Export Compliance Daily is providing readers with some of the top stories for March 16-20 in case you missed them.
Exports to China
The United Kingdom’s Department for International Trade updated its import controls guidance March 23, according to a notice. The update removed six tariff codes and added 12 others relating to imports of aluminum extrusions from China, the notice said.
The American Association of Exporters and Importers is asking the Trump administration to help importers and exporters deal with the impact of COVID-19 response measures, whether that impact is a cash crunch, the effects of telework or business decisions made in response to delays in shipments from China. The group is asking the administration to extend the time to respond to regulatory notices that are paper based, including entry filings deadlines, because telecommuting makes it more difficult to manage the paper flow. It is also asking CBP to extend the protest period for customs duties and decisions.
China’s commerce ministry recently announced plans to simplify outbound direct investment filings through a paperless procedure that will “reduce the burdens” on investors, according to a March 23 Hong Kong Trade Development Council report. Companies no longer have to submit paper documents when seeking approval for outbound investments and will instead be able to upload the documents as PDF files to the ministry, the report said. As China seeks to streamline outbound investment, the U.S. has increased restrictions on screening procedures for foreign direct investment as it tries to keep China from acquiring sensitive U.S. technology (see 2002260042).
Shanghai introduced time-limit standards for port services, detailing how long trucks, ships and other cargo may remain at port, according to a March 23 Hong Kong Trade Development Council report. Shanghai is requiring at least 90% of trucks to complete the delivery or pick-up of containers within one hour, the report said, and certain vessels, depending on their capacity, must “complete their operations” within 12 hours, 24 hours or 36 hours of berthing at the port. Shanghai also announced measures that shippers can take before arriving at the port, to speed up the process, including online appointments for picking up cargo and inspection appointments. China has reportedly increased scrutiny of incoming cargo vessels as it tries to control the coronavirus outbreak, leading to unloading delays and backlogs of hundreds of thousands of containers (see 2003190041).
China’s General Administration of Customs released a list of measures for increasing restrictions and streamlining port procedures during the coronavirus disease COVID-19 outbreak, including increased “interception and crackdown” on “unqualified anti-epidemic materials,” according to an unofficial translation of a March 19 notice. China said it has destroyed or returned more than 300,000 imports of “unqualified” protective equipment and stressed that the country needs to import “immunized materials” for domestic production of the equipment. As part of the measures, China is establishing “green channels” for agricultural products and other food imports at “key ports,” 24-hour advance clearance for certain imports and priority inspections. The measures will “simplify customs clearance procedures and reduce customs clearance costs throughout the process,” China said, which includes payment deferrals for certain taxes and reduced late payment fees for money owed to China’s GAC. China previously announced reduced penalties for delayed import declarations and other measures to ease customs procedures (see 2003120019 and 2002250031).
European governments are skeptical about the use of U.S. export controls to restrict transfers of sensitive technologies even as the U.S. ramps up attempts to convince them to adopt similar measures, according to a March 18 report from the Mercator Institute for China Studies. As the U.S. has taken an increasingly aggressive approach to restricting emerging technology sales to China, Europe increasingly sees export controls as a “blunt instrument” for tackling technology risks, the report said, viewing them instead as a U.S.-driven effort to contain China's rise.
The government of Canada issued the following trade-related notices as of March 20 (note that some may also be given separate headlines):
China is lowering transportation costs for importers and exporters in an effort to urge companies to resume production, according to a March 19 government notice and a March 16 report from Xinhua, China’s state-run news agency. China said it will waive “port construction fees” levied on traders from March 1 through June 30 and will offer refunds to companies that have already paid fees. In addition, certain companies will “see their oil pollution damage compensation halved” during that period.
Agricultural exporters and shippers are losing “hundreds of millions of dollars” due to shipping uncertainty and cargo detention penalties caused by the response to the coronavirus pandemic, said Peter Friedmann, executive director of the Agriculture Transportation Coalition. Friedmann was critical of the Federal Maritime Commission, which has yet to finalize a proposed rule issued last year that would provide guidance about how the FMC assesses the fairness of demurrage and detention practices. The rule’s public comment period ended in October.