DEVELOPMENTS–TRADE, CUSTOMS/TARIFFS, 337/IP/PATENT, DRYWALL PRODUCT LIABILITY, ARBITRATION

Zhengyang Gate from Walking Street Tiananmen Square Beijing Chin There have been major developments in the Trade, Customs, 337/IP, Patent, Products Liability and Arbitration areas.

TRADE DEVELOPMENTS

SHRIMP FROM CHINA, VIETNAM, INDIA AND OTHER COUNTRIES

A new countervailing duty case has been filed against Shrimp from China and a number of other countries.  See the announcement below.  If anyone wants a copy of the complaint, please feel free to contact me.

Docket No: 2928 

Document Type: 701 Petition

Filed By: Elizabeth J. Drake

Firm/Org: Stewart and Stewart

Behalf Of: Coalition of Gulf Shrimp Industries (COGSI)

Date Received: December 28, 2012

Commodity: Frozen Warmwater Shrimp

Country: People’s Republic of China, Ecuador, India, Indonesia, Malaysia, Thailand, and the Socialist Republic of Vietnam

Description: Letter to Lisa R. Barton, Secretary, USITC; requesting the Commission to conduct an investigation under section 701 of the Tariff Act of 1930 regarding the imposition of countervailing duties on U.S. imports of Certain Warmwater Shrimp from the People’s Republic of China, Ecuador, India, Indonesia, Malaysia, Thailand, and the Socialist Republic of Vietnam.

Status: 701-TA-491-497

XANTHAN GUM FROM CHINA–COMMERCE DEPARTMENT PRELIMINARY ANTIDUMPING DETERMINATION

Today, the Commerce Department announced its preliminary antidumping duty determination in the Xanthan Gum from China.  Fufeng Biotechnologies Co., Co., Ltd.  received 21.69% and Deosen Biochemical Ltd. 127.65%.  The separate rate companies received 74.67%, and the rate for the rest of China is 154.07%.

Attached are the preliminary Federal Register notice and fact statement. Xanthan Gum Prelim FR (signed)  Xanthan Gum FS Prelim

CURTAIN WALL DECISION APPEALED TO THE COURT OF INTERNATIONAL TRADE

The Commerce Department’s decision to extend the Aluminum Extrusions antidumping and countervailing duty orders to cover imports of Chinese curtain wall/sides of buildings has been appealed to the Court of International Trade.  See the attached complaint.  Complaint and Aluminum Extrusion and Curtain Wall (2)

WOODFLOORING REVIEW INVESTIGATION STARTS UP

The US wood flooring industry has requested an antidumping and countervailing duty review investigation of numerous Chinese exporters.  If anyone wants a list of the Chinese companies named in the letter, please feel free to contact me.

CHINESE ANTIDUMPING AND COUNTERVAILING DUTY ON PULP FROM THE US, CANADA AND BRAZIL

Possibly in response to the numerous US cases against Chinese wood products, we have learned that the Chinese government is on the verge of initiating a major antidumping case against imports of wood pulp, cotton pulp, and bamboo pulp from the US, Canada and Brazil.  If anyone wants a copy of the target companies in the US, Canada or Brazil, please feel free to contact me.

CUSTOMS—NEW TARIFF BILL

On January 1, 2013, The House of Representatives introduced this week a major tariff reduction bill, The U.S. Job Creation and Manufacturing Competitiveness Act of 2013.  Attached is a copy of the bill, which must still go to the Senate.  TARIFF BILL  The bill represents a bipartisan effort to lower costs for US manufacturers by lowering tariff rates to zero on hundreds of products, including numerous chemical products.  Since both Republicans and Democrats sponsor the bill, it will pass the House.  According to the attached announcement by the House Ways and Means Committee, the Senate Finance Committee has reviewed the same proposals in the House Bill so this bill should eventually pass the Senate and go to the President for his signature.  HOUSE ANNOUNCEMENT

 NEW 337 PATENT CASE AGAINST HUAWEI AND ZTE

On January 2, 2013, a new 337 patent case was filed at the International Trade Commission against Huawei and ZTE.  See notice below.

Docket No: 2929 

Document Type: 337 Complaint

Filed By: Bert C. Reiser

Firm/Org: Latham and Watkins

Behalf Of: Inter Digital Communications, Inc., Inter Digital Technology Corporation, IPR
Licensing, Inc. and Inter Digital Holdings, Inc.

Date Received: January 2, 2013

Commodity: Wireless Devices with 3G and/or 4G Capabilities and Components

Description: Letter to Lisa R. Barton, Acting Secretary, USITC; requesting that the Commission conduct an investigation under section 337 of the Tariff Act of 1930, as amended regarding Certain Wireless Devices with 3G and/or 4G Capabilities and Components Thereof . The proposed respondents are Samsung Electronics Co., Ltd., Korea; Samsung Electronics America, Inc., Ridgefield Park, NJ; Samsung Telecommunications America, LLC, Richardson, TX; Nokia Corporation, Finland; Nokia Inc., White Plains, NY; ZTE Corporation, China; ZTE (USA) Inc., Richardson, TX; Huawei Technologies Co., Ltd., China; Huawei Device USA, Inc., Plano, TX; and Future Wei Technologies, Inc., d/b/a Huawei Technologies (USA), Plano, TX.

Status: Pending Institution

If anyone wants a copy of the complaint, please feel free to contact me.

MORE PATENT CASES AGAINST HUAWEI AND ZTE

Attached are the companion complaints filed in Federal District Court by Interdigital against Huawei and ZTE.  INTERDIGITAL HUAWEI INTERDIGITAL ZTE

In addition, Steelhead Licensing has filed a new patent case against ZTE.  See attached complaint.  STEELHEAD ZTE 

 DRYWALL PRODUCTS LIABILITY LEGISLATION

On Tuesday, January 1, 2013, the House of Representatives passed legislation banning the sale of contaminated drywall imported from China.  In the bill, Congress insisted that the Chinese government force Chinese manufacturers to compensate American homeowners who have faced property damage and health problems caused by the tainted product.

The U.S. House of Representatives voted 378-37 in favor of the Drywall Safety Act.  On December 21, 2012, the same bill went through the US Senate on a unanimous, 100 to 0, vote so the bill is on President Obama’s desk for signature.

The bill stipulates that contaminated drywall be treated as a banned hazardous substance under the Federal Hazardous Substances Act and as an imminent hazard under the Consumer Product Safety Act. 

Attached is a copy of the bill going to the President for signature.  US LEGISLATION

Section 2 of the Bill reads as follows:

SEC. 2. SENSE OF CONGRESS.

“It is the sense of Congress that—

(1)  the Secretary of Commerce should insist that the Government of the People’s Republic of China, which has ownership interests in the companies that manufactured and exported problematic drywall to the United States, facilitate a meeting between the companies and representatives of the United States Government on remedying home owners that have problematic drywall in their homes;

and

(2)  the Secretary of Commerce should insist that the Government of the People’s Republic of China direct the companies that manufactured and exported problematic drywall to submit to jurisdiction in United States Federal Courts and comply with any decisions issued by the Courts for home owners with problematic drywall.”

As mentioned in a previous post on this blog, there is a major multidistrict litigation, which includes 10,000 or more cases ongoing in the Eastern District of Louisiana.  Recently, in September, the Court rejected an effort by a Chinese company to lift a default judgment in the case and the Court found jurisdiction over the Chinese company.

One Chinese drywall manufacturer Knauf Plasterboard Tianjin Co., a subsidiary of a German company, in December 2011 settled the personal injury and other claims in a settlement worth between $800 million and $1 billion. This settlement covers about 4,500 homes.

ENFORCEMENT OF ARBITRATION AWARD BY CHINESE COMPANY AGAINST US COMPANY

Attached is a complaint filed January 2, 2013 by Chongqing Hengsheng Xintai Trade Co., Ltd. against Baja, Inc. a/k/a Baja Motorsports, LLC, a Delaware Corp., in the US District Court of South Carolina seeking to enforce an arbitration award from the China International Economic and Trade Arbitration Commission (“CIETAC”) against a US company.  CHONGQING CIETAC AWARD COMPLAINT

If anyone wants any information about these complaints, developments or general information on US Trade, Customs, antitrust, securities, products liability or arbitration law, please feel free to contact me. 

Best regards,

Bill Perry

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