China, India and the EU are among the regions tech and intellectual property groups recommended the Office of the U.S. Trade Representative monitor for international IP infractions. Public comments were due Friday for USTR’s 2020 Special 301 Review (see 1902080063). USTR has a Feb. 26 hearing. The Internet Association cited the EU’s new “onerous systems of copyright liability for internet services,” specifically the copyright directive. It “directly conflicts with U.S. law and requires a broad range of U.S. consumer and enterprise firms to install filtering technologies, pay European organizations for activities that are entirely lawful under the U.S. copyright framework, and face direct liability for third-party content,” IA said. IA didn’t recommend any specific countries for USTR’s priority watch list or watch list, raising concerns about China, India, Vietnam, Chile, Japan, Hong Kong and many others. BSA|The Software Alliance recommended USTR include Chile, China, India, Indonesia and Vietnam on its priority watch list; Argentina, Brazil, Korea, Mexico and Thailand on its watch list; and the EU as a region of concern. BSA cited measures that create market access barriers in the EU. The Computer & Communications Industry Association didn’t offer specific recommendations for the priority watch list or watch list. CCIA cited the EU’s recently enacted Copyright Directive and policies India is pursuing, which “pose significant negative consequences for the digital economy and depart from global norms.” Any “discriminatory practices under the guise of intellectual property that target U.S. exports should be identified and discouraged by USTR,” CCIA said. The International Intellectual Property Alliance recommended Argentina, Chile, China, India, Indonesia, Mexico, Russia, South Africa, Taiwan, Ukraine and Vietnam for the priority watch list. It recommended Brazil, Canada, Colombia, Ecuador, Peru, Switzerland, Thailand and UAE for the watch list. IIPA suggested the U.S. engage trading partners to “remove discriminatory and restrictive trade barriers in those countries that harm exports of U.S. creative goods and services.”

China, India and the EU are among the regions tech and intellectual property groups recommended the Office of the U.S. Trade Representative monitor for international IP infractions. Public comments were due Friday for USTR’s 2020 Special 301 Review (see 1902080063). USTR has a Feb. 26 hearing. The Internet Association cited the EU’s new “onerous systems of copyright liability for internet services,” specifically the copyright directive. It “directly conflicts with U.S. law and requires a broad range of U.S. consumer and enterprise firms to install filtering technologies, pay European organizations for activities that are entirely lawful under the U.S. copyright framework, and face direct liability for third-party content,” IA said. IA didn’t recommend any specific countries for USTR’s priority watch list or watch list, raising concerns about China, India, Vietnam, Chile, Japan, Hong Kong and many others. BSA|The Software Alliance recommended USTR include Chile, China, India, Indonesia and Vietnam on its priority watch list; Argentina, Brazil, Korea, Mexico and Thailand on its watch list; and the EU as a region of concern. BSA cited measures that create market access barriers in the EU. The Computer & Communications Industry Association didn’t offer specific recommendations for the priority watch list or watch list. CCIA cited the EU’s recently enacted Copyright Directive and policies India is pursuing, which “pose significant negative consequences for the digital economy and depart from global norms.” Any “discriminatory practices under the guise of intellectual property that target U.S. exports should be identified and discouraged by USTR,” CCIA said. The International Intellectual Property Alliance recommended Argentina, Chile, China, India, Indonesia, Mexico, Russia, South Africa, Taiwan, Ukraine and Vietnam for the priority watch list. It recommended Brazil, Canada, Colombia, Ecuador, Peru, Switzerland, Thailand and UAE for the watch list. IIPA suggested the U.S. engage trading partners to “remove discriminatory and restrictive trade barriers in those countries that harm exports of U.S. creative goods and services.”

The Office of the U.S Trade Representative is set to publish a notice Feb. 11 of some new product exclusions from Section 301 tariffs on the first list of products from China (see 2002100008). The product exclusions apply retroactively to July 6, 2018, the date the tariffs on the first list took effect, and will remain in effect until Oct. 2, 2020.

The Office of the U.S. Trade Representative issued four new exclusions from the first tranche of Section 301 tariffs on goods from China, it said in a notice. The exclusions apply retroactively to July 6, 2018 and will expire on Oct. 2, it said. The agency also adjusted tariff subheadings and made other "technical amendments" to previously issued exclusions.

IRobot’s 2019 operating-profit margin would have been 3.1 points higher at 10.4 percent if not for the $37.9 million in List 3 Section 301 tariff costs imposed on the robotic vacuum cleaners (RVCs) it sourced from China, said CEO Colin Angle on a Q4 call Thursday. IRobot expects to incur $47 million to $50 million more in 2020 tariff costs, said Chief Financial Officer Alison Dean.

IRobot’s 2019 operating-profit margin would have been 3.1 points higher at 10.4 percent if not for the $37.9 million in List 3 Section 301 tariff costs imposed on the robotic vacuum cleaners (RVCs) it sourced from China, CEO Colin Angle said on a Q4 earnings call Feb. 6. IRobot expects to incur $47 million to $50 million more in 2020 tariff costs, Chief Financial Officer Alison Dean said.

IRobot’s 2019 operating-profit margin would have been 3.1 points higher at 10.4 percent if not for the $37.9 million in List 3 Section 301 tariff costs imposed on the robotic vacuum cleaners (RVCs) it sourced from China, said CEO Colin Angle on a Q4 call Thursday. IRobot expects to incur $47 million to $50 million more in 2020 tariff costs, said Chief Financial Officer Alison Dean.

The effort to give Congress more say on Section 232 tariffs that has stalled so far is not broad enough to ensure that erratic tariffs are not levied, according to experts who spoke during a Feb. 5 briefing held by Rep. Stephanie Murphy, D-Fla., a Ways and Means Committee member who has hosted trade sessions three times in the last few months. No other members of the committee responsible for trade attended, but Rep. Jim Cooper, Rep. Donna Shalala and Rep. Jim Costa, all Democrats, listened for at least part of the session, in addition to many Hill staffers and some lawyers, diplomats and industry representatives.

CBP's notice on the coming Section 301 tariff decrease (see 2002040045) and the agency's treatment of List 4A goods in foreign-trade zones are drawing some industry concerns. The CBP notice said the duty rate for goods subject to the tariffs in FTZs is based on “the rate of duty and tax in force on the date of filing the application for privileged foreign status.” CBP's interpretation “is inconsistent with existing CBP precedent and [we] will be challenging it on behalf of our a number of clients,” said Sidley lawyer Ted Murphy in a blog post.

Plug-in devices that connect to Wi-Fi and allow users to operate other devices by controlling whether electrical current flows from the wall outlet differ from wearable smart devices for classification purposes, Customs and Border Protection said in a Jan. 21 ruling, released last week. SDI Technologies argued the “SmartPlugs” deserve a similar classification as Fitbit fitness trackers that connect to mobile phones through Bluetooth. The Fitbit trackers were classified in heading 8517 due to the data transmission functions, but the plugs provide for different functions. “To the extent that data is transmitted from the application to the SmartPlug, it is in service of the primary function of controlling the electrical current to the connected appliance,” the agency said. “The transmission of data is not a function of the SmartPlugs,” it said, concluding the devices “provide electric control of electrical devices connected to them and thus are properly classified under heading 8537.” The applicable subheading, 8537.10.9, includes a 2.7 percent duty rate, and is subject to Section 301 tariffs on China, the agency said.