The Commerce Department will continue its presumption of denial policy for license applications for exports to Huawei, a Commerce spokesperson said July 3, adding that the China tech company remains on Commerce’s Entity List. Commerce will review export license applications for “their national security impacts” and plans to review licenses “under the highest national security scrutiny,” the spokesperson said.
Exports to China
Exporters that produce and send goods from Puerto Rico to China may be able to avoid some of the tariffs on U.S. goods by using the U.S. territory as the origin, said Susie Hoeger, director of Global Trade Compliance and Policy at Abbott Laboratories. Hoeger mentioned the tip while speaking at the American Association of Exporters and Importers Annual Conference in Washington on June 27. "Chinese Customs has chosen to treat Puerto Rico differently than the U.S.," she said. "So if you don't know this and make things in Puerto Rico, declaring that as Puerto Rico origin instead of U.S., which is all the same for us, the tariffs don't hit. They've chosen to carve that out for some reason." Census Bureau statistics seem to show a recent uptick in exports to China from Puerto Rico. According to Census, the value of goods exported from the territory to China increased by 53.6 percent from 2017 to 2018.
Hong Kong recently signed mutual recognition arrangements on authorized economic operator programs with Canada (see 1907010035) and Israel, the Hong Kong Customs and Excise Department (C&ED) said in a June 29 press release. Under the agreements, Hong Kong will recognize members of Canadian and Israeli AEO programs for customs clearance facilitation purposes, and Hong Kong AEOs will receive reciprocal treatment in Canada and Israel, the release said. “The inspection rate for AEO cargoes is generally 80 per cent lower compared with that for non-AEO cargoes,” C&ED said. The two MRAs mean Hong Kong now has a total of 11 with countries around the world, including China, India, Korea, Singapore, Thailand, Malaysia, Japan, Australia and New Zealand.
As the Commerce Department prepares to issue export controls on emerging technologies, U.S. industries are urging the agency to limit controls on artificial intelligence and 3D printing, according to industry comments gathered by Jessica Blum Sanchez, the trade compliance manager at Accenture Federal Services.
Recent editions of Mexico's Diario Oficial list trade-related notices as follows:
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.
The president of the Information Technology and Innovation Foundation praised President Donald Trump’s recent decision to loosen restrictions on exports to Huawei, saying criticism of the announcement “misses the point.” In a blog post, Robert Atkinson said “it does not appear” that Trump agreed to permanently lift the Huawei ban, but only to temporarily allow Huawei to import U.S. products to ease trade tensions in the pursuit of a deal with China. “Presumably he has made it clear to [Chinese President] Xi [Jinping] that if China does not play ball, the ban could and would resume,” Atkinson said. “It is highly unlikely that Xi would have or could have agreed to reopen negotiations without this ‘concession.’” The statement followed Trump’s announcement at the G-20 Summit in Japan that he would be easing restrictions on Huawei, which includes allowing U.S. companies to sell “general merchandise” to the tech giant (see 1907010050).
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.
China recently adopted new requirements on importation of medicines that will take effect at the beginning of 2020, according to an alert from the Hong Kong Trade Development Council. Key changes include the removal of some restrictions on ports that may be used to import medicinal materials. China will also allow importation of medicines that comply with standards set by its provinces and autonomous regions if no national standards apply, HKTDC said. China is also simplifying clearance procedures for medicinal materials that are not being imported for the first time, according to an unofficial translation of a press release from the Chinese State Administration for Market Regulation.
In the June 28 edition of the Official Journal of the European Union the following trade-related notices were posted: