- capital report: december 11, 2018
capital report: december 11, 2018
U.S.-Mexico-Canada Agreement (USMCA) Signed
President Trump, Canadian Prime Minister Justin Trudeau and
Mexican President Enrique Peña Nieto signed the U.S.-Mexico-Canada Agreement
(USMCA) on Nov. 30 during the G20 Summit in Buenos Aires. The agreement was
signed without resolving U.S. Section 232 tariffs on imports of steel and aluminum
from Canada and Mexico.
President Trump has threatened to terminate NAFTA
"within a relatively short period of time" in order to pressure
Congress to pass the USMCA.
The U.S. International Trade Commission (USITC) has launched
an investigation into the likely economic impacts of the USMCA. USITC is
seeking comments to assess the impact on the U.S. economy, selected industry
sectors and U.S. consumer interests. Written comments from the public are due
Dec. 20, 2018. Please contact Angela
Chiang with any comments you would like included in the association’s
submission or require assistance in completing comments of your own.
View the USMCA resource page: https://www.autocare.org/what-we-do/international/usmca/?gmssopc=1
Tariffs Update: White House Announces Temporary Trade Deal with China
On Dec. 1, President Trump announced
that he and Chinese President Xi had agreed to a temporary trade deal during
the G20 summit in Buenos Aires. In return for President Xi committing to buy a
“very substantial amount” of U.S. agricultural, energy and industrial products,
President Trump agreed to not raise the tariff rate on $200 billion worth of
imports from China to 25 percent from the current 10 percent rate.
Prior to this agreement, the administration was set to
increase tariffs on those products included in the third Section 301 list
announced back in September to 25 percent, beginning on Jan. 1, 2019. Members
can use the HTS
search engine to see whether their products are included in this list.
Both parties agreed to start and complete negotiations
within 90 days. If the parties are not able to reach a long-term agreement, that
increase to 25 percent will go into effect.
"[W]e are encouraged by the Trump administration’s
commitment to engaging with the Chinese government in order to reach an
agreement with respect to forced technology transfer and intellectual property
protection,” said Bill Hanvey, president and CEO, Auto Care Association. “We
are hopeful that the upcoming negotiations will resolve many of our long
standing concerns in these areas.”
View the Section 301 tariffs resource page: https://www.autocare.org/two_column.aspx?id=4004&gmssopc=1
Proposed Amendments to California’s Prop 65 Address Retail Seller
The California’s Office of Environmental Health Hazard
Assessment (OEHHA) proposed amendments to Proposition 65 (Prop 65) regulations
setting forth the circumstances when a “retail seller” is required to provide a
consumer product exposure warning. Retail sellers are defined under the
A person or business that sells or
otherwise provides consumer products directly to consumers by any means,
including via the internet. For purposes of this article, a retail seller
includes those functions of a business involved in the sale of consumer
products, including foods, directly to consumers, even if the business or
facility is primarily devoted to non-retail activities.
Under the amended regulations, manufacturers, producers,
packagers, importers, suppliers and distributors have primary responsibility
for complying with Prop 65 requirements. Retail sellers can be responsible for
placement and maintenance of consumer product exposure warnings only under
specified conditions set forth in the regulations. OEHHA states that it has
proposed these clarifying amendments in response to a number of questions and
requests for clarification the agency has received regarding these conditions.
OEHHA scheduled a public hearing on the amendments for Jan. 3, 2019, 10 a.m.-12 p.m. PST in
Oakland, Calif. Comments on the proposed amendments are due by Jan. 11, 2019.
Questions? Contact Tom
Read the new amendments: https://oehha.ca.gov/media/downloads/crnr/regtext111618.pdf
FMC Approves PierPass 2.0 at California Ports
Last month, the Federal Maritime Commission (FMC) approved
PierPass to launch its revised OffPeak program of extended gate hours at the
Ports of Los Angeles and Long Beach.
Beginning Nov. 19, the revised OffPeak program, informally
called PierPass 2.0, replaced the original OffPeak congestion-pricing model
with a system using appointments to mitigate traffic. It uses a reduced Traffic
Mitigation Fee (TMF) across all hours of terminal operation to help offset the
cost of operating extended gates.
Cargo owners moving containers into and out of the ports by
truck gate and who aren’t already registered with PierPass can do so at https://www.pierpass-tmf.org/.
The current TMF of $72.09 per TEU (20-foot equivalent unit)
will be reduced to $31.52 per TEU or $63.04 for all other size containers. The
TMF will be charged during all shifts on all days.
Read more about PierPass: https://www.pierpass.org/news/fmc-clears-pierpass-to-start-revised-offpeak-program-on-nov-19/
Get Ready: California’s Cleaning Products Right to Know Act Will Go into
Effect in 2020
The Cleaning Products Right to Know Act of 2017 (CPRTKA),
which requires additional disclosure and labeling for cleaning products sold in
California, will go into effect beginning on Jan. 1, 2020. Auto Care
Association members who do business in California should begin preparing now
for these new requirements.
The CPRTKA requires a manufacturer of a "cleaning
product" sold in California to disclose on the product label and post on
the product's website, a list of all intentionally added ingredients contained
in any product included on a "designated list," and a list of all
fragrance allergens included on specified regulations when present in the
product at a concentration at or above 0.01 percent (100 ppm).
The CPRTKA requires employers to maintain a safety data
sheet, and to ensure that those safety data sheets are available to an employee
pursuant to the Occupational Safety and Health Standards Board. If any of the
designated products are used in the workplace, the employer must make available
certain information included in the online disclosures related to the chemicals
in those designated products.
In addition, the law’s definition of "designated
product" applies to a much broader list of products, including air care
products, automotive products, general cleaning products and floor polish or
floor maintenance products used primarily for janitorial, domestic or institutional
To protect confidential business information, the CPRTKA
does not require a manufacturer to disclose how a product is manufactured or
the weight or amount of an intentionally added ingredient, including a
fragrance ingredient, or a nonfunctional constituent. Manufacturers are also
not required to list ingredients or nonfunctional constituents in any
particular order if they are present in a designated product at a concentration
of less than 1 percent.
A designated product shall not be sold in California
unless the designated product and the manufacturer of the designated product
comply with the act. The online disclosure requirements apply to a designated product
sold in California on or after Jan. 1, 2020. The product label disclosure
requirements apply to a designated product sold in California on or after Jan.
Questions? Contact Tom
Read the bill text: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180SB258
CARB Releases Consumer Product Survey Data
The California Air Resources Board (CARB) Draft Consumer
Product Survey Data are now available for public review. These materials
provide a detailed summary of consumer product sales, emissions, volatile
organic compound content, chemical speciation, reactivity and other information
for over 400 categories of consumer products over a three-year period. In
total, more than 1,500 product manufacturers and formulators participated in
this effort, providing product sales and chemical formulation information for
over 300,000 products sold in California. This survey data is typically used by
CARB to develop regulations that seek to reduce emissions from use of these
To protect confidentiality of responding companies, CARB has
withheld information in cases in which few products were reported within a
particular category. In addition, the quantity of some reported chemical
ingredients have been withheld from some tables to protect confidentiality.
Finally, CARB has taken steps to ensure both the preliminary draft survey data
summaries published this June and the Draft Consumer Product Survey Data
released continue to be protective of manufacturer confidentiality.
CARB staff will hold a public webinar to discuss the Draft
Consumer Product Survey Data and supplemental materials with interested
stakeholders on Jan. 15, 2019, 9:30 a.m.-11:30 a.m. PST.
View the survey data: https://www.arb.ca.gov/consprod/survey/2013-2014-2015-data_release.htm