The European Union will launch its new customs pre-arrival security program in March 2021, calling it a “complete overhaul” of its existing customs regime. The program, the Import Control System 2, will collect data on all EU imports before their arrival and will require “Economic Operators” to declare security data through an “Entry Summary Declaration,” according to a May 11 European Commission newsletter. Although the system launches next year, some operators may not have to begin filing those declarations until 2023 or 2024, the newsletter said. The effective date depends “on the type of services they provide in the international movement of goods,” the commission said.
Egypt’s Suez Canal Authority temporarily reduced toll rates for container ships traveling to Asia, according to a May 8 report. The reduced fees, which will be in place through June 30, are aimed at bolstering “slumping traffic,” the Hong Kong Trade Development Council said, and feature rebates as high as 75% on toll fees. Egypt hopes the reduced fees will attract ships “amid a growing trend of vessels rerouting via the Cape of Good Hope in southern Africa,” due to lower sea freight demand amid the COVID-19 pandemic, the report said.
The European Union established a “Humanitarian Air Bridge” designed to transport humanitarian goods and workers to countries heavily impacted by the COVID-19 pandemic, according to a May 8 notice from the European Commission. The project, a joint effort between the commission and EU member states, features commission-funded flights to send the humanitarian supplies around the world. The first flight, operated with France, transported 60 humanitarian workers and 13 tons of cargo. The commission said it is planning two more flights to transport 27 more tons of humanitarian goods.
Brazil added 349 items to its list of foreign capital goods and information technology and telecommunications goods subject to duty-free treatment under the country’s Ex-Tarifario regime, according to a May 8 Hong Kong Trade Development Council report. Among the additions, 325 items are capital goods and 24 are IT and telecommunications goods, the report said. The goods will benefit from duty-free treatment though Dec. 31, 2021. Brazil also updated its list of auto parts that qualify for duty exemptions, removing four items from the list, adding 192 items and modifying 21 product descriptions, the HKTDC said.
Vietnam recently withdrew export restrictions on medical masks, according to a May 8 report from the Hong Kong Trade Development Council. Previously, exports of medical masks required a license and total exports were capped at “25% of an individual domestic manufacturer’s output capacity,” the report said. The restrictions were imposed to maintain domestic supply amid the COVID-19 pandemic, which Vietnam has now “largely contained,” the report said.
Japan revised its foreign user list, which contains foreign entities that may be involved in weapons proliferation or other illegal activities, according to an unofficial translation of a May 8 notice. Japanese exporters must apply for an export license when shipping goods to entities on the list “unless it is clear that the cargo will not be used for the development of weapons of mass destruction, etc.,” Japan said.
The State Department approved a potential military sale to the United Arab Emirates worth $556 million, the Defense Security Cooperation Agency said May 7. The sale includes more than 4,500 “MRAP” vehicles, the DSCA said. The vehicles will be sourced from U.S. Army stocks as “excess defense articles,” the agency said.
The State Department approved a potential military sale to Egypt worth $2.3 billion, the Defense Security Cooperation Agency said May 7. The sale includes 43 AH-64E Apache attack helicopters, the DSCA said. The principal contractors are Boeing and Lockheed Martin.
Sen. Josh Hawley, R-Mo., announced that he's introducing a joint resolution that the U.S. should withdraw from the World Trade Organization. Such a resolution, if it were to pass, would not be binding.
Both the U.S. and China still plan to meet their commitments under the phase one trade deal despite the economic disruption of the COVID-19 pandemic, U.S. Trade Representative Robert Lighthizer said. During a May 7 conference call, he, Treasury Secretary Steven Mnuchin and China’s Vice Premier Liu He agreed “good progress” is being made by both sides to “make the agreement a success,” USTR said. The officials also discussed measures being taken by the U.S. and China to support their economies during the pandemic and agreed to hold more conference calls on a “regular basis.”