Indonesia and South Korea agreed to exchange electronic certificate-of-origin data to “improve trade services” and “stop the misuse” of certificates of origin for Indonesian projects, according to an April 3 report from Antara News. The memorandum of understanding will “enhance trade and economic relations” between South Korea and Indonesia, the report said, and may lead to further cooperation. The two countries agreed to an “exchange program for employees to attend training programs and gain experience,” according to the report. Indonesian President Joko Widodo said “improvements will be made to the methods of exchanging trade information, an open telecommunication system and the development of procedures, standards and practices in keeping with trade documentation,” according to the report.
The implementation of Malaysia’s new customs declaration system, which was expected to be introduced in early 2019, has been delayed, according to a March 25 report from Baker McKenzie. Malaysia began a pilot version of the new system on March 5, the report said, which covers most imports and exports through Port Klang. While it is unclear when the new Ubiquitous Customs system will fully replace the current Sistem Maklumat Kastam, the report said the “scope of the implementation is (being) gradually expanded.”
Vietnam's General Department of Customs switched to a non-cash payment system beginning April 1, according to a report on the Vietnam Customs Department’s CustomsNews website. The change affects all “economic units and organizations” who import or export to the country and “generate State budget remittances.” Exporters and importers are required to pay a variety of charges -- including taxes, late payment fees and fines -- “in the form of a non-cash payment” or bank transfer.
The U.S. Department of Agriculture issued a report to help U.S. companies comply with exporting laws when shipping milled rice to China. The report, released March 28, followed a December 2018 announcement by China Customs saying the country will allow imports from certain U.S. rice facilities.
The U.S. Department of Agriculture is providing a translation of China’s food safety standard for fresh and frozen livestock and poultry products, in a Global Agricultural Information Network report posted April 1. “The Standard applies to fresh and frozen livestock and poultry products, but does not apply to ready-to-eat raw meat products,” USDA said. China’s National Food Safety Standard for Fresh and Frozen Livestock and Poultry Products was implemented in June 2017, replacing previous standards issued in 2005.
India again delayed retaliatory tariffs on goods imported from the U.S., pushing the new start to May 2, according to a notice from India’s Ministry of Finance. The tariffs, first announced in May 2018 and most recently delayed until April 1, 2019, will target agricultural products, motorcycles, steel products, and phosphoric and boric acid, and are aimed at offsetting the $241 million in duties India expects its U.S. customers to pay on its steel and aluminum exports. The tariffs have been delayed multiple times after they were originally expected to take effect in June 2018. Many of the items already face high tariffs -- walnuts are taxed at 100 percent, fresh apples at 50 percent, chickpeas at 60 percent, motorcycles at 100 percent -- but the actions would add 10 percent more to many ag products, 20 percent more to walnuts and almonds, and 50 percent more to motorcycles.
China will continue to suspend tariffs on U.S.-made cars and auto parts past April 1, according to a notice from China’s State Council and a report from Reuters. In December, China originally announced it was suspending additional 25 percent tariffs on U.S. vehicles and parts as a show of good faith as the two countries negotiated a trade deal. The tariff suspension was scheduled to end April 1, but China announced on March 31 that the country would be upholding the suspension to “create a good atmosphere for the ongoing trade negotiations between both sides,” according to Reuters. China’s State Council said it will announce at a later date when the extension will expire.
Hong Kong issued a warning about trading products that may contain cannabis, THC or cannabidiol (CBD), saying violations will constitute offenses under Hong Kong’s Dangerous Drug Ordinance as well as its food regulations, according to a March 20 report from the U.S. Department of Agriculture' Foreign Agricultural Service. Hong Kong specifically warned traders from exporting or importing products that contain CBD. While CBD is not classified as a dangerous drug under Hong Kong’s ordinances, the region’s food safety authority said “it is difficult to extract pure CBD that does not contain any THC,” according to the report. Violators are subject to criminal penalties, the report said, including a maximum penalty of fines of more than $600,000 or imprisonment for life. Hong Kong’s warning was prompted by Canada’s legalization of recreational marijuana last year and a 2018 Hong Kong seizure of nearly 600 pounds of a product, Juicy Wrap, suspected of containing THC, the report said. The product originated in the Philippines and was bound for Canada, according to the report.
Vietnam's Ho Chi Minh City Customs Department is proposing several amendments to its value-added tax requirements, including eliminating VAT exemptions for temporary imports and the re-exports of certain goods, according to a report on the Vietnam Customs Department's CustomsNews website. The change would eliminate VAT exemptions for the temporary import and re-export of machinery and equipment used in “investment projects, construction, installation and production,” the report said. Another proposed change would amend a decree for regulating export goods by requiring exporters to provide proof of a “contract for sale” or a “payment receipt” on their customs paperwork, according to the report.
China's refusal of canola imports from Canada is the result of "precautionary quarantine measures to ensure safety," Foreign Ministry spokesperson Geng Shuang said in a Chinese state media report. China reportedly said recently it would block entry of canola imports from another Canadian firm after previously doing the same to Richardson International (see 1903060058).