The European Union is considering amending rules that will allow it to take action in international trade disputes despite the “paralysis” of the World Trade Organization’s dispute settlement body, according to an April 8 EU notice. The rules will make it easier for the EU “to protect its trade interests and rights” while the WTO is unable to deliver binding dispute settlement decisions due to an appointment blockade by the Trump administration (see 1912170035), the European Council said. The amended rules would allow the EU to impose certain sanctions, such as customs duties and trade restrictions, in cases in which dispute settlement procedures are blocked. The rules will also give the European Commission the ability to take countermeasures when a trade agreement partner imposes “illegal trade measures” and “blocks the dispute settlement process under that agreement.” The council said it is “ready to start negotiations” on the rules with the European Parliament.

The United Kingdom is extending the industry consultation period for its upcoming freeports (see 2002100032) through July 13, due to impacts caused by the COVID-19 pandemic, according to an April 8 notice. The consultation opened Feb. 10 and was scheduled to end April 20. The U.K. said it has received some responses and wants to “give all stakeholders time to submit their views.”

The European Union will increase its safeguard measures on U.S. goods in retaliation for new Section 232 tariffs on steel and aluminum “derivatives” imposed in February, the EU said in a notice published in the April 7 Official Journal. Effective May 8, an additional 20% tariff will be imposed on U.S. lighters (other than pocket lighters) under EU Combined Nomenclature subheading 9613.80.00, and an additional 7% tariff on plastic fittings for furniture and coachwork of CN subheading 3926.30.00, the EU said.

The European Union Council adopted new rules to create a “uniform legal framework” for “electronic freight transportation information for all modes of transport,” according to an April 7 press release. The changes require “all relevant public authorities” to accept electronic information whenever a company wants to provide “proof of compliance with legislative requirements.” The change will bring “significant cost savings” to industry and make the freight transportation sector “more efficient and sustainable,” the council said. The rules must still be adopted by the European Parliament before being published in the EU Journal, and will take effect 20 days after publication.

The United Kingdom’s Department of International Trade issued guidance to U.K. exporters and companies about applying for export finance and insurance to continue trading during the COVID-19 pandemic, the DIT said in an April 6 notice. The agency said it sent the guidance to 160,000 exporters and investors, which includes information on available “financial support” for companies impacted by the virus. “DIT stands ready to provide assistance with customs authorities to ensure smooth clearance of businesses’ products, and to offer advice on intellectual property and other issues with business continuity,” the agency said. U.K. companies are eligible to receive export insurance when trading with the European Union, the U.S., Japan, Australia, New Zealand, Canada, Iceland, Norway and Switzerland, the notice said.

Cyprus recently announced it will defer payments of certain value-added taxes, due to the COVID-19 pandemic, according to a March 31 KPMG post. Eligible VAT payments may be deferred to Nov. 10; penalties and interest will not be invoked if payments are deferred, the post said.

INSTEX, the European payment system designed to allow countries to trade with Iran despite U.S. sanctions (see 1912020025), completed its first transaction, France, Germany and the United Kingdom said in a March 31 notice. The countries said the mechanism successfully facilitated exports of medical goods from Europe to Iran. INSTEX will now “work on more transactions,” the notice said. The U.S. has warned Europe that anyone associated with INSTEX could face sanctions (see 1905300035).

The Netherlands customs authority announced a package of measures to ease burdens on companies impacted by the COVID-19 pandemic, according to a March 26 KPMG alert. The measures, announced March 26, will allow companies to request payment deferrals for customs duties and will postpone a new provision that would have required companies to be “established” in the European Union “in order to act as [an] exporter for customs purposes,” KPMG said. Dutch customs will also “show leniency” to companies that cannot “comply with customs obligations on time” due to impacts from the pandemic and will grant a “special exemption” for imports of personal protective equipment if certain conditions are met.

The European Commission issued guidance on restrictions on non-essential travel to the European Union to address “companies' practical concerns about the measures taken to limit the spread of the coronavirus,” according to a March 30 press release. The guidance provides “advice” on border restrictions, “facilitating transit arrangements” for EU citizens and other measures.

The European Union will begin patrols of the Eastern Mediterranean Sea to enforce the United Nations Security Council arms embargo on Libya, according to a March 27 press release from the EU Council and a post from the EU Sanctions blog. The measure was taken because the “fighting has increased” in Libya despite international calls for a truce and the UN arms embargo, the council said.