China recently issued a draft consultation paper for new value-added tax legislation that aims to “elevate” the treatment of VAT rules to a legislative format and implement internationally recognized VAT guidelines, KPMG said in a Dec. 2 post. The “consultation process” for the VAT legislation is open until Dec. 26, and will eventually be considered and likely approved by China’s National People’s Congress in early 2020, the post said.
Two Russian nationals, two Italian nationals, a U.S. citizen and three companies were charged in a conspiracy to evade international trade sanctions, including violations of the International Emergency Economic Powers Act and the Export Control Reform Act, the Justice Department said in a Dec. 3 press release. The conspiracy involved an attempted $17.3 million purchase of a Vectra 40G power turbine and attempts at wire fraud and money laundering, the Justice Department said.
A Lebanese energy equipment company was fined $368,000 by the Bureau of Industry and Security after it illegally re-exported generators to Syria, according to a settlement agreement signed Nov. 27. Ghaddar Machinery allegedly committed 20 violations of the Export Administration Regulations from 2014 to 2016, totaling about $730,000 worth of exports, BIS said. Ghaddar agreed to pay the penalty in five installments through November 2021. Failure to make the payments could result in more penalties, according to the settlement agreement, including a two-year denial of export privileges.
Sens. Lindsey Graham, R-S.C., and Chris Van Hollen, D-Md., urged Secretary of State Mike Pompeo to sanction Turkey, saying in a letter that Turkey’s purchase of Russian missile defense systems should be met with consequences. The senators said Turkey’s July purchase of Russian S-400 missile parts (see 1907150039) falls under the scope of the Countering America’s Adversaries through Sanctions Act.
A top dairy lobbying group announced that executives would be visiting Congress Dec. 4 in what they characterized as “a last-ditch effort to save this deal,” and Farmers for Free Trade sent a letter to the top Republican and top Democrat in each chamber asking that the vote on the U.S.-Mexico-Canada Agreement come as soon as possible. The letter, signed by 2,200 farmers around the country, was sent Dec. 3, and said that trade wars have hurt agriculture badly. “We have suffered from retaliatory tariffs, lost market share, and watched while America’s competitors are seen as more reliable trading partners. The reasons for this crisis are manifold but providing certainty about continued trade with two of our three largest export markets would provide America’s farmers and food manufacturers with a needed boost,” the letter said. “We are counting on our elected officials to champion the folks back home and appreciate your urgent action.”
Two prominent Republicans questioned the suitability of switching tariffs for quotas because of currency manipulation in Brazil and Argentina, as President Donald Trump said Dec. 2 he is doing. Sen. Pat Toomey, R-Pa., the leading critic of Trump's trade policy, issued a statement that night that said, “He is justifying these tariffs by citing Section 232 of the Trade Expansion Act. This provision is exclusively meant for national security threats. Yet, the President has acknowledged that the real purpose of this action is to combat currency manipulation -- which does not pose a national security threat. Furthermore, even if this action were legitimate, the statutory window for imposing these tariffs has closed. These actions further underscore that Congress should take up my legislation that would reassert congressional authority regarding imposition of national security tariffs.”
A Mexican business group representing manufacturers, agriculture, banking and retailers says it is very concerned that certain labor demands from U.S. politicians in the U.S.-Mexico-Canada Agreement are extreme in nature “and are totally unacceptable,” the Consejo Coordinador Empresarial wrote in a press release Dec. 2, adding bold for emphasis. These proposals could severely affect Mexico's competitiveness, the CCE said. It also said “respect for Mexico's sovereignty is non-negotiable.”
President Donald Trump has “no deadline” for striking a trade deal with China, he told reporters Dec. 3 during a meeting in London. “I like the idea of waiting until after the election for the China deal,” he said. The Chinese “want to make a deal now, and we’ll see whether or not the deal’s going to be right,” he said. “It’s got to be right.” A trade agreement is “dependent on one thing -- do I want to make it?” Trump said. “We’re doing very well with China right now. We can do even better with the flick of a pen.” China didn’t immediately comment. Extending the U.S.-China trade war for another year past the 2020 election would be a “bad deal” for “every segment of the economy,” said David French, senior vice president-government relations at the National Retail Federation. “We want and need to see a deal as soon as possible,” said French. Four rounds of Section 301 tariffs on Chinese goods at 15 percent and higher “continue to hurt U.S. businesses, workers and consumers and are a substantial drag on the U.S. economy,” he said.
The Treasury’s Office of Foreign Assets Control identified and sanctioned six ships belonging to Petroleos de Venezuela, Venezuela's sanctioned state-owned energy company, Treasury said in a Dec. 3 press release. The agency also identified the vessel Esperanza as blocked property of Caroil Transport Marine Ltd., which was sanctioned by OFAC in September. Esperanza was previously listed on OFAC’s Specially Designated Nationals List as “Nedas,” Treasury said.
Export Compliance Daily is providing readers with some of the top stories for Nov. 25-29 in case you missed them.