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.
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.
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.”
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.
Indonesia and South Korea agreed to exchange electronic certificate-of-origin data to “improve trade services” and “stop the misuse” of certificates of origin for Indonesian projects, according to an April 3 report from Antara News. The memorandum of understanding will “enhance trade and economic relations” between South Korea and Indonesia, the report said, and may lead to further cooperation. The two countries agreed to an “exchange program for employees to attend training programs and gain experience,” according to the report. Indonesian President Joko Widodo said “improvements will be made to the methods of exchanging trade information, an open telecommunication system and the development of procedures, standards and practices in keeping with trade documentation,” according to the report.
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.”
Vietnam's General Department of Customs switched to a non-cash payment system beginning April 1, according to a report on the Vietnam Customs Department’s CustomsNews website. The change affects all “economic units and organizations” who import or export to the country and “generate State budget remittances.” Exporters and importers are required to pay a variety of charges -- including taxes, late payment fees and fines -- “in the form of a non-cash payment” or bank transfer.
The U.S. Department of Agriculture issued a report to help U.S. companies comply with exporting laws when shipping milled rice to China. The report, released March 28, followed a December 2018 announcement by China Customs saying the country will allow imports from certain U.S. rice facilities.
The U.S. Department of Agriculture is providing a translation of China’s food safety standard for fresh and frozen livestock and poultry products, in a Global Agricultural Information Network report posted April 1. “The Standard applies to fresh and frozen livestock and poultry products, but does not apply to ready-to-eat raw meat products,” USDA said. China’s National Food Safety Standard for Fresh and Frozen Livestock and Poultry Products was implemented in June 2017, replacing previous standards issued in 2005.
India again delayed retaliatory tariffs on goods imported from the U.S., pushing the new start to May 2, according to a notice from India’s Ministry of Finance. The tariffs, first announced in May 2018 and most recently delayed until April 1, 2019, will target agricultural products, motorcycles, steel products, and phosphoric and boric acid, and are aimed at offsetting the $241 million in duties India expects its U.S. customers to pay on its steel and aluminum exports. The tariffs have been delayed multiple times after they were originally expected to take effect in June 2018. Many of the items already face high tariffs -- walnuts are taxed at 100 percent, fresh apples at 50 percent, chickpeas at 60 percent, motorcycles at 100 percent -- but the actions would add 10 percent more to many ag products, 20 percent more to walnuts and almonds, and 50 percent more to motorcycles.