The Canadian Food Inspection Agency sent an AIRS update announcing that it changed the release recommendation for the Pacific cupped oyster originating in the U.S from “Refer to CFIA -- NISC” to “Refuse entry" when destined to the Canadian provinces of New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island and Quebec. The change affects goods of Canadian tariff subheading 03.07.11.1888.75.
A recent court ruling in India makes the country’s “Advance Authorization Scheme” for duty exemptions on imported inputs more useful for exporters, KPMG India said in a recent client alert. Indian revenue authorities had made several changes to the program in 2017, making Goods and Services Tax potentially exempt but also creating a “pre-import condition” where the same goods had to be imported, used as inputs and exported for those goods to qualify as duty-free under the AA program. An exporter had sued, saying that the new interpretation made it impossible to use the scheme where goods are manufactured and exported in anticipation of an authorization, and then inputs are imported duty-free against the authorization for further manufacturing and export. The high court of Gujarat sided with the exporter, KPMG said. As a result, all enforcement proceedings against Indian companies for improper use of AA due to the “pre-import condition” rule “would no longer survive,” KPMG said. “This judgment comes as a big relief to these exporters as there would have been a cash flow and interest impact on account of the payment of the disputed IGST [the Integrated Goods and Services Tax]. However, it needs to be seen whether the government issues any clarification or challenges the judgment,” KPMG said.
CBP would like even more public feedback on how to modernize the agency's processes and regulations, CBP said in a notice. CBP said it is reopening the comment period until April 11 to allow for new input after it held a March 1 meeting to discuss a wide range of ideas for updates. The March 1 meeting included few mentions of exports, but the docket of the original request for comments includes multiple suggestions and criticisms on the export side.
The government of Canada recently issued the following trade-related notices for March 8 (note that some may also be given separate headlines):
In the March 7 edition of the Official Journal of the European Union the following trade-related notices were posted:
As long as the trade talks are limited to industrial goods -- which does include fisheries under World Trade Organization rules -- European Union Trade Commissioner Cecilia Malmstrom said she thinks the talks could conclude before the current commission leaves office in late October. Malmstrom was visiting Washington to talk to her counterpart, U.S. Trade Representative Robert Lighthizer, and to give a speech at the Georgetown Law International Update.
Brazil recently issued updated guidance that “aims to modernize and facilitate” procedures related to origin facilitation, KPMG said in a March 5 client alert. “Among other innovations,” the new guidance establishes that “an origin declaration may be presented for tariff preference purposes if provided for in the relevant trade agreement,” and also says “self-regulation (via import declarations) may be allowed for the importer, buyer or consignee, subject to certain conditions, and before [Brazil customs] initiates a procedure regarding the proof of origin,” KPMG said. The guidance also sets definitions for key terms, including proof of origin, declaration of origin and certificate of compliance.
As part of its Customs Modernization and Tariff Act, the Philippines’ Department of Finance has created post clearance audit functions for the country's Bureau of Customs and announced a new prior disclosure program, which allows companies to minimize their penalties for errors and omissions on import documentation, according to a recent PricewaterhouseCoopers alert. Post-clearance audits can include audits of importers, customs brokers, agents and “all other parties engaged in the customs clearance and processing functions,” according to the notice. Auditors can also review all export- and import-related records “required to be kept by law,” the notice said. The prior disclosure program, the notice said, allows the Philippines’ Bureau of Customs commissioner to consider previous disclosures of errors and omissions in goods declarations by importers “as a potential mitigating factor in determining penalties.” All disclosures must contain "the errors and payment of deficient amounts of duties, taxes and penalties."
Companies not established in the United Kingdom will not be able to use most simplified procedures and customs facilitations in the U.K. should the country leave the European Union with no trade deal in place, the U.K.’s HM Revenue and Customs (HMRC) said In a guidance document issued March 6. That means that, to keep using the procedures, companies must either be a sole trader resident in the U.K.; have a registered office in the U.K.; or have a permanent place of business in the U.K. to carry out business activities, HMRC said.
South Africa recently raised its tariff on beet and cane sugar to 4.0179 ZAR ($0.28) per kilogram, according to a notice in its Government Gazette. The tariff increase applies to subheadings 1701.12, 1701.13, 1701.14, 1701.91 and 1701.99.The tariff had been 3.6957 ZAR ($0.26) per kilogram since December. "The SARS uses a variable tariff formula in order to adjust the import duty to a dollar-based reference price (DBRP)," Global Trade Alert said in a note on the tariff increase. "The DBRP represents the lowest duty-free price an importer pays in order to import goods to the Southern African Customs Union (SACU). In case the price dips below the DBRP, a duty is levied."