Although Chinese ocean operations and domestic trucking activities are returning to normal, there remains significant concerns over equipment and space availability for ocean fighters around the world, according to a March 17 emailed alert from Crane Worldwide Logistics. Air cargo transportation also remains uncertain, with availability of ports in China constantly changing and countries canceling flights to regions with high concentrations of coronavirus cases, the alert said.
Kenya reduced its penalty for importers who violate rules that require imported goods to undergo inspections of their origin countries, according to a March 16 report from the Hong Kong Trade Development Council. The change, made last month, reduced the penalty from 20% to 5% of the value of the goods, the report said. The penalty stems from a policy that outlaws importers importing goods without prior inspection in their countries of origin, HKTDC said. Importers are concerned that lower penalties will lead to an influx of imports without prior inspections, which will lead to a backlog of goods awaiting inspection and evaluation at ports, the HKTDC said.
The government of Canada issued the following trade-related notices as of March 16 (note that some may also be given separate headlines):
The auto industry publicly asked the Trump administration not to rush into certifying readiness for the U.S.-Mexico-Canada Agreement's entry into force, given the fact that “a global pandemic is significantly disrupting our supply chains, and the industry is throwing all available resources into managing production through this crisis for our employees and for the broader U.S. economy.”
India issued several changes to tax rates on the supply of goods and services, impacting cell phones, footwear, textiles, fertilizers, matches, certain services and more, India’s Central Board of Indirect Taxes and Customs said March 15. The changes, made during a March 14 Goods and Services Tax Council meeting and set to take effect April 1, include raises to the GST rate on mobile phones and “specified parts” from 12% to 18%. India also increased the GST rate on matches to 12%, instead of a rate of 5% on handmade matches and 18% on other matches. The changes also include “measures for trade facilitation,” include interest on delays in payment of GST, and applications for “revocation of cancellation” of registrations.
China’s Commerce Ministry recently launched a “Public Information Service Platform for Cultural Trade” to guide China’s cultural export “enterprises” during the coronavirus outbreak, according to a March 16 report from the Hong Kong Trade Development Council. The platform also provides updates on coronavirus policy changes relating to trade and tax measures and contains country guides for exporters.
Hong Kong importers are looking to buy ox gallstones, a cattle byproduct, potentially creating “huge export potential” for U.S. beef exporters, according to a U.S. Department of Agriculture Foreign Agricultural Service report released March 12. Ox gallstones are in high demand due to low domestic supply, the report said, and are used in Chinese herbal medicine and sell for high prices. Ox gallstones are not regarded as food and are not subject to Hong Kong regulations covering food imports, the report said.
The U.S. trade representative has had “no conversations” with China about possible delays in agricultural purchase commitments due to the coronavirus pandemic, according to coronavirus guidance issued by the U.S. Department of Agriculture. The guidance, which includes a series of frequently asked questions to address virus-related concerns for traders and others who have been impacted, said no delays under the U.S-China phase one deal are expected. “We expect that the Chinese will meet their commitments under the agreement,” the USDA said.
The Department of Commerce denied Zimo Sheng’s export privileges after Sheng was convicted of violating the Arms Export Control Act, Commerce said in a March 16 order. Sheng attempted to illegally export to China the “upper assembly” for a Glock 48 pistol, which is listed on the U.S. Munitions List. Sheng was convicted Dec. 13, 2018, and sentenced to 40 months in prison and a $200 fine. After the sentencing, Commerce said Sheng left the U.S. and his “current whereabouts are unknown” to the Bureau of Industry and Security. Commerce revoked Sheng’s export privileges for 10 years from his date of conviction.
The U.S. renewed sanctions against Iran, the White House said March 12. The White House said the sanctions, first imposed March 15, 1995, will continue to deter Iran’s nuclear proliferation, its support for terrorism and the activities of the U.S.-sanctioned Islamic Revolutionary Guard Corps (see 1904080037).