Singapore issued a “best practices” list to ensure companies are not being “exploited for illicit activities,” specifically related to smuggling exports of liquor and tobacco products, Singapore Customs said in a June 17 notice. Singapore issued the notice after noticing “irregularities” certain exports where goods were declared “to be destined for one country but were subsequently found to be meant for shipment to another country,” the notice said. In other cases, “liquor and tobacco products were described as some other items in the bill of lading,” Singapore said, leaving the country to believe the goods were “meant for smuggling into another country.”
The U.S. Department of Agriculture's Foreign Agricultural Service finalized a rule updating the qualifications for participating in the Export Credit Guarantee Program, the agency said in a notice. Previous regulations required certifications for program participant "affiliates," FAS said. The agency is now eliminating that requirement in order to better align with other USDA requirements, it said. Also, "the 'affiliate' certification is burdensome on U.S. exporters, sellers, and U.S. and foreign financial institution participants that are large, and often diverse, organizations with many affiliates," it said. "This change will therefore reduce the burden on program applicants and participants." The change is effective June 18.
Most of the questions to U.S. Trade Representative Robert Lighthizer about the Section 301 tariff actions focused on the pain to U.S. consumers and the difficulties faced by importers of products that are subject to 25 percent tariffs. But Sen. John Thune, R-S.D., told the nation's top trade negotiator that even a local meat locker has been hurt by the trade war. Thune, who was questioning Lighthizer during his appearance June 18 in front of the Senate Finance Committee, said the meat locker employee told him that before the trade war began, someone would buy cow hides for $150 each. China imports a lot of animal skins to support its furniture and shoemaking industries. "Now I have to pay 600 a head to haul it away," Thune said the man told him, which is a cost of $40,000 a year. For a business that size, that could be the entire profit margin, Thune said.
Trade negotiations will resume with China ahead of a meeting between President Donald Trump and President Xi Jinping, Trump tweeted June 18. He said he and Xi "will be having an extended meeting next week at the G-20 in Japan." The White House said the two leaders talked on that morning about "structural barriers to trade with China and achieving meaningful reforms that are enforceable and verifiable."
Export Compliance Daily is providing readers with some of the top stories for June 10-14 in case they were missed.
Auto exporters will be “among the biggest beneficiaries” of a ratified U.S.-Mexico-Canada Agreement, U.S. Trade Representative Robert Lighthizer said during a June 18 Senate Finance Committee hearing, adding that he has “hope” the U.S. will reach a trade deal with Japan within the next “few months.”
Mexico will be ready with a list of retaliatory tariffs should the U.S. end up imposing escalating tariffs announced by President Donald Trump at the end of May, Secretary of Economy Graciela Marquez Colin said in remarks to the Mexican Senate June 14. Work continues on the specifics of the list during the 45-day period Mexico has to reduce migration under the deal before the U.S. says it will again consider imposing tariffs (see 1906120039).
The World Customs Organization issued the following releases on commercial trade and related matters:
The European Union released a report detailing what it says are “45 new trade barriers” outside the EU in 2018 that damaged EU businesses, costing them “billions of Euros every year,” the EU said in a June 17 press release. The EU said the report “confirms” the rise of trade barriers encountered by European companies in foreign markets, which is now at 425 barriers in 59 countries.
In the June 17 edition of the Official Journal of the European Union the following trade-related notices were posted: