The U.S., Mexico and several other countries expressed concern over the European Union’s plans for allocating its tariff-rate quotas after the United Kingdom’s planned withdrawal from the EU, at an April 11 meeting of the WTO trade in goods council, according to a Geneva-based trade official. “The current approach to Brexit TRQ negotiations is unacceptable and we are eager to engage [with the EU] to ensure our rights are maintained,” a U.S. representative said at the meeting.
Chinese Customs is requiring traders to declare dutiable royalties on customs forms within 30 days of payment effective May 1, according to a notice from KPMG. The notice called the announcement “one of the important measures taken by China Customs to enhance trade facilitation promoted by [the] World Customs Organization.”
Mexico’s Secretariat of Economy recently posted a new webpage with information on its scheme to validate compliance with Mexican product standards at the time of entry, said the Latin American Confederation of Customs Brokers (CLAA) in an April 8 circular. Under regulations issued in October, imports subject to some Mexican standards will be denied entry into Mexico beginning June 3, 2019, if they are not accompanied by a certificate of compliance previously entered into an automated system by the third-party certifier, the circular said.
Export Compliance Daily is providing readers with some of the top stories for April 1-5 in case they were missed.
The European Union and the U.S. have not formally begun the trade talks first agreed to last July, as the 28-member bloc still does not have a mandate to negotiate. Given that, many observers are doubtful negotiations could make substantial progress this year.
Treasury’s Office of Foreign Assets Control announced two settlements totaling more than $650 million with a United Kingdom-based bank that allegedly violated U.S.-imposed sanctions on Cuba, Iran, Syria, Zimbabwe and now-repealed sanctions on Myanmar and Sudan, OFAC said in an April 9 notice. The announcement marked OFAC’s largest settlement amount since June 2014, when the agency reached a $963 million settlement with a bank that also violated sanctions on Cuba, Iran, Myanmar and Sudan.
The European Union updated its Market Access Database to include “detailed information on rules adopted” by the United Kingdom “that would apply on UK imports from the EU in the event of a no-deal Brexit,” it said in an April 8 press release. “This is a part of the Commission’s efforts to help industry be prepared in case the United Kingdom leaves the European Union without a negotiated deal,” the release said.
The Trump administration is expected to complete a review of the current scope of U.S. export controls on countries subject to arms embargoes, including China, and may make potential regulatory changes by May 10, according to an April 5 blog post from Steptoe & Johnson. The administration’s review stems from a section of the 2018 Export Control Reform Act, which requires a “review relating to countries subject to comprehensive United States arms embargo.” The act specifically requires the Commerce, State and Defense departments, among others, to review export controls on trades with “military end uses and military end users,” according to the post.
The Confederation of Mexican Customs Broker Associations (CAAAREM) recently issued a circular detailing recent changes to the Mexican customs regulations. The Mexican Tax Administration Service published the notice, the fifth such set of changes to the Mexican Foreign Trade Regulations, on March 30. The CAAAREM circular was posted by Mexican law firm Consorcio Juridico Aduanero.
The Treasury’s Office of Terrorism and Financial Intelligence is requesting a nearly $25 million budget increase from the previous year, partly to help with staffing concerns, according to Treasury’s annual budget report. OTFI lists its “increasing role” in the Trump administration as justification for the increased budget. The agency is requesting about $165 million.