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.
Exports to China
The Commerce Department amended the Export Administration Regulations to expand licensing requirements for exports, re-exports and transfers of items intended for military uses in China, Russia and Venezuela, according to a notice. The rule expands the licensing requirements for exports to China to include military end-users as well as military end-uses, broadens the list of items subject to the licensing requirement and review policy, and expands the definition for military end-use. The rule also “creates a new reason for control” and review policy for certain exports to the three countries, and added new Electronic Export Information filing requirements.
The Commerce Department is considering restricting the number of destination countries that are authorized to receive certain U.S. re-exports that are controlled for national security reasons, the agency said in a notice. The proposed rule would amend the license exception for Additional Permissive Reexports (APR) by removing nations in Country Group D:1, including China, from being eligible to receive those re-exports, Commerce said. The rule would remove APR license eligibility from more than 20 countries. Comments are due June 29.
China announced requirements for importing U.S. avocados, according to an unofficial translation of an April 26 notice from the country’s General Administration of Customs. The notice contains new phytosanitary requirements for the imports, which took effect April 26.
Export controls and trade restrictions are becoming an increasing part of U.S.-China competition despite little clarity about whether they will work in the long term, trade experts said. The measures also seem to lack a clear focus within both the U.S. government and China, with officials disagreeing on how best to impose restrictions, the experts said.
The government of Canada issued the following trade-related notices as of April 24 (note that some may also be given separate headlines):
China is examining ways to speed up purchases of U.S. agricultural goods, including a potential purchase of 10 million tons of U.S. soybeans for state reserves, according to an April 23 Bloomberg report. China, which is hoping to reach its commitments under the phase one trade deal with the U.S., is also considering buying as much as 20 million tons of U.S. corn, the report said, which would surpass the country's corn import quota. Discussions surrounding those purchases are still ongoing, the Bloomberg report said, and some Chinese officials have raised doubts about whether China should be helping U.S.’s agricultural sector due to the COVID-19 pandemic’s impact on China’s own economy. Despite expectations that the virus will impact China’s ability to purchase U.S. agricultural goods (see 2002120043), the Trump administration said it expects China to begin fulfilling its commitments by this summer (see 2003040029), and has touted the progress made toward those purchases (see 2003240041).
Australia recently announced a US$70 million support program to help agricultural and seafood exporters reach international markets during the COVID-19 pandemic, according to a U.S. Department of Agriculture Foreign Agricultural Service report released April 22. The program will benefit exporters in the country’s red meat, dairy, horticulture and seafood sectors that ship “high-value perishable” products, the USDA said. The program will help exporters ship to China, Hong Kong, Singapore and the United Arab Emirates but does not include support for goods shipped by sea, the report said. The list of countries may be expanded.
Canada said earlier this week that it intends to ask for World Trade Organization permission to retaliate for the U.S. countervailing measures on supercalendered paper that ended in 2018 but were ruled out of bounds in February 2020 by the WTO appellate body (see 2002060059). Supercalendered paper is glossy paper used in advertising inserts, catalogs and magazines. The U.S. had levied 20.18% and 17.87% countervailing duties on two Canadian companies in 2015.
Export Compliance Daily is providing readers with some of the top stories for April 13-17 in case you missed them.