Starting from June, these major foreign trade regulations will begin to be implemented! They involve tariffs, domestic and foreign policies, and more!

New foreign trade regulations, including tariffs and policies, will be implemented from June

@All foreign trade people, in June these new regulations related to domestic and foreign policies, customs policies, tariff policies, anti-dumping and anti-subsidy policies, etc. will come into effect. Remember to like and bookmark!

01

Domestic policies

[Six departments promote the special action to facilitate cross-border trade in 2023]

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The General Administration of Customs, together with the National Development and Reform Commission, the Ministry of Finance, the Ministry of Transport, the Ministry of Commerce, and the State Administration for Market Regulation, has recently deployed and mobilized a special action to facilitate cross-border trade in 2023 for five months in 17 cities in 12 provinces, including Beijing, Tianjin, Shanghai, and Chongqing.

Specifically, this special action mainly includes 19 measures in 5 aspects: first, further deepening the construction of “smart ports” and the digital transformation of ports, including supporting local “smart port” construction and customs clearance model reform pilot projects, and other 5 measures; second, further supporting the upgrading of foreign trade industry and the healthy and sustainable development of new business forms, including promoting processing trade upgrading and other 4 measures; third, further improving the level of cross-border customs and logistics chain supply chain security and smoothness, including continuously promoting paperless documents and convenient transfer of port logistics operations, and other 4 measures; fourth, further standardizing and reducing compliance costs in import and export links, including continuing to implement the “Action Plan for Clearing and Regulating Port Charges for Maritime Transport”, and other 2 measures; fifth, further enhancing the sense of gain and satisfaction of foreign trade operators, including coordinating efforts to “clear problems” for enterprises, improving the communication mechanism between government departments and the business community, and other 4 measures.

[The General Administration of Customs allows 20 foreign water product enterprises from multiple countries to resume exports to China]

In order to enrich the domestic supply of aquatic products and promote the stability of the aquatic product industry chain supply chain, after scientific evaluation, as of May 26, 2023, the General Administration of Customs allows 20 overseas aquatic product companies from countries such as Pakistan, Brazil, Malaysia, Spain, New Zealand, Indonesia, and India to resume exporting to China.

【The eleventh list of exclusion extensions for goods subject to additional tariffs on the US is released】

Approved by the State Council of China, the Tariff Commission of the State Council has released the eleventh list of exclusion extensions for goods subject to additional tariffs on the US, extending the exclusion period for the relevant goods in the Announcement of the Tariff Commission of the State Council on the Ninth List of Exclusions from the Additional Tariffs on US Products (Tariff Commission Announcement No. 10 of 2022) from June 1, 2023 to December 31, 2023, and continuing to not impose additional tariffs on goods subject to the US 301 measures as a countermeasure by China.

【RCEP takes effect with the Philippines starting from June 2】

Starting from June 2, China and the Philippines will mutually implement RCEP tariff reductions and apply the tariff rates applicable to ASEAN member countries to some imported goods originating in the Philippines.

After RCEP takes effect with the Philippines, all 15 members have completed the effective procedures and implemented tariff reductions. As of the end of 2021, China has been the Philippines’ largest trading partner for six consecutive years, and the Philippines has become China’s largest source of imported bananas and pineapples.

【Mainland China and Macao Customs implement AEO mutual recognition starting from June】

In February 2023, the General Administration of Customs and the Macao Customs formally signed the “Arrangement between the General Administration of Customs of the People’s Republic of China and the Macao Customs on Mutual Recognition of the Credit Management System for Mainland Customs Enterprises and the Economic Operators Recognition Plan of the Macao Customs”, which will be officially implemented starting from June 1, 2023.

According to the “Mutual Recognition Arrangement”, the customs of the Mainland and Macao give each other customs facilitation measures for AEO enterprises when clearing imported goods: applying a lower rate of inspection for imported goods; giving priority inspection to goods that require physical inspection; designating a customs liaison officer to communicate and handle issues encountered by AEO enterprises in customs clearance; and giving priority clearance after the interruption and resumption of import and export trade.

[China and Uzbekistan sign AEO mutual recognition arrangement]

On May 18th, Yu Jianhua, the Director General of the General Administration of Customs of China, and Kudratov, the Minister of Investment of Uzbekistan, signed the “Arrangement between the General Administration of Customs of the People’s Republic of China and the Customs Committee of the Ministry of Economy and Finance of the Republic of Uzbekistan on the Mutual Recognition of the System of “Authorized Economic Operator” (AEO)” (hereinafter referred to as the “Mutual Recognition Arrangement”).

China and Uzbekistan are important partners for cooperation with each other. According to Chinese statistics, the total value of China-Uzbekistan trade in 2022 was RMB 65.13 billion, a year-on-year increase of 25.2%.

[China and Uganda’s AEO mutual recognition will take effect on June 1st]

The “Arrangement between the General Administration of Customs of the People’s Republic of China and the Tax Administration of the Republic of Uganda on the Mutual Recognition of the System of Enterprise Credit Management of the Chinese Customs and the AEO System of the Ugandan Tax Administration” signed by the customs of China and Uganda on June 1, 2023 will be officially implemented.

According to the “Mutual Recognition Arrangement”, the customs of China and Uganda give each other the following customs facilitation measures for AEO enterprises when clearing imported goods: applying a lower rate of document review; applying a lower rate of inspection; giving priority inspection to goods that require physical inspection; designating a customs liaison officer to communicate and handle issues encountered by AEO enterprises in customs clearance; and giving priority clearance after the interruption and resumption of international trade.

02

International Policies

[Breaking News! United States Placed on Negative Watchlist]

On May 24th local time, international rating agency Fitch placed the United States’ “AAA” long-term foreign currency issuer default rating on a negative watchlist, which means Fitch may downgrade the US credit rating. The issue of the US debt ceiling remains unresolved, with current federal debt reaching approximately 31.47 trillion US dollars, equivalent to a debt of $94,000 per American.

[Canada Revises Import Requirements for Wood Packaging Materials]

Recently, the Canadian Food Inspection Agency (CFIA) released the 9th edition of the “Canadian Wood Packaging Material Import Requirements” (Directive D-98-08), which will take effect on July 6, 2023. The directive sets out the import requirements for all wood packaging materials, including wood cushions, pallets, or slat crates imported from countries (regions) outside the United States into Canada. The main amendments to the 9th edition of Directive D-98-08 include: 1. Developing a ship cushion management plan 2. Revising the relevant content of the directive to align with the latest revision of the International Plant Protection Convention’s standard for regulating wood packaging materials in international trade (ISPM 15). This revision specifically notes that, according to a bilateral agreement between China and Canada, wood packaging materials imported from China into Canada will not accept phytosanitary certificates and will only recognize the IPPC mark.

[Bangladesh Puts 37 Products on Mandatory Certification List]

According to the Bangladesh Business Post, the Bangladesh Standards and Testing Institution has decided to include 37 products on its list of mandatory certification products. Newly added products on the mandatory certification list include: pressure cookers, LPG cylinders, microwaves, asphalt, green tea, soy sauce, hot and sour sauce, cakes, malted foods, malt drinks, cheese, hair gel, facial masks, glycerin soap, industrial safety helmets, silk, mosquito nets, lead-acid traction batteries, toothbrushes, and jute bags used for packaging grains. To date, the Bangladesh Standards and Testing Institution has included 239 products on its list of mandatory certification products.

【 Ukraine’s tariff-free policy for exporting goods to the EU extended for one year】

According to the latest news on the 25th, Ukrainian Prime Minister Shmyhal stated that the EU Council has extended Ukraine’s tariff-free policy for exporting goods to the EU for another year. He stated that this means that Ukrainian companies will not have to pay any tariffs on goods exported to the EU until at least June 2024.

【 Japan restricts the export of 23 types of semiconductor equipment】

On May 23, the Japanese Ministry of Economy, Trade and Industry issued a revised “Ministerial Order on the Determination of Goods or Technology Based on the List of Goods and Technology Controlled for Export under the Export Trade Control Order and the Foreign Exchange Order”, ending the consultation period that began on March 31 for the amendment, and officially adding 23 high-performance semiconductor manufacturing equipment to the export control list, including six new categories (three cleaning items, 11 film-forming items, one heat treatment item, four exposure items, three etching items, and one detection item), which will take effect on July 23, 2023.

【 Greece temporarily bans the export of 26 vaccines】

Recently, the Greek National Drug Organization released a list of vaccines temporarily banned from export due to a shortage of market supply, including 26 types of vaccines. All participants in the distribution chain, including marketing authorization holders, drug warehouses, and pharmacies, must prioritize providing drugs to Greek patients based on their needs and legal prescriptions. The 26 vaccines included in the temporary export ban list by the Greek National Drug Organization are: hepatitis A and B vaccines, respiratory infection vaccines, diphtheria vaccines, tetanus vaccines, pertussis vaccines, polio vaccines, measles vaccines, mumps vaccines, rubella vaccines, chickenpox vaccines, shingles vaccines, HPV vaccines, and pneumococcal vaccines.

【Brazil enters health emergency state due to avian flu】

On May 22, Carlos Favaro, Brazil’s Minister of Agriculture and Livestock, signed a document declaring a 180-day state of animal health emergency. Prior to this, Brazil had detected highly pathogenic avian influenza virus in wild birds for the first time. Brazil is the world’s largest exporter of chicken meat, with sales reaching $9.7 billion last year. So far, Brazil has confirmed 8 cases of wild birds infected with the H5N1 avian influenza subtype.

【Poland prohibits freight vehicles from Russia and Belarus from entering the country】

On May 29 local time, Poland’s Minister of Internal Affairs and Administration, Kaminski, signed an administrative order prohibiting freight vehicles from Russia and Belarus from entering the country via the Pol-Bel border from June 1 until further notice. The ban applies to freight vehicles such as trucks, tractors, trailers, and semi-trailers registered in Russia and Belarus.

【Unified Patent Court Agreement in Europe officially takes effect】

In order to better implement the European single patent system, the European Patent Office has established a unified court, the Unified Patent Court (UPC), which is expected to start operating on June 1, 2023. UPCA has paved the way for a single patent, which can be enforced simultaneously in all member countries through UPC, without the need for individual countries to enforce patents through their own legal systems. After UPC officially starts using the system, a single patent will be granted.

【South Korea lists 30 potential export products】

The South Korean government has selected 30 potential export products and concentrated its policy efforts to support them. These 30 products include 17 major manufacturing products such as electric cars, positive electrode materials, biosimilars, high-performance semiconductors, and LNG transport ships, as well as 13 potential export products such as cosmetics, games, music, online video services (OTT), instant noodles, and seaweed.

In addition, in order to reverse the trend of declining exports to China, the South Korean government will adapt to changes in the Chinese market and implement targeted export support policies in three major areas: new growth manufacturing, consumer goods, digital and green conversion. This includes catering to China’s new energy vehicle transformation pace, expanding the export of electric vehicles to China; launching customized consumer goods for single-person households and high-end baby products based on changes in Chinese consumer demand; increasing the export of industrial robots, software and other products related to China’s digital transformation.

【Iraq will impose additional tariffs on a variety of goods from June】

Starting from June, Iraq will impose additional tariffs ranging from 15% to 200% on imported goods such as plastic products, galvanized and ungalvanized metal pipes.

▶ An additional tariff of 65% will be imposed on epoxy resins and modern dyes imported from all countries and manufacturers to Iraq, which are used for washing colored, black, and dark clothing, floor and laundry fresheners, fabric softeners, liquids and gels, floor cleaners and detergents.

▶ An additional tariff of 100% will be imposed on cigarettes imported from all countries and manufacturers to Iraq in the form of boxes, plates, printed or unprinted partitions made of corrugated cardboard or plain paper.

▶ An additional tariff of 200% will be imposed on alcoholic beverages imported from all countries and manufacturers to Iraq.

▶ An additional tariff of 20% will be imposed on PPR & PPRC plastic pipes and fittings imported from all countries and manufacturers to Iraq.

▶ An additional tariff of 15% will be imposed on galvanized and ungalvanized metal pipes imported from all countries and manufacturers to Iraq.

The above measures will last for four years, with no exemptions, and the local market will be monitored during this period.

【Nigeria increases multiple import tariffs】

A document recently released by the Federal Ministry of Finance in Nigeria shows that the Nigerian President has approved the implementation of the 2023 fiscal policy measures, which mainly include raising import tariffs on multiple products, revising the consumption tax rates for alcoholic beverages, tobacco products, and cigarettes, and adjusting the list of banned imports.

According to the document, during the period of 2023 and 2024, Nigeria will impose an additional consumption tax of 20% on beer and strong beer, including other alcoholic beverages and non-malt beer; and an additional consumption tax of 30% on wines, whiskeys, brandies, and other spirits, as well as tobacco. The new regulations will take effect on June 1, 2023, and will be raised according to the new system before June 1, 2024.

【Brazil exempts 628 machinery and equipment products from import tariffs】

The Executive Management Committee of the Brazilian Foreign Trade Commission made a decision on May 9th to exempt 628 machinery and equipment products from import tariffs, and the tax exemption will last until December 31, 2025. The commission stated that the tax exemption policy will allow companies to import machinery and equipment products worth more than $800 million, benefiting enterprises from industries such as metallurgy, electricity, gas, automobile manufacturing, and papermaking. It is reported that among these 628 machinery and equipment products, 564 are in the manufacturing industry category, and 64 are in the information technology and communication category. Before the implementation of the tax exemption policy, Brazil imposed an import tariff of 11% on these types of products.

【Indonesia may ban the export of bauxite and copper-tin from June】

Indonesian President Joko Widodo plans to replicate the ban on nickel ore exports in other mineral raw materials to attract foreign investment and promote economic growth. However, analysts question whether this strategy will be successful again. Indonesia will ban exports of bauxite, copper, and tin from June 2023 to promote the development of downstream industries.

【France first announced the cancellation of subsidies for Chinese electric cars】

Recently, French President Emmanuel Macron announced that subsidies for pure electric vehicles manufactured in Europe would be provided. Previously, purchasing an electric vehicle in France could receive a subsidy of up to 5,000 euros (about 38,000 yuan). Due to the low price and excellent performance of Chinese electric cars, 40% of the subsidies for electric cars in France flowed to Chinese car brands in the first quarter of this year. The French government believes that this situation is not conducive to the development of the electric vehicle industry in Europe, so it has decided to adjust the subsidy policy to strengthen the production capacity of European batteries and electric vehicles. This policy will not only target Chinese manufacturers, but also affect brands such as Tesla in the United States.

【Japan bans the sale of crayfish and painted turtles from June】

From June 1st, Japan will classify crayfish and painted turtles as “conditionally designated alien species” and prohibit their sale or release. Violators will face a maximum of three years in prison or a fine of up to 3 million yen (about RMB 150,000).

Japan claims that crayfish and painted turtles are invasive species that have severely affected the country’s ecosystem.

【Thailand charges entry fees for foreign tourists from June 1st】

After the increase in the number of tourists exceeded expectations, Thailand decided to charge entry fees for foreign tourists from June. There are two entry fee standards: 300 baht (about RMB 60) per person for foreign tourists entering by air, and 150 baht (about RMB 30) per person for those entering by land and water.

03

Anti-dumping and anti-subsidy policies

[Ministry of Commerce: Continue to impose anti-dumping duties on imported chloroprene rubber from Japan, the United States, and the European Union]

On May 9, the Ministry of Commerce issued Announcement No. 17 of 2023, deciding to continue to impose anti-dumping duties on imported chloroprene rubber from Japan, the United States, and the European Union, starting from May 10, 2023, with a duration of 5 years.

The product scope of the anti-dumping duty is consistent with the products applied in the original anti-dumping measures and the product scope in Announcement No. 23 of 2005 by the Ministry of Commerce. Starting from May 10, 2023, importers should pay the corresponding anti-dumping duties to the Customs of the People’s Republic of China when importing chloroprene rubber originating from Japan, the United States and the European Union.

Chloroprene rubber is mainly used for wire and cable sheathing, hose, oil-resistant rubber products, as well as for building waterproof materials, sealing materials, adhesives, marine development, medical and health care, energy development, and other fields.

[The United States makes the fifth anti-dumping sunset review and industry damage final ruling on fresh garlic imports]

On May 4, 2023, the US International Trade Commission (ITC) voted to make the fifth anti-dumping sunset review and industry damage affirmative final ruling on fresh garlic imports from China, ruling that if the current anti-dumping measures are lifted, the substantial damage to the US domestic industry caused by the import of the products involved may continue or reoccur within a foreseeable period of time. According to the final ruling, the current anti-dumping measures in this case will continue to be effective. In this ruling, all five members of the US International Trade Commission voted affirmatively.

India Makes Final Anti-Dumping Ruling on Non-Dispersion-Shifted Single-Mode Optical Fiber from China

On May 5, 2023, the Indian Ministry of Commerce and Industry issued a notice to make a final affirmative anti-dumping ruling on non-dispersion-shifted single-mode optical fiber (SMOF) originating from or imported from China, Indonesia, and South Korea, recommending anti-dumping duties for the above-mentioned countries. The duty rates for China are between $122.41/KF-km and $537.30/KF-km, for South Korea is $807.88/KF-km, and for Indonesia is $857.23/KF-km. The products involved are non-dispersion-shifted single-mode optical fiber (G.652) and bend-insensitive single-mode optical fiber (G.657), which are under the Indian customs code 90011000. This anti-dumping measure does not apply to dispersion-shifted fiber (G.653), cutoff-shifted single-mode fiber (G.654), and non-zero dispersion-shifted fiber (G.655&G.656).

Mexico Makes Preliminary Anti-Dumping Ruling on Hard Polyvinyl Chloride from China

On May 9, 2023, the Mexican Ministry of Economy issued a notice to make a preliminary affirmative anti-dumping ruling on hard polyvinyl chloride (PVC) originating from China, regardless of the source of import, and decided to impose a provisional anti-dumping duty of 57.63% on the products involved. The products involved are hard PVC rolls, sheets, films, and strips, which are transparent or colored and consist of a single layer of polymerized monomers with plasticizer content of less than 6%. The products are under the TIGIE tax code 3920.49.99. The notice is effective from the day after its publication.

Thailand Extends Suspension of Anti-Dumping Duty on Tin-Plated Steel Coil from China

On May 11, 2023, the Thailand Dumping and Subsidy Investigation Committee announced that, considering domestic industry, consumer and public interests, it has decided to temporarily extend the suspension period of the anti-dumping duty on tinplate coils originating from Mainland China, Taiwan, the European Union and South Korea for another 6 months until November 10, 2023, except as otherwise specified by the Committee. The announcement takes effect from the date of publication. The products concerned do not include tinplate coils that are painted, laminated or embossed. The Thai customs codes for the products concerned are 7210.12.90.021, 7210.12.90.022, 7210.12.90.023, 7210.12.90.024, 7210.12.90.025, 7210.12.90.026, 7210.12.90.029, 7210.12.90.031, 7210.12.90.032, 7210.12.90.033, 7210.12.90.034, 7210.12.90.035, 7210.12.90.036, 7210.12.90.039 and 7210.12.90.090.

【Brazil launches anti-dumping investigation into optical fiber cables from China】

On May 11, the Brazilian Foreign Trade Secretariat announced in the Federal Government Gazette that it has decided to launch an anti-dumping investigation into optical fiber cables originating from China. The customs code for the products involved is 8544.70.10.

【Australia issues notice of impending expiration of anti-dumping measures on railway wheels from China】

On May 16, the Australian Anti-Dumping Commission announced in Notice No. 2023/027 that the anti-dumping measures on railway wheels (Railway Wheels) imported from China and France will expire on July 16, 2024. Interested parties should submit an application for a Sunset Review Investigation before July 15, 2023. If no applications are received within the specified period, the anti-dumping measures on railway wheels from China and France will expire after July 16, 2024. The Australian customs code for the products involved is 8607.19.00.

【US issues final anti-subsidy ruling on railway freight car couplers and components】

On May 16, 2023, the US Department of Commerce announced a positive final ruling on anti-subsidy investigations into railway freight car couplers and their components imported from China. The case found that the subsidy rate of Chinese companies involved, including Chongqing Changzheng Heavy Industry Co., Ltd., Chongqing Tongyao Traffic Equipment Co., Ltd., CRRC Qiqihar Vehicle Co., Ltd., Nanjing Zhongsheng Railway Vehicle Parts Co., Ltd., Ningbo Minghui Metal Technology Co., Ltd., Qingdao Lianshan Casting Co., Ltd., Qingdao Sanhe Precise Casting Co., Ltd., Shaanxi Haiduo Railway Technology Development Co., Ltd., Shanghai Voith Xiagujin Chuang Coupler Technology Co., Ltd., and other producers/exporters from China, was 265.99%. The US International Trade Commission (ITC) is expected to make a final ruling on the anti-subsidy industry damage of this case on June 29, 2023. This case involves products under US Harmonized Tariff Schedule (HTS) 8607.30.1000.

【UK launches transitional review of anti-dumping and anti-subsidy measures on electric bicycles from China】

On May 22, the UK Trade Remedies Authority announced that it has launched a transitional review of anti-dumping and anti-subsidy measures on electric bicycles originating from China, to decide whether the above-mentioned measures originating from the EU will continue to be implemented in the UK and whether the tax rate level will be adjusted.

The UK customs codes for the products involved are 8711601000 and 8711609010. The period of investigation for anti-dumping and subsidy is from April 1, 2022 to March 31, 2023, and the period of investigation for damage is from April 1, 2019 to March 31, 2023.

04

Shipping and Logistics Policy

【Panama Canal imposes shipping restrictions due to severe drought】

According to Times Internet, the severe drought affecting the Panama Canal is forcing container ships to reduce their load and pay higher fees. The cost of shipping goods through the canal is expected to increase further this summer.

Starting May 24, the largest ships will have to reduce their draft by either reducing cargo or lightening their loads – how low they sit in the water – and then reduce their draft again starting May 29. Some major shipping companies have also announced new fees for goods transported on the route starting June 1 in response to the canal restrictions.

These measures may cause delays and higher costs for goods transported through the canal.

【HMM increases GRI on June 1】

HMM announced on its official website that from June 1, 2023, the general rate increase (GRI) will be increased for all services from the originating ports to the United States, Canada, and Mexico (Eastbound Transpacific routes), as follows:

USD 900/20′

USD 1000/40′

USD 1125/40HC’

USD 1266/45′

On the same day, HMM also announced that from June 1, 2023, to the end of the month, the bunker surcharge (BUC) for all goods shipped to the United States, Mexico, and Canada will be adjusted as follows:

【Hapag-Lloyd to impose Panama Canal surcharge starting June 1】

Hapag-Lloyd announced on its official website that due to the low level of Lake Gatun, there are serious draft restrictions on ships that pass through the Panama Canal.

Therefore, starting from June 1, 2023, a Panama Canal Charge (PCC) will be imposed on all goods shipped from East Asia to North America.

Details regarding the fees are as follows:

Geographical range: East Asia to North America (EC1, EC2, EC6)

All types of containers: $500 per container

From East Asia: Japan, South Korea, China, Taiwan, Hong Kong, Macau, Vietnam, Laos, Cambodia, Thailand, Myanmar, Malaysia, Singapore, Brunei, Indonesia, and the Philippines

To North America: United States and Canada

【Shipping prices have dropped for 12 consecutive weeks, hitting the biggest drop in 4 months】

Data from May 26th shows that the Baltic Dry Index dropped by 3.54%, marking a 12-week consecutive drop to 1172 points. Shipping data agency Drewry’s World Container Index (WCI) shows that the current shipping price index has fallen to levels close to that of 2019.

“The downward pressure on the global economy, combined with weak overall demand and geopolitical conflicts, has caused shipping prices to trend downward overall, and it is expected that they will continue to operate at low levels in the future.” The slowdown in trade combined with an excess of market capacity may lead to continued lower shipping prices for the next 5 years.

Source: Foreign Trade Elite Society

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