The National Retail Federation wants the Senate to “move swiftly” to confirm Customs and Border Protection acting Commissioner Kevin McAleenan as the agency’s permanent head, said the group in a Thursday statement. With Senate Finance Committee's approval of McAleenan Thursday, NRF is “pleased to see” his nomination “finally moving through the process,” it said. “As major importers, retailers rely on CBP to facilitate legitimate commerce and enforce our trade laws, which is essential to our nation’s global competitiveness.”
The FCC is ending Form 740 filing requirements for imported RF devices, effective Thursday, the agency is to say in that day's Federal Register. The FCC will continue to require compliance with rules for importing RF devices, it said: The regulator "retained the requirement that there must be an entity that assumes responsibility for the compliance of the device and modified the rules to ensure the existence and identity (and a domestic presence under the new [Supplier’s Declaration of Conformity (SDoC)] rules), of such a responsible party." Commissioners approved in July (see 1707130032).
Fiber network equipment is classifiable as optical instruments of chapter 90 of the Harmonized Tariff Schedule of the U.S., the Court of International Trade ruled. ADC Telecommunications argued Customs and Border Protection should have classified its “value added modules” as duty-free data transmission equipment. CIT held Wednesday that optical equipment includes fiber cables that transmit non-visible light, confirming CBP’s liquidation as “other optical appliances and instruments” at a 4.5 percent duty. A lawyer for ADC didn't comment.
Aqua Connect and subsidiary Strategic Technology Partners are seeking a limited exclusion order banning import of Apple computers and mobile devices, they said in a Tariff Act Section 337 complaint filed Oct. 10. The complaint said Mac computers running macOS 10.7 or above; iPhones, iPads and iPods running iOS 5 or above; and Apple TV products, second generation and above, copy Strategic Technology Partners’ patented screen-sharing technology. The companies asked the International Trade Commission to also issue a cease and desist order against Apple. Comments are due Oct. 25, the ITC said in Tuesday's Federal Register. Apple didn't comment.
An iPhone case that includes a separate screen that shows information like photos, boarding passes and maps from the phone sent through a Bluetooth connection isn't classified based on the Bluetooth capability, Customs and Border Protection said in an Aug. 3 ruling that was recently released. CBP responded to an advice request from a customs broker for popSLATE Media, which makes the case. The company told CBP it believes the cases are best classified based on radio transceivers as the agency classified the Apple Watch and other "smartwatches" (see 1606280059). CBP disagreed, saying "the most prominent feature" is the image display screen. That classification has a 2.6 percent duty rate. We couldn't reach popSLATE Friday.
Strong copyright protections should be included in the North American Free Trade Agreement, CreativeFuture said in a petition with "over 50,000 signatures." Creative communities can't afford the job losses that would result if NAFTA ends up with "weak provisions" on intellectual property, it said. The group worries that "the agenda of behemoth Silicon Valley companies" will erode copyright protections and undermine U.S. exports.
Tech allies are wary of some nations' privacy endeavors and data localization, and Congress can play a role, a House Digital Trade Subcommittee heard Thursday. Keeping data flowing across borders benefits jobs and economic growth, tech industry officials testified, as expected (see 1710110045). Officials pressed lawmakers to pursue favorable digital trade policies and urge the administration to work with governments on North American Free Trade Agreement negotiations. Chairman Bob Latta, R-Ohio, said the hearing is a “jumping-off point for a closer examination” of non-tariff trade issues in months to come. “Congress can play a significant role in supporting the people and businesses that depend on the free and open flow of data,” Latta said. He criticized actions some U.S. trading partners took to restrict cross-border data flows through requirements to localize data storage, production and facilities, raising costs for U.S. businesses. Such restrictions are “counterproductive to data security and privacy,” said ranking member Jan Schakowsky, D-Ill. Differences among countries “create challenges,” she said. The U.S. should balance between constructing policies that remove harmful barriers and those protecting privacy and security where “current law is lacking,” Schakowsky said, citing Equifax's breach and urging Congress to compel more answers (see 1710120016). Data flow across borders is a big, new policy concern, said BSA|The Software Alliance CEO Victoria Espinel. “NAFTA is a good place to start,” she said, urging the administration to work broadly with countries around the world to “set ground rules on international data.” Information Technology Industry Council President Dean Garfield said Congress can provide the “kinds of oversight and support” to create policies supporting growth in the sector. He cited a recent Information Technology and Innovation Foundation study that said EU states "differ significantly" on how much they used data to illustrate the uneven perspectives among trading partners. Requiring some data be stored locally is counterproductive to open borders, and harmful to companies that can’t afford the costs, ACT|The App Association President Morgan Reed said. “Companies will opt out of global opportunities if there are restrictions.” Reed praised the Privacy Shield framework (see 1709210011) as a workable cross-border policy, saying his members “have undertaken significant effort” to comply.
Industry groups plan to seek stronger digital trade laws during a House Digital Commerce Subcommittee hearing Thursday on barriers to trade and cross-border data flows, according to prepared testimony. Information Technology Industry Council President Dean Garfield outlined top administration priorities Congress should support: Negotiate new rules preventing barriers to digital trade; enforce existing trade agreements; and designate a senior official at the Office of the U.S. Trade Representative responsible for digital trade. ACT|The App Association President Morgan Reed says Congress should update the Electronic Communications Privacy Act to "ensure U.S. companies doing business abroad do not face conflicts between law enforcement requests and foreign laws." BSA|The Software Alliance CEO Victoria Espinel wants a "modernized" North American Free Trade Agreement that will ban barriers to market access for e-commerce and digital trade. NAFTA should promote cooperation among trade partners on cybersecurity and prohibit measures that require technology transfers, such as source code or algorithms, as a condition of market access, Espinel says. American University associate law professor Jennifer Daskal is to back a “multipronged strategy” to address privacy and security concerns of foreign governments without endorsing “protectionist impulses.”
The U.S. should stay in the North American Free Trade Agreement, while focusing on strengthening the intellectual property provisions in the accord with Canada and Mexico, Free State Foundation President Randolph May blogged Friday. “Stronger IP rights protections will incentivize more innovation and investment in all three NAFTA member countries,” May wrote. “With $1.3 trillion in annual economy activity and 14 million jobs on the line in the United States, President [Donald] Trump should not be focusing on withdrawing from NAFTA but rather on updating the treaty.”
Fair use and safe harbor provisions should be included in a renegotiated North American Free Trade Agreement, the Re:Create Coalition said in a letter to U.S. Trade Representative Robert Lighthizer Thursday. If NAFTA is going to include copyright provisions, it must include enforcement measures and provisions like fair use in order to support the American economy and jobs, the letter said. Safe harbor provisions such as those included in the Digital Millennium Copyright Act helped internet growth, and fair use adds $2.8 trillion to the economy annually, the group said. It took issue with music industry groups that fear safe harbors would permit trading partners to be havens for piracy for those who illegally infringe on American content (see 1709200038).