Weekly Trade Briefing: Nov. 1 – 5, 2021

Trade Update • NOVEMBER 5, 2021

Aweekly roundup of news reports, government announcements, and other information about current and emerging developments in international trade and customs compliance.

Ethiopia, Guinea, and Mali to Lose AGOA Eligibility

On November 2, 2021, President Joe Biden announced that three African countries will be terminated from the AGOA trade preference program as of January 1, 2022. The African Growth and Opportunity Act provides eligible sub-Saharan African countries with duty-free access to the U.S. market for over 1,800 products. A statement by the USTR indicates that the termination of benefits is owing to non-compliance with AGOA commitments, specifically, unconstitutional change in governments in both Guinea and Mali, and to gross violations of human rights being perpetrated by the Government of Ethiopia amid an ongoing civil war.

U.S. Super Absorbent Polymer Makers Petition for AD/CV Duties on Korean Exporters

In a petition filed November 2, a group of domestic producers urged the U.S. Department of Commerce and the U.S. International Trade Commission to investigate whether LG Chemical Ltd. and Sumitomo Seika Chemicals Co., Ltd., two Korean exporters of superabsorbent polymers, are dumping their products in the U.S. at unfairly low prices. The group alleges dumping margins of up to nearly 50% in addition to the Korean exporters also benefiting from countervailable subsidies and is urging the government to levy AD/CV duties to prevent further damage to the domestic industry. SAPs are used in a range of applications, including personal hygiene products such as diapers.

CFIA Updates Guidance re Preventive Controls for Eggs and Processed Egg Products

The Canadian Food Inspection Agency this week updated its guidance document on incoming eggs, which can present a source of contamination. The CFIA document describes the preventative control measures required to be implemented in order to avoid health hazards when handling and processing eggs and egg products. The CFIA’s guidance is intended to help food businesses comply with the requirements of the Safe Food for Canadians Regulations.

China No Longer Issuing GSP Certificates of Origin for Exports to Canada

China’s General Administration of Customs recently announced that when the EU members, the UK, Canada and other countries stop granting generalised system of preferences (GSP) benefits to goods from China as of December 1, 2021, it will also stop issuing GSP Certificates of Origin for goods exported to these countries. The Chinese government said the cancellation of GSP benefits by 32 nations was “a recognition from other advanced economies that China does not belong to the bracket of low-income and lower-middle-income countries anymore and that Chinese products are competitive enough in the market that (they need) no protections.”

Large Residential Washing Machines Period 4 Quota Opens Nov. 7th

The fourth quota period for large residential washing machines under Section 201 of the Trade Act of 1974 for the 2021 quota year begins on November 7th, 2021, at 8:30 am EST. As detailed in Quota Bulletin QB 20-505 2021, which outlines the tariff rates and quantity thresholds, Period 4 extends through February 6th, 2022, and the quarterly limit is 300,000 units without rollover. CBP advises that any entries submitted prior to Nov. 7 will be counted in the first opening, with entries being prorated if the totals exceed the limit.