China plans to begin the exclusion application process on June 3, according to a scrolling notice on the China Ministry of Finance website. "The first batch of products that can be applied for exclusion will be accepted from June 3, 2019," the notice said, according to an unofficial translation. "The deadline is July 5, 2019. The second batch of products that can be applied for exclusion will be accepted from September 2, 2019. The deadline is October 18, 2019." China announced it would initiate an exclusion process when it increased tariffs on U.S. goods in response to increased U.S. tariffs on goods from China (see 1905130043). That process is seen by some as indicative of a long trade war ahead (see 1905140034).
Exports to China
China is finding ways other than tariff increases to retaliate against U.S. exporters, further damaging the U.S.’s struggling agricultural export sector, panelists said during a Washington International Trade Association discussion on U.S.-China trade. The expected retaliation from China -- along with stalled trade negotiations and the increased difficulty of accessing China’s markets -- could lead to crippling, long-term consequences for some U.S. exporters, the panelists said.
The Treasury Department submitted to Congress its semiannual Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the U.S., finding that “no major U.S. trading partner met the relevant … criteria” for unfair trading practices. Treasury did find, however, that nine “major trading partners” warrant “close attention to their currency practices:” China, Germany, Ireland, Italy, Japan, Korea, Malaysia, Singapore and Vietnam, according to a May 28 press release. Of the nine, all but China “met two of the three criteria for enhanced analysis under” the Trade Facilitation and Trade Enforcement Act of 2015, Treasury said. In its report, Treasury said China “has met one of the three criteria in every” report since 2016 and “constitutes a disproportionate share of the overall U.S. trade deficit.”
The government of Canada recently issued the following trade-related notices as of May 29 (note that some may also be given separate headlines):
Export Compliance Daily is providing readers with some of the top stories for May 20-24 in case they were missed.
The Department of Commerce should develop a strategy to expand the export market for recycled materials, Rep. Mark Takano, D-Calif., said in a letter to other lawmakers seeking their support on May 24. Takano said China’s decision to accept “less than one percent of America’s recyclable goods” -- along with more than “180 countries moving to increase regulations on waste exports” -- presents an “economic opportunity” for the U.S., if Commerce develops a plan and uses it for the country's benefit. Takano called for Commerce to “stimulate the development of markets for recycled materials and encourage the development of new uses for these materials,” as required under the Resource Conservation and Recovery Act.
The U.S. and Japan are moving quickly in trade talks and "trade-wise, I think we will be announcing some things, probably in August, that will be very good for both countries," President Donald Trump said in May 27 remarks before meeting with Prime Minister of Japan Shinzo Abe. Asked about that announcement during a press conference following the meeting, Abe said the two sides have agreed to "accelerate the talks between the ministers." Trump highlighted that Japan recently opened up its markets for U.S. beef (see 1905170042) and said "we hope to have even more to announce on the trade very, very soon."
The oversight of inspection and supervision of China’s exported and imported toys has been granted to China’s General Administration of Customs, according to a May 23 alert from the Hong Kong Trade Development Council. The change gives China Customs “responsibility for the inspection” of all traded toys listed in the “Catalogue of Import and Export Commodities Subject to Inspection,” HKTDC said. All toy exports and imports not listed in the catalogue will “remain subject to spot-checks in accordance with the prevailing GAC regulations,” the alert said.
The Commerce Department plans to roll back regulations that make it easier for U.S. exporters to sell goods that have both civilian and military purposes, making it more difficult for China to acquire U.S. technology, according to a May 23 report by Politico. As part of its plans, Commerce is considering ending a general policy of approving export licenses for products bound for civilian use, instead switching to reviews on a “case-by-case basis,” the report said. Commerce’s plans include “four regulatory actions” that target China under the Export Control Reform Act, including options that would revoke two license exceptions relating to shipping restricted technology to China and an option that would expand a ban on U.S. defense-related exports to China, the report said.
Recent editions of Mexico's Diario Oficial list trade-related notices as follows: