Customs duty

An Indian national was sentenced to prison after being convicted on charges of illegally importing thousands of packets of cigarettes and avoiding more than $120,000 (in Singapore dollars) in taxes, Singapore said in an Aug. 21 press release. Singapore said Veerappan Vimalraj stored more than 13,000 packets of duty-unpaid cigarettes and more than 10,000 “sachets of prohibited chewing tobacco” in a storage facility and routinely delivered the goods to customers in Singapore, who would try to avoid detection by not dealing with Vimalraj face to face for the transaction. Vimalraj was sentenced to about 19 months in prison.

Israel and South Korea signed a trade deal that will ease customs duties for both sides, Israel’s Ministry of Foreign Affairs said in an Aug. 21 press release.

China will impose tariffs on about $75 billion worth of U.S. goods in retaliation for the coming 10 percent Section 301 tariffs on $300 billion in Chinese goods, China’s State Council said, according to an unofficial translation. China said it will impose either 10 percent or 5 percent tariffs on more than 5,000 U.S. products. The tariffs will be imposed in two separate batches on Sep. 1 and Dec. 15, China said.

China’s Ministry of Commerce repeated claims that it will retaliate against higher U.S. tariffs, said it opposed new U.S. measures against Huawei and plans to make an announcement involving its so-called unreliable entity list “soon,” spokesman Gao Feng said at an Aug. 22 press conference, according to an unofficial translation of a transcript from the briefing.

Canada updated its regulations under the Canada-Israel Free Trade Agreement Implementation Act (CIFTA) for rules of origin for casual goods, the country said in an Aug. 21 Canada Gazette notice. The updated regulations "implement, in Canada, the rules of origin negotiated by Canada and Israel in the modernized CIFTA that will be used to determine when goods have undergone sufficient production to qualify for preferential tariff treatment," said Canada in another notice. "The rules of origin in the modernized CIFTA were simplified, liberalized, and brought up to date with Canada’s approach in more recent free trade agreements." The CIFTA tariff preference regulations were also updated.

The European Union’s new EU Customs Trader Portal will debut on Oct. 1, and will for a time run parallel to the current EU Trader Portal before replacing the legacy system entirely, the Netherlands Tax and Customs Administration said in an Aug. 20 news release. Developed by the European Commission, the new portal will allow traders to apply for and manage Authorized Economic Operator certificates and Binding Tariff Information decisions. “If your organisation already has an AEO certificate or BTI, you will soon receive a notification from Customs,” Dutch Customs said.

China is imposing “special safeguard measures” on eight Australian beef-related agricultural products, China’s General Administration of Customs said in an Aug. 17 notice, according to an unofficial translation. China said Australian beef imports on Aug. 15, under six tax codes, exceeded the quantity that can be imported in 2019. The country resumed taxing the imports under Most Favored Nation tariffs on Aug. 17.

A lack of trade facilitation, infrastructure and widespread corruption are three of the main challenges stymieing trade in the Northern Triangle, which could be improved with U.S. help, the Commercial Customs Operations Advisory Committee Rapid Response Subcommittee said in a report prepared for the Aug. 21 COAC meeting. The report, compiled from COAC’s Northern Triangle Working Group, issued several recommendations for improving trade, including specific adjustments Northern Triangle countries can make to their customs agencies, an enhanced foreign-trade zone in the area, training from U.S. customs officials and better trade enforcement.

U.S. Trade Representative Robert Lighthizer expects Canada's Parliament to continue progress on the U.S.-Mexico-Canada Agreement in the fall following October elections, he said in recently posted written responses to House Ways and Means Committee members following a June 19 hearing (see 1906190062). "The Trudeau government has begun necessary steps to ratify the USMCA in its Parliament and has stated that it plans to move forward on implementation in tandem with the United States," he said. "The Canadian Parliament has adjourned for the summer and is not expected to return before federal elections are held on October 21, 2019. We anticipate that Canada will take up the legislation once a new government is seated later this fall, and we are confident that the Parliament will vote in favor of the Agreement."

China issued clarification on import duty exemptions for certain equipment and machinery, according to an Aug. 19 report from the Hong Kong Trade Development Council. The report said imported equipment and machinery that falls within the Catalogue of Encouraged Industries for Foreign Investment’s “encouraged industries” are exempt from customs duties, but not import-related value-added taxes. VATs also still apply to all “equipment imported for direct self-use and any associated items imported with regard to said equipment within the total investment amount of an foreign-invested project,” the HKTDC said.