The Egyptian Cabinet recently approved a draft bill that exempts importers from paying value-added taxes on shipping costs for certain “key commodities,” the U.S. Department of Agriculture Foreign Agricultural Service reported Dec. 9. The bill is expected to remove taxes paid on freight costs for “grains, legumes, table salt and spices,” FAS said, ensuring a “sustainable supply of commodities to the Egyptian market without any disruptions.”
Kenya is expected to begin a new sea cargo clearance system this month, which will accelerate clearance times at the Mombasa port, according to a Dec. 2 report from the Hong Kong Trade Development Council. The new system will allow for “automated online cargo clearance processing and documentation” submissions, HKTDC said, cutting processing times by as much as 60% “when fully implemented.” It will also allow goods to travel more quickly to their final destination by providing real-time tracking of the cargo once it leaves the port. The report also said “accidental cases of cargo diversion” should “become a thing of the past.”
South Africa has issued a directive aimed at curtailing illegal trading by introducing a required “authentication process” for certain customs release notifications, the Hong Kong Trade Development Council reported Dec. 4. The directive, meant to prevent the undervaluing of clothing, textile, footwear and leather (CTFL) goods, will require container operators and other “release authorities” to email copies of customs release notifications to the South African Revenue Service. SARS officers will check the notifications, confirm their authenticity and decide whether “release should be granted to the importer,” the report said. The authentication process will apply only to manually detained CTFL goods. The directive took effect Nov. 16.
Pakistan will continue through June 30, 2021, duty exemptions on imported items used to treat COVID-19, the Hong Kong Trade Development Council reported Dec. 1. The exemptions cover 61 items, including coronavirus tests, surgical masks, face shields, gloves, certain ventilators, ultrasound machines, intensive care beds and defibrillators, the report said. The exemptions are retroactive to Oct. 1 and extend some exemptions first adopted in March.
Morocco will increase the tariff rate on chocolate imports by more than 20 percentage points next year, the U.S. Department of Agriculture Foreign Agricultural Service said in a Nov. 19 report. The measure, approved by Morocco this month, will increase tariffs on imported chocolate and food preparations containing cocoa from 17.5% to 40% starting Jan. 1, the report said. U.S. chocolate products will remain duty-free under the U.S.-Morocco Free Trade Agreement. The USDA said Morocco mainly imports chocolate from Europe, Egypt, Switzerland and the United Arab Emirates.
Egypt recently imposed a value-added tax on freights for agricultural commodities, which could disrupt certain U.S. exports, the Foreign Agricultural Service said in a report released Nov. 16. The VAT, which took effect without prior notice on Aug. 1, could hurt U.S. exports of soybeans, corn and corn byproducts to Egypt and will put U.S. exports at a “competitive disadvantage” in the Egyptian market. The VAT could also “potentially jeopardize the reliable, affordable supply of food, feed and agricultural products for producers and consumers” in Egypt. The VAT applies a 14% tax on “advanced freight services” for certain agricultural commodities.
Correction: A recent webinar on the African Continental Free Trade Agreement (AfCFTA) was hosted by Abrabrand and law firm Squire Patton (see 2010280068).
Turkey recently reduced tariffs on lentils and temporarily eliminated duties on sunflower seeds, the U.S. Department of Agriculture Foreign Agricultural Service said in a report released Nov. 9. The changes, made Nov. 5, reduced tariffs on red lentils from 19.3% to 9% “until further notice,” and reduced tariffs on sunflower seeds to zero through June 2021, the report said. Turkey made the moves because of the rising cost of imported goods, which has had “large effects on domestic food and feed prices.”
Dubai’s customs authority recently issued guidance for declaration procedures for goods consumed within “free zones,” KPMG said in a Nov. 9 post. The guidance outlines the differences between goods consumed in the free zones and goods sold within other markets in the United Arab Emirates, including when customs duties apply. KPMG said certain goods are not subject to duties if they are used and consumed within the free zones “for the purpose” of “enabling businesses to carry out their activity,” while goods sold out of the free zones and introduced in the domestic market are subject to the duties. Dubai’s guidance also “explicitly sets forth an obligation” for free zone companies to “trace their inventory” and introduces a new quarterly reporting requirement for compliance.
Saudi Arabia recently introduced new requirements for imports of certain consumer goods, KPMG said in a Nov. 2 post. The measures require manufacturers and importers to first obtain clearance through Saudi Arabia’s electronic “SABER platform,” which is intended to address fraud and safety concerns surrounding imports. The requirement will apply to all consumer products referred to as “regulated products,” KPMG said, including lube oils, detergents, building materials, construction products, paints, lifts, vehicle spare parts and textiles.