The African Continental Free Trade Area officially went into "operational phase" on July 7 after an African Union summit meeting in Niamey, Niger, the African Union said in a July 7 news release. "The AfCFTA will be governed by five operational instruments, i.e. the Rules of Origin; the online negotiating forum; the monitoring and elimination of non-tariff barriers; a digital payments system and the African Trade Observatory," the AU said. Actual trading with reduced tariffs among the 54 member states under the AfCFTA isn't expected to begin until July 2020.
Brazil is considering lowering import duties on information technology goods, from 16 percent to 4 percent, the Hong Kong Trade Development Council said in a July 2 report. The move would cover items such as cell phones and computers. The announcement came after Brazilian government officials suggested lowering tariffs would boost the competitiveness of Brazilian companies in the IT sector. Brazilian industry associations have had mixed responses to the potential change, the report said. The Brazilian Electrical and Electronic Industry Association said the move would hurt Brazilian businesses and lead to job losses, while the Association of Brazilian Information Technology Companies reportedly said the move would “boost overall competitiveness despite some adverse effects to certain sectors.” The Brazilian Semiconductor Industry Association said the move would force foreign companies out of the country, shrink the Brazilian industrial sector and lead to an increase in imports, which would hurt domestic semiconductor manufacturing, the report said.
The Commerce Department posted an updated version of its "Foreign Retaliation Product Scope Matrix" that lists U.S. goods that are included in various countries' retaliatory tariffs. The list includes the affected subheadings and which country's tariffs include the subheadings. The list includes the retaliatory measures by China, the EU, India, Turkey and Russia.
The World Customs Organization issued the following releases on commercial trade and related matters:
The Census Bureau updated the Automated Export System (AES) with changes to the Schedule B, Harmonized Tariff Schedule (HTS), and HTS Codes that are not valid for AES tables, the agency said in a July 5 email. The changes, which are "effective immediately," reflect the HTS update from July 1. "AES will accept shipments with outdated codes during a grace period for 30 days beyond the expiration date of June 30, 2019," the agency said. "Reporting an outdated code after the 30-day grace period will result in a fatal error."
Exporters that produce and send goods from Puerto Rico to China may be able to avoid some of the tariffs on U.S. goods by using the U.S. territory as the origin, said Susie Hoeger, director of Global Trade Compliance and Policy at Abbott Laboratories. Hoeger mentioned the tip while speaking at the American Association of Exporters and Importers Annual Conference in Washington on June 27. "Chinese Customs has chosen to treat Puerto Rico differently than the U.S.," she said. "So if you don't know this and make things in Puerto Rico, declaring that as Puerto Rico origin instead of U.S., which is all the same for us, the tariffs don't hit. They've chosen to carve that out for some reason." Census Bureau statistics seem to show a recent uptick in exports to China from Puerto Rico. According to Census, the value of goods exported from the territory to China increased by 53.6 percent from 2017 to 2018.
The World Trade Organization published on July 2 its update to tariff and non-tariff measures imposed by more than 170 countries and customs territories. The publication also provides statistics about exports. For example, the European Union is the top destination for American industrial exports, and 22 percent of those exports are duty free. Those exports account for two-thirds of the value of exports from the U.S. to the EU. Japan is the fourth-largest export market for U.S. agriculture, and the average Most Favored Nation tariff for those exports is 23 percent. About two-thirds of ag exports to Japan from the U.S. face duties.
Mexico’s Secretariat of Economy will stop issuing certificates of origin for exports under free trade agreements with the European Union, the European Free Trade Association and Japan, and exporters must instead obtain authorized exporter status to obtain benefits under the agreements, according to a circular from the Mexican Confederation of Customs Broker Associations. Exporters with existing authorizations on the Registry of Eligible Products for Tariff Preferences for Obtaining Certificates of Origin under the agreements will be given an authorized exporter number. Exporters that want to export more types of goods must file new requests in the registry and certify compliance with origin requirements in the Mexican single window, said the circular, which was posted by Mexican consultancy AJR Comercio Exterior. The new scheme will not apply for merchandise subject to some export quotas and some goods listed in an annex to the Mexico-Japan FTA.
The Canada Border Services Agency on July 2 updated a notice on the tariff classification of front-mount mowers, the agency said in Memorandum D10-14-27. "Front-mount mowers, without the mower deck, are to be classified as tractors of subheading 8701.91.00, 8701.92.00, 8701.93.00, 8701.94.00, or 8701.95.90, depending on engine power," the agency said. The mower decks "are classified under tariff item 8433.19.00 as other mowers for lawns, parks, or sports-grounds," it said. "Lawn tractors remain classified under tariff item 8433.11.00 as mowers powered, with the cutting device rotating in a horizontal plane for lawns, parks, or sports-grounds and are subject to the applicable rates of duty."
Singapore importers of cigarettes will soon be required to file the Singapore Duty-Paid Cigarette marking applications online instead of providing physical copies, Singapore Customs said in a July 1 notice. All importers and manufacturers of cigarettes must obtain Customs approval on “new brands or variants of cigarettes” and are required to fill out the “Singapore Duty-Paid Cigarette” form online, available starting July 1, the notice said. Singapore Customs plans to phase out the physical copies and only accept online applications by Aug. 30.