An Office of Foreign Assets Control official said the agency within the Treasury is trying to “expedite” responses on license applications but does not have the resources to lift certain compliance burdens that have caused headaches for U.S. companies, such as regulations that require businesses to determine which companies are owned 50 percent or more by a sanctioned party. “That’s something were trying to work on,” said Susan Demske, OFAC’s assistant director for regulatory affairs.
The Commerce Department is reviewing export license applications to sell to Huawei in order to “mitigate as much of the negative impacts of the entity listing as possible” and hopes to have decisions “soon,” said Nazak Nikakhtar, Commerce undersecretary for the industry and security.
China and the U.S. have agreed that China has until the end of the year to come into compliance with a World Trade Organization panel ruling on how it administers its tariff rate quotas for wheat, corn and rice. The WTO said that the fact that state-trading enterprises are given specific shares of the lower-duty import quotas, but that those enterprises don't always use all of the quotas nor is the unused portion reallocated to other buyers, means that China restrains the filling of its tariff rate quotas. The notice that the two countries agreed on a compliance timeline was circulated at the WTO on July 4.
The African Continental Free Trade Area officially went into "operational phase" on July 7 after an African Union summit meeting in Niamey, Niger, the African Union said in a July 7 news release. "The AfCFTA will be governed by five operational instruments, i.e. the Rules of Origin; the online negotiating forum; the monitoring and elimination of non-tariff barriers; a digital payments system and the African Trade Observatory," the AU said. Actual trading with reduced tariffs among the 54 member states under the AfCFTA isn't expected to begin until July 2020.
In the July 8 edition of the Official Journal of the European Union the following trade-related notices were posted:
A “substantial number” of industry associations asked the European Commission to better standardize certifications and other procedures related to trade between the European Union and the U.S. to lessen complexities, according to a July 9 report from the commission.
The government of Canada issued the following trade-related notices as of July 8 (note that some may also be given separate headlines):
Brazil is considering lowering import duties on information technology goods, from 16 percent to 4 percent, the Hong Kong Trade Development Council said in a July 2 report. The move would cover items such as cell phones and computers. The announcement came after Brazilian government officials suggested lowering tariffs would boost the competitiveness of Brazilian companies in the IT sector. Brazilian industry associations have had mixed responses to the potential change, the report said. The Brazilian Electrical and Electronic Industry Association said the move would hurt Brazilian businesses and lead to job losses, while the Association of Brazilian Information Technology Companies reportedly said the move would “boost overall competitiveness despite some adverse effects to certain sectors.” The Brazilian Semiconductor Industry Association said the move would force foreign companies out of the country, shrink the Brazilian industrial sector and lead to an increase in imports, which would hurt domestic semiconductor manufacturing, the report said.
The Canada Border Services Agency will be ending its use of the paper reporting process Export Declaration form (B13A) and require mandatory electronic reporting, the agency said in a July 8 customs notice. CBSA will stop accepting the from as of June 30, 2020, and will require the information through either the Canadian Export Reporting System or the G7 Export Reporting Electronic Data Interchange. The CERS will be available in March of 2020 and will replace the Canadian Automated Export Declaration (CAED) system. "CERS is a web-based, self-service portal enabling exporters to submit electronic declarations (including bulk upload and summary reporting), to the CBSA," the agency said.
China’s National Medical Products Administration issued guidelines for the imports of reference products of biomedicines for clinical trials, according to a July 5 report from the Hong Kong Trade Development Council. Among the key points in the guidelines, China is urging applicants to import “original drugs already approved by China for general import” when they conduct “equivalence tests on their proposed biosimilar products.” In addition, if the location where the imported drug was produced differs “from that of the drug previously approved for import,” the applicant is required to “demonstrate the consistency of the drug across its various production bases or conduct research to establish such consistency,” the report said. In either case, the applicant must submit a “supplemental application” to the NMPA’s Center for Drug Evaluation. Drugs that are sourced from an “unapproved location” will not be allowed as part of a clinical trial until the center “has duly accredited it,” the report said.