The Federal Emergency Management Agency plans to issue export control decisions for most shipments of controlled medical equipment within two days, but some shipments may take as long as four days, a FEMA spokesperson said April 21. Some law firms have advised medical equipment exporters to expect delays at ports across the country as FEMA makes those determinations, which involves a review of “letters of attestation” from exporters, who must certify that they qualify for one of several exemptions FEMA issued this week (see 2004200019).
The United Kingdom’s Export Control Joint Unit updated its guidance for export controls of dual-use items, software, technology and goods used for torture, and “radioactive sources,” according to an April 16 notice. The notice now includes updated contact information for traders during the COVID-19 pandemic, the notice said. The guide contains an overview of export controls for those items, how traders can apply for licenses, restrictions on licenses and penalties for violations.
Brazil expanded the scope of imports subject to duty-free treatment to aid in the COVID-19 pandemic response, the Hong Kong Trade Development Council said in an April 20 report. The measure, which eliminated duties for postal and courier shipments on a “broad range of products,” will last through Sept. 30, the HKTDC said. The measure includes an exemption on taxes for certain “industrial products.”
Canada will be pushing back the planned transition to the Canadian Export Reporting System (CERS), a Canada Border Services Agency spokeswoman said. "We can confirm that the Canadian Automated Export Declaration (CAED) decommissioning date has been extended from June 30, 2020 to September 30, 2020," she said. The agency said it "first notified clients of this extension via the email notification." According to Universal Logistics, "paper-based reporting, via the B13A - Export Declaration Form, will no longer be permitted as of June 30 2020," the company said on its website. "Anyone presently using the paper reporting process will have to start using CERS on June 30, 2020. However, anyone who now uses CAED will have until September 30, 2020 to switch to CERS."
Myanmar extended its electronic export and import license application system to cover more items in response to social distancing requirements instituted to combat the COVID-19 pandemic, according to an April 20 report from the Hong Kong Trade Development Council. The system will now cover animal feed supplements, vegetable cooking oil, instant coffee, “bird’s nest,” certain pharmaceutical products, “herbal medicines,” veterinary medicines, fertilizers, certain medical devices and certain dairy products, the report said.
India reduced restrictions on exports that include the painkiller paracetamol, India’s Directorate General of Foreign Trade said April 17. The announcement lifts restrictions on medicines and other “formulations made of paracetamol,” India said. But “paracetamol [active pharmaceutical ingredients] will remain restricted for export,” India said.
High-level Office of the U.S. Trade Representative and senior Brazilian officials agreed April 16 to “accelerate ongoing trade dialogue under the Brazil-U.S. Commission on Economic and Trade Relations (ATEC) with a view to concluding in 2020 an agreement on trade rules and transparency, including trade facilitation and good regulatory practices,” USTR said in a statement issued the following day. “They also agreed to engage in domestic consultations, consistent with each country’s domestic procedures, to solicit input on how best to expand trade and develop the bilateral economic relationship,” the statement said.
The Office of the U.S. Trade Representative issued a pre-publication notice April 20 that carmakers must submit draft staging plans under the U.S.-Mexico-Canada Agreement no later than July 1. Their final plans are due by Aug. 31, the notice said. If USTR approves the plans, companies would have five years instead of three to increase regional content and adjust to other changes in the auto rules of origin. In order to be approved, the companies must show how every model can meet the stricter standards, even if that can't be done within the five-year time frame. Many cars imported from Mexico do not meet the current standards and pay the 2.5% duty. “The petitioner also should identify any North American investments and sourcing, preferably by calendar year and location, which will allow such vehicles to meet the standard USMCA rules,” USTR said.
Braumiller Law Group attorneys told webinar listeners April 20 that outside of the automotive sector, the U.S.-Mexico-Canada Agreement has more liberal rules of origin than NAFTA. Jim Holbein said that the decision on whether a product qualifies based on tariff shift is a “much simpler rule to apply. I believe that’ll be useful, particularly if your process for obtaining origin is based all on NAFTA.” He gave the example of a flat-screen TV assembled in Mexico, which currently has content percentage rules. Under USMCA, if the manufacturing process qualifies as substantial transformation, that's enough to count as Mexican.
The Treasury Department disputed a report that said South Korea obtained a “special license” to export humanitarian goods to Iran (see 2004170026), saying the country may be using an existing general license but did not receive an additional exemption. The Office of Foreign Assets Control “has not issued a ‘special license’ to the Koreans,” a Treasury spokesperson said. OFAC’s Iran sanctions regime contains “broad exemptions” for humanitarian exports, which may make some South Korean exports “permissible,” the spokesperson said.