The Czech Republic is preparing to amend its value-added tax law after the Court of Justice of the European Union ruled against it in a case of a Czech taxpayer who avoided paying taxes on an export, according to a Sept. 12 post from KPMG. In the case, the taxpayer did not believe the transaction was subject to VAT “because the goods were exported,” the post said. Czech authorities challenged this assertion, saying the taxpayer did not satisfy the precondition for a VAT-exempt sale, which requires the export to be “released into a customs regime” to meet exemption status. The CJEU ruled that “entitlement to a VAT exemption cannot be conditioned upon releasing the goods into a certain customs regime, but instead it is sufficient that the taxpayer proved that the goods were actually delivered to a third country.” In response, the Czech Republic is preparing to include in its VAT laws “a measure that would allow for the possibility to prove entitlement to a VAT exemption on export by evidence other than a customs declaration.”
The United Kingdom’s HM Revenue & Customs recently posted a new webinar to help U.K. companies prepare for Brexit. The hourlong webinar covers five “key areas” that U.K. businesses must be aware of to keep trading goods when the U.K. leaves the EU: applying for an Economic Operator Registration and Identification (EORI) number, preparing to make customs declarations, transitional simplified procedures, entry summary declarations, and paying customs duty, VAT and excise duties.
The United Kingdom recently updated several export control general licenses after a review of licensing of exports to Hong Kong, it said in a notice to exporters. The updated general licenses cover dual-use items to Hong Kong, transshipment of dual-use goods through Hong Kong, and the open general trade control license for category C goods. The updates became effective Sept. 13.
The Dominican Republic introduced a bill that would grant customs duties exemptions for certain imported mining equipment and machinery, according to a Sept. 11 alert from KPMG. The bill is aimed to provide incentives and investment security for mining projects, the alert said.
The Canada Border Services Agency issued a customs notice about the new import permit for aluminum products (see 1908230053). "The purpose of this program is to enable Global Affairs Canada to monitor imports of certain aluminum products and facilitate the collection of import data," the CBSA said. "In addition, importers may be required, upon request, to provide to Global Affairs Canada documents and records for the purpose of identifying any errors in import data and determining the source of any inconsistencies in a targeted manner." The agency may apply penalties under the Administrative Monetary Penalty System for failure to comply with the requirements, it said.
A Chinese State Council official recently met with Russian officials to discuss “a number of pragmatic cooperation agreements” in several areas, including trade, agriculture and technology, a Chinese Ministry of Commerce spokesperson said during a Sept. 12 press conference, according to an unofficial translation of a transcript of the event. The two sides also agreed to create a “Northeast-Far East Business Council” and plan to hold the first meeting this year, the spokesman said. China said its goal is “expanding and strengthening traditional trade” with Russia, and to “accelerate the negotiation of economic and trade system arrangements.”
China criticized comments from Australia’s former prime minister about Huawei after he suggested Britain follow the U.S. and Australia's lead and also ban products of the Chinese tech giant. The comments were “a blatant discrimination against Chinese companies,” a China Foreign Ministry spokeswoman said during a Sept. 12 press conference, according to a transcript in English provided by the Chinese Embassy in Washington. “Australia has also been lecturing other countries about the 5G network and encouraging them to follow suit. Such disgraceful and immoral conduct is against basic market principles and international rules, which China firmly opposes.”
China issued guidance for its free trade agreement with the Association of Southeast Asian Nations and the rules of origin for imports and exports, according to a Sept. 11 KPMG alert.
Rep. Rosa DeLauro, D-Conn., a leading NAFTA critic and member of the Democrat working group negotiating for changes to the NAFTA rewrite, told a radio host in Connecticut that the working group has not yet closed the gap between the Trump administration and House Democrats on any one of the four areas where they are seeking changes. Those areas are labor standards, the environment, enforcement and the biologics exclusivity period.
Four House Democrats and two Republicans whose states border Canada have introduced a companion bill to a Senate proposal (see 1909100015) to require minimum staffing of CBP officers at the Canadian border. Rep. Brian Higgins, D-N.Y., introduced the bill, H.R. 4276, Sept. 10, and was joined by Rep. Cathy McMorris Rodgers, R-Wash., Rep. Elise Stefanik, R-N.Y., Rep. Peter Welch, D-Vt., Rep. Collin Peterson, D-Minn, and Rep. Elissa Slotkin, D-Mich.