The United Nations Security Council renewed sanctions on people and entities threatening peace and security in Yemen for one year, according to a Feb. 25 notice. The sanctions were renewed with 13 UN members voting in favor and two abstentions: China and Russia. The sanctions also impose an arms embargo on militias in the region loyal to former president Ali Abdullah Saleh.
Exports to China
During a hearing that House Ways and Means Committee Chairman Richard Neal, D-Mass., said was designed to test President Donald Trump's claim that the phase one agreement with China is a “tremendous win for the American people,” most of what was revealed was that Democrats are skeptical of the purchase promises and likelihood of success of further negotiations, and Republicans admire Trump's confrontation of China.
China recently introduced an export value-added tax refund rate of 13% for bunkering oil on international navigation ships in its costal ports, according to a Feb. 26 report from the Hong Kong Trade Development Council. The rate, which took effect Feb. 1, will allow ships to apply for export VAT refunds through export declarations when they enter “export-supervised warehouses to refuel,” the report said.
U.S. administration officials will meet with the European Union and Japan next month to lobby for increased scrutiny of transactions involving sensitive technologies, a top Treasury Department official said. The meetings will also feature discussions of recent U.S. reforms to foreign direct investment screening, said Thomas Feddo, Treasury’s assistant secretary of investment security, and come as the U.S. begins to implement those reforms as part of the Foreign Investment Risk Review Modernization Act (see 2001140060). Feddo spoke during a Feb. 26 event hosted by the Asia Society.
The State Department announced sanctions on 13 entities and people based in China, Iraq, Russia and Turkey under the Iran, North Korea, and Syria Nonproliferation Act, the agency said in a Feb. 25 news release. The sanctions target people and companies that support Iran’s missile program. The State Department said the designations are “two-year discretionary sanctions” and block all U.S. government procurement, government assistance and exports related to the people and companies.
The House Ways and Means Committee has invited a union official, a commissioner from the United States-China Economic and Security Review Commission, a former assistant U.S. trade representative, a major university president, and two farmers to testify on U.S-China trade competition. The hearing, which starts at 10:30 a.m. Feb. 26, will include testimony from Tim Stratford, the former assistant USTR; Thea Lee, the commissioner who is also president of the left-of-center think tank Economic Policy Institute; Rafael Reif, president of the Massachusetts Institute of Technology; Owen Herrnstadt, chief of staff for the Machinists union; Tim Dufault, a Minnesota farmer; and Richard Guebert Jr., president of the Illinois Farm Bureau.
Export Compliance Daily is providing readers with some of the top stories for Feb. 18-21 in case you missed them.
China has taken “numerous actions” to begin implementing its agricultural purchase commitments under the U.S-China phase one trade deal, the Office of the U.S. Trade Representative said Feb. 25. China recently announced it will allow imports of U.S. “fresh chipping potatoes” (see 2002240011), lifted an import ban on U.S. poultry and poultry products (see 1911140019) and lifted restrictions on certain pet food imports (see 2002240010) from the U.S. China also updated its list of facilities approved for exporting animal protein, pet food, dairy, infant formula and tallow, updated the list of goods that can be exported to China as feed additives and updated an approved list of imported U.S. seafood species.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said he doesn't expect the U.S. to negotiate over the tariffs it has put on European goods like Airbus planes, Scotch whiskey, French wine, and Spanish wine and olive oil until the World Trade Organization rules on Boeing subsidies. Currently, there are 10% tariffs on Airbus planes and 25% tariffs on the wine, liquor and food items; the aircraft tariff is set to climb to 15% on March 18. The Boeing ruling is not expected for several months.
China recently issued a series of measures to encourage foreign trade companies to resume business as the country continues battling the coronavirus outbreak, according to a Feb. 25 report from the Hong Kong Trade Development Council. Among several changes, customs authorities will simplify business registration and filing procedures, and expedite inspections and releases of imported production equipment and raw materials, including the use of “machine-assisted inspection” and “out-of-box audits.” China will also expand imports of agricultural products by increasing “the number of countries and registered companies with access to China’s market” as well as the variety of agricultural goods that can be imported. Other measures simplify and relax procedures surrounding exports, quarantine examinations and approvals, trade documentation deadlines and administrative penalties.