The Biden administration should prioritize addressing the threat of international discriminatory taxes against U.S. companies, the Computer & Communications Industry Association said Thursday. CCIA noted that the Office of the U.S. Trade Representative released reports in its Section 301 investigations into digital services taxes, concluding that DSTs in the U.K., Spain and Austria are “discriminatory against U.S. tech firms.” CCIA President Matt Schruers said: “Absent a proportionate response, U.S. exports will be unfairly singled out in other countries. Moreover, the proliferation of unilateral national taxes undermines the crucial work being done by the community of nations at the [Organisation for Economic Co-operation and Development], and risks the ability of negotiators to achieve consensus.”
As 200 CEOs opposed the possible U.S. tariffs on Vietnamese goods, newly released November Census Bureau import statistics show Vietnam’s growing role in consumer tech. Vietnam as a sourcing country made substantial share gains the past year in product categories experiencing historic spikes in consumer demand during the COVID-19 pandemic, we found. It's most notable in smaller TV screens. U.S. importers also sourced about a fifth of smartphones from Vietnam in the year through November. Smartphone imports to the U.S. from all countries reached 21.44 million, up 1.6% from 2019. Chinese smartphone imports to the U.S. were 18.28 million, up 18%. The average such phone, at $367.30, was 27% more expensive. Vietnam shipped 2.6 million smartphones here in November, down 43%. The average at $187.87 was 24% more expensive. Tariffs on Vietnam aren't the answer to curb Hanoi's allegedly unfair devaluation of the dong against the dollar, wrote CEOs of LG, Samsung, Sony, CTA, the Computer & Communications Industry Association, Information Technology Industry Council, Internet Association and Semiconductor Industry Association and others to President Donald Trump Thursday, posted Friday in docket USTR-2020-0037. Their letter reflects widespread fear the Trump administration will rush through a Federal Register notice imposing tariffs on Vietnam, even if the duties take effect after Jan. 20. The White House didn't comment Monday.
Section 301 investigations of India, Italy and Turkey digital service taxes found each country “discriminates against U.S. companies, is inconsistent with prevailing principles of international taxation” and burdens or restricts U.S. commerce, said the Office of the U.S. Trade Representative Wednesday. “USTR is not taking any specific actions in connection with the findings at this time but will continue to evaluate all available options,” it said. The Indian, Italian and Turkish embassies in Washington didn’t respond to questions Thursday.
Davis Wright adds satellite and telecom lawyer Lafayette Greenfield from Milbank as partner ... Multicultural Media, Telecom and Internet Council hires Fallon Wilson, UmanityEDU founder, as vice president-policy, leading MMTC’s work on technology, data privacy, artificial intelligence and digital-age civil rights; infrastructure, broadband connectivity and digital inclusion; and multicultural media ownership and content diversity ... Herman & Whiteaker promotes Clare Liedquist Andonov to principal, focusing on wireless and wireline broadband, auctions and communications tower compliance ... Access Partnership appoints Dileep Srihari from CompTIA as senior policy counsel, U.S. team.
The impact of the U.S. iPhone 12 launch was evident in the Census Bureau’s smartphone import data trends for October, as accessed through the International Trade Commission’s DataWeb tool. Apple’s Oct. 23 release of its first 5G-enabled flagship phone helped send October smartphone unit and dollar import volume soaring. The average October smartphone import was more than a third costlier than in September, though all metrics were noticeably lower than those of a year earlier, as 2020 has been a trying year for the category. U.S. importers sourced 17.49 million smartphones from all countries in October, up 17.2% from September but down 22.5% from October 2019, said DataWeb. October dollar imports spiked 59.3% over September's to $5.21 billion but were 24.1% lower than a year earlier. October smartphone imports were worth $298.43 on average, 36.3% higher than in September but 1.9% below the October 2019 average. China was the obvious beneficiary of the October smartphone import surge, with 83% share of all handsets shipped here in the month, compared with only 70.7% share in September, said DataWeb. Apple is known to be sourcing the iPhone 12 from Foxconn's Zhengzhou factory in China's Henan province. The company, notoriously protective of its proprietary sourcing information, didn’t respond to questions. U.S. importers sourced 14.51 million smartphones from China in October, 37.5% more than in September but 19.1% fewer than in October 2019, said DataWeb. The 104.15 million Chinese smartphones shipped here in the first 10 months were 73.4% of all handset imports to the U.S., slightly lower than its 74.3% share in the same 2019 period. China’s October smartphone import spike took a clear toll on Vietnam, which contributed 13.8% of all handset shipments to the U.S. in the month, down from its 23.9% share in September, said DataWeb. Vietnamese unit import volume of 2.41 million smartphones declined 32.3% from September and was down 35.9% from October 2019. Vietnam shipped just under 29 million smartphones to the U.S. in the year’s first 10 months, 20.4% of all handset imports to the U.S. in the January-to-October period, said DataWeb. The country’s significant stature in the smartphone category will bear watching as the Office of the U.S. Trade Representative convenes a Section 301 investigative hearing Dec. 29 into allegations of Vietnamese currency manipulation to the detriment of U.S. commercial interests. The threat of possible tariffs on Vietnamese imports looms prominently over the proceeding. Smartphones from China technically remain exposed to the threat of List 4B Section 301 tariffs still on the books, but the Trump administration postponed the List 4B duties indefinitely after reaching the phase one trade deal with China nearly a year ago (see 2001160022).
Sen. Mark Warner, D-Va., and three other senators urged the Trump administration Friday to stop using tech liability protection language akin to Communications Decency Act Section 230 in a U.S.-U.K. trade agreement and future agreements. House Consumer Protection Subcommittee Chair Jan Schakowsky, D-Ill., and Rep. Greg Steube, R-Fla., seek a wider ban on Section 230-like language in future trade agreements as part of an FY 2021 appropriations omnibus package that was under negotiation Friday. Congress was expected that night to have approved a two-day continuing resolution to continue funding the federal government while talks continue. The amendment would prevent the Office of the U.S. Trade Representative from “giving more handouts to big tech companies by blocking any Ambassador from continuing to promote this misguided and misapplied law in any future trade negotiations,” Schakowsky and Steube wrote colleagues. “Congress can and should debate about Section 230 and how it has enabled platforms to turn a blind eye as their platforms are used to facilitate discrimination, cyber-stalking, terrorism, online frauds, and more,” Warner and the other senators wrote U.S. Trade Representative Robert Lighthizer. “We urge USTR to refrain from including this provision in this and future free trade agreements until that debate has concluded.” They’re “optimistic that a new trade agreement with the United Kingdom will ensure fair, balanced, and reciprocal trade. But we want to note that we have concerns with the inclusion of safe harbor language modeled on” Section 230. “Including a safe harbor clause in any future trade agreements will further allocate more power to companies at the expense of individuals,” the senators said. The other senators signing were Richard Blumenthal, D-Conn.; Chuck Grassley, R-Iowa; and Rob Portman, R-Ohio.
Leaving office of FCC Commissioner Brendan Carr is his legal adviser on wireless issues, Will Adams, Carr announces; Adams' last day is Friday, he tells us; Office of Economics and Analytics Deputy Chief Economist Jonathan Levy retiring from commission, Chairman Ajit Pai announces, and Levy tells us his last day is Dec. 31 ... Sidley Austin elects as partner Clayton Northouse, for privacy and cybersecurity ... Robins Kaplan promotes to partner Kevin Pasquinelli, intellectual property litigator who has worked with digital hardware, software, telecom technology and network management software clients ... Likely next House Commerce Committee ranking member Cathy McMorris Rodgers, R-Wash., names Chief of Staff Nate Hodson as committee GOP staff director to begin 117th Congress … Ballard Spahr adds lawyer Benjamin Charkow, ex-Amster Rothstein, as of counsel, intellectual property; his IP practice includes technology and consumer electronics.
Womble Bond broadcast radio and TV industry attorney John Garziglia retiring at year's end; law firm continues representing broadcast clients, hires media and telecom attorney Reid Avett, ex-Duane Morris, to help lead these efforts as of counsel, Communications, Technology and Media team ... CPB promotes Kathryn Washington to senior vice president-television content ... Alliance for Automotive Innovation hires Garrick Francis from CSX as vice president-federal affairs; Federal Affairs Senior Director John Ohly adds responsibility for some strategic initiatives.
Internet Accountability Project adds Josh Hammer, who remains at Edmund Burke Foundation among other affiliations, as counsel and policy adviser ... Nexstar Media effective Nov. 1 combining "its two primary operating subsidiaries" Nexstar Digital and Nexstar Broadcasting, with Nexstar Broadcasting being renamed Nexstar; digital business unit led by Karen Brophy, who moves to president, digital; Timothy Busch becomes president, broadcasting; and Sean Compton is president, networks and overseeing WGN America, AntennaTV and WGN Radio; President, Nexstar Digital Gregory Raifman leaves company at end of his contract on March 31.
Comments are due Nov. 8, rebuttals Nov. 22, identifying online and physical piracy and counterfeit markets to be considered for inclusion on the Trump administration’s 2020 Notorious Markets list, said an Office of the U.S. Trade Representative notice in Thursday’s Federal Register. The “issue focus” of the 2020 list will be on the use of e-commerce platforms and “other third-party intermediaries to facilitate the importation of counterfeit and pirated goods” into the U.S., it said. “The rapid growth of e-commerce platforms has helped fuel the growth of counterfeit and pirated goods” into a $500 billion industry, it said. “This illicit trade has an enormous impact on the American economy by eroding the competitiveness of American workers, manufacturers and innovation.”