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.
Pakistan recently ended certain duties on a range of raw materials imported by its textile industry, including woven fabrics, artificial filament yarn and artificial staple fiber, the Hong Kong Trade Development Council reported Oct. 28. The move, which took effect Oct. 13, will remove “regulatory” duties and “additional customs duty” on the items, which also include wool, certain animal hair and sewing thread from artificial filaments.
The Central Bank of Nigeria said it will sanction international shipping and airfreight companies for noncompliance with a 2017 directive related to bills of lading and airway bills, the Hong Kong Trade Development Council said Oct. 27. The directive requires all exports to carry “Nigerian Export Proceeds (NXP) form numbers” on their bills, the report said. Nigeria said it recently completed an audit of shipping companies that showed several businesses were not complying with the order, adding that it will impose “severe sanctions” for continued noncompliance, HKTDC reported. The country also plans to issue guidance to help industry better “verify the authenticity of NXP form numbers submitted.”
The Nigerian Shippers Council ordered terminal operators to refund unauthorized transfer and storage charges on shippers and freight forwarders or “face serious sanctions,” the Hong Kong Trade Development Council reported Oct. 13. Shippers and freight forwarders complained to the NSC, the country’s port regulator, that they have been “arbitrarily charged levies” on container demurrage, storage and transfer by shipping firms and terminal operators for the “transport of goods to off‑dock terminals without their knowledge,” the report said. The NSC ordered port operators and other shipping agencies to “immediately” refund the charges collected since June 1 or face a “total shutdown.” Some terminals have not complied with the order, including Nigeria’s Denca Bonded Terminal, which allegedly owes more than $100,000 (in U.S. dollars) in refunds. The NSC plans to place staff at bonded terminals “to gather weekly reports on charges.” NSC issued guidance, according to the HKTDC report, indicating that “storage and demurrage fees on goods that need to be moved from seaport terminals to off‑dock terminals without the consignees’ consent should only be imposed after the goods’ arrival at the designated off‑dock terminals.”
Kenya is considering imposing a higher tax for importers who transport goods by road, instead of using the country's railway servicing the route, from the Mombasa port to Nairobi, the Hong Kong Trade Development Council reported Oct. 12. Parliament recommended increasing the levy by 0.3% for importers who do not use the standard gauge railway and providing an incentive in the form of a lower railway development levy fee rate for importers using it, the report said. The proposal comes as the Kenyan government tries to “drive income” to the railway to pay off its “large” debt on the project. But traders in Kenya continue to prefer roadways, HKTDC said. A government joint technical committee study released in February 2019 showed it costs 133.5% more to transport cargo using the rail system than by road.
A new port terminal under construction is expected to be completed in Abidjan, Cote d’Ivoire, by the end of 2021, creating additional annual container capacity and improved flow of goods, the Hong Kong Trade Development Council reported Oct. 20. The new terminal, Abidjan's second, will make the city the sole port in West Africa capable of handling “very large vessels,” the report said, and will feature “advanced container‑handling facilities.” The additional terminal is expected to “reduce cargo handling costs,” increase “trade growth” and “significantly alter the dynamics of trade in the West African region.” Abidjan hopes the port becomes the “preferred gateway” for neighboring landlocked countries and a “transshipment destination for surrounding coastal countries,” HKTDC said.
As it prepares to launch an official online portal, Nigeria recently issued guidance for exporters participating in its export expansion grant scheme, KPMG said in an Oct. 16 post. Exporters must submit their “baseline data and application claim” covering exports in 2019 and 2020 by Nov. 20, Nigeria said. The 30-day timeline, which started Oct. 19, “may not be sufficient time” for some, KPMG said, especially because some exporters “may not have finalised the statutory audit of their 2019 accounts” due to delays caused by the COVID-19 pandemic. KPMG said it is “not yet known” whether Nigeria will extend the submission timeline.