India’s Central Board of Indirect Taxes and Customs is looking into the “quality and cost of services” in the country’s customs, such as shipping lines and customs brokers, and is planning to abandon “physical supervision” in bonded warehouses, according to a May 7 report from the India Brand Equity Foundation. The announcement is part of a larger examination by the CBIC into “issues” faced by its exporters in an attempt to improve “trade facilitation.”
A recent ruling issued by the Mexico Secretariat of Economy clarifies an exemption from requirements to demonstrate compliance with Mexican product standards for certain products under a Mexican Sectoral Promotion Program (PROSEC), the Confederation of Mexican Customs Broker Associations (CAAAREM) said in a circular. Though many goods are required to have a certificate of compliance on file at entry beginning June 3, that requirement does not apply for (1) entries for consumption (2) by an importer with a PROSEC in effect, if (3) the imported merchandise will be used in the production of merchandise listed in article 4 of the PROSEC regulations, said the circular, as provided by trade consultancy AJR Comercio Exterior. That means that goods may be exempt even if they aren’t listed in paragraph 5 of the PROSEC decree, CAAAREM said.
The Treasury’s Office of Foreign Assets Control reached a settlement of about $870,000 with a New York-based shipbroking company that OFAC said violated weapons-related sanctions five times. The company, MID-SHIP Group LLC, violated the Weapons of Mass Destruction Proliferators Sanctions Regulations by negotiating contracts among ship owners and charterers worth about $470,000 between February and November 2011, OFAC said May 2. The ships used in the transfers were owned by the Islamic Republic of Iran Shipping Lines (IRISL), which was sanctioned by OFAC in 2008.
Mexico recently amended its regulations on payment of duties on goods subject to estimated prices for valuation purposes to add new tariff subheadings covering textiles, apparel and footwear and change estimated price amounts. The April 29 notice in the Mexican Diario Oficial adds 545 new tariff provisions to the lists of goods subject to estimated prices, 234 of which were recently added to the Mexican tariff schedule (see 1904110057), according to a circular from the Confederation of Mexican Customs Broker Associations (CAAAREM). For footwear, reference prices were increased for four subheadings and decreased for seven. For textiles and apparel, reference prices were increased for 498 subheadings and decreased for 51, said the circular, which was posted by trade consultancy AJR Comercio Exterior.
CBP denied a request from MDT Armor Corp. that the company's temporary importation bond (TIB) be extended after it exported a vehicle beyond the TIB expiration date. CBP said in the April 9 ruling that it found MDT's explanations to be lacking. Panmet Group, an agent working on behalf of MDT, told CBP that it did submit a timely TIB extension request and "was under the impression that the request had been processed." CBP's ruling only applies to the TIB extension request and not liquidated damages, the agency said.
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:
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.
The World Customs Organization Permanent Technical Committee has approved a draft of e-commerce technical specifications, and the package will next face review with the Policy Commission in June and the WCO Council soon after, said Ana Hinojosa, WCO director-Compliance and Facilitation. Hinojosa spoke via video at the National Customs Brokers & Forwarders Association of America's annual conference on April 17. There are also some discussions on e-commerce planned with the World Trade Organization, she said. "They have invited us to participate in some of their workshops and we're very interested in us to engage in their process as well," she said. "We're hopeful that those conversations will be fruitful and something will come out of that."
Companies and individuals who violate New Zealand customs requirements can now be issued a range of instant fines, according to a list of infringement offenses from New Zealand Customs. The list was mentioned in an April 17 notice from Baker McKenzie. The changes were introduced in October as part of the country’s Customs and Excise Act of 2018 but were not implemented until after a six-month “education phase,” according to the notice. They became effective April 1, 2019.