National Retail Federation CEO Matthew Shay downplayed the expected impact of the coronavirus epidemic on U.S. retailers, speaking on a Feb. 26 call with media about the group's 2020 forecast. NRF forecast that 2020 retail sales will grow by 3.5%-4.1% to more than $3.9 trillion, “despite uncertainty from the lingering trade war, coronavirus and the presidential election.” Citing conversations with retail executives, Shay said news about the retail supply chain is “generally encouraging,” with reports that some China plants are coming back on line and employees are returning to work, after closures due to the coronavirus outbreak. Warning the virus' impact needs to be taken seriously, Shay also said the disruption appears “less severe than originally expected.”

National Retail Federation CEO Matthew Shay downplayed the expected impact of the coronavirus on U.S. retailers, on a Wednesday 2020 forecast call with media. NRF forecast 2020 retail sales will grow 3.5-4.1% to more than $3.9 trillion, “despite uncertainty from the lingering trade war, coronavirus and the presidential election.”

The Office of the U.S. Trade Representative would need to provide specific guidance to CBP in order to change treatment of goods from foreign-trade zones that were subject to the recently decreased Section 301 tariffs, CBP said in response to a recent letter from the National Association of Foreign-Trade Zones (see 2002180046). CBP said it enforces the Section 301 duties issued by the USTR “based on CBP laws and regulations, including 19 CFR 146.65(a)(1), unless USTR directs CBP to take different actions pursuant to Section 301.” NAFTZ President Erik Autor said the association is reviewing its next steps.

The International Trade Commission recently issued Revision 4 to the 2020 Harmonized Tariff Schedule, adding new exclusions from Section 301 tariffs and amending units of quantity for a pair of subheadings for U.S. goods returned under Chapter 98. New U.S. Note 20(ss) is added for the new exclusions, as announced by the Office of the U.S. Trade Representative on Feb. 19 (see 2002190015). New subheading 9903.88.40 is created for goods entered under the new exclusions, and conforming changes are made elsewhere to Chapter 99 provisions on Section 301 tariffs. For U.S. goods returned, units of quantity for subheadings 9801.00.1030 and 9801.00.1031 (which cover goods of chapters 71 and 82, respectively) are changed to a footnote that says quantities should be reported in the units provided in chapters 1-97. Previously the units were “No. and g” and “No. and kg,” respectively.

International Trade Today is providing readers with some of the top stories for Feb. 18-21 in case they were missed.

China and India should be removed from the Office of the U.S. Trade Representative’s priority watch list for intellectual property infringement, officials in those countries recently told USTR. Comments were due Thursday for USTR’s 2020 Special 301 Review (see 2002070032). China and India cited strong IP protections and reforms, but the U.S. Chamber of Commerce noted both continue to score poorly on the International IP Index. China’s overall score increased from 47.7% in the seventh edition to 51% in the eighth edition, the Chamber said. India’s score increased from 36% to 38.5%. The U.S. score increased from 94.8% to 95.3%. “Despite some positive -- albeit incremental -- changes in China, we continue to advocate for bold reforms that will result in meaningful changes for foreign companies,” the U.S. said. China cited a “firm attitude toward IP protection, with well-established and constantly developing IP legal system,” China said, citing what it called a fair and impartial judicial protection for IP rights. India cited “extensive initiatives taken to reinforce its IPR laws as well as to protect patents and all IP forms in the country.” SoundExchange targeted six countries denying American music performers and producers about $170 million annually in royalties: U.K., Australia, Canada, France, Japan and the Netherlands.

Universal Electronics, Inc. shares bounced 15.2% Friday to close at $51.80 after the company’s Thursday Q4 earnings report showing 68 percent growth in earnings per share. For full-year 2019, net sales grew to $751.7 million, the highest in company history, up 11% over 2018, said Chief Financial Officer Bryan Hackworth on an earnings call. A rebalancing of the remote control maker’s product line away from low-margin devices to advanced, differentiated high-margin solutions contributed to the company’s strongest year ever, said CEO Paul Arling. Q4 revenue of $174.7 million compared with $170.3 million in the 2018 quarter. Slower top-line growth reflects a “shift away from low margin business, a tradeoff we would gladly take and sets the company up for additional margin expansion,” Dougherty & Co. analyst Steven Frankel wrote investors Friday, issuing a “buy” rating on the stock. UEI’s three China factories have resumed operations after the extended Lunar New Year holiday, but with a reduced labor force, said Hackworth. There are no known cases of the virus among UEI workers, and the company expects to be fully online “within weeks.” UEI’s component suppliers are also coming back online, but with similar labor and logistics issues. Arling reviewed the company’s CES 2020 introductions including the fifth generation of its QuickSet Cloud platform that enables CE devices to discover and control devices and services in the home. He said Nevo Butler, UEI’s digital assistant, can be built into customers’ devices; they don’t have to buy the Nevo Butler hub from the company. UEI's hit from Section 301 tariffs imposed by the Trump administration on electronics imported from China narrowed in 2019 to $530,000 vs. $1.5 million in 2018. The company moved some production from China to its Monterrey, Mexico, facility last year to curb exposure to tariffs for goods sold in the U.S.

Universal Electronics, Inc. shares bounced 15.2% Friday to close at $51.80 after the company’s Thursday Q4 earnings report showing 68 percent growth in earnings per share. For full-year 2019, net sales grew to $751.7 million, the highest in company history, up 11% over 2018, said Chief Financial Officer Bryan Hackworth on an earnings call. A rebalancing of the remote control maker’s product line away from low-margin devices to advanced, differentiated high-margin solutions contributed to the company’s strongest year ever, said CEO Paul Arling. Q4 revenue of $174.7 million compared with $170.3 million in the 2018 quarter. Slower top-line growth reflects a “shift away from low margin business, a tradeoff we would gladly take and sets the company up for additional margin expansion,” Dougherty & Co. analyst Steven Frankel wrote investors Friday, issuing a “buy” rating on the stock. UEI’s three China factories have resumed operations after the extended Lunar New Year holiday, but with a reduced labor force, said Hackworth. There are no known cases of the virus among UEI workers, and the company expects to be fully online “within weeks.” UEI’s component suppliers are also coming back online, but with similar labor and logistics issues. Arling reviewed the company’s CES 2020 introductions including the fifth generation of its QuickSet Cloud platform that enables CE devices to discover and control devices and services in the home. He said Nevo Butler, UEI’s digital assistant, can be built into customers’ devices; they don’t have to buy the Nevo Butler hub from the company. UEI's hit from Section 301 tariffs imposed by the Trump administration on electronics imported from China narrowed in 2019 to $530,000 vs. $1.5 million in 2018. The company moved some production from China to its Monterrey, Mexico, facility last year to curb exposure to tariffs for goods sold in the U.S.

China and India should be removed from the Office of the U.S. Trade Representative’s priority watch list for intellectual property infringement, officials in those countries recently told USTR. Comments were due Thursday for USTR’s 2020 Special 301 Review (see 2002070032). China and India cited strong IP protections and reforms, but the U.S. Chamber of Commerce noted both continue to score poorly on the International IP Index. China’s overall score increased from 47.7% in the seventh edition to 51% in the eighth edition, the Chamber said. India’s score increased from 36% to 38.5%. The U.S. score increased from 94.8% to 95.3%. “Despite some positive -- albeit incremental -- changes in China, we continue to advocate for bold reforms that will result in meaningful changes for foreign companies,” the U.S. said. China cited a “firm attitude toward IP protection, with well-established and constantly developing IP legal system,” China said, citing what it called a fair and impartial judicial protection for IP rights. India cited “extensive initiatives taken to reinforce its IPR laws as well as to protect patents and all IP forms in the country.” SoundExchange targeted six countries denying American music performers and producers about $170 million annually in royalties: U.K., Australia, Canada, France, Japan and the Netherlands.

China and India should be removed from the Office of the U.S. Trade Representative’s priority watch list for intellectual property infringement, officials in those countries recently told USTR. Comments were due Thursday for USTR’s 2020 Special 301 Review (see 2002070032). China and India cited strong IP protections and reforms, but the U.S. Chamber of Commerce noted both continue to score poorly on the International IP Index. China’s overall score increased from 47.7% in the seventh edition to 51% in the eighth edition, the Chamber said. India’s score increased from 36% to 38.5%. The U.S. score increased from 94.8% to 95.3%. “Despite some positive -- albeit incremental -- changes in China, we continue to advocate for bold reforms that will result in meaningful changes for foreign companies,” the U.S. said. China cited a “firm attitude toward IP protection, with well-established and constantly developing IP legal system,” China said, citing what it called a fair and impartial judicial protection for IP rights. India cited “extensive initiatives taken to reinforce its IPR laws as well as to protect patents and all IP forms in the country.” SoundExchange targeted six countries denying American music performers and producers about $170 million annually in royalties: U.K., Australia, Canada, France, Japan and the Netherlands.