The February military coup in Myanmar has “crippled” the country’s logistics sector and delayed trade operations, leading to “vast uncertainties” for U.S. agricultural exports, the U.S. Department of Agriculture Foreign Agricultural Service said in a report released March 8. The situation in Myanmar is “very fluid and is evolving rapidly,” the agency said. Almost all trade has faced disruptions since the coup and export and import documents are being “severely delayed.” The USDA said the Myanmar Port Authority is facing a lack of drivers and other logistics providers, and importers are seeing high fees because of the reduced staff at the ports to unload containers in a timely manner. The USDA said the country’s military created a “steering committee for trade facilitation” Feb. 20 to help trade flow better, allowing clearances for some containers this month. But companies using the military’s facilitation regime “risk being publicly shamed,” the USDA said, and U.S. products could face “reputational risks.” The agency said a variety of U.S. goods are either stuck at the port or on the water. “The situation remains fluid and uncertain, with concerns of both reputational risk and financial consequences of shipments during this period,” the report said.
China plans to adhere to all aspects of its recent investment deal with the European Union, including ratifying international conventions on forced labor, Foreign Minister Wang Yi said at a March 7 news conference, according to an interpreter. “I can say it explicitly that China will honor its commitment in the agreement including making efforts to ratify International Labor Organizations (rules),” Wang said. Forced labor concerns have permeated European Union parliamentarians' thinking on the EU-China investment deal, and it is widely seen that certain provisions of the agreement will make parts of the deal unenforceable, including on forced labor (see 2101250052).
China suspended imports of pigs, wild boars and their products from Malaysia after outbreaks of African swine fever in the country, according to an unofficial translation of a March 8 customs notice. China said all imports of Malaysian pigs and boars will be returned or destroyed, and vessels carrying those products will be disinfected.
In a report to the Chinese legislature on March 8, Chinese National People's Congress Standing Committee Chairman Li Zhanshu declared his intention to pursue an expanded toolkit to combat U.S. sanctions, Bloomberg reported. Beijing pledged to speed up legislation intended to combat penalties imposed on China by former President Donald Trump. “We will upgrade our legal tool kit for meeting challenges and guarding against risks in order to oppose foreign sanctions, interference and long-arm jurisdiction,” Li said. At a news conference March 7, Foreign Minister Wang Yi had told the U.S. to not interfere in China's internal affairs, Bloomberg reported.
Singapore Customs on March 3 issued a range of updated trade statistics covering monthly numbers from January 2021 and yearly data from 2015 to 2019. The statistics outline yearly and monthly duty collections, the number of yearly permits and licenses issued by the agency, and annual enforcement figures for customs violations.
India on Feb. 27 began using an online module to adjudicate, appeal and review proceedings under the Foreign Trade Development & Regulation Act of 1992 and Foreign Trade Regulation Rules of 1993. The Office of the Directorate General of Foreign Trade announced the move in a March 1 release. It said exporters shall submit all relevant documents on the DGFT website, dgft.gov.in.
China's Ministry of Finance extended until Sept. 16 tariff exemptions for 65 U.S. and Canadian products that were to expire Feb. 27, it said in a news release Feb. 26, according to an unofficial translation. The exempted products include logs, aircraft parts and pumps.
India recently raised its import duty on denatured ethanol, from 2.5% to 5%, the U.S. Department of Agriculture Foreign Agricultural Service said in a report released Feb. 24. The move was designed to aid the domestic ethanol production industry, FAS said. The import tax hike, coupled with a recently announced $595.15 million government-allocated budget for the domestic sugar industry, will likely raise demand for domestic molasses and alcohol from grain-based distilleries, USDA said.
KPMG issued a guide Feb. 26 on China’s value-added tax system, detailing challenges faced by foreign companies and the “myriad exceptions” that may apply in certain situations. The guide also dives into recent VAT developments in China, including the country’s alignment of its VAT system with the “common usage” of VAT and other tax systems globally, KPMG said. The firm also said China plans to move to electronic invoicing as it looks to “accelerate the shift” away from paper-based documents.
West Virginia signed an economic memorandum of understanding with Vietnam's Ministry of Industry and Trade to bolster trade between the two parties. The MOU will establish a working group to promote economic ties and provide a framework to deepen industry ties on energy and other sectors.