Ross Announces Activation of ZTE Denial Order in Response to Repeated False Statements

April 16th, Secretary of Commerce Wilbur L. Ross, Jr. announced that the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has imposed a denial of export privileges against Zhongxing Telecommunications Equipment Corporation, of Shenzhen, China (“ZTE Corporation”) and ZTE Kangxun Telecommunications Ltd. of Hi-New Shenzhen, China (“ZTE Kangxun”) (collectively, “ZTE”).

In March 2017, ZTE agreed to a combined civil and criminal penalty and forfeiture of $1.19 billion after illegally shipping telecommunications equipment to Iran and North Korea, making false statements, and obstructing justice including through preventing disclosure to and affirmatively misleading the U.S. Government.  In addition to these monetary penalties, ZTE also agreed a seven-year suspended denial of export privileges, which could be activated if any aspect of the agreement was not met and/or if the company committed additional violations of the Export Administration Regulations (EAR).

The Department of Commerce has now determined ZTE made false statements to BIS in 2016, during settlement negotiations, and 2017, during the probationary period, related to senior employee disciplinary actions the company said it was taking or had already taken.  ZTE’s false statements only were reported to the U.S. Government after BIS requested information and documentation showing that employee discipline had occurred.

“ZTE made false statements to the U.S. Government when they were originally caught and put on the Entity List, made false statements during the reprieve it was given, and made false statements again during its probation.” said Secretary of Commerce Ross.

These false statements covered up the fact that ZTE paid full bonuses to employees that had engaged in illegal conduct, and failed to issue letters of reprimand.

“ZTE misled the Department of Commerce.  Instead of reprimanding ZTE staff and senior management, ZTE rewarded them.  This egregious behavior cannot be ignored,” Secretary Ross said.

BACKGROUND:

Denial Orders are issued by the Assistant Secretary for Export Enforcement of the Bureau of Industry and Security, denying the export privileges of a company or individual. A denial of export privileges prohibits a person from participating in any way in any transaction subject to the EAR. Furthermore, it is unlawful for other businesses and individuals to participate in any way in an export transaction subject to the EAR with a denied person.

This is a regulatory action and is unrelated to any ongoing trade-related actions.

BIS is the principal agency involved in the implementation and enforcement of export controls for commercial technologies and many military items. The BIS Office of Export Enforcement detects, prevents, investigates and assists in the sanctioning of illegal exports of such items.

For more information, please visit us at www.bis.doc.gov.

U.S. Department of Commerce Issues Affirmative Preliminary Antidumping Duty Determinations on Stainless Steel Flanges from China and India

Today, the U.S. Department of Commerce announced the affirmative preliminary determinations in the antidumping duty (AD) investigations of imports of stainless steel flanges from China and India.

“The United States will not sit back and watch as our domestic businesses are destroyed by unfair foreign government subsidies and dumping,” said Secretary Ross. “This Administration is taking fair and transparent action on behalf of American industry to defend businesses and workers while we continue reviewing the facts related to this decision.”

The Commerce Department preliminarily determined that exporters from China and India have sold stainless steel flanges in the United States at 257.11 percent, and 18.10 to 145.25 percent less than fair value, respectively.

As a result of today’s decision, Commerce will instruct U.S. Customs and Border Protection (CBP) to collect cash deposits from importers of imports of stainless steel flanges from China and India based on these preliminary rates.

In 2016, imports of stainless steel flanges from China and India were valued at an estimated $16.3 million and $32.1 million, respectively.

The petitioners are the Coalition of American Flange Producers and its individual members: Core Pipe Products, Inc. (Carol Stream, IL) and Maass Flange Corporation (Houston, TX).

Enforcement of U.S. trade law is a prime focus of the Trump administration. From January 20, 2017, through March 20, 2018, the Commerce Department has initiated 102 antidumping and countervailing duty investigations – a 96 percent increase from January 20, 2016, through March 20, 2017.

The AD law provides U.S. businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair pricing of imports into the United States. Commerce currently maintains 428 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.

Commerce is scheduled to announce the final determinations in these investigations on or about June 5, 2018.

If Commerce makes affirmative final determinations of dumping and the U.S. International Trade Commission (ITC) makes affirmative final injury determinations, Commerce will issue AD orders. If Commerce makes negative final determinations of dumping or the ITC makes negative final determinations of injury, the investigations will be terminated and no orders will be issued.

The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based solely on factual evidence.

Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to antidumping duties.

U.S. Department of Commerce Issues Affirmative Preliminary Determination on Forged Steel Fittings from China

March 8th, U.S. Secretary of Commerce Wilbur Ross announced the affirmative preliminary determination in the countervailing duty (CVD) investigation of imports of forged steel fittings from China, finding that exporters in China received countervailable subsidies equal to 13.79 percent.

The Commerce Department will instruct U.S. Customs and Border Protection to collect cash deposits from importers of forged steel fittings from China based on these preliminary rates.

“This announcement is separate from today’s the steel and aluminum tariff’s announced by President Trump as a result of the Department’s 232 investigations,” said Secretary Ross. “We will continue to review all information related to this preliminary determination while standing up for American workers and companies.”

In 2016, imports of forged steel fittings from China were valued at an estimated $78.4 million.

The petitioners are Bonney Forge Corporation (Mount Union, PA), and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (Pittsburgh, PA).

Enforcement of U.S. trade law is a prime focus of the Trump administration.  From January 20, 2017, through March 8, 2018, the Commerce Department has initiated 102 antidumping and countervailing duty investigations – a 96 percent increase from the same period in 2016- 2017.

CVD law provides U.S. businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair subsidization of imports into the United States.  Commerce currently maintains 418 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.

Commerce is currently scheduled to announce its final CVD determination on July 24, 2018.

If the Commerce Department makes an affirmative final determination in this investigation and the U.S. International Trade Commission (ITC) makes an affirmative final injury determination, Commerce will issue a CVD order.  If the Commerce Department makes a negative final determination or the ITC makes a negative final determination of injury, the investigation will be terminated and no order will be issued.

The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international rules and is based solely on factual evidence.

Imports from companies that receive unfair subsidies from their governments in the form of grants, loans, equity infusions, tax breaks and production inputs are subject to “countervailing duties” aimed at directly countering those subsidies.

Section 232 investigations help to determine the effects of imports on America’s national security and give the President the ability to address any threats to national security by restricting imports through tariffs.

Section 232 of the Trade Expansion Act of 1962, as amended, gives the executive branch the ability to conduct investigations to “determine the effects on the national security of imports.” Within 270 days of initiating any investigation, the Commerce Department issues a report to the President with the investigation’s findings, including whether certain imports threaten to impair America’s national security. The President has 90 days to determine whether he concurs with the findings and, if so, to use his statutory authority under Section 232 “to adjust the imports” as necessary, including through tariffs or quotas.

President Donald J. Trump has accepted the Commerce Department’s recent conclusion that imported steel and aluminum “threaten to impair the national security,” and is taking action to protect America.

In January 2018, the Department of Commerce delivered the Section 232 reports on steel and aluminum to the President. In February 2018, the Commerce Department publicly released Section 232 reports on imported steel and aluminum. The reports concluded that the quantities and circumstances of steel and aluminum imports “threaten to impair the national security,” as defined by Section 232. The reports found that United States steel imports were nearly four times our exports, and that aluminum imports had risen to 90% of total demand for primary aluminum. The Commerce Department recommended that President Trump take action to protect the long-term viability of our nation’s steel and aluminum industries.

Following President Trump’s signing of a Presidential Proclamation imposing tariffs on steel and aluminum products from certain countries, U.S. Secretary of Commerce Wilbur Ross released the following statement:

“President Trump is taking action today to protect both our national security and industries critical to our economy. The President’s decision regarding the steel and aluminum Section 232 reports are the result of a long and well-thought-out process led by the Commerce Department. Once again, President Trump is keeping his promises and standing up for American families, American businesses, and American workers.”

Department of Commerce Issues Affirmative Preliminary Antidumping Duty Determinations on Fine Denier Polyester Staple Fiber

December 19, U.S. Secretary of Commerce Wilbur Ross announced the affirmative preliminary determinations in the antidumping duty (AD) investigations of imports of fine denier polyester staple fiber, finding that exporters from China, India, Korea, and Taiwan have sold this merchandise at less than fair value.

“The U.S. values its relationships with these nations, but all of our trading partners must play by the rules,” said Secretary Ross. “We will continue to review all information related to this preliminary determination while standing up for American businesses and workers.”

As a result of decision, Commerce will instruct U.S. Customs and Border Protection to collect cash deposits from importers of fine denier polyester staple fiber from China (52.66 percent to 170.92 percent), India (0.66 percent to 15.66 percent), Korea (0.00 percent to 45.23 percent), and Taiwan (0.00 percent to 48.86 percent) based on these preliminary rates.

In 2016, U.S. imports of fine denier polyester staple fiber from China, India, Korea, and Taiwan were valued at an estimated $79.4 million, $14.7 million, $10.6 million, and $9.6 million, respectively.

The petitioners are DAK Americas LLC (NC), Nan Ya Plastics Corporation, America (SC), and Auriga Polymers Inc. (NC).

Click HERE for a fact sheet on decisions.

Enforcement of U.S. trade law is a prime focus of the Trump administration. From January 20, 2017, through December 18, 2017, Commerce initiated 79

antidumping and countervailing duty investigations – a 52 percent increase from 52 initiations in the previous year.

The AD law provides U.S. businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of unfair pricing of imports into the United States. Commerce currently maintains 412 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.

Unless the final determinations are postponed, Commerce is currently scheduled to announce its final AD determinations on March 5, 2018.

If Commerce makes affirmative final determinations of dumping and the U.S. International Trade Commission (ITC) makes affirmative final injury determinations, Commerce will issue AD orders.  If Commerce makes negative final determinations of dumping or the ITC makes negative final determinations of injury, the investigations will be terminated and no orders will be issued.

Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade laws and does so through an impartial, transparent process that abides by international law and is based solely on factual evidence.

Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to antidumping duties.

Upcoming Event: Discover Global Markets

Design + Construct
Kansas City, MO
April 30 – May 2, 2018

Discover Global Markets is the U.S. Department of Commerce’s flagship event series for U.S. exporters.

In just a few days, attendees will uncover new exporting opportunities, learn from seasoned exporters, and connect with hundreds of networking contacts.

At Each Discover Global Markets Conference, you will:

  • Meet one-on-one with U.S. Commercial Diplomats visiting from abroad
  • Participate in panel discussions on the latest industry trends
  • Identify new and emerging markets of opportunity ahead of your competition
  • Learn about U.S. export programs designed to cut your time to market
  • Network with U.S. trade officials, leading private sector experts and like-minded U.S. businesses active in overseas markets

You can see from the last Discover Global Markets event in Cleveland, Ohio, and visit Export’s testimonials page to see what previous Discover Global Markets attendees had to say about their experience.

U.S. Secretary of Commerce Wilbur Ross Announces Hundreds of Billions in Deals Between U.S. Companies and Chinese Entities

Nov 9th, U.S. Secretary of Commerce Wilbur Ross announced the signing of approximately a quarter trillion dollars in deals facilitated by the Department of Commerce between private U.S. businesses and Chinese entities. The agreements, most of which occurred as part of the U.S. Department of Commerce’s 2017 U.S. CEO Delegation to China, will bring thousands of new jobs to America.

“American businesses are the most innovative in the world, and, when given access, can compete with anyone,” said Secretary Ross. “I believe these deals can provide a solid foundation for a stronger relationship that is more free, fair, and reciprocal between the U.S. and China.”

Addressing the imbalance in U.S.-China trade has been a central focus of discussions between President Trump and President Xi since their first meeting at Mar-a-Lago in April. Today they joined each other at the Great Hall of the People to witness the signing of fifteen of the largest agreements.

“It was a great honor for these to be witnessed by President Trump and President Xi today,” continued Secretary Ross. “A special thank you to our CEO Delegation for their hard work in support of this historic event.”

The Delegation participated in two days of productive exchanges with Chinese businesses and government officials where they advocated for American business interests. They also established relationships that will pay dividends far into the future.

Below is a list of the trade and investment deals signed by U.S. companies and Chinese entities. All are subject to definitive documentation and to all applicable U.S. and Chinese rules and laws, including review by CFIUS and BIS export control in the United States.

Some deals do not have publicly disclosed dollar values, and the Department of Commerce will not release confidential figures pertaining to the deals it facilitated. For additional information regarding specific agreements, please contact each company.

Please click HERE for descriptions of each deal.

These 2017 U.S. CEO Delegation to China deals include:

  • Air Products (APD) Air Products and Yankuang Group Co., Ltd. – $3.5 billion
  • The State of Alaska, Alaska Gasline Development Corporation (AGDC), China Petrochemical Corp (Sinopec), China Investment Corporation (CIC), and Bank of China (BOC) – $43 billion.
  • Archer Daniels Midland Company (ADM) and COFCO
  • Bell and Reignwood signed an agreement for 60 Bell 505s, valued at $50 million.
  • Boeing and China Aviation Supplies Holding Company — $38 billion.
  • Caterpillar Inc, and China Energy Investment Corp
  • Cheniere Energy and China National Petroleum
  • Dais Analytic Gouanrui (Beijing) Technology Co., Ltd
  • Delfin Midstream and China Gas Holdings – $8 billion
  • Digit group and Gateguard – $100 million
  • Digit group and Foton – $310 million
  • Digit Group and HeDa Group – $1.5 billion
  • The Dow Chemical Company
  • Dow and Mobike
  • Drylet, LLC and Nanjing Hoyo Municipal Utilities Investment and Administration Group – $100 million
  • GE and Juneyao Airlines – $1.4 billion
  • GE and ICBC – $1.1 billion
  • GE and China Datang Group – $1 billion
  • Goldman Sachs China Investment Corporation (“CIC”) – $5 billion
  • Honeywell and Oriental Energy
  • Honeywell and Spring Airlines
  • I. M. Systems Group, Inc. (IMSG) and Civil Aviation Telecom Co., Ltd.
  • Qualcomm and Xiaomi, Oppo and Vivo – $12 billion
  • SAS and Shenzhen Zhenghong Technology Co. Ltd. – $30 million
  • Stine Seed China and Beijing W. Seed – $10 million
  • TEREX and Xuzhou Handler – $250 million
  • Thermo Fisher Scientific, Beijing Municipal Commission of Science and Technology, Tsinghua University, Beijing Novogene Bioinformatics Technology Co., Ltd, and Innovent Biologics (Suzhou) Co., Ltd – $35 million
  • U.S. Soybean Export Council (USSEC) and the China Chamber of Commerce for Import and Export of Foodstuffs, Native Produce and Animal By-products (CFNA) – $3.4 billion
  • Viroment and Hangzhou Iron and Steel – $800 million
  • Viroment and Guangye Guangdong Environmental Protection Group, Co, LTD. – $100 million
  • Westinghouse Electric Company, Nuclear Power Technology Company (SNPTC) and subsidiaries, State Nuclear Power Engineering Corporation (SNPEC) and State Nuclear Power Automation & Engineering Company (SNPAS)

Nondelegation deals:

  • American Ethane and Nanshan Group – $25 billion
  • Ford Trading Company LLC. And Ford Motor (China) Ltd. – $10 billion
  • GM and SAIC-GM – $2.2 billion.
  • The Montana Stockgrowers signed and Jingdong Century Trade Company (JD.com) – $200 million. Smithfield Food Inc.
  • Smithfield Food Inc and Jingdong Century Trade Company (JD.com) – $1 billion.
  • The state of West Virginia and Shenhua corporation – $83 billion.

Upcoming Trade Events

Trade EventsExpo MRO
Ciudad Juárez, Mexico
October 11-13, 2017

This trade show is a popular option for companies who want to supply MRO materials to Mexican manufacturers. Several American companies exhibit at the event held in Ciudad Juarez, Mexico. MRO materials are quick sales and don’t need to comply with the lengthy, burdensome procurement process required for direct materials. Expo MRO is a great venue for companies to explore opportunities and to network with fellow manufacturers.

Trade Winds Business Forum
Southeast Europe
October 16-23, 2017

commercial specialists have identified the advanced manufacturing sector as one with top prospects for sales in Southeast Europe. With tens of billions of dollars in available EU funds for economic development, there are a number of opportunities for U.S. exporters in this dynamic and growing region.

Certified Trade Mission to Azerbaijan & Georgia
Oct 16-18, 2017

Azerbaijan, with a GDP of $37.5 billion, is a country on the move with countless opportunities for business. Georgia, with a GDP of 14.5 billion, has many trade agreements in place that provide opportunities for companies to access not only the country’s 4.4million residents, but the wider region without or with limited customs tariffs. U.S. companies may participate in one or both stops in order to: explore these markets for new business opportunities; meet with pre-screened distributors, customers and business partners; meet with government officials; and, network with key business people.

Webinar: International Additive Manufacturing Standardization
October 17, 10:00a.m. EDT, 2017

The global additive manufacturing market is booming. Due to recent statistics, Germany is at the forefront. The share of local firms already utilizing 3D-printing promises rapid growth in the future.
Topic 1 – Regulations relating to Additive Manufacturing in the US and EU: Get an insight into the appropriate regulations to export successfully.
Topic 2 – Snapshot of the Additive Manufacturing market in Germany/Europe Germany as the EU’s largest market offers U.S. additive manufacturers good potential.
Free webinar.

FABTECH 2017
McCormick Place, Chicago
November 6-9, 2017

FABTECH provides a convenient venue where you can meet with world-class suppliers, see the latest industry products and developments, and find the tools to improve productivity, increase profits and discover new solutions to all of your metal forming, fabricating, welding, and finishing needs. The annual event will see more than 1,700 exhibitors and 50,000 attendees. Join the U.S. Commercial Service at this event. Contact Allison Mello for details.

Plastimagen 2017
Centro Banamex, Mexico City
November 7-10, 2017

Plastimagen 2017 is the most complete and important U.S. Department of Commerce certified trade fair for the plastic industry in Latin America. With over 850 exhibiting companies from 20 different countries including Guatemala, Colombia, Brazil, Argentina and others. The show brings together more than 28,000 visitors with a large percentage of decision makers and industry leaders. The U. S. pavilion is booked up but spaces are still available in the machinery section.

Composites Meetings B to B event
Nantes, France
November 8-9, 2017

An international custom-tailored matchmaking program which in 2015 attracted 420 participants from 21 countries and generated 5200 b2b meetings. Unlike traditional exhibits, the event provides pre-arranged one-on-one meetings strictly reserved for professionals that pre-register. It is a great opportunity to be connected with decision-makers from major target industries, including aerospace, automotive, nautical construction, rail and energy.

Integr8 2017, Automation Alley’s Industry 4.0 Conference
Detroit, Michigan
November 9, 2017

Join Ian Steff, Deputy Assistant Secretary for Manufacturing, U.S. Department of Commerce at Integr8 2017! Get inspired by the world’s foremost Industry 4.0 thought leaders as they discuss the smart technologies shaping our future. Meet us at Integr8™, Automation Alley’s one-of-a-kind, global conference focused on the eight technologies currently disrupting the manufacturing industry. Integr8™ aims to educate attendees on the advantages and benefits of implementing advanced manufacturing technologies on our factory floors.

IMTEX Forming 2018
Bengaluru, India
January 25-30, 2018

Organized by the Indian Machine Tool Manufacturers’ Association (IMTMA), IMTEX and the concurrent Tooltech 2018 is one of the largest international machine tools expos in Asia. The show will feature all aspects of forming technologies, predominantly sheet metal forming. It attracts visitors from a wide spectrum of manufacturing and ancillary industries, including key decision and policy makers as well as industry captains who are keen to source latest technologies and manufacturing solutions for their product lines. The Commercial Service will be happy to provide counselling on market opportunities in India and matchmaking services for exhibiting/participating U.S. companies in and around the show dates.

ACMEE 2018
Chennai, India
June 21-25, 2018

This show is held once every two years and is one of the premier expos of machine tools. It is organized by the local manufacturing association of Ambattur Industrial Estate Manufacturers Association (AIEMA). The last show in 2016 had 465 exhibitors including 125 from overseas and 45,000 visitors.