The first of six scheduled shipments of tower components used for alternative energy products arrived last week at the Tenth Avenue Marine Terminal, creating more business for the Port of San Diego.

After the General Electric towers are offloaded by longshore workers, they will be trucked to a wind farm in Palm Springs. In total, the Port will receive 300 tower sections. The next shipment is scheduled to arrive on July 6^th.

At the wind farm, three of these 85-foot-long sections will be connected to create a 256-foot-high windmill tower. The tower components are imported from China.

The Port of San Diego regularly handles a variety of alternative energy components. Wind blades, rotors and other parts are imported from Japan. From the Tenth Avenue Marine Terminal, they are trucked to wind farms in Texas, Colorado, New Mexico and Utah. Port of San Diego tenant Knight and Carver Wind Group, located in National City, is also involved in research and development of wind blade technology.

“The Port of San Diego is in a key position to handle more alternative energy shipments due to our proximity to the Far East,” said Miguel Reyes, senior maritime trade account manager.

The goal of the U.S. Department of Energy is to have 20% wind energy by the year 2030. 2008 saw a record-breaking year of wind power installation.

Over the last few years, alternative energy products have become a primary import cargo at the 96-acre terminal. An increase in alternative energy imports is anticipated as windmill farms grow in national popularity due to the demand for energy that has less impact on the environment.

On June 30, the Department of Commerce (Commerce) announced its affirmative preliminary determination in the countervailing duty investigation on imports of Ni-Resist Piston Inserts (piston inserts) from Argentina and the Republic of Korea (South Korea).

Subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods.

Commerce preliminarily determined that Argentine and South Korean producers/exporters of piston inserts have received countervailable subsidies at 5.42%.

Mandatory respondent, Clorindo Appo SRL, received a preliminary subsidy rate of 5.42%. Because Clorindo Appo SRL was the only respondent, all other Argentine producers/exporters received a preliminary subsidy rate 5.42%.

Mandatory respondent, Incheon Metal Co., Ltd. (Incheon Metal), did not receive countervailable subsidies. Because Incheon Metal was the only respondent, all other South Korean producers/exporters have also received a preliminary de minimis subsidy rate.

As a result of this preliminary determination, Commerce will instruct U.S. Customs and Border Protection (CBP) to collect a cash deposit or bond on imports of piston inserts from Argentina and South Korea.

The merchandise subject to this investigation includes all piston inserts regardless of size, thickness, weight, or outside diameter. Piston inserts may also be called other names including, but not limited to, “Ring Carriers,” or “Alfin Inserts.” Ni-resist inserts are alloyed cast iron rings, composed of the material known as Ni-resist, of the chemical composition: 13.5% - 17.5% Ni (nickel), 5.5% - 8.0% Cu (copper), 0.8% - 2.0% Cr (chrome), 0.5% - 1.5% Mn (manganese), 1.0% - 3.0% Si (silicon), 2.4% - 3.0% C (carbon). The cast iron composition is produced primarily to the material specifications of the American Society for Testing and Materials (ASTM), ASTM A-436 grade 1.

Excluded from the scope of the investigation are: (1) piston rings or (2) any other product manufactured using the Ni-resist material.

Piston inserts are currently classified in Chapter 84 of the Harmonized Tariff Schedule of the United States (HTSUS) under subheading 8409.99.91.90. While the HTSUS subheading is provided for convenience and customs purposes, Commerce’s written description governs the scope of the investigation.

In 2007, imports of piston inserts from Argentina were valued at an estimated US$5 million and imports from South Korea were valued at an estimated $20 million.

Commerce is currently scheduled to issue its final determination in September 2009. If Commerce makes an affirmative final determination, and the U.S. International Trade Commission makes an affirmative final determination that imports of piston inserts from Argentina and South Korea materially injure, or threaten material injury to, the domestic industry, Commerce will issue a countervailing duty order.

For a fact sheet, visit the International Trade Administration’s Web site.

Related Stories:

ITC Votes To Continue Cases on Ni-Resist Piston Inserts from Argentina and South Korea

Commerce Initiates Countervailing Duty Investigations on Imports of Ni-Resist Piston Inserts from Argentina and South Korea

Ryder System, Inc., a transportation and supply chain management solutions, has announced its certification as a Third Party Logistics Provider (3PL) in the Customs-Trade Partnership Against Terrorism (C-TPAT) for logistics operations in the U.S., Canada, and Mexico. The 3PL certification enhances Ryder’s existing C-TPAT certification as a Highway Carrier received in 2003, enabling the Company to incorporate its more complex supply chain operations in North America into the program.

C-TPAT is a joint government-business initiative supported by the Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP). Since its inception, C-TPAT has sought to build voluntary cooperative relationships with importers, carriers, brokers, warehouse operators and manufacturers that promote global supply chain security and reduce border vulnerabilities. The creation of the new Third Party Logistics Provider enrollment category in 2008 is part of a continuing evolution of the C-TPAT program and its efforts to include those supply chain sectors that add value to U.S. Customs and Border Protection’s efforts to protect the supply chain.

“Implementation of the Third Party Logistics Provider category for C-TPAT reinforces the extensive impact that outsourced logistics providers have on international supply chain security,” said Ryder President of Global Supply Chain Solutions, John Williford. “C-TPAT has become the benchmark for doing business with importers and large manufacturers in the U.S. and Ryder’s participation in the program reflects its commitment to improving supply chain and cargo security.”

Businesses are required to apply for participation in C-TPAT and must conduct a comprehensive assessment of their supply chain security using the C-TPAT security guidelines developed by U.S. Customs and Border Protection and the trade community.

Ryder has supply chain operations throughout the U.S., Canada and Mexico, and in Asia. Ryder currently supports several C-TPAT importers and foreign manufacturers from hundreds of locations across North America.

On July 1, United States Trade Representative (USTR) Ron Kirk announced the outcome of the Obama Administration’s 2008 Annual Review under the Generalized System of Preferences (GSP) Program (PDF). The GSP Program, in 2008, facilitated $31.7 billion in imports of nearly 5,000 types of products from 131 developing countries.

In keeping with GSP’s goal to advance economic development, the Administration will issue waivers that will prevent 112 exports from 16 beneficiary countries, with a 2008 trade value of $290 million, from being excluded from the program because they exceed statutory import ceilings. The Administration is also expanding the program by adding two agricultural products to the list of products eligible for GSP duty-free export into the United States from all beneficiary countries. In addition, as a result of their success under the GSP program, the Administration has also determined that 12 products from six beneficiary countries are now sufficiently competitive in the U.S. market to no longer need GSP treatment.

The Administration conducts an annual review of the countries covered under the GSP program and products that are eligible for duty-free treatment under the program. The statute includes commercial thresholds and waiver provisions regarding imports of products. Interested parties also file petitions seeking changes in the treatment of countries and products.

In announcing these changes, Kirk stated, “Expanded trade with the world’s developing countries is critical to boosting their growth, reducing income inequality, and providing people with hope for the future. The GSP Program is an important step in helping to revive global trade and restoring our sense of faith in international commerce to help improve lives at home and abroad.”

The Administration will continue GSP eligibility for the 112 products from 16 beneficiary countries by granting waivers of the statutory annual trade thresholds. Products for which GSP eligibility was continued include fancy leather from Argentina, copper wire from Turkey, ferrosilicon chromium from Kazakhstan, and exports made by rural women entrepreneurs that help to increase their incomes, such as garden brooms made from coir natural fiber in Sri Lanka.

The Administration also granted the Government of Egypt’s request to add frozen uncooked potatoes and frozen spinach to the list of products from all beneficiary countries. These products will become eligible for duty-free export into the United States beginning on July 1, 2009.

Because of the success of the GSP program and consistent with statutory provisions concerning product competitiveness, the Administration determined that 12 products from six beneficiary countries, including polyethylene terephthalate (PET resin) from Indonesia, are now sufficiently competitive in the U.S. market to be excluded from GSP eligibility.

The GSP 2008 Annual Review also involved an analysis of petitions to withdraw or limit a country’s GSP benefits for not meeting GSP eligibility criteria. These criteria include the extent to which a country provides adequate and effective protection of intellectual property rights (IPR) and whether a country is taking steps to afford internationally recognized worker rights to workers in that country. Several beneficiaries remain under active scrutiny because of such concerns, including Lebanon, Russia, and Uzbekistan regarding IPR protection; and Bangladesh, Niger, the Philippines, and Uzbekistan regarding worker rights.

“This is a difficult time for everyone in the global economy and it creates particular difficulties for those living in developing nations,” said Kirk. “The GSP program serves as an effective tool for developing countries as they increase their economic participation in the global trading system. It further helps to expand choices and lower costs for U.S. consumers and industry. In part due to the GSP program, the United States is one of the world’s most open economies to products of developing countries and in the process helps to alleviate poverty and spread goodwill.”

Each year, the United States conducts a review, in part, to determine if there are certain imports currently eligible for GSP benefits that are sufficiently competitive such that duty-free treatment is no longer warranted. In making decisions on product eligibility, the Administration considers petitions to continue duty-free treatment, holds public hearings and solicits public comments, and reviews analyses prepared by the U.S. International Trade Commission of the economic impact of eligibility decisions on domestic industries and consumers.

The GSP statute includes two competitive need limitations (CNLs) on the eligibility of a product for benefits under GSP: (i) if the annual trade of a product from a specific country exceeds a value-based threshold ($135 million in 2008); or (ii) if the annual trade of a product from a specific country exceeds 50% of total U.S. imports of that product. The statute also authorizes the President to waive the application of these limitations if certain statutory conditions are met.

Any CNL waiver granted remains in effect until the President determines that such waiver is no longer warranted due to changed circumstances. In December 2006, Congress amended the GSP statute when it renewed the program to provide that the President should revoke any existing CNL waiver that has been in effect for 5 years or more if a GSP-eligible product from a specific country has an annual trade level in the previous calendar year that exceeds 150% of the value-based threshold or 75% of all U.S. imports of that product.

The World Trade Organization (WTO) and United Nations Environment Program (UNEP) have published the first-ever report examining the intersections between trade and climate change. The report, titled Trade and Climate Change (PDF), explores the connections from four perspectives: the science of climate change, economics, multilateral efforts to tackle climate change, and national climate change policies and their effect on trade.

The WTO and UNEP are partners in the pursuit of sustainable development and the report is the outcome of collaborative research between the WTO and UNEP.

“With a challenge of this magnitude, multilateral cooperation is crucial and a successful conclusion to the ongoing climate change negotiations is the first step to achieving sustainable development for future generations,” said WTO Director General Pascal Lamy and UNEP’s Executive Director Achim Steiner in a joint statement.

In their statement, both Steiner and Lamy also urged the international community to seal an equitable and decisive deal at the crucial UN climate convention meeting in Copenhagen, Denmark in December 2009. They also urged nations to conclude the Doha trade round, which includes opening trade in environmental goods and services.

The key elements of the report include the following:

• Greenhouse gas emissions generated by human activities have resulted in global warming. This trend is projected to continue unless there are significant changes to current laws and policies.

• Most sectors of the global economy are likely to be affected by climate change, and this will often have implications for trade. Many of the sectors most affected, such as agriculture, forestry and fisheries, are critical for developing countries. Climate change is likely to alter the comparative advantage of these countries in such sectors, and thereby alter the pattern of international trade. Moreover, climate change is expected to have an impact on trade infrastructure and transportation routes.

• Although trade has important implications for greenhouse gas emissions, trade opening could facilitate the adoption of technologies that reduce the emission-intensity of goods and their production process and lead to a change in the mix of production from energy-intensive to less energy-intensive sectors. In this context, a successful conclusion of WTO negotiations on opening markets to environmental goods and services will help improve access to climate-friendly goods and technologies.

• There is a wide range of policy measures available to governments to help reduce greenhouse gas emissions. They are typically either regulatory measures (i.e. regulations and standards) or economic incentives (e.g. taxes, tradable permits, and subsidies).

• The report reflects the debate on how industrial sectors may be affected by carbon-constraining domestic policies, and in particular, by emission trading schemes. Policies aimed at preventing carbon leakage and at protecting competitiveness of energy-intensive industries are also being debated.

• Current WTO rules provide flexibility for adopting national measures to mitigate climate change. A number of WTO rules deal with many of the economic and regulatory instruments used by countries to mitigate climate change. However, the relevance of WTO rules to climate change mitigation policies, as well as the implications for trade and the environmental effectiveness of these measures will very much depend on how these policies are designed and the specific conditions for implementing them.

• Addressing climate change represents one of the defining challenges of our time, and requires concerted action at both national and international level. The debate on trade and climate change is taking place against the backdrop of vital multilateral climate change negotiations, which are due to come to a conclusion at the 15th Conference of the Parties to the United Nations Conference on Climate Change in December 2009 in Copenhagen, Denmark. A strong multilateral climate change agreement with binding commitments and supportive measures is the best way forward in establishing the framework for reducing greenhouse gases emissions from 2012 onward.

Overall, the report highlights that there is scope under WTO rules for addressing climate change at the national level. However, the relevance of WTO rules to climate change mitigation policies, as well as the implications for trade and the environmental effectiveness of these measures, will very much depend on how these policies are designed and the specific conditions for implementing them.

On June 30, the United States and the Republic of Kosovo signed a bilateral agreement under which the Overseas Private Investment Corporation (OPIC) will continue its operations in Kosovo in light of its status as an independent country.

OPIC Acting President Dr. Lawrence Spinelli and Kosovo Prime Minister Hashim Thaçi signed the investment incentive agreement at a ceremony at OPIC headquarters.

OPIC programs have been open in Kosovo since May 2002 pursuant to an agreement between theUnited States and the United Nations Interim Administration Mission in Kosovo (UNMIK). Since Kosovo declared itself a republic in February 2008, its independence has been recognized by 60 countries worldwide, including the United States and most European Union members, and yesterday it formally joined the International Monetary Fund (IMF) and World Bank.

According to the new agreement, the United States and Kosovo affirm “their common desire to encourage economic activities in the Republic of Kosovo that promote the development of the economic resources and productive capacities” of Kosovo.

“Having recognized Kosovo as an independent state, it is appropriate that the United States enter into a direct agreement with Kosovo and that OPIC operate on the basis of a new agreement,” said Dr. Spinelli. “We at OPIC look forward to working closely with both U.S. and Kosovo companies to facilitate greater levels of American private sector investment in Kosovo.”

“We welcome this agreement as a sign of support in the prospective economic potential of Kosovo, and as a sign of security for both U.S. and Kosovo companies investing in our country,” said Prime Minister Thaçi. “We appreciate the support of the United States and OPIC.”

Dr. Spinelli noted that since 2002, OPIC had provided more than $10.5 million in financing and political risk insurance to four projects in Kosovo in the energy, construction, and services sectors. OPIC’s current portfolio in Kosovo comprises $4 million in financing support for a construction project.

The Consumer Product Safety Commission (CPSC) has announced its decision to stay enforcement of section 101 (a) of the Consumer Product Safety Improvement Act (CPSIA) of 2008 with regard to certain parts of bicycles, jogger strollers, and bicycle trailers designed or intended primarily for children 12 years of age or younger. The Commission is staying enforcement of the specified lead level as it pertains to certain parts of these products, specifically components made with metal alloys, including steel containing up to 0.35% lead, aluminum with up to 0.4% lead, and copper with up to 4.0% lead. This stay of enforcement is effective on June 30, 2009 and will remain in effect until July 1, 2011.

While the stay is in effect for particular Bicycles and Related Products, the Office of Compliance shall not prosecute any person for any violation of laws administered by the Commission based on the lead content of any part of, or replacement part for, those Bicycles and Related Products to which the stay applies, including provisions relating to certification of compliance, reporting of noncompliances, or the sale, offering for sale, importation, or exportation is one of the conditions mentioned. For further details, see notice (PDF) published in the Federal Register.

For further information, contact: John ‘‘Gib” Mullan, Assistant Executive Director for Compliance and Field Operations, U.S. Consumer Product Safety Commission, 4330 East West Highway, Bethesda, Maryland 20814; E-Mail: jmullan@cpsc.gov.

On June 29, CSX Transportation, Inc. (CSX) announced a plan to reduce the CO₂ emissions associated with its vast and economically vital train operations by 8% per revenue ton mile by 2011. The company made its commitment as part of its participation in the U.S. Environmental Protection Agency (EPA) Climate Leaders Program, a voluntary program for businesses to inventory and reduce greenhouse gas emissions.

CSX’s commitment to reduce greenhouse gas emissions through the Climate Leaders Program is the first ever from a major U.S. transportation provider. CSX’s commitment will reduce C02 emissions by 2.4 million tons – the equivalent of taking 441,000 cars off the road each year, or burning 5,598,000 fewer barrels of oil.

“Freight rail is the most fuel-efficient and environmentally friendly surface transportation option. We are pleased to enhance these benefits with our firm commitment to reduce CSX’s carbon footprint,” said Michael J. Ward, Chairman, President and CEO of CSX. “The Climate Leaders Partnership shows that by working together, business and government can serve our nation’s economic needs while improving our environment.”

“As we work to strengthen our nation’s infrastructure, stimulate the economy and compete in a global marketplace, investment in freight railroads will be critical,” said Pennsylvania Governor Edward G. Rendell. “CSX’s commitment to improving the environmental efficiency of its operations will further drive improvement in what is already one of the most environmentally friendly forms of surface transportation and strengthen our country’s position as a global leader of a sustainable economy.”

Since 1980, the railroad industry has invested more than $1 billion to upgrade its fleet with more efficient, Tier II clean air locomotives and has improved locomotive fuel efficiency by over 80%. By the end of 2009, an additional 1,200 CSX locomotives will be upgraded to further reduce emissions and lower fuel consumption by nearly 10 million gallons. CSX has a long standing commitment to air quality and clean operations.

On June 30, the U.S. Department of Agriculture’s Animal (USDA) and Plant Health Inspection Service (APHIS) announced that it is proposing amendments to its citrus canker regulations to allow fruit from quarantined areas to be shipped to all U.S. states, based on new scientific research.

Two new publications, including one from USDA, have provided new information on citrus canker. APHIS’ analysis of the new research concludes that the disease is highly unlikely to be spread by harvested fruit without citrus canker symptoms. Even harvested fruit with visible citrus canker symptoms was shown in the research not to spread the disease as long as the fruit is disinfected at the packinghouse using approved methods.

As a result of these findings, APHIS is proposing to amend its current citrus canker regulations. Under the proposal, each lot of harvested fruit will no longer need to be inspected at the packinghouse and found to be free of visible symptoms of citrus canker. Fruit will also no longer be prohibited from being shipped to commercial citrus-producing states. However, APHIS will continue to require fruit moved interstate from a quarantined area to be treated with an approved disinfectant and to be packed in a commercial packinghouse that operates under a compliance agreement. For further details, see notice (PDF) published in the Federal Register.

Consideration will be given to comments received on or before August 31. You may submit comments by either of the following methods:

• Federal eRulemaking Portal: Go to www.regulations.gov (Docket No. APHIS-2009-0023.) to submit or view comments and to view supporting and related materials available electronically.
• Postal Mail/Commercial Delivery:  Please send two copies of your comment to Docket No. APHIS-2009-0023, Regulatory Analysis and Development, PPD, APHIS, Station 3A-03.8, 4700 River Road, Unit 118, Riverdale, MD 20737-1238. Please state that your comment refers to Docket No. APHIS-APHIS-2009-0023.

For further information, contact: Mr. Stephen Poe, Senior Operations Officer, Emergency and Domestic Programs, Plant Protection and Quarantine, APHIS, 4700 River Road Unit 137, Riverdale, MD 20737-1231; (301) 734-4387.

On June 29, the U.S. International Trade Commission (ITC) announced the remedy proposals it will forward to the President and the U.S. Trade Representative (USTR) in its China safeguard investigation concerning certain passenger and light truck tires from China.

Monday’s action follows the Commission’s June 18, 2009, determination on market disruption in the investigation. Chairman Shara L. Aranoff and Commissioners Charlotte R. Lane, Irving A. Williamson, and Dean A. Pinkert voted in the affirmative, finding that certain passenger vehicle and light truck tires from China are being imported into the United States in such increased quantities or under such conditions as to cause or threaten to cause market disruption to the domestic producers of like or directly competitive products. Vice Chairman Deanna Tanner Okun and Commissioner Daniel R. Pearson voted in the negative.

Chairman Shara L. Aranoff and Commissioners Charlotte R. Lane, Irving A. Williamson, and Dean A. Pinkert announced that they will propose that the President, for a three-year period, impose a duty, in addition to the current rate of duty, on imports of certain passenger vehicle and light truck tires from China. This duty would be 55% ad valorem in the first year, 45% ad valorem in the second year, and 35% ad valorem in the third year. They further announced that they will recommend that, if applications are filed, the President direct the U.S. Department of Labor and the U.S. Department of Commerce to provide expedited consideration of Trade Adjustment Assistance for firms and/or workers that are affected by subject imports.

Vice Chairman Daniel R. Pearson and Commissioner Deanna Tanner Okun announced that while they did not find market disruption to exist, they intend to submit views on this matter to the President, as has been done previously under Section 421 investigations. They will urge that no trade restricting action be taken. Rather, they will urge that the U.S. government be prepared to provide economic adjustment assistance to displaced tire workers. They noted that Trade Adjustment Assistance already has been provided to some tire industry workers and will recommend that the President utilize similar measures to help workers who find that their employment alternatives are changing.

The Commission will submit its report to the President and the USTR by July 9, 2009. The report will include the Commissioners’ determination, views, and remedy proposals. The President, not the Commission, will make the final decision whether to provide relief to the U.S. industry and the type and amount of relief.

The Commission’s public report to the President, Certain Passenger Vehicle and Light Truck Tires from China (Inv. No. TA-421-007, USITC Publication 4085, July 2009), will contain the views of the Commissioners and information developed during the investigation. A copy may be requested after July 30, 2009, by emailing pubrequest@usitc.gov, calling 202-205-2000, or writing to the Office of the Secretary, 500 E Street SW, Washington, DC 20436. Requests may also be faxed to (202) 205-2104.

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ITC Public Meeting Will Address Certain Passenger Vehicle and Light Truck Tires from China

China Found Unfair in Tire Import Dispute