President Donald Trump has invoked the Defense Production Act to try to claim more 3M masks for U.S. workers, made in the U.S. or in China. The company issued a statement April 3 that said: “In the course of our collaboration with the Administration this past weekend, the Administration requested that 3M increase the amount of respirators we currently import from our overseas operations into the U.S. We appreciate the assistance of the Administration to do exactly that. For example, earlier this week, we secured approval from China to export to the U.S. 10 million N95 respirators manufactured by 3M in China.
Exports to China
China announced changes to its inspections and supervision procedures for imported cotton, according to an April 3 report from the Hong Kong Trade Development Council. The measures, which were scheduled to take effect April 5, aim to improve the “business environment” at ports by carrying out inspections “upon application by enterprises” instead of a “sampling inspection by customs officials batch by batch.” If the consignee or agent of the imported cotton does not require a quality certificate, the cotton will be released “directly” after “passing the on-site inspection and quarantine.”
China recently announced procedures for returns of cross-border exported and imported e-commerce goods, according to an April 3 report from the Hong Kong Trade Development Council. Traders seeking to return goods must apply to China’s customs authority to “engage in return business,” the report said. Any returns must come with a “guarantee” that the returns are the original goods, the report said, and must be completed within a certain time frame. The measures for returns of exports took effect March 27, and for returns of imports, on March 28.
The European Union will officially waive customs duties and value-added taxes on medical equipment imports from non-EU countries, the European Commission said April 3. The measure, signaled in a March 30 customs guidance (see 2003310030), was approved by the commission to help combat the COVID-19 pandemic after requests from member states. Import duties and VATs will be lifted for six months for masks, protective equipment, testing kits, ventilators and other medical equipment, the commission said, adding that the measure will take effect retroactively from Jan. 30. The EU may consider an extension after six months.
China is blocking imports transported by truck drivers from five of Vietnam’s cities and provinces, including the country’s capital, according to an April 3 report from CustomsNews, the mouthpiece for Vietnam Customs. China informed Vietnam that it will bar drivers delivering goods from Hanoi, Ho Chi Minh City, Quang Ninh, Da Nang and Binh Thuan, saying those regions have “recorded many new and complex cases of coronavirus” COVID-19. Vietnam Customs is telling agricultural companies to “plan for the consumption of agricultural goods in the domestic market” and to remain in communication with the customs agency to minimize the “backlog of goods and economic losses.”
The government of Canada issued the following trade-related notices as of March 30 (note that some may also be given separate headlines):
Senior Trump administration officials agreed to three measures that will tighten restrictions on China’s ability to obtain advanced U.S. technology, according to an April 1 Reuters report. The measures, agreed to during a March 25 meeting (see 2003260036), will “introduce hurdles” to block Chinese companies from buying U.S. optical materials, radar equipment and semiconductors, the report said. It is unclear if President Donald Trump will sign off on the new rules, Reuters said. It is also unclear how these measures relate to potential changes to the Direct Product Rule and the de minimis rule that administration officials have been considering for months (see 2003050041, 2003130037 and 1912100033).
The U.S. Department of Agriculture Foreign Agricultural Service issued a March 31 report detailing changes to the procedures for exporting U.S. beef to China. The report can serve as a “general guide” for U.S. beef exporters navigating the new regulations, the agency said. The changes, which came as part of the phase one trade agreement (see 2003240041), include an expanded scope of beef products that are eligible for export, the removal of certain age limits for cattle, new maximum residue limit standards and an updated procedure for transmitting export documents, USDA said. In addition, almost all U.S. “beef muscle cuts” are included in China’s most recent tariff exclusions process (see 2002180039), USDA said.
The Office of the U.S. Trade Representative released the 2020 National Trade Estimate Report on Foreign Trade Barriers, detailing foreign trade barriers faced by U.S. exporters, it said in a March 31 notice. The notice includes a fact sheet on the USTR’s efforts to remove foreign trade barriers -- including recent trade deals with China (see 2001150073) and Japan (see 1912050058) -- and details on agricultural and digital trade barriers.
After 47,000 stores in the U.S. closed in a week, Flexport says that so many companies can't take shipments arriving at East Coast ports that those ports are now shopping for more warehouse space. Because importing companies' warehouses are either full or closed, they tell the ports they'll pay demurrage charges for the goods to stay there. “The ports are actually worried now they won’t have enough space,” said Chandrakant Kanoria, Flexport's head of network operations, during a webinar March 31. He said Savannah is hoping to almost double its warehouse space, and the New York and New Jersey terminals are talking with warehouse providers to try to make room, as well. There are problems in the warehouse logistics ecosystem, as well, because Amazon warehouses stopped accepting any goods other than essentials.