A report in the Japanese press says that Japan's Economic and Fiscal Policy Minister Toshimitsu Motegi will meet with U.S. Trade Representative Robert Lighthizer April 15-16 in Washington, but that auto export quotas, something Lighthizer pushed for in the 1980s, are unacceptable. The free-trade agreement talks, first announced in September 2018 (see 1809260049), could address non-tariff barriers. Nikkei Asian Review reporters say that Japan "is willing to discuss the streamlining of customs procedures should Washington demand them. But it does not plan to negotiate issues that will take years to realize because of the legislative revisions required, including the drug-pricing system, financial regulations and food safety standards." American drug makers are frustrated by new price constraints in Japan, and want that addressed (see 1904030043).
China’s Administration of Customs is expanding a campaign to combat solid waste smuggling, according to an April 12 press release, including “deepening law-enforcement cooperation with foreign countries” and “market regulation authorities.” The announcement comes less than a month after China Customs said it seized more than 300,000 tons of smuggled imported trash from a scheme that involved 22 smuggling groups (see 1903250021).
Vietnam is implementing a customs bonding system, and hopes to run a pilot in 2021 and 2022 before its “customs guarantees” are expanded to more customs processes, the Vietnam Customs Department's CustomsNews website reported on April 11. The pilot phase will apply the bonding system to transit goods, temporary imports for re-export, late submissions of certificates of origin and “transportation of goods for preservation,” CustomsNews said. Then, in 2022 and 2023, Vietnam customs will expand implementation to goods temporarily imported for exhibitions, repairs, warranty or construction; delays in the issuance of import permits; and disputes between Vietnam customs and companies, such when an importer is waiting for a valuation or classification ruling, the report said.
China’s April 9 decision to lower taxes on certain imported goods likely won’t have a large impact on imports or trade, according to an expert on China business. The move, announced by the Chinese Ministry of Commerce, will reduce the tax rate on certain goods -- such as books, computers, food, furniture and medicine -- from 15 percent to 13 percent. It will also reduce import tax rates on other products, including sporting goods, textiles and electronic appliances, from 25 percent to 20 percent (see 1904080006).
The U.S. Grains Council is asking China to eliminate antidumping and anti-subsidy tariffs on American distillers grains, according to a report from Reuters. China’s Ministry of Commerce will review the request and the tariffs on the grains, an animal feed ingredient, according to the report.
China is trying to stem coal imports by setting its 2019 import cap at 2018 levels, hoping to support domestic production, according to a report from Reuters. China, which the report said is the world’s largest coal consumer, made the decision after Chinese mining companies and “provincial governments” voiced opposition to more coal imports. Two purchase managers at Chinese steel mills told Reuters they were instructed by Customs to “control the purchase pace of imported coal” as Chinese domestic coal output is expected to rise by 100 million tons in 2019. The decision was made by China’s State Council, the report said. China imported about 280 million tons of coal in 2018, but “barely allowed” coal imports in December in an effort to meet a 2018 import quota that restricted imports to 2017 levels, Reuters said. Despite this, China still exceeded that quota by more than 10 million tons, according to the report. China Customs is expected to separate the 2019 coal quota into monthly volumes, Reuters said.
China is lowering tax rates on certain imported goods, hoping to boost imports and domestic consumption, according to a notice from the Chinese Ministry of Commerce and a report from state-run news agency Xinhua. The change will take effect April 9, the notice said. China will reduce the tax rate of some goods -- such as books, computers, food, furniture and medicine -- from 15 percent to 13 percent, the report said. China will also reduce the rates on products that include sporting goods, textiles, electronic appliances and bicycles from 25 percent to 20 percent. The report also said that certain medicinal imports that are subject to the 3 percent import value-added tax rate, including “anti-cancer drugs and medicines for rare diseases,” will “enjoy [a] favorable tax rate.”
Australia will adopt the World Trade Organization’s Government Procurement Agreement, becoming the 48th WTO member to do so, according to a WTO notice. The GPA aims to “mutually open government procurement markets among its parties,” requiring “transparent conditions of competition be stored in government procurement.” Australia will officially be party to the GPA on May 5.
Japan and Turkey are hoping to agree on a trade deal by June as the two sides enter their latest round of negotiations, according to a notice from Japan’s Ministry of Economy, Trade and Industry and a report by Nikkei Asian Review. The latest round of negotiations -- announced on April 1 by Japan -- are being held April 2-5 in Ankara.
The implementation of Malaysia’s new customs declaration system, which was expected to be introduced in early 2019, has been delayed, according to a March 25 report from Baker McKenzie. Malaysia began a pilot version of the new system on March 5, the report said, which covers most imports and exports through Port Klang. While it is unclear when the new Ubiquitous Customs system will fully replace the current Sistem Maklumat Kastam, the report said the “scope of the implementation is (being) gradually expanded.”