The EU's customs exemptions for low-value shipments may encourage undervaluation, the European Court of Auditors said in a report on the EU's collection of customs duties for e-commerce imports. Customs duties aren't levied on imports of goods equal to or less than €150. "These low value consignment reliefs (LVCR) can be abused via: (i) undervaluation of goods, which are declared below the thresholds for the VAT and/or customs exemptions; (ii) splitting consignments to be under the threshold limit; (iii) importing of either commercial consignments declared as gifts or of goods which are ineligible for the relief," the auditors said.
Non-brokers can now declare goods with the Philippines Bureau of Customs, according to a July 16 report from the Manila Bulletin, a Filipino newspaper. Before being able to declare goods, non-brokers must first file an application to obtain a Certificate of Accreditation from Philippines Customs, which is valid for one year, the report said. After the non-broker is accredited, he is “responsible for the accuracy of the goods declaration and for the payment of duties, taxes and other charges of the imported goods,” the report said, referencing a statement released by the Philippines. The non-brokers are also liable for violations under the Philippines' Customs Modernization and Tariff Act, the report said.
Export Compliance Daily is providing readers with some of the top stories for July 8-12 in case they were missed.
India is increasing import duties on certain Chinese tires for the next five years, according to a July 10 report from the Hong Kong Trade Development Council. The additional tariff will range between about 9 percent and 17.5 percent, the report said, and will cover eight tariff categories on all “China-sourced radial” tires. The tariffs will apply to “outsized tyres typically required by buses or trucks” and is aimed at helping to boost India’s domestic tire manufacturers. A 12 percent to 18 percent import levy already applied to China-made truck and bus radial tires has been in place since 2017.
Sen. Elizabeth Warren, a Massachusetts Democrat who's also running for president, has asked an ethics official in the Commerce Department to examine whether the head of the International Trade Administration and the acting undersecretary for Industry and Security have ethical conflicts in the steel and aluminum Section 232 exclusion process. Both ITA and the Bureau of Industry and Security are responsible for evaluating the exclusion requests, and BIS officials ultimately grant or reject the requests.
The government of Canada issued the following trade-related notices as of July 12 (note that some may also be given separate headlines):
Legislation aimed an increasing Canada's ability to use safeguard measures to limit import surges "recently cleared the House of Commons and the Senate, and received Royal Assent," said Daniel Kiselbach, a lawyer at Miller Thomson, in a blog post. "The provisions in the enactment lift a two-year moratorium on the imposition of safeguard measures on imports that have previously been subject to safeguard measures," he said. Part of a recent agreement between the U.S. and Canada that led to to lifting of tariffs on steel and aluminum was that the countries may impose tariffs in response to import surges of the metals (see 1905170031).
The government of Canada issued the following trade-related notices as of July 10 (note that some may also be given separate headlines):
The Philippines reduced import tariffs on mechanically deboned or mechanically separated poultry by 5 percent for chicken and 20 percent for “frozen whole turkey,” the U.S. Department of Agriculture's Foreign Agricultural Service said in a notice published July 8. The rates were previously set at 40 percent due to the country’s recent passage of the Rice Tariffication Law, the notice said. The changes took effect June 13 and extend until Dec. 31, 2020, the notice said.
China and the U.S. have agreed that China has until the end of the year to come into compliance with a World Trade Organization panel ruling on how it administers its tariff rate quotas for wheat, corn and rice. The WTO said that the fact that state-trading enterprises are given specific shares of the lower-duty import quotas, but that those enterprises don't always use all of the quotas nor is the unused portion reallocated to other buyers, means that China restrains the filling of its tariff rate quotas. The notice that the two countries agreed on a compliance timeline was circulated at the WTO on July 4.