Austria recently announced measures to support its economy during the COVID-19 pandemic, including tax exemptions for certain imports and reduced value-added tax rates, according to a May 15 KPMG post. The measures include a customs procedure that “provides a tax exemption for imports concerning delivery of another [European Union] country,” KPMG said. The country will also eliminate the VAT rate for supplies of protective masks supplied after April 13 and before Aug. 1, 2020.

The U.K.’s Department for International Trade released its Most Favored Nation tariff regime, which will replace the European Union’s Common External Tariff after the Brexit transition period ends, the U.K. said May 19. The regime, the U.K. Global Tariff (UKGT), will be “simpler” and “easier” to use than the EU’s system, the U.K. said, adding that it will “scrap red tape and other unnecessary barriers to trade.” The UKGT will simplify nearly 6,000 tariff lines and eliminate “thousands of unnecessary tariff variations on products” by abandoning the EU’s “complex” Meursing table, the U.K. said. Other changes include “scrapping unnecessary tariff variations, rounding tariffs down to standardised percentages, and getting rid of all ‘nuisance tariffs’ (those below 2%).”

The United Kingdom issued a notice May 15 reminding traders that prior surveillance import licenses are no longer required to import steel or aluminum goods as of May 16. The update stems from a change made by the European Commission to the European Union’s prior surveillance import licensing regime, the U.K. said. Traders should email enquiries.ilb@trade.gov.uk if they experience issues with the license requirement when trying to clear goods.

Hungary recently announced aid for its agriculture sector to mitigate impacts of the COVID-19 pandemic, including measures to incentivize purchases of domestic goods over imports, according to a U.S. Department of Agriculture Foreign Agricultural Service report released May 11. Hungary is asking retail chains and domestic suppliers to “favor Hungarian products over imports” and will review its “import conditions” for certain agricultural goods, the USDA said. “A temporary adjustment of the quantity of imports originating from third countries could help to achieve a state of balance on the internal market and the creation of equal competitive conditions for internal production,” Hungary’s agriculture minister said, according to the USDA.

Luxembourg ended its relief for late submissions of value-added tax returns, according to a May 13 post from KPMG. The measure, originally issued to help industry cope with the COVID-19 pandemic, was ended May 12, KPMG said. All pending VAT returns not yet submitted “need to be filed as soon as possible to avoid potential penalties,” the post said. A number of countries have introduced VAT relief measures to help companies mitigate impacts of the pandemic (see 2005050018, 2004240005, 2004030023, 2004030016 and 2004030022).

A global group of dairy organizations urged the European Union to refrain from adopting support measures for its dairy industry that will “significantly” harm the global dairy market, according to a May 12 press release from the National Milk Producers Federation. The EU measures, which include private storage aid for the dairy sector, will allow those producers to temporarily withdraw their products from the market, would “artificially distort prices for an extended period and displace commercial competition,” the NMPF said. “Exporting large quantities of government-purchased [skim milk powder] and butter at below-market rates onto the world market will prolong the deeply challenging environment under which dairy sectors are operating worldwide,” the NMPF said.

The European Commission on May 11 published guidance on delivering humanitarian goods to Syria despite European Union sanctions. The guidance will be the first in a “series” of “comprehensive” frequently asked questions provided to industry on exporting aid to sanctioned countries, the commission said in a May 12 notice. The guidance clarifies responsibilities of exporters and should help “speed up the channeling of equipment and assistance” to Syria. “Sanctions should not stand in the way nor impede the delivery of essential equipment and supplies necessary in the global fight against the coronavirus pandemic,” European Commission Vice President Josep Borrell said in a statement. “We need to ensure timely assistance and avoid negative consequences for the populations of conflict affected areas, who already are bearing a heavy burden.”

The European Union is considering proposals to help its aviation, rail, road and shipping sectors mitigate COVID-19 impacts, according to a May 8 European Council press release. The proposals would amend air carrier licensing rules, allow airports to better handle “ground-handling services,” relax a rule that requires port infrastructure charges to be levied on ship operators and more, the commission said. The proposals would mainly ease pressure for transportation industries that “are having difficulties fulfilling certain administrative formalities before the expiry of the relevant deadlines,” the press release said.

The European Union established a “Humanitarian Air Bridge” designed to transport humanitarian goods and workers to countries heavily impacted by the COVID-19 pandemic, according to a May 8 notice from the European Commission. The project, a joint effort between the commission and EU member states, features commission-funded flights to send the humanitarian supplies around the world. The first flight, operated with France, transported 60 humanitarian workers and 13 tons of cargo. The commission said it is planning two more flights to transport 27 more tons of humanitarian goods.

The European Commission published a list of measures to strengthen the European Union’s effort to combat money laundering and terrorist financing. The commission’s goal is to “shut down any remaining loopholes and remove any weak links in the EU's rules,” according to a May 7 notice, which includes a “methodology” to help countries identify “high-risk third countries” and a list of countries with “strategic deficiencies in their anti-money laundering and counter-terrorist financing frameworks.”