The Department of Commerce published its spring 2019 regulatory agenda for the Bureau of Industry and Security. The agenda continues to mention an upcoming a long-awaited proposed rulemaking involving parties’ responsibilities under the Export Administration Regulations in a routed export transaction, saying the proposal will be published in May 2019. Sharron Cook, a senior policy export analyst for BIS, said in April the rule change will help solve some of the bigger frustrations with the current regulations faced by export forwarders (see 1904170064). BIS is aiming to issue the proposal in May, it said.
Exports to China
China recently announced the repeal of labeling submission requirements for pre-packaged food, and added new functionalities to its online customs systems to facilitate value-added tax refunds. It also set new standards for electronically submitted documents, as well as new inspection procedures for auto parts at the Port of Shanghai. The following is an update on recent customs and trade-related actions by China:
That the U.S. made “unreasonable demands” on China “through maximum pressure” is the “underlying reason” why 11 rounds of negotiations “failed to yield an agreement,” a Chinese Foreign Affairs Ministry spokesperson said May 20. “This wouldn't work from the very beginning.” When U.S. threats didn't work and “instead led to widespread doubts at home and abroad as well as market fluctuations, the U.S. “resorted to muddying the waters and shifting the blame,” he said. “The international community bears witness to the sincere and constructive attitude China has shown in the past 11 rounds of negotiations.” There’s “hope for success only when the consultations proceed on the right track of mutual respect, equality and mutual benefit,” he said. The Office of U.S. Trade Representative didn’t comment.
Global economic growth slowed “sharply” in 2018 due to escalating trade conflicts and could continue to slow from the U.S.’s trade war with China, the Organisation for Economic Co-operation and Development said in a May 21 report. While global growth has stabilized at a “moderate level” in 2019, the report expects the global economy to grow at a “fragile” rate in the next two years, but could be derailed by “trade tensions, high policy uncertainty, risks in financial markets and a slowdown in China.” Trade tensions could slow global growth to 3.2 percent in 2019 and 3.4 percent in 2020, OECD said, and world trade will grow by just more than 2 percent in 2019, which would be the lowest rate in a decade. The estimates are conditional on “no escalation of trade tensions,” OECD added, which could reduce global gross domestic output by more than 0.6 percent over the next three years.
An agricultural exporter recently joined a Supreme Court challenge of the constitutionality of Section 232 duties on steel and aluminum imports. Basrai Farms says the brunt of retaliatory tariffs imposed worldwide in response to the U.S. tariffs has fallen on the agriculture industry, and that the Supreme Court should find Section 232 unconstitutional because President Donald Trump was required to consider these broader effects when imposing the tariffs.
The State Department designated 22 people, entities or their subsidiaries under the Iran, North Korea, and Syria Nonproliferation Act for trading goods that may be used for weapons of mass destruction or ballistic missile systems, the department said in a Federal Register notice to be published May 22. The additions include people and entities associated or located in China, Iran, Russia and Syria.
Minority Leader Chuck Schumer, D-N.Y., in a speech on the Senate floor May 21, said he hopes that the administration does not repeat with Huawei what it did with ZTE, "where we stood tough at the beginning, it had an effect, and then we backed off."
Export Compliance Daily is providing readers with some of the top stories for May 13-17 in case they were missed.
China recently announced the broad outlines of a new food safety plan that seeks to implement a “world-leading set of food safety standards” by 2035, said a report by state-run news agency Xinhua. Utmost efforts should be made in developing standards, conducting regulation, imposing penalties and seeking accountability, the plan said, according to Xinhua.
The government of Canada recently issued the following trade-related notices as of May 20 (note that some may also be given separate headlines):