TPCC I NTERAGENCY T RADE O FFICER T RAINING M ARKET A CCESS & T RADE A GREEMENT E NFORCEMENT John...
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Transcript of TPCC I NTERAGENCY T RADE O FFICER T RAINING M ARKET A CCESS & T RADE A GREEMENT E NFORCEMENT John...
TPCC INTERAGENCY TRADE OFFICER
TRAINING
MARKET ACCESS & TRADE AGREEMENT
ENFORCEMENT
John LiuzziOffice of Trade Agreements and
Compliance / Trade Compliance Center
September 27, 2012
How a Tariff Re-classification by the EU Threatened U.S. exports of
Jojoba Esters
An Example
BCIU/Interagency Trade Officer 27Sept12
The Scenario
• In March 2007, the International Jojoba Export Council approached the Department of Commerce, through the USEAC, and Customs and Border Protection (CBP) looking for assistance with the European Union’s re-classification of Jojoba esters from a 0% tariff line (HS 3404.9090) to a 7.7% tariff line (HS 1518.0099).
• Jojoba and its by-products are used in the manufacture of makeup and skincare products. This new classification would increase costs and result in significant damage to U.S. as well as other countries’ exports to the EU.
BCIU/Interagency Trade Officer 27Sept12
Some Questions
• What is the scientific basis for the EU’s re-classification?
• Are there third countries that have the same concerns?
• What possible avenues are available to address this issue?
BCIU/Interagency Trade Officer 27Sept12
Key Players
• DOC/ITA:– Arizona USEAC
– MAC’s Trade Compliance Center
– MAC’s Office of the European Union
– MAS Industry Analyst
– U.S. Mission to the European Union
– Office of General Counsel
• Customs and Border Protection
• Industry Representative
BCIU/Interagency Trade Officer 27Sept12
Key Factors
• U.S. argued that the EU’s reclassification was incorrect because the science underpinned the classification of jojoba esters in HS 3404 as having the chemical and physical properties of wax, not HS 1518 as an animal fat or oil.
• The Harmonized System (HS) Code is harmonized up to the six-digit level. The WCO’s Harmonized System Committee can rule on HS Code classification disputes to ensure uniform classification.
• Because the WCO decision would be based on a vote, CBP and ITA undertook outreach to third countries who were possible allies for the U.S. position, such as Argentina, Australia, Chile, Egypt, Mexico, and Peru.
BCIU/Interagency Trade Officer 27Sept12
What is our Goal for Success?
• Make a sale – we help a company now (Good)
• Reduce or eliminate the barrier – help an industry now and in the future (Better)
BCIU/Interagency Trade Officer 27Sept12
Action!
USG concerns raised in various fora:
• European Commission
• World Customs Organization Harmonized System Committee
• Third country outreach to build support for U.S. position
BCIU/Interagency Trade Officer 27Sept12
Successful Resolution
• After failing to resolve this issue bilaterally, the USG raised the classification dispute at the World Customs Organization Harmonized System Committee for a vote.
• In the March 2008 meeting, the U.S. position was supported with a vote of 18-16. The EU appealed the vote in May 2008.
• On March 11, 2009, the issue was debated and voted on again. This time the U.S. position was upheld by a vote of 24-12.
• In June 2010, at ITA’s urging, the EU took the final step for compliance by updating its customs classification database, thus enabling U.S. suppliers to export using the appropriate duty-free classification.
• The success was a result of a coordinated third country outreach effort by Commerce, CBP and the IJEC.
BCIU/Interagency Trade Officer 27Sept12
DOC/ITA
International Trade Administration
Market Access and
Compliance
Commercial Service
Manufacturing and Services
Office of Trade Agreements and
Compliance
Advocacy Center
USEACs and
Overseas Posts
Office of Standards Liaison
Import Administration
BCIU/Interagency Trade Officer 27Sept12
BCIU/Interagency Trade Officer 27Sept12
A/S for Market Access and Compliance
Trade Agreements and Compliance
Europe Western Hemisphere
Asia Africa, the Middle East, and South Asia
Trade Compliance Center
Office of Intellectual Property Rights
Office of Multilateral Affairs
ITA/MAC
BCIU/Interagency Trade Officer 27Sept12
Trade Agreements Monitoring and Compliance at Commerce
• State of the Union Address National Export Initiative (NEI)
• Special trade barrier emphasis areas – NEI Priority Countries– Next Tier Markets– Mature Markets
• Bilateral Trade Agreements
BCIU/Interagency Trade Officer 27Sept12
What is Trade Agreements Compliance and why is it important?
• Ensures foreign trading partners honor their obligations under trade agreements they have signed with the United States.
• Promotes U.S. exports and supports U.S. jobs by eliminating horizontal barriers to trade in order to increase exports.
• Creates confidence and support among stakeholders for future trade agreements to open other markets.
BCIU/Interagency Trade Officer 27Sept12
The Trade Compliance Center
• Coordinates Commerce’s monitoring of and ensuring compliance with U.S. trade agreements – The ITA Trade Agreements Compliance Program
• 3 Elements: Pro-active Monitoring Barrier Investigation Outreach
Compliance, Trade Enforcement and ITA
“Trade enforcement is a spectrum of activities”- USTR GC Tim Reif
• Informal trade enforcement = Compliance • USG uses diplomatic engagement to get partners to
voluntarily honor their trade agreement obligations.
• Formal trade enforcement = binding dispute settlement under WTO or FTA dispute settlement provisions.
BCIU/Interagency Trade Officer 27Sept12
The Program’s Contribution to Trade Enforcement in Perspective…or the Iceberg
Formal Dispute Settlement Proceedings initiated by USG under multilateral,
bilateral, and regional trade agreements:
Cases opened by DOC under the ITA Trade Agreements
Compliance Program:
From 2009 to August 15, 2012…
12
825
BCIU/Interagency Trade Officer 27Sept12
BCIU/Interagency Trade Officer 27Sept12
Outreach, Training, & Monitoring to Identify Cases
Proactive Monitoring
MAC Compliance
Liaison ProgramOutreach
and Training
Congress
State Organizations
Foreign Service Officers
U.S. Export Assistance Centers
ITA Trade Agreement Specialists
Other Agencies and Officers at Posts
District Export Councils
Direct Contact from Company
MAC Officers and Trade Compliance Center
Stop Fakes Website www.stopfakes.govTCC Complaint Hotline
www.export.gov/tcc
ITA Trade Agreements Compliance Program
MAC Country Desk Officers
Trade Associations
MAS Industry Specialists
BCIU/Interagency Trade Officer 27Sept12
The Most Common Trade Barriers
• Excessive tariff and customs barriers
• Discriminatory rules of origin, certificates of origin, or import licensing requirements
• Burdensome standards, testing, labeling, or certification requirements
• Lack of Intellectual Property Rights protection
• Non-transparent government procurement contracts
BCIU/Interagency Trade Officer 27Sept12
Other Agencies
Country Desk Officer
Trade Agreement Specialist
General Counsel
Officers at Embassies/Consulates
Trade Specialist at U.S. Export Assistance Center
Market Access and Compliance
Team
Industry Specialist
The ITA Case Team
Identifies issue as
unfair treatment or
potential violation
Gathers additional facts and verifies
information
Determines specific trade
agreement obligation, if
any
Analyzes evidence
and investigates
Examining the Issue
BCIU/Interagency Trade Officer 27Sept12
BCIU/Interagency Trade Officer 27Sept12
Sets success goal
identifying company’s
desired outcome(s)
Crafts Action Plan,
outlining general
strategy to successfully resolve issue
Involves other
interagency resources,
as appropriate
Presses for resolution as quickly as possible, short of dispute settlement
Initiates Case
Working to Resolve
BCIU/Interagency Trade Officer 27Sept12
The Process
Diplomatic/Advocacy Tools: Meetings with foreign officials Phone calls and letters Non-papers Demarches Visits by Washington officials
Trade Agreement Tools: Bilateral discussions Multilateral/ WTO fora FTA negotiations
Implementation of Action Plan
Team escalates the issue as appropriate and employs the full weight of the U.S Government to resolve the issue
Team may recommend referral to the USTR and the interagency for WTO Dispute Settlement Body as appropriate
BCIU/Interagency Trade Officer 27Sept12
Resolution
Success!
Goal is reached and company is satisfied
with USG assistance.
Company agrees that no further USG action
is possible or desirable.
Company withdraws active support or
resolves case some other way.
Team determines and informs company that no further USG action
is possible
Inter-Agency Coordination
• TPCC
• Outreach Opportunities
• Interagency Compliance Task Force
BCIU/Interagency Trade Officer 27Sept12
BCIU/Interagency Trade Officer 27Sept12
Colombia – Import Restrictions on Textiles, Apparel and Footwear
• U.S. industry expressed concern over a new Colombian decree restricting imports according to the importer’s net worth and limits the number of different textile products a single importer can import.
• The WTO generally prohibits import restrictions other than duties, taxes or other charges.
• After U.S. officials raised the decree in FTA negotiations, Colombia agreed to modify the decree to make it significantly less trade restrictive.
Kazakhstan - SEDs
• In 2007, the Government of Kazakhstan amended its customs code to require importers to provide confidential Shipper’s Export Declaration information, which caused $70 million in U.S. goods to be held up at the border.
• DOC (both FCS and HQ), State (both Post and Main) and CBP worked together to engage GOK.
• Kazakhstan first exempted U.S. goods, then amended the code to delete the problematic requirement.
BCIU/Interagency Trade Officer 27Sept12
BCIU/Interagency Trade Officer 27Sept12
Monitoring – Issues Which May Indicate Trade Barriers
• Rules and practices not transparent.
• Treatment not predictable.
• Access to information, opportunity not equal.
• Anything discriminatory or more favorable to locals or other nationalities.
• Decisions based on nationality.
BCIU/Interagency Trade Officer 27Sept12
www.export.gov/tcc
• ITA’s “Trade Complaint Hotline”• Checklist of common trade concerns• 270+ trade and related agreements• Exporter Guides: quick, concise explanations of
individual trade agreements• Market Access News• WTO Standards Notifications—Notify U.S. • Mailing List: Subscribers receive weekly “What’s
New” e-mail update on trade-related news
Resources
BCIU/Interagency Trade Officer 27Sept12
Your Role?
• Be on the lookout for unfair trade barriers and let us know what you find.
• Refer clients to ITA’s Market Access and Compliance Online Hotline at www.export.gov/tcc.
• Help us get out the word out on USG assistance on market access problems and trade agreements compliance issues.
BCIU/Interagency Trade Officer 27Sept12
TCC Contact Information
• Main Line: 202-482-1191• Fax: 202-482-6097• [email protected]• www.export.gov/tcc• Cables slugged for USDOC/TCC/4110
John Liuzzi(202) 482-0539