mobile operating system," the agency said. Fossil didn't comment.
The Trans-Pacific Partnership would lead to new markets for e-commerce and improved customs processing, said Brian Huseman, Amazon vice president-public policy, in a blog post. "That's why we support the Trans Pacific Partnership trade agreement and encourage Congress to approve it," he said. "The agreement makes important progress on areas such as business localization, cross-border data flows, intermediary liability and customs simplification." As Amazon grows, "we want reasonable policies that allow for the movement of goods across borders and that enable anyone in the world to have access to a unique and vast selection," he said. "We also want policies that do not unduly limit the growth of cloud computing by erecting digital trade barriers." But TPP is imperfect and the administration and Congress should work to improve provisions on cross-border data flows and copyright, Huseman said Thursday.
Mistaken IT changes to about 200 codes led to import transactions involving FCC data to be incorrectly rejected Tuesday, said Customs and Border Protection in an alert. CBP said Wednesday it corrected the problem and such filings should now be accepted upon submission.
Google thinks the Trans-Pacific Partnership promotes the free flow of information in “unprecedented” ways for a binding international trade agreement, balances the interests of copyright holders and public’s interest of creative works, and bans discrimination against foreign internet services, General Counsel Kent Walker wrote in a blog post. Small businesses will especially benefit from these elements of the agreement, but future agreements should include “more balancing provisions,” and “all stakeholders” should be allowed to provide input in future trade negotiations, Walker said Friday. U.S. Congress members and some transparency and other advocates have said TPP wasn't transparently negotiated, and Wikileaks had a campaign to release the text before governments did. "The TPP is not perfect, and the trade negotiation process could certainly benefit from greater transparency," Walker wrote. "We will continue to advocate for process reforms, including the opportunity for all stakeholders to have a meaningful opportunity for input into trade negotiations."
Industry applauded an International Trade Commission report on the projected impact of the Trans-Pacific Partnership trade agreement. Wednesday's ITC report said the TPP would decrease the costs of moving goods within the agreement’s covered region, and bring modest gains to the U.S. economy over its first 15 years, but the deal also would exacerbate the U.S. trade deficit. Assuming TPP takes effect by the end of 2017, the report predicted real U.S. gross domestic product would rise by $42.7 billion (0.15 percent) over baseline projections, while overall exports would increase by $27.2 billion (1 percent) and $48.9 billion (1.1 percent), respectively, by 2032, according to a summary. "The ITC report is an important step forward in assessing the benefits of the TPP,” said CTA CEO Gary Shapiro. “In our increasingly connected world, international trade will become ever more important to the prosperity and success of American workers and businesses.” While CTA still wants to review the full ITC report, “it is already our assessment that the Administration should move the TPP forward and Congress should approve it this year,” he said. Telecommunications Industry Association CEO Scott Belcher said the report “underscores the importance of the trade agreement for strengthening the U.S. technology industry’s ability to generate high-paying jobs and for promoting borderless digital trade opportunities.” MPAA Chairman Chris Dodd said the report "reaffirms that the TPP will grow the workforce and economic activity of America’s creative sectors, and benefit the U.S. economy as a whole.” But trade unions and several Democrats in Congress said the TPP could kill jobs in several industries.
Companies increasingly will limit supply chain relationships to suppliers that participate in authorized economic operator supply chain security programs, said industry members in Cancun at a World Customs Organization conference. James Lockett, Huawei head-trade facilitation, said Tuesday he expects AEO status to someday be a prerequisite for all the company's suppliers. While it's still too early to make that requirement, it seems to be where the company is headed, he said. AEO programs are voluntary supply chain security programs administered by customs regimes which can help speed up customs processing, and such arrangements are sometimes recognized by national governments.