China is trying to stem coal imports by setting its 2019 import cap at 2018 levels, hoping to support domestic production, according to a report from Reuters. China, which the report said is the world’s largest coal consumer, made the decision after Chinese mining companies and “provincial governments” voiced opposition to more coal imports. Two purchase managers at Chinese steel mills told Reuters they were instructed by Customs to “control the purchase pace of imported coal” as Chinese domestic coal output is expected to rise by 100 million tons in 2019. The decision was made by China’s State Council, the report said. China imported about 280 million tons of coal in 2018, but “barely allowed” coal imports in December in an effort to meet a 2018 import quota that restricted imports to 2017 levels, Reuters said. Despite this, China still exceeded that quota by more than 10 million tons, according to the report. China Customs is expected to separate the 2019 coal quota into monthly volumes, Reuters said.
The Trump administration is expected to complete a review of the current scope of U.S. export controls on countries subject to arms embargoes, including China, and may make potential regulatory changes by May 10, according to an April 5 blog post from Steptoe & Johnson. The administration’s review stems from a section of the 2018 Export Control Reform Act, which requires a “review relating to countries subject to comprehensive United States arms embargo.” The act specifically requires the Commerce, State and Defense departments, among others, to review export controls on trades with “military end uses and military end users,” according to the post.
The European Union updated its Market Access Database to include “detailed information on rules adopted” by the United Kingdom “that would apply on UK imports from the EU in the event of a no-deal Brexit,” it said in an April 8 press release. “This is a part of the Commission’s efforts to help industry be prepared in case the United Kingdom leaves the European Union without a negotiated deal,” the release said.
China is lowering tax rates on certain imported goods, hoping to boost imports and domestic consumption, according to a notice from the Chinese Ministry of Commerce and a report from state-run news agency Xinhua. The change will take effect April 9, the notice said. China will reduce the tax rate of some goods -- such as books, computers, food, furniture and medicine -- from 15 percent to 13 percent, the report said. China will also reduce the rates on products that include sporting goods, textiles, electronic appliances and bicycles from 25 percent to 20 percent. The report also said that certain medicinal imports that are subject to the 3 percent import value-added tax rate, including “anti-cancer drugs and medicines for rare diseases,” will “enjoy [a] favorable tax rate.”
Treasury’s March settlement with Stanley Black & Decker serves as a compliance guide for U.S. companies and represents an important peek into how the Treasury's Office of Foreign Assets Control plans to issue enforcement settlements throughout 2019, according to an April 1 report by WilmerHale.