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Section 301 Hearing Transcript on Proposed Tariffs: Day 3

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Section 301 Hearing Transcript on Proposed Tariffs: Day 3 1 UNITED STATES TRADE REPRESENTATIVE + + + + + 301 COMMITTEE + + + + + SECTION 301 TARIFFS PUBLIC HEARING + + + + + WEDNESDAY JUNE 19, 2019 + + + + + The 301 Committee met in the Main Hearing Room of the U.S. International Trade Commission, 500 E Street SW, Washington, D.C., at 9:30 a.m., Arthur Tsao, William Busis and Philip Chen, Chairs, presiding. PRESENT WILLIAM BUSIS, Chair, U.S. Trade Representative ARTHUR TSAO, Chair, U.S. Trade Representative PHILIP CHEN, Chair, U.S. Trade Representative CHRISTOPHER BLAHA, Department of Commerce ZEKE BRYANT, Department of Agriculture KIM COPPERTHITE, Department of Commerce JAMES CROW, Department of State ANDREW DEVINE, Department of Agriculture TSERING DHONGTHOG, U.S. Trade Representative PAUL FARISS, Department of State MATTHEW FRATERMAN, Department of Labor JANET HEINZEN, U.S. Trade Representative JESSICA HUANG, Department of Commerce ANN MAIN, U.S. Trade Representative ALYSON McGEE, Department of the Treasury BRYAN O'BYRNE, Small Business Administration JIM RICE, Department of Commerce MATTHEW SULLIVAN, Department of the Treasury SHELLY ZHAO, U.S. Trade Representative Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 2 ALSO PRESENT BILL BISHOP, International Trade Commission TYRELL BURCH, International Trade Commission WITNESSES PRESENT ATHENA AI, Real Flame Company Inc. JAMES ARCHIBALD, STX, LLC WILLIAM BEGLEY, Sea Box, Inc. William Broxton, 5N Plus Semiconductors EDWARD BRZYTWA, American Chemistry Council JOHN COLONNA, K2 Sports ELLIOT DAVIS, Allegheny Technologies Inc. JIM DAY, 47 Brand, LLC GEORGE DICK, Four Colour Print Group MATT FEINER, SG Companies MARC FISHER, Fisher Footwear JOSEPH GRUCHACZ, Canaxy USA, Inc. BRADLEY HANDELMAN, Strikeforce Bowling LLC ERIC HARRISON, J. Renee' Group G. PAUL HENDRICKSON, Hendrickson Publishers MARC JOURLAIT, Kodak Alaris ALLAN KLINGE, Klinge Corporation ALEXANDER KOFF, VeriFone TREY KRAUS, Carlton's Men's Wear, Inc. STEPHEN LANG, American Bridal and Prom Industry Association JOHN LARNED, Global RFID Systems North America GREG MASON, Head USA, Inc. MADELINE McINTOSH, Penguin Random House LLC JOHN McLEMORE, Masterbuilt Manufacturing BRENT MERRIAM, NEMO Equipment, Inc. CHRISTOPHER MINER, Mobile Mini, Inc. SARAH MOE, Hallmark Cards Inc. MATTHEW MOEDRITZER, Society of Chemical Manufacturers and Affiliates RICK MUSKAT, Deer Stags LLC PATRINA NECKLES, Foison Packaging KENNETH O'BRIEN, Gemini Shippers Association CHRIS PESEK, Unicat Catalyst Technologies, Inc. MATT PRIEST, Footwear Distributors & Retailers of America MARK PROFFITT, MECO Corporation Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 3 EDWARD ROSENFELD, Steve Madden GAIL ROSS, Krimson Klover VISHAK SANKARAN, Bushnell JAMES SILVER, International Tank Container Organization CHARLES STOUT, PDi Communication Systems NICOLE VASILAROS, National Marine Manufacturers Association CHRISTOPHER VOLPE, United Legwear & Apparel Co. MATTHEW WHALEN, Intex Recreation Corporation GEORGE WHITE, Greeting Card Association KURT WILSON, Exxel Outdoors BRYAN WOLFE, Ascena Retail Group KIM ZABLUD, District of Columbia Public Library AMY ZIRKLE, Electronic Transactions Association Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 4 C-O-N-T-E-N-T-S PANEL 17 John Larned, Global RFID Systems North America. .10 Alexander Koff, VeriFone . .13 Amy Zirkle, Electronic Transactions Association. .19 Charles Stout, PDi Communication Systems . .24 Marc Jourlait, Kodak Alaris. .29 Nicole Vasilaros, National Marine Manufacturers Association. .36 PANEL 18 Bryan Wolfe, Ascena Retail Group . .64 Jim Day, 47 Brand, LLC . .71 Christopher Volpe, United Legwear & Apparel Co.. .77 Trey Kraus, Carlton's Men's Wear, Inc. .81 Stephen Lang, American Bridal and Prom Industry Association. .88 Gail Ross, Krimson Klover. .96 PANEL 19 Matt Priest, Footwear Distributors & Retailers of America. 127 Rick Muskat, Deer Stags LLC. 133 Edward Rosenfeld, Steve Madden . 138 Eric Harrison, J. Renee' Group . 143 Matt Feiner, SG Companies. 147 Marc Fisher, Fisher Footwear . 152 PANEL 20 Christopher Miner, Mobile Mini, Inc. 182 William Begley, Sea Box Inc. 189 Allan Klinge, Klinge Corporation . 194 Patrina Neckles, Foison Packaging. 201 James Silver, International Tank Container Organization . 208 Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 5 PANEL 21 Matthew Whalen, Intex Recreation Corporation. 228 Brent Merriam, NEMO Equipment, Inc.. 233 Athena Ai, Real Flame Company Inc. 239 John McLemore, Masterbuilt Manufacturing . 245 Kurt Wilson, Exxel Outdoors. 280 Mark Proffitt, MECO Corporation. 256 PANEL 22 Kim Zablud, District of Columbia Public Library. 286 George Dick, Four Colour Print Group . 292 G. Paul Hendrickson, Hendrickson Publishers . 297 Madeline McIntosh, Penguin Random House LLC. 201 George White, Greeting Card Association. 307 Sarah Moe, Hallmark Cards Inc. 313 PANEL 23 Greg Mason, Head USA, Inc. 333 Bradley Handelman, Strikeforce Bowling . 339 Vishak Sankaran, Bushnell. 344 James Archibald, STX, LLC. 349 John Colonna, K2 Sports. 354 PANEL 24 Elliot Davis, Allegheny Technologies Inc.. 274 Chris Pesek, Unicat Catalyst Technologies, Inc. 380 William Broxton, 5N Plus Semiconductors. 385 Edward Brzytwa, American Chemistry Council . 393 Matthew Moedritzer, Society of Chemical Manufacturers and Affiliates . 399 Joseph Gruchacz, Canaxy USA, Inc.. 406 Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 6 1 P-R-O-C-E-E-D-I-N-G-S 2 9:27 a.m. 3 CHAIR TSAO: Good morning, and 4 welcome. The Office of the United States Trade 5 Representative, in conjunction with the 6 interagency Section 301 Committee is holding this 7 public hearing in connection with the Section 301 8 investigation of China's acts, policies, and 9 practices related to technology transfer, 10 intellectual property, and innovation. 11 Acts explained in a notice published 12 on May 17, 2019, the U.S. Trade Representative, 13 at the direction of the President, is considering 14 a modification of the action being taken in the 15 investigation in the form of additional duties of 16 up to 25 percent on elicit products from China 17 with an annual trade value of approximately $300 18 million. 19 The purpose of this hearing is to 20 receive public testimony regarding the proposed 21 tariff action. The Section 301 Committee will 22 carefully consider the testimony and the written Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 7 1 comments, including post-hearing rebuttal 2 comments, and will then make a recommendation to 3 the Trade Representative. 4 Before we proceed with the testimony, 5 I will provide some procedural and administrative 6 introductions, and ask the agency representatives 7 participating in the hearing today to introduce 8 themselves. The hearing is scheduled for seven 9 business days, concluding Tuesday, June 25th. 10 Today is day three of the hearing. We 11 have scheduled 55 panels of witnesses, with over 12 300 individuals scheduled to testify. The 13 provisional schedule has been posted on the USTR 14 website. We have eight panels of witnesses 15 scheduled to testify today. We will have a brief 16 break between panels, and a 50-minute break for 17 lunch. 18 Each witness appearing in the hearing 19 is limited to five minutes of oral testimony. 20 The light before you will be green when you start 21 your testimony, yellow means you have one minute 22 left, and red means your time has expired. After Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 8 1 the testimony from each panel of witnesses, the 2 Section 301 Committee will have an opportunity to 3 ask questions. 4 Committee representatives will 5 generally direct their questions to one or more 6 specific witnesses. As stated in the May 17th 7 notice, post-hearing comments, including any 8 written responses to questions from the Section 9 301 Committee, are due seven days after the last 10 day of the hearing. 11 As noted, the hearing is scheduled to 12 conclude on June 25th, which means that all post- 13 hearing comments are due by no later than July 14 2nd, 2019. The rules and procedures for written 15 submissions are set out in the May 17th Federal 16 Register notice. 17 Given the number of witnesses, and the 18 schedule, we request that witnesses, when 19 responding to questions, be as concise as 20 possible. Witnesses should recall that they have 21 a full opportunity to provide more extensive 22 responses in their post-hearing submissions. Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 9 1 No camera or video or audio recordings 2 will be allowed during the hearing. Written 3 transcripts of this hearing will be posted on the 4 USTR website, and on the Federal Register docket. 5 Okay, we're pleased to have 6 international trade and economic experts from a 7 range of US government agencies, and I would like 8 them to introduce themselves this time, starting 9 with myself. My name's Arthur Tsao. I am 10 associate general counsel at the U.S. Trade 11 Representative's office. 12 MR. FARISS: My name is Paul Fariss. 13 I'm a foreign affairs officer in the State 14 Department's Economic Bureau. 15 MR. BLAHA: Chris Blaha. I'm an 16 economist in the International Trade 17 Administration with the U.S. Department of 18 Commerce. 19 MS. DHONGTHOG: Tsering Dhongthog. 20 I'm from U.S. Tariff's China office. 21 MR. BRYANT: Good morning. My name is 22 Zeke Bryant from the Foreign Agricultural Service Neal R. Gross and Co., Inc. (202) 234-4433 Washington DC www.nealrgross.com 10 1 of the U.S. Department of Agriculture. 2 MS. MCGEE: Good morning. My name is 3 Alyson McGee. I'm from the Treasury Department's 4 East Asia office. 5 CHAIR TSAO: And Mr. Bishop, we're 6 ready to proceed. 7 MR. BISHOP: Mr. Chairman, our first 8 witness on this panel is John Larned with Global 9 RFID Systems North America.
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