China’s recently issued exclusion process for duties on more than 5,000 tariff lines of U.S. products (see 1905130043) shows it is prepared for a “long-term fight” and may be getting ready to “hunker down” in the trade war with the U.S., said Pete Mento, vice president for Crane Worldwide Logistics.

E2open will buy Amber Road for about $425 million, the companies said in a news release. The all-cash deal was approved by the Amber Road board of directors and remains subject to "customary closing conditions," the companies said.

Descartes bought CORE Transport Technologies of New Zealand for about $21 million, with a future performance-based earn-out of as much as $9 million, the companies said in a news release. CORE is "an electronic transportation network that provides global air carriers and ground handlers with shipment scanning and tracking solutions."

Argentina increased the value-added tax rate on certain imports, from 10 percent to 20 percent, according to a notice from Argentina’s tax authority and a May 10 report from KPMG. The change, which took effect April 17, will apply to taxpayers that cannot show that they are exempt from VATs or “in situations when the imported goods are regarded by the importer as fixed assets for accounting purposes,” KPMG said. KPMG said the change may cause some importers to “experience a substantial increase of VAT credit balances -- and these may be difficult to offset against output VAT.”

Singapore Customs arrested three Chinese nationals who were driving Singapore-registered trucks with a total of more than 9,000 cartons of smuggled cigarettes, according to a May 10 notice. The shipment, split into two trucks at separate locations, evaded more than a combined $930,000 in Singapore’s duties and Goods and Services Tax, the notice said. Violators of the customs duty and GST laws can be fined up to 40 times the amount of evaded duties and tax, and could have a maximum six-year prison sentence added.

Indonesia is expanding the list of exports services subject to a 0 percent value-added tax rate, according to a May 10 notice from KPMG. The rate will apply to a variety of broad export-related services, including freight forwarding, rental of transportation equipment for international shipping, technology and information services, business and management consulting services, trading services and communications data services, KPMG said. The broadening of the list of services to which the rate is applied is "with the basic understanding that these services must be utilized offshore," KPMG said. In a May report, KPMG said the move is part of an effort by Indonesia to boost growth in its export sector. The new list, effective March 29, 2019, replaces the old set of regulations, which only covered three export services, KPMG said: “contract manufacturing, repairs and maintenance and construction services.”

The Commercial Customs Operations Advisory Committee (COAC) for CBP will next meet May 30 in Laredo, Texas, CBP said in a notice.

The Treasury’s Financial Crimes Enforcement Network issued a guidance document and an advisory on regulations and illegal activity in convertible virtual currency fields, FinCEN said in a May 9 press release. The advisory aims to help companies identify and report “suspicious activity” related to the exploitation of CVCs for money laundering and sanctions evasions, FinCEN said, including recognizing “red flags.” In the advisory, FinCEN urges companies to screen their customers and business partners against the Office of Foreign Assets Control’s Specially Designated Nationals List and take “appropriate steps” to stop people in sanctioned countries from “trading in digital currency.” Businesses dealing in virtual currencies should have procedures in place to block IP addresses associated with sanctioned entities, disable accounts of holders from sanctioned countries, “install a dedicated Compliance Officer” to oversee compliance with all OFAC sanctions programs and ensure OFAC compliance training for all pertinent personnel, the advisory said.

The Commerce Department's Bureau of Industry and Security added 12 foreign entities or persons to BIS’s Entity List, according to a May 13 notice, including several entities in China. BIS said the additions include four entities with locations in China and Hong Kong, along with two other entities in China and one Pakistani entity and five entities or individuals in the United Arab Emirates. Each is now subject to specific license requirements “for the export, reexport, and/or in-country transfer of controlled items,” BIS said. The 12 "have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests," the agency said in a separate notice.

China will raise tariff rates on 5,140 tariff lines of U.S. goods in response to the latest escalation in the trade war, the Chinese Foreign Ministry announced May 13. The tariff increases mostly follow the lists China released last year in response to U.S. plans to add tariffs on $200 billion worth of goods from China (see 1905130002). The retaliatory tariffs were implemented last year at lower rates than were initially announced. China now plans to increase those retaliatory tariffs on June 1.