The State Department's update to the International Traffic in Arms Regulations for U.S. government transfers (see 1904180024) marks "a huge and long awaited improvement," Arent Fox lawyers said in a blog post. Still, when exporting to countries on behalf of the U.S. government goods that will be received by someone outside the U.S. government, "you will still need to get a license or other approval in most cases," the firm said. According to Crowell Moring lawyers, the most significant change is "the government’s expanded use of contractor personnel in supporting [U.S. government] missions often involving foreign parties," according to a firm alert. "The exemption now expressly covers defense services and other exports by 'persons or entities in a contractual relationship with the U.S. Government' where use of the defense article or performance of the defense service is within the scope of such contract and where any one of three specified conditions exist and assure government control and oversight of the transfer."
China’s General Administration of Customs (GAC) issued notices announcing changes to its outward processing program and simplified entry and exit for certain goods in its comprehensive bonded zones, according to KPMG’s monthly China customs update. The agency also announced the expansion of a pilot program for TIR carnets, and Shanghai customs announced that export declarations will now be accepted as part of a pilot for advance declaration and expedited processing. Highlights are as follows:
In the April 23 edition of the Official Journal of the European Union the following trade-related notices were posted:
The United Kingdom hopes to reach a deal with South Korea to maintain the effects of the European Union-South Korea Free Trade Agreement should the U.K. leave the EU with no transition deal, the U.K. Department for International Trade (DIT) said in guidance issued April 23. “The UK is seeking to agree arrangements with South Korea to ensure trade continues with minimal disruption after the UK leaves the EU,” with “minimal changes to tariffs and quotas, even if the UK leaves the EU without a deal,” the guidance said. If no deal is reached, trade between the U.K. and South Korea will be subject to World Trade Organization most-favored nation rates, it said.
Russia is putting in place additional sanctions against Ukraine, including new bans on imports and exports between the two countries, according to a blog post from Baker McKenzie. Effective April 18, Russia is adding to the list of goods that cannot be imported into Russia from the Ukraine tariff headings and subheadings covering paper products, apparel and footwear, metal products and machinery, among other things, according to an unofficial translation of the Russian government’s notice. Russia is also immediately adding tariff provisions covering certain oil and petroleum products and chemicals to the list of goods prohibited for export to the Ukraine. Effective June 1, Russia also is adding goods to a list of products that cannot be exported from Russia to Ukraine without a permit, including coal and more petroleum products.
The Mexican Confederation of Customs Broker Associations issued a circular April 22 to clarify value-added tax treatment in Mexico for patent medicines. Based on a review of the applicable laws and regulations prompted by confusion among some CAAAREM members, the association said that imports of merchandise considered by tax and health legislation to be patent medicines are eligible for a zero percent VAT rate. Merchandise classifiable in Chapter 30 of the Mexican tariff schedule, that are covered by Article 7 of the Mexican VAT regulations, have a VAT rate of zero percent at the time they are imported into Mexican territory, said the circular, which was posted by the trade consultancy AJR Comercio Exterior.
Mexico recently amended its foreign trade regulations to add new tariff subheadings to its lists of products subject to import and export permitting and compliance with product standards, in a notice published in the April 18 Diario Oficial. The new subheadings, which mostly cover fibers, textiles, apparel and footwear of tariff schedule chapters 53-64, include those added in a notice amending the Mexican tariff schedule issued April 10, according to a circular issued by the Mexican Confederation of Customs Broker Associations April 23 that was posted by the trade consultancy AJR Comercio Exterior. The new notice takes effect May 6, though import automatic permits for products of any subheadings that were eliminated in the notice will remain in effect for the duration of the permit's original validity, and any import declarations related to such permits should include the original subheading listed on the permit, CAAAREM said.
There may be a delay in the April 24 daily notices "due to the high volume of transactions processed this past holiday weekend," the Canada Border Services Agency said in an April 23 email.
China is now allowing applicants and their authorized agents to print out certificates of origin at several ports, including Beijing, Tianjin, Shanghai, Jiangsu, Guangdong and Chongqing, via its online single window and online customs platforms, the Chinese General Administration of Customs said in a recent notice, according to an unofficial translation. Applicants will need to upload the company’s electronic chop and the handler’s electronic signature, the Hong Kong Trade and Development Council said in a report on the announcement. The printable certificates are available for China’s free trade agreements with Australia, New Zealand, Pakistan, Chile, Switzerland, Iceland, Georgia, Singapore and South Korea, as well as the cross-straits agreement and the Asia-Pacific trade agreement (for exports to South Korea). They can also be printed for non-preferential certificates of origin, tobacco authenticity certificates, re-export certificates and processing and assembly certificates. The pilot program which began March 25, is intended to “further reduce the cost of customs clearance,” China GAC said.
Dozens of agriculture trade groups and companies wrote to U.S. Trade Representative Robert Lighthizer to tell him that "the U.S. food and agriculture industry is increasingly disadvantaged by competing regional and bilateral agreements with Japan that have already been implemented, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union-Japan Economic Partnership Agreement (EU-Japan EPA)."