The U.S. will restrict exports of certain personal protective equipment due to the COVID-19 pandemic, the Federal Emergency Management Agency said in a notice. The restrictions, which took effect April 7 and will last for 120 days after the notice's publication in the Federal Register (scheduled for April 10), apply to certain respirators, surgical masks and surgical gloves, FEMA said. An exemption is available in specific cases, including for some export agreements in effect since at least the beginning of 2020, the agency said.
Trade in products that are in severe shortage during the coronavirus COVID-19 pandemic accounted for 1.7% of world trade in 2019, according to a new report from the World Trade Organization. Although many of the medical products that are traded face no tariffs in many countries -- medicines rarely face a tariff, and they account for more than half the traded value -- there are goods that still face high tariffs. The WTO said the average applied tariff for hand soap is 17% and the average tariff on protective gear such as gowns, gloves and masks is 11.5%.
The World Customs Organization and the World Trade Organization will be working “closely together to minimize disruption to cross-border trade in goods -- in particular those essential to combat COVID-19 -- while safeguarding public health,” the groups said in a joint news release. “Within our respective mandates, we have already invited Members to increase transparency by sharing information on new trade and trade-related measures introduced in response to the COVID-19 pandemic,” they said. “To the extent appropriate, we are making such information publicly available through our respective websites. We are also willing to establish a coordinated approach in support of initiatives that facilitate cross-border trade in goods, in particular those key to combat COVID-19. This would allow that essential goods can quickly reach those most in need, including in least developed and land-locked countries.” Border measures meant to protect citizens should be temporary and rescinded “once they are no longer needed, especially if they restrict trade,” they said. “We welcome initiatives to facilitate and simplify cross-border procedures and urge our Members to prioritize those for exporting and importing essential goods.”
South Africa issued a draft bill stating which days can be counted for calculating time periods for certain customs actions during the COVID-19 pandemic, according to an April 3 KPMG post. The country’s lockdown period, March 26 to April 16, “are not to be counted for purposes of calculating certain time periods that apply in respect of certain customs actions,” KPMG said, including “furnishing of documents or proof, or the submission of reports, notices or notifications.” The measure would be effective April 1.
The United Kingdom’s Department of International Trade issued guidance to U.K. exporters and companies about applying for export finance and insurance to continue trading during the COVID-19 pandemic, the DIT said in an April 6 notice. The agency said it sent the guidance to 160,000 exporters and investors, which includes information on available “financial support” for companies impacted by the virus. “DIT stands ready to provide assistance with customs authorities to ensure smooth clearance of businesses’ products, and to offer advice on intellectual property and other issues with business continuity,” the agency said. U.K. companies are eligible to receive export insurance when trading with the European Union, the U.S., Japan, Australia, New Zealand, Canada, Iceland, Norway and Switzerland, the notice said.
The government of Canada issued the following trade-related notices as of April 6 (note that some may also be given separate headlines):
Payment of Canadian antidumping and countervailing duties will continue to be required, though the due date will be extended, the Canada Border Services Agency said in an April 6 email. "Duties applied under the Special Import Measures Act will remain in force and continue to be assessed, but with payment due on June 30, the new timeframe," it said. "Importers are expected to continue accurately self-assessing the amounts owing on imported goods, including SIMA duties. Imports continue to be monitored by the CBSA for compliance." The CBSA recently extended the due date for regular customs duties to June 30 (see 2003270053).
The Canada Border Services Agency issued some guidances on the regulatory changes that are coming as part of the U.S.-Mexico-Canada Agreement (see 2004030046), which is known as the CUSMA in Canada. Customs notice 20-14 covers implementation of the agreement, including tariff provisions, advanced rulings and proof of origin. Customs notice 20-13 gives an overview of the new definition for specially defined mixtures under the agreement. Among other things, “the new SDM definition now has a cooking requirement, goods must be par-fried, partially or fully cooked,” it said. “The definition will also change what is to be considered as part of the 13% other goods. Sauces are now excluded from the 13% calculation and bread, such as sandwich bread, can now be included in the 13% calculation.” Further information will come in a CBSA memo, it said. Customs notice 20-15 covers the change to Canada's de minimis threshold for low-value goods. “Effective on the day of coming into force of CUSMA, the CBSA will increase its Low Value Shipment (LVS) thresholds for all commercial importations (in addition to those for express shipments) to an estimated value for duty not exceeding CAD$3,300,” it said.
South Korea will expand its free-trade zones in an effort to boost exports during the COVID-19 pandemic, according to an April 6 report from the Yonhap News Agency. The measures will expand the size of the Incheon International Airport free-trade zone and the Busan Port by about 10% and 30%, respectively, the report said, and comes as the country’s exports decreased for 14 consecutive month before a slight rebound in February. The zones provide companies with eased regulations and customs benefits.
Japan issued an export ban on an individual for making illegal exports of frozen cod in 2011, according to an April 3 notice from the country’s Ministry of Economy, Trade and Industry. Matsumoto Susumu violated Japan’s Foreign Exchange and Foreign Trade Act by exporting 410 tons of cod worth about 20 million Japanese yen to North Korea without the required approval, the notice said. All exports to North Korea have been prohibited by Japan since June 18, 2009. Susumu is prohibited from exporting any type of product to any destination April 10 through Dec. 9, 2020.