The FCC proposal to remove filing requirements for imported devices is a “success story” within a multiagency effort to simplify international trade data filing within the U.S. government, said Cynthia Whittenburg, executive director, Trade Policy and Programs at Customs and Border Protection. Whittenburg mentioned the FCC proposal (see 1507210072) while speaking at a National Customs Brokers and Forwarders Association of America (NCBFAA) conference Monday. The multiagency work, which is being overseen by CBP, included a request that the involved agencies review data filing requirements, and the FCC came to the conclusion that the device certification information of its Form 740 is no longer useful, she said. The FCC is still accepting comments on the proposal and the NCBFAA recently submitted comments in support of the NPRM, while asking for some language changes (see 1509240044).
Negotiators from countries party to the Information Technology Agreement will convene in Geneva Monday to Oct. 2 to discuss duty reductions for the pact’s expansion rollout, dozens of industry associations said in a recent statement. The World Trade Organization says the duty reductions will begin in 2016 (see 1507280062), and the industry associations urged a speedy elimination schedule. “While the standard phase-out (or staging) period for tariff elimination under ITA expansion is three years, we urge the negotiators to show as much ambition as possible,” said the statement, which was endorsed by CEA, the Chamber of Commerce, DigitalEurope, the Entertainment Software Association, the National Association of Manufacturers, as well as a range of software and semiconductor groups. “We urge all negotiating parties to show restraint in seeking staging periods longer than three years, given the short innovation cycles for high-technology products.” Each country must finalize its schedule by the December WTO ministerial in Nairobi, the statement said. In late July, the WTO said only 49 countries out of 81 total ITA parties had signed off on expansion, which was brokered in the days before.
An FCC proposal to remove radiofrequency device certification requirements for importers needs some language changes to avoid unintended regulatory issues, said the National Customs Brokers & Forwarders Association of America in a filing posted Wednesday in docket 15-170. While NCBFAA generally favored proposed changes to eliminate the import declaration filing requirements on FCC Form 740, the association said some language tweaks are necessary to distinguish between the parties involved in import transactions. Although the FCC intends to remove requirements for commission-specific declaration or filing upon import, the proposed language "does not accurately capture this shift," the NCBFAA said. As proposed, it said that "no radio frequency device may be imported into the Customs territory of the United States unless the importer or ultimate consignee, or their designated customs broker, determines that the device meets one of the conditions of entry." But "without a declaration to affix responsibility in each instance, it will be unclear exactly who made the determination," the NCBFAA said. "If the responsible party for making the determination could be any of three entities (i.e., the importer, the ultimate consignee or the customs broker, as the proposed regulation suggests), there is no certainty for the FCC or the trade as to which party is responsible for documenting how the radio frequency device was determined to be in compliance. This leaves a potentially significant gap in affixing responsibility." Customs brokers shouldn't be among the entities considered able to make such a "determination," the group said. While fewer than 100 forms a month were filed when the form became a requirement, an estimated 2 million are filed annually today, the NCBFAA said. "By 2020, an estimated 26 billion devices may be subject to FCC jurisdiction as the Internet of Things expands, making the Form 740 filing a burdensome requirement that appears to us to yield few enforcement benefits for the FCC."
Negotiators from countries party to the Information Technology Agreement will convene in Geneva Monday to Oct. 2 to discuss duty reductions for the pact’s expansion rollout, dozens of industry associations said in a recent statement. The World Trade Organization says the duty reductions will begin in 2016 (see 1507280062), and the industry associations urged a speedy elimination schedule. “While the standard phase-out (or staging) period for tariff elimination under ITA expansion is three years, we urge the negotiators to show as much ambition as possible,” said the statement, which was endorsed by CEA, the Chamber of Commerce, DigitalEurope, the Entertainment Software Association, the National Association of Manufacturers, as well as a range of software and semiconductor groups. “We urge all negotiating parties to show restraint in seeking staging periods longer than three years, given the short innovation cycles for high-technology products.” Each country must finalize its schedule by the December WTO ministerial in Nairobi, the statement said. In late July, the WTO said only 49 countries out of 81 total ITA parties had signed off on expansion, which was brokered in the days before.
The Bureau of Industry and Security penalized two Dubai-based traders and three companies operated by the pair over violations of the Export Administration Regulations, BIS said in a notice set to appear in Thursday's Federal Register. The two individuals and their companies violated the EAR by conspiring to export and re-export controlled telecom equipment to Syria without the proper U.S. authorization and through falsified documents, BIS said. The agency placed on the Denied Persons List companies including iT Wave, for four years. The five entities are collectively being charged $7 million, the order said. The BIS directed the entities to pay only $250,000 in total over an annual, staggered payment schedule. The remaining fees will be waived after two years if no further violations are committed, BIS said.
Customs and Border Protection changed procedures for sharing information with importers and rightsholders when it suspects trademark infringement. The CBP final rule takes effect Oct. 19, the agency said in Friday's Federal Register. Regulations in 19 CFR 133.21 enlist importers and rightsholders to help CBP determine whether merchandise infringes on trademarks and trade names and should be seized or excluded, without violating Trade Secrets Act restrictions on government agency release of protected business information. Importers have seven days' notice of detention issuance to convince CBP its mark is legitimate before unredacted images or information or samples are provided to the rightsholder for verification. Partly to address importer concerns, CBP added language clarifying that information provided to rightsholders is only for the purposes of assisting the agency in making infringement determinations. CBP must give the importer unredacted information, pictures or a sample of the suspect merchandise, it said. “Releasing this information to importers will assist them in providing CBP with a meaningful response before or within the seven business day response period." In other changes, the agency removed provisions for a 30-day extension of the limit for detaining merchandise before it's deemed excluded.
U.S. Trade Representative Michael Froman chose USTR General Counsel Timothy Reif as the agency’s first chief transparency officer. In a statement, USTR noted that the new position comes at a “critical time in trade policy” as the U.S. angles to complete the Trans-Pacific Partnership and make progress in other trade negotiations. The agency won't appoint new general counsel, said a USTR spokesman. Lawmakers forced the agency to create the new position through a provision in the 2015 version of Trade Promotion Authority, which President Barack Obama signed into law in late June. That provision directs the chief transparency officer to “consult with Congress on transparency policy, coordinate transparency in trade negotiations, engage and assist the public, and advise the United State Trade Representative on transparency policy.” Senate Finance Committee ranking member Ron Wyden, D-Ore., an advocate for more transparency in trade, also applauded the new position.
As President Barack "Obama prepares to welcome Chinese President Xi to the White House this month, cybersecurity concerns should be a priority topic of discussion,” wrote Information Technology Industry Council resident China trade policy expert John Lenhart on an ITI blog Wednesday. “U.S. and Chinese frustrations continue to run high due to concerns over Chinese involvement in the recent high-profile hack of the Office of Personnel Management, as well as continued Chinese concerns following the revelations of former NSA contractor Edward Snowden,” Lenhart said. “But pursuing actions of escalation would only serve to widen the divide between the two countries.” Strong and constructive engagement during the presidential summit would best be focused in a few key areas like committing to market competition and free trade, establishing consultative cybersecurity mechanisms, and addressing policies that create barriers to interconnectivity, Lenhart said. “The two countries cannot allow further escalation of cyber-tensions, as it threatens to undermine the mutually beneficial policies of commercial engagement we have enjoyed for the past 35 years.”
The EU will release online “detailed and extensive reports” on Transatlantic Trade and Investment Partnership negotiations in an effort to quell concerns over transparency, said Trade Commissioner Cecilia Malmström. “The only changes in my trade policy will be more openness, not less,” said Malmström in a Friday blog post. “That is the pledge I gave at the beginning of my mandate. I am committed to keeping that promise.” The U.S. has come under fire for insufficient transparency in TTIP and Trans-Pacific Partnership talks.
The Office of the U.S. Trade Representative seeks comment by Oct. 28 to help prepare its annual National Trade Estimate Report on Foreign Trade Barriers, including on telecom issues, USTR said in Wednesday's Federal Register. The report spells out the “most important” foreign trade barriers affecting U.S. goods trade, foreign direct investment and intellectual property rights protections. USTR aims to use the report to dismantle those barriers in future trade negotiations, said the agency. The office said it will review trade deals on U.S. telecom products and services to see if any trade laws, policies or practices with countries with which America has trade or telecom deals deny this country's firms "mutually advantageous market opportunities for telecommunications products and services." Comment via www.regulations.gov, docket number USTR 2015-0014. USTR released the last National Trade Estimate Report in March.