Sri Lanka recently announced a “special commodity levy” on imported fruits, according to a U.S. Department of Agriculture Foreign Agricultural Service report released April 30. The levy, which began April 17, will remain in place for two months. It is intended to help the country rebound from a lockdown associated with the COVID-19 pandemic. About a quarter of Sri Lanka’s annual $71 million worth of fruit imports originates in China, with 8% coming from the U.S. The country sources about 20% of its apples from the U.S., the USDA said.
Exports to China
China recently requested industry and government feedback as it prepares to revise its measures on organic product certification, which could impact the types of organic goods China can import, according to a U.S. Department of Agriculture Foreign Agricultural Service report released April 30. The request for pre-draft revisions comments is “unique,” the USDA said, adding that China is asking for comments through a “written questionnaire” because it cannot conduct field visits due to the COVID-19 pandemic. The comment deadline is May 11. China did not notify the World Trade Organization about previous revisions to its organic product certification rules last year, the USDA said.
Some companies are concerned about the possibility of the Commerce Department issuing major export control actions during the COVID-19 pandemic, which they say will compound economic hardships caused by the mitigation response to the highly contagious disease. In interviews, industry officials said they are unsure about their ability to manage sweeping regulatory changes even as they acknowledge that a moratorium on export control actions is unlikely.
China’s Commerce Ministry criticized the U.S. Commerce Department’s decision to increase restrictions on exports to Chinese military users, saying it will “damage the interests of related U.S. companies more.” The measures, introduced last week (see 2004280052), were examples of the U.S. “abusing export control measures and impeding normal trade and cooperation among trading partners,” a ministry spokesperson said during an April 30 press conference, according to an unofficial translation of a transcript of the event. China said governments have a “responsibility” to reduce trade barriers during the COVID-19 pandemic “rather than create obstacles,” adding that “it is hoped that the U.S. side will stop wrong practices.”
China said it has joined 17 other World Trade Organization members to create a temporary dispute settlement system (see 2004150013) to solve trade issues despite the paralysis of the WTO’s dispute settlement body (see 2001240027). The temporary body will ensure “consistency and predictability” of rulings, China said in an April 30 notice, according to an unofficial translation. The “ultimate goal” of each participating WTO member is to “restore the normal operation of the appeal body,” China said.
China adopted new cybersecurity review measures that may impact purchases of foreign technology, according to an unofficial translation of an April 27 notice from China’s Cyberspace Administration. The rules, which will take effect June 1, require certain “critical information infrastructure operators” to undergo a review when importing goods that may impact China’s national security, the notice said. That review includes the submission of a “declaration form,” an “analysis report” on the impact of the purchase on China’s national security, procurement documents and “other materials,” China said. The review will “generally” be completed in 45 days. The rules could place foreign technology products at a “disadvantage” in the Chinese market, according to an April 27 report in The Wall Street Journal. Industry is also worried the review procedure could justify excluding U.S. businesses from Chinese supply chains, the report said.
China announced it will temporarily waive interest on deferred payments for “processing trade goods sold domestically” between April 15 and Dec. 31, according to an April 27 report from the Hong Kong Trade Development Council. The measure is aimed at supporting the “development of processing trade” and to ease pressure on foreign trading.
The Commerce Department Bureau of Industry and Security is working on guidance to help industry comply with the expanded licensing requirements for exports to China announced earlier this week (see 2004270027). The guidance will address new restrictions on exports intended for military users and uses, said Matt Borman, Commerce deputy assistant secretary for export administration. The rule expands the definition for military end-use and will cover military end-users in China, placing more of a compliance burden on industry.
Rep. Brad Schneider, D-Ill., said that many of his colleagues think “that we can pull back and do everything ourselves,” and that he thinks they may look at the shortages during the COVID-19 pandemic response as evidence that reshoring is the way to go. “You will see more capacity building in the United States, and that makes sense; the idea we can do it all ourselves is pure folly.” Schneider, who was speaking on a webinar hosted by the Washington International Trade Association on April 28, also thinks there needs to be redundancy in supply chains, and more warehousing and less “just-in-time” delivery.
China introduced new export regulations of medical goods to reduce shipping delays, according to an April 27 press release from China’s Ministry of Commerce. The measures -- which apply to “non-surgical face masks” and “medical supplies,” including testing reagents, protective suits, ventilators and infrared thermometers -- will allow exporting companies and the importer to submit a “joint declaration” that the goods are compliant with Chinese standards or standards of the importing country, China said. The declaration must also confirm that the goods will not be used for “medical purposes.” After receiving the declaration, China’s customs authority will “inspect and release the products.” The measures could help ease recent shipping delays on medical equipment (see 2004170039) by allowing manufacturers to bypass a previous rule that required exporters to obtain a certification from Chinese regulators, according to an April 26 report from The Wall Street Journal.