KPMG issued a Feb. 11 alert detailing recent announcements made by China to simplify customs and trading procedures as the country battles the coronavirus outbreak (see 2002030034). China will exempt certain import duties on ambulances and cars used for emergency purposes -- as well as medical supplies such as reagents, disinfection equipment and protective supplies -- through March 31, KPMG said. Importers are also eligible for tax refunds on qualifying supplies if they already paid duties. KPMG said to expect “more tax relief measures” if the virus continues.
As the coronavirus outbreak continues, companies should review their contracts to determine whether they contain force majeure provisions and what those contracts define as force majeure qualifying conditions, according to a Feb. 13 post from Crowell & Moring. A force majeure provision can be triggered by specific language in a contract clause -- such as natural disasters, human threats or acts of God -- or by official announcements from government agencies and nongovernmental organizations, including the World Health Organization, the post said. But the coronavirus outbreak “presents an unusual situation” because it includes both components -- a naturally occurring element and a government action. China confirmed Feb. 10 that the virus outbreak should be considered a force majeure under Chinese law, the law firm said
The U.S. Department of Agriculture released a February report on India’s increased tariffs on food and agricultural products (see 2001270016), including changes in customs duties for each product. The tariffs, which drew criticism from the U.S.-India Business Council (see 2002030041), will impact dairy products, certain nuts, vegetable oils, infant foods, soy products and more, according to the report, which also includes a table with the omitted “preferential duty rate for imports of products under the tariff rate quota.”
Burma is updating many of its laws concerning import procedures for food, animal feed, veterinary drugs, labeling requirements and more, according to a Feb. 7 report from the U.S. Department of Agriculture Foreign Agricultural Service. Burma’s new food law, which will likely be approved this year, is being expanded to cover more products, the USDA said, and its food labeling update will require all consumer products sold in the country to be labeled with “certain minimal information” in the Burmese language, the report said. The “date of compliance” for the food labeling change is April 26, 2020. The report also covers changes to packaging and container regulations, food additives regulations, and sanitary and phytosanitary measures.
The High Court of Australia ruled against the country’s customs agency when it said gummy vitamins are deemed “medicaments” and are not subject to import duties, according to a Feb. 7 KPMG post. The ruling, made Feb. 5, stemmed from a dispute over the correct customs classification of the vitamin gummies, which were imported into Australia and classified as “medicaments” by the importer. The country’s customs authority argued that the imports were “sugar confectionary” or “other food preparations,” which are subject to duties worth about 5 percent of the customs value.
India’s Directorate General of Foreign Trade recently issued notices advising traders to indicate the “prescribed harmonized system” codes of items instead of using the “others” category for bills of entry and shipping bills, KPMG said in a Feb. 7 post. Some importers were not indicating the correct eight-digit HS code when filing a bill of entry, which led to errors in determining India’s import data, KPMG said. If the misclassification continues, India may introduce a licensing regime for items in the “others” category by “shifting items from a ‘free’ to ‘restricted’ category,” which will lead to higher customs duties.
India’s Central Board of Indirect Taxes and Customs made changes to its customs clearance process to speed up clearance times for imports, India said in a Feb. 6 notice. The country is introducing “machine based automated clearance” for imported goods, which will allow customs officers to inspect the goods before the importer pays duties, allowing the goods to be cleared as soon as all fees are paid. Previously, customs officers could only inspect imports after the duties were paid, which led to delays in clearance. The system launched Feb. 6 as pilot programs at the Chennai and Nhava ports, and will “soon be rolled out to all ports across India,” the notice said, including inland container depots and airports. “This new initiative will fasten the Customs processes by not waiting for the duty payment and ... it will give additional time to importer who will now be able to pay the duties even while the goods are being verified by the Customs officer,” India said.
China recently banned the production and sale of “ultra-thin” plastic bags with thickness less than .025 mm and “polyethylene agricultural mulch” with thickness less than .01 mm, the Hong Kong Trade Development Council said in a Feb. 10 report. China also plans to ban sales of single-use “foam plastic tableware” and cotton swabs, the report said. China wants to promote recyclable materials, especially in plastics, and also has plans to substantially ban plastic waste imports by 2025 (see 2001210024).
Singapore Customs’ TradeNet will undergo system maintenance from 4 a.m. to 4 p.m. local time on Sunday, Feb. 23, Singapore said in a Jan. 31 notice. The agency is advising users to avoid submitting applications during this time. This is in addition to usual maintenance on Sundays from 4 a.m. to 8 a.m.
Uzbekistan recently implemented new value-added tax rules relating to e-services, according to a Jan. 31 KPMG post. The rules will impose certain VAT requirements on foreign suppliers of e-services to customers in Uzbekistan, KPMG said. The suppliers will also be subject to rules on VAT payment remittances.