China issued clarification on import duty exemptions for certain equipment and machinery, according to an Aug. 19 report from the Hong Kong Trade Development Council. The report said imported equipment and machinery that falls within the Catalogue of Encouraged Industries for Foreign Investment’s “encouraged industries” are exempt from customs duties, but not import-related value-added taxes. VATs also still apply to all “equipment imported for direct self-use and any associated items imported with regard to said equipment within the total investment amount of an foreign-invested project,” the HKTDC said.
NVOs Can Cancel Supplemental Bonds for Services in China Under New Registration Process, NCBFAA Says
Non-vessel operating common carriers (NVOCCs) performing services in China no longer require a cash deposit at a Chinese bank or a supplemental bond on file with the Federal Maritime Commission to register with Chinese authorities, provided that they are licensed or registered with the FMC, according to an update emailed Aug. 19 by the National Customs Brokers & Forwarders Association of America. But they don’t have to cancel existing bonds either, the NCBFAA clarified.
The Senate will likely confirm Tom Feddo as a top official for the Committee on Foreign Investment in the U.S., a “positive and timely development” for companies involved in foreign investment compliance, according to an Aug. 19 post from Arent Fox. Feddo is expected to be named the first assistant secretary of the Treasury for investment security. The position was created in 2018 to increase the authority of CFIUS when it enacted the Foreign Investment Risk Review Modernization Act, the post said.
Gibraltar's recent release of an Iranian oil tanker that had been seized by British authorities in July for potential sanctions violations came despite requests from the U.S. to continue to detain the ship, according to a statement released Aug. 18 by the United Kingdom territory.
President Donald Trump on Aug. 19 designated Brazil a major non-North Atlantic Treaty Organization ally “for the purposes … of the Arms Export Control Act,” according to a notice. The announcement allows the U.S. to loan and sell Brazil certain goods and services subject to the AECA.
The State Department's Directorate of Defense Trade Controls changed identifying information for Sofradir EC Inc. and Bell company entities and is waiving the requirement for amendments to change approved license authorizations because of the large number of authorizations requiring amendments to reflect the change in each instance, the DDTC said. Sofradir EC is being changed to Lynred USA Inc., the DDTC said. The DDTC also modified names and addresses for more than 30 Bell companies.
Border clearance for trucks crossing the Straits of Dover from the United Kingdom to France may slow to 40 percent to 60 percent of the current flow within one day of a no-deal Brexit, according to a leaked U.K. government memo published by The Times of London on Aug. 18. And “significant disruption” at the French border may last up to six months after the U.K. leaves the EU with no transition deal, the report said.
Commerce’s Bureau of Industry and Security on Aug. 19 renewed the temporary general license for Huawei and added 46 more of the company’s non-U.S. affiliates to the Entity List, bringing the total number of impacted Huawei affiliates to more than 100.
Lithuania is expanding the list of goods subject to the value-added tax “reverse-charge mechanism," according to an Aug. 9 post by KPMG. VATs will be placed on mobile phones, tablets and laptops until June 30, 2022, and on hard disks until Feb. 28, 2022, the post said. The changes take effect Sept. 1.
The United Kingdom Department for International Trade published guidance Aug. 15 detailing the status of trade agreements that may take effect if it leaves the European Union without a transition deal on Oct. 31. The guidance details trade continuation agreements the U.K. has signed with various countries that will take effect upon a no-deal Brexit, as well as the status of current negotiations for agreements that have not yet been concluded. The guidance will be updated “if anything changes, including if a deal is agreed,” the UKDIT said.