Secretary of State Mike Pompeo said, “No reasonable person can assert today that Hong Kong maintains a high degree of autonomy from China, given facts on the ground,” in a statement May 27 to Congress that Hong Kong no longer warrants the same treatment under U.S. laws as it did before the handover to China in 1997.
Country of origin cases
Cambodia recently lifted export restrictions for “all types” of masks, according to a May 19 KPMG alert. Exporters no longer are required to obtain permission from Cambodia’s health ministry before exporting masks, a restriction imposed as the country tried to maintain domestic supply. Cambodia also announced an update to its online system for a certificate of origin used for trade in the Association of Southeast Asian Nations market, effective June 1, the alert said.
The government is considering how quickly it can get through a legislative fix to U.S.-Mexico-Canada Agreement implementation provisions that allow for duty refunds on post-importation preference claims, but not a refund of merchandise processing fees, said Maya Kumar, director of textiles and trade agreements at CBP. She said on May 22 that CBP officials “do not think that was the intent of the law.” Kumar, who was speaking at the National Association of Foreign-Trade Zones virtual conference, said that if it's at all possible, CBP would like to see that fixed by Congress before USMCA's entry into force July 1. “We’re trying to work with [the office of the U.S. Trade Representative] as well as Congress and see how quickly they can do that,” she said.
China is considering additional import restrictions on Australian goods that would target Australia’s wine and dairy sector, according to a May 20 Bloomberg report. China recently placed restrictions on imports of Australian barley (see 2005180016) and beef (see 2005130013), but officials have composed a list of additional Australian goods they may target, which may also include seafood, oatmeal and fruit. Those products could become subject to stricter quality checks, antidumping investigations, tariffs or customs delays, the report said.
The 16 member countries of the Southern African Development Community announced they will soon introduce an electronic certificate of origin system, according to a May 19 report from the Hong Kong Trade Development Council. The system will first feature a test rollout this month in six member states: Botswana, Eswatini, Malawi, Namibia, Tanzania and Zambia. After the test, the system will be in use across all member nations, which includes nearly all African countries south of the equator, the HKTDC said. The system is expected to save exporters time and money by no longer requiring hard copy submissions.
The Department of Justice charged the leaders of a sanctions-evading financial services company in Iran with wire fraud, money laundering, identity theft and sanctions violations, the agency said in a May 18 press release. PAYMENT24 CEO Seyed Sajjad Shahidian and COO Vahid Vali used the company to help Iranian citizens avoid U.S. financial sanctions against Iran, which included purchases of U.S. computer software, software licenses and computer servers. The company offered a package to help clients purchase goods and services from U.S. businesses, including a PayPal account, a fake “ID card,” a remote IP address from the United Arab Emirates and a Visa gift card. The company charged a fee to evade U.S. sanctions, the press release said.
China recently cleared more destinations for self-service printing of certificates of origin, according to a May 18 report from the Hong Kong Trade Development Council. The changes add self-service printing certificates for exports to Indonesia, Singapore and India under certain trade agreements. The changes took effect May 11.
China will impose a 6.9% duty on imports of Australian barley after finalizing an antidumping and countervailing duty investigation, China said in a May 18 notice, according to an unofficial translation. China said its domestic industry “suffered substantial damage” due to dumping of imported barley originating in Australia. The move was expected by Australian grain groups (see 2005110010).
Top U.S. and United Kingdom officials will begin a second round of virtual trade negotiations June 15 as both sides continue to push for a quickly completed deal, the U.K. said May 18. The first round of talks, which ended last week, included discussions on customs procedures, rules of origin, trade remedies and small to medium-sized businesses. The U.K.’s Department for International Trade said both sides vowed to “quickly pursue” a stand-alone “Small and Medium Enterprise (SME) Chapter.” Negotiators from both sides will continue meeting virtually on a “rolling basis” until the second round begins, the U.K. added. “Both sides are hopeful that negotiations for a comprehensive trade agreement can proceed at an accelerated pace,” the DIT said. The Office of the U.S. Trade Representative did not comment.
Many details needed for the uniform regulations and the final implementing instructions for the U.S.-Mexico-Canada Agreement remain under discussion, agency officials said on May 14. Many specifics have not been agreed to, either between Mexico, Canada and the U.S., between the Office of the U.S. Trade Representative and the auto industry, or between CBP and USTR. “There's still even discussions with USTR and the [auto] industry on what constitutes a core part,” Maya Kumar, director for textiles and trade agreements, told members of the trade community on a conference call.