Japan and South Korea will hold a second round of World Trade Organization consultations on Nov. 19, Japan’s Ministry of Economy, Trade and Industry said Nov. 8. The two countries will meet in Geneva to discuss their ongoing trade dispute, which stems from Japan’s July decision to restrict exports of three chemicals used to make high-tech goods such as smartphones and semiconductors (see 1907010020). South Korea followed with its own set of export restrictions in August (see 1908120036). The first WTO meeting took place Oct. 11 (see 1910100043).

Singapore Customs fined a man more than $72,000 for suppressing the import values of cell phone parts in an attempt to avoid import taxes, Singapore said in a Nov. 6 press release. Jimmy Ong, a partner of Quality Comm LP, a mobile phone repair company, was charged with 48 counts of fraudulent evasion of Singapore’s Goods and Services Tax, the press release said. He pleaded guilty to 16 of the charges. Singapore Customs discovered the scheme in 2018 when they inspected boxes consigned to Ong at the Changi Airfreight Centre, the agency said. Authorities said Ong falsified the value of the goods by labeling the 542 phone parts as worth less than $400 when they were actually worth almost $8,000. Ong imported the parts from Chinese suppliers 48 times between 2015 and 2018, Singapore said, resulting in more than $14,000 worth of evaded import taxes.

China recently clarified upcoming procedures for obtaining export value-added tax refunds, according to a Nov. 7 post from the Hong Kong Trade Development Council. China specified that general VAT taxpayers may claim tax credits or export VAT refunds through the online “VAT invoice confirmation platform of their home province,” the report said. VAT payers with a Customs Bill of Payment “with information relating to multiple VAT payers” should first upload all documentation “for verification by the tax authorities," HKTDC said. The procedures are scheduled to take effect Feb. 1, 2020.

Cambodia recently extended its online certificate-of-origin system to three additional border provinces on a pilot basis, according to a Nov. 7 Hong Kong Trade Development Council report. The system was extended to Koh Kong, which borders Thailand, and Takeo and Kampot, which border Vietnam, the report said. The system allows businesses to apply and print a certificate of origin online through their local commerce department, HKTDC said, and is already in place for at least 10 other provinces.

China and Thailand agreed on several measures to increase trade, including an enhanced railway system and improved cooperation in agricultural trade, according to a Nov. 5 report from Xinhua, China’s state-run news agency. The two sides agreed to “expand cooperation in agricultural trade” and e-commerce as well as in auto, medical equipment and rubber sectors, the report said. The countries also plan to build the China-Thailand railway “into a successful example in bilateral cooperation” and “speed up the implementation of the railway project.”

China will take more measures to lower tariffs and diversify imports “from around the world,” President Xi Jinping said during a speech to open China’s international trade fair on Nov. 5. Xi said the country plans to continue expanding market access to foreign companies and is focusing on increasing its imports. “China will give greater importance to import. We will continue to lower tariffs and institutional transaction costs, develop demonstration zones to promote import trade by creative means, and import more high-quality goods and services from around the world,” Xi said.

A Chinese Foreign Ministry spokesperson was critical of the U.S.’s Nov. 4 decision to impose sanctions on Iranian military and government officials (see 1911040028), saying the U.S. should instead turn to negotiations. “China opposes unilateral sanctions and so-called ‘long-arm jurisdiction,’” the spokesperson said during a Nov. 5 press conference. “Arbitrary sanctions or threat of sanctions cannot solve problems.” The spokesperson urged the U.S. to begin a “dialogue” to “resolve disputes.” The spokesperson also said that U.S. and Chinese negotiations are progressing well and the two sides “keep in contact,” but declined to say when the next meeting will take place. “The trade talks have achieved progress and are now moving forward as planned,” he said.

Vietnam’s Quang Ninh province is considering a proposal to suspend “temporary imports for re-exports” of certain foreign cigarettes and liquor, VietnamCustoms said in a Nov. 4 report from Customs News, the agency’s mouthpiece. The measure would impact imports of “non-Vietnamese origin” cigarettes and foreign whiskey, the report said, and was introduced to combat smuggling schemes and attempts to “illegally access the domestic market.” The proposal would also “suspend the operation of bonded warehouses” for foreign cigarettes and whiskey, Vietnam said. The proposal was recently approved by the country’s defense and finance ministries and is being considered by the Ministry of Industry and Trade, the report said.

Indonesia issued a guidance clarifying its import duty and value-added tax exemptions for certain imports that fall under certain contracts, KPMG said in a Nov. 1 post. Indonesia clarified that its exemptions apply to imports under “contracts of work” or “coal contracts of work,” the post said, and provide exemptions and reductions of import duties and exemption of import VATs. Indonesia bans any transfers, re-exports or destruction of goods imported under the measures until two years have elapsed from the import date, the post said, and requires importers to first receive approval from Indonesian customs and other agencies. Violations may result in import duties, VATs and further penalties.

China and New Zealand agreed to upgrade their free trade deal to improve customs facilitation, remove trade barriers and revise rules of origin procedures, China’s Ministry of Commerce said Nov. 4. China said both countries will “benefit from improved rules,” adding that the deal also includes measures on e-commerce, competition policy and increased market access for certain goods. “These results reflect the desire of both countries to ensure that the China-New Zealand FTA remains ambitious, modern and high quality … and demonstrates the commitment of both countries to free and open trade and a rules-based multilateral trading system,” China said.