The Canada Border Services Agency is taking a closer look at surtaxes collected on "other US goods" as part of Canada's retaliatory tariffs on the U.S., KPMG said in a report. The agency has "come to the conclusion that the volume of imports of these products against the amount of surtax collected does not balance. So the CBSA [has] started to audit importers of all goods subject to surtaxes." There are more than 100 such audits underway in the Toronto area and "many more across Canada," KPMG said.
India again delayed retaliatory tariffs on goods imported from the U.S., pushing the new start to June 16, according to a notice from India’s Ministry of Finance. The tariffs, first announced in May 2018, will target agricultural products, motorcycles, steel products, and phosphoric and boric acid, and are aimed at offsetting the $241 million in duties India expects its U.S. customers to pay on its steel and aluminum exports. The tariffs have been delayed multiple times after they were originally expected to take effect in June 2018. Many of the items already face high tariffs -- walnuts are taxed at 100 percent, fresh apples at 50 percent, chickpeas at 60 percent, motorcycles at 100 percent -- but the actions would add 10 percent more to many ag products, 20 percent more to walnuts and almonds, and 50 percent more to motorcycles.
Export Compliance Daily is providing readers with some of the top stories for May 6-10 in case they were missed.
China plans to hit a wide range of goods from the U.S. with 20 percent tariffs in response to the Trump administration's increase in tariffs on Chinese goods (see 1905130002) Among the major items by value targeted by the Chinese on its 20 percent tariff list are machines and mechanical appliances in 8479.89.99; parts of diodes, transistors and similar semiconductor devices in 8541.90.00; other optical instruments in 9031.49.90; and North American hardwood in 4403.99.60. The tariffs will take effect June 1.
China’s recently issued exclusion process for duties on more than 5,000 tariff lines of U.S. products (see 1905130043) shows it is prepared for a “long-term fight” and may be getting ready to “hunker down” in the trade war with the U.S., said Pete Mento, vice president for Crane Worldwide Logistics.
China will raise tariff rates on 5,140 tariff lines of U.S. goods in response to the latest escalation in the trade war, the Chinese Foreign Ministry announced May 13. The tariff increases mostly follow the lists China released last year in response to U.S. plans to add tariffs on $200 billion worth of goods from China (see 1905130002). The retaliatory tariffs were implemented last year at lower rates than were initially announced. China now plans to increase those retaliatory tariffs on June 1.
The Canada Border Services Agency provided details in a May 10 Customs Notice on filing requirements for goods that are subject to the final safeguard tariffs on steel products (see 1904300218). The safeguards on heavy plate and stainless steel wire don't apply to goods from multiple countries, including the U.S., Korea, Chile, Columbia, Mexico, Panama, Peru and Israel. Canada also released a notice to importers on the tariff rate quotas.
Japan has requested World Trade Organization consultations with India, accusing it of imposing tariffs “inconsistent” with the General Agreement on Tariffs and Trade and “in excess” of its WTO commitments, Japan’s Ministry of Economy, Industry and Trade said in a May 10 notice. Japan said India raised tariffs on various products, including information and communications technology products, nine times since 2014, calling them violations of the WTO and GATT. Japan said it has “repeatedly” asked India to withdraw the tariffs during trade talks and WTO committees, but “the two sides have been unable to settle the dispute.” Japan specifically mentioned tariffs on six products that it disputes: “feature phones,” smartphones, “base stations” for cell phones, “digital microwave communication equipment,” “printed-circuit board assemblies” and LCD modules for smartphones.
The Trump administration is extending by one year the national emergency that had been declared 15 years ago due to the actions of the government in Syria, according to a May 8 press release from the White House. Sanctions will continue against certain Syrian people as will the ban of certain exports and re-exports to Syria. The notice said "the actions of the Government of Syria in supporting terrorism, maintaining its then-existing occupation of Lebanon, pursuing weapons of mass destruction and missile programs, and undermining United States and international efforts with respect to the stabilization and reconstruction of Iraq" are a threat to U.S. national security. The emergency declaration had been in place since a 2004 executive order, and was set to expire May 11, according to the press release. "The United States will consider changes in the composition, policies, and actions of the Government of Syria in determining whether to continue or terminate this national emergency in the future,” Trump said in a statement.
The Trump administration is extending the national emergency in response to "the situation in and in relation to the Central African Republic, which has been marked by a breakdown of law and order, intersectarian tension, widespread violence and atrocities," for one year beyond the May 12 expiration date, the White House said in a May 8 press release. U.S.-imposed sanctions on the country will remain in place.