The European Union-Singapore free trade deal offers wide-ranging benefits for companies, although some businesses may only be aware of the deal’s reduced and eliminated tariffs, according to a Nov. 21 alert from PricewaterhouseCoopers. While the agreement (see 1911080069) does present “significant tariff reduction,” it also removed a range of non-tariff barriers; offers greater market access in electronics, environmental and computing sectors; and provides greater intellectual property protection and access to government contracts.
Geneva is growing increasingly frustrated with the United States’ approach to the looming deadline of the dissolution of the World Trade Organization’s dispute settlement body, a former member of the body said. Although there are ways for the U.S. and WTO members to ensure the appellate body continues to operate, trade experts said they are skeptical much will get done before the Dec. 10 deadline, throwing the international rules-based trading system into question.
Colombia announced unlimited duty-free treatment for imports of certain electric vehicles, and lowered import duties to 5 percent on certain motor vehicles fueled only by natural gas, according to a Nov. 21 report from the Hong Kong Trade Development Council. The changes take effect Nov. 28. In a separate decision, Colombia announced duty-free treatment for certain “household appliance inputs,” the report said. That change takes effect Dec. 3.
When the Ways and Means Trade Subcommittee held a hearing on the U.S.-Japan mini-deal, the Office of the U.S. Trade Representative declined to send anyone to testify. Rep. Ron Kind, D-Wis., one of the biggest boosters of free trade in the Democratic caucus, said that absence represents “the disdain the current administration has" for Congress, and its role in setting trade policy. He predicted that "this will have serious ramifications for the next time" Congress has a vote on fast-track authority.
The Canada Border Services Agency updated its memorandum on the importation and transportation of goods on Nov. 18 to reflect updates to the definitions and “clarify corrections to cargo control documents," it said. Also new is "bond information and amounts for each mode of transportation" and "information on direct delivery of consolidated shipments," it said. CBSA also added "information on goods found astray (misrouted), non-resident importer, Carnets and other temporary imports, 'to order' shipments, moving company and personal effects, entered to arrive and value included shipments, ships stores, and duty free stores."
Export Compliance Daily is providing readers with some of the top stories for Nov. 12-15 in case they were missed.
The trade war that President Donald Trump began with China 16 months ago is creating pain for businesses, but there's a deeper strategic mistake to consider, said Matthew Goodman, senior vice president for Asian economics at the Center for Strategic and International Studies. Goodman, who was speaking during the first session in a Congressional Trade Series on Nov. 19, said, “I still don't know what the basic strategic goal is here." He said he didn't know whether the administration wants to get structural changes to China's economy, as it claims, or whether it wants to reduce the bilateral trade deficit, or to contain China's rise.
KPMG released an overview of Japan’s tax system on Nov. 15, detailing a range of the country’s laws that affect imports, exports, tariffs and customs. The guide contains details on measures affecting customs clearance, customs valuation, rules of origin, access to import and export data, taxes levied on importers and more.
Singapore Customs issued Nov. 18 circulars on how importers and exporters can benefit from preferential treatment under the European Union-Singapore Free Trade Agreement, which will take effect Nov. 21. The exporting guide covers new rules of origin under the EUSFTA, customs documentation procedures and record-keeping requirements. The importing guide covers which goods will be subject to preferential tariff rates and procedures for claiming those tariff rates, as well as customs procedures and record-keeping requirements.
China announced tariff-rate quotas for fertilizer imports for 2020, according to a Nov. 15 report from the Hong Kong Trade Development Council. China will set its quotas at 3.3 million tons of urea, 6.9 million tons of diamond phosphate and 3.45 million tons of compound fertilizers. The TRQ will be 1 percent for all three items, HKTDC said. Chinese authorities will accept applications and issue certificates for the quotas starting Dec. 15.