The Canada Border Services Agency is looking closely at surtax payments due on imports from the U.S. that were required as part of Canada's retaliatory tariffs, a CBSA spokesman said May 17. "The CBSA has been analysing import data and conducting compliance activities to verify that the correct amount of surtax was paid by importers since the summer of 2018," the spokesman said by email. "These activities are continuing on an ongoing basis and additional assessments of surtax owing are issued where appropriate." KPMG recently noted an uptick in CBSA audits on the surtaxes (see 1905130062).
The Bureau of Industry and Security is issuing a general license temporarily allowing certain transactions with Huawei and 68 of its affiliates without new licensing requirements set by their recent addition to the Entity List. The general license authorizes exports, re-exports and in-country transfers under pre-listing conditions if they are related to the continued operation of existing networks and equipment; support for existing Huawei handsets; cybersecurity research and vulnerability disclosure; or engagement necessary for the development of 5G standards by a recognized standards body. The general license is scheduled for publication in the May 22 Federal Register, and will remain in effect from May 20 through Aug. 19.
U.S. exporters applauded the Trump administration's plans to roll back steel and aluminum tariffs and the decision by both Canada and Mexico to lift retaliatory tariffs.
In the May 16 edition of the Official Journal of the European Union the following trade-related notices were posted:
The U.K. Department for International Trade is updating its open general export license for export of dual-use goods to European Union member states in case of a no-deal Brexit, it said in a notice. The scope of items ineligible for the license has been amended to align it with EU regulations that will be retained by the U.K. after the country’s withdrawal from the EU, the notice said. The newly ineligible items are listed in Annex IIg to the regulation, and include uranium and nuclear technologies, pathogens, genetically modified organisms and some chemicals, among other things. “This licence will come into force if the UK leaves the EU without a deal,” the notice said.
Recent editions of Mexico's Diario Oficial list trade-related notices as follows:
China’s General Administration of Customs plans to “advance” joint law enforcement with its U.S. counterparts on intellectual property rights, according to a state-run news agency Xinhua report May 15. The effort comes amid expanded international cooperation on IPR protection, with more than 190 cooperation documents already signed and memorandums of understanding on IPR law enforcement signed with the U.S., the European Union, Russia, Japan and South Korea, the report said. A joint law enforcement mechanism has already been set up with Russian customs authorities, Xinhua said. “In addition, China will facilitate information and data sharing with other countries to more effectively crack down on IPR infringement and boost customs officers exchanges for capacity building,” the report said, citing an interview with GAC Department of General Operation chief Jin Hai.
Sen. Josh Hawley, R-Mo., introduced a bill, the China Technology Transfer Control Act of 2019, on May 14 that would increase controls on “national interest technology” exports to China and allow the U.S. to sanction people or entities that violate the controls. In a press release, Hawley’s office said the bill “places all ‘core technologies’ from China’s ‘Made in China 2025’ strategy on the Department of Commerce’s Export Control List.” The core technologies include 15 products, the release said, such as “artificial intelligence, robotics, semiconductors, advanced construction equipment and lithium battery manufacturing.” “For too long, China has exploited American innovation to undermine our values and threaten our security,” Hawley said in a statement. “This legislation is an important step toward keeping American technology out of the hands of the Chinese government and its military.”
Though allegations that China’s “retreat” from previous commitments in the trade talks with the U.S. were the Trump administration’s grounds for hiking the List 3 Section 301 tariffs to 25 percent and proposing a fourth tranche of duties on remaining Chinese imports not previously dutied, it was the U.S. side that actually reneged, suggested a Chinese Foreign Affairs Ministry spokesperson May 16. “It takes sincerity to make a consultation meaningful,” the spokesperson said during a press conference. “Judging from what the U.S. did in previous talks, there are two things we have to make clear,” he said. “First, we need to follow the principle of mutual respect, equality and mutual benefit. Second, words must be matched with deeds. Flip-flopping is the last thing we need.” During the various rounds of trade negotiations, the U.S. “repeatedly rejected rules in consultations and brought difficulties to the talks, while China, on the other hand, has been acting in a constructive spirit all along,” he said. “The international community bears witness to all this.” The Office of the U.S. Trade Representative didn’t comment.
The United Nations Security Council sanctioned one entity and removed five other entities from its sanctions lists, the U.N. said May 14. The U.N. added the “Islamic State in Iraq and the Levant -- Khorasan” to its ISIL (Da’esh) and Al-Qaida Sanctions list while removing Nessim ben Mohamed al-Cherif ben Mohamed Saleh al-Saadi from the same list, according to press releases. The U.N. also removed sanctions on four separate entities: the Directorate General of Baghdad Electricity Distribution and the Iraq-based Idrisi Centre for Engineering Consultancy (ICEC), National Centre for Engineering and Architectural Consultancy and State Enterprise for Fertilizer Industries.