Brazil is considering lowering import duties on information technology goods, from 16 percent to 4 percent, the Hong Kong Trade Development Council said in a July 2 report. The move would cover items such as cell phones and computers. The announcement came after Brazilian government officials suggested lowering tariffs would boost the competitiveness of Brazilian companies in the IT sector. Brazilian industry associations have had mixed responses to the potential change, the report said. The Brazilian Electrical and Electronic Industry Association said the move would hurt Brazilian businesses and lead to job losses, while the Association of Brazilian Information Technology Companies reportedly said the move would “boost overall competitiveness despite some adverse effects to certain sectors.” The Brazilian Semiconductor Industry Association said the move would force foreign companies out of the country, shrink the Brazilian industrial sector and lead to an increase in imports, which would hurt domestic semiconductor manufacturing, the report said.
South Korea criticized Japan’s recent decision to increase restrictions on certain technology exports to South Korea, calling the move “a form of political retaliation” and threatening retaliatory action, according to a July 5 report from The Korea Herald posted on the Asia News Network website. Japan’s Ministry of Economy, Trade and Industry announced plans to increase export restrictions on high-tech items used for smartphones and chips, effective July 4. The move will impact large South Korean technology companies such as Samsung and LG Display (see 1907010020). South Korea’s National Security Council called the move a violation of international law and “vowed active diplomatic countermeasures” against Japan, the news report said. South Korea’s Deputy Prime Minister and Finance Minister Hong Nam-ki also said the country plans to take “corresponding measures,” including filing a complaint with the World Trade Organization, according to the report.
A Los Angeles resident was found guilty of conspiring to illegally export semiconductor chips to China, violating the International Emergency Economic Powers Act, the Department of Justice said in a July 2 press release. Yi-Chi Shih faces a maximum prison sentence of 219 years.
Japan’s Ministry of Economy, Trade and Industry is implementing more restrictions surrounding licensing policies and procedures for exports of certain “controlled items” and technologies to South Korea, the ministry said in a July 1 press release. Japan said its relationship of trust with South Korea “in the field of export control and regulation” has been “significantly undermined.” Japan said it will “apply more stringent procedures over certain controlled items and their relevant technologies” to “ensure appropriate implementation of Japan’s own export control and regulation.” Some “sensitive items” have been exported to South Korea “with inadequate management by companies,” the press release said. The changes will take effect July 4, Japan said.
The Commerce Department will approve more temporary licenses to U.S. exporters selling “general merchandise” to Huawei, U.S. National Economic Council Director Larry Kudlow said on CBS and Fox News on June 30, potentially providing relief to both U.S. firms and China’s telecommunications tech giant. Although specific details have not yet been released, Commerce plans to grant export licenses for products that China can easily get from other countries, including “various chips and software,” Kudlow said.
More than 25 industry associations are asking the Commerce Department to allow more time for public comments on Commerce’s next advance notice of proposed rulemaking for foundational technologies, which is expected in the coming weeks. The associations asked for a 90-day comment and review period in a June 27 letter to Commerce Secretary Wilbur Ross.
An internal “review” at Micron Technology found the memory chip supplier could “lawfully resume shipping a subset of current products” to Huawei because they aren't subject to Commerce Department export administration regulations and entity list restrictions, CEO Sanjay Mehrotra said on a fiscal Q3 call. Micron reinstated those shipments about two weeks ago, he said on June 25. Micron suspended all Huawei shipments immediately after release of the May 16 notice from Commerce’s Bureau of Industry and Security placing the Chinese telecom gear giant and 68 of its non-U.S. affiliates on the Entity List (see 1905240044), Mehrotra said. Micron did so to “ensure compliance” with the restrictions and begin its review, he said.
The European Union is setting exceptions to upcoming prior notification requirements for imports of plants, animals and animal products, it said in a notice published June 21. Under regulations set to take effect in December, the operator responsible for consignments entering the EU from non-EU member states must give prior notification to EU customs authorities at least one working day before arrival. The new notice provides that, if compliance with the one-day prior notification requirement is not possible due to transport-related logistical restraints, the relevant member state may allow prior notification at least four hours prior to arrival of the shipment, the notice said. On the other hand, for imports of unprocessed logs and sawn and chipped wood, the relevant member state may require prior notification of up to five days in advance of arrival, to allow for arrival of a mobile border controls team. The exceptions take effect Dec. 14, 2019, when the general one-day prior notification requirement also takes effect.
The World Customs Organization will be reconsidering some classification decisions at the next Harmonized System Committee meeting in September, according to law firm Sandler Travis. The reconsideration involves classification decisions of "at least two products -- certain vitamins and certain RF generators and RE matching networks -- after reservations were filed by the U.S. and others against the classification decisions," Sandler Travis said in a June 20 email.
Commerce’s Bureau of Industry and Security added five Chinese entities to its Entity List, the latest escalation in the U.S. and China’s ongoing trade war. The move restricts the entities' ability to purchase certain U.S. products and will require licenses for all items subject to the Export Administration Regulations with a review policy of presumption of denial. The entities are: Chengdu Haiguang Integrated Circuit, Chengdu Haiguang Microelectronics Technology, Higon, Sugon and Wuxi Jiangnan Institute of Computing Technology. The Wuxi Jiangnan Institute is owned by owned by the Chinese government, Commerce said.