The U.S.-India Business Council praised some aspects of the proposed Indian budget, but said that new tariffs (see 2001270016) on agricultural products, medical devices, auto parts, electronics and electric vehicles are concerning. “Both USIBC and the U.S. Chamber [of Commerce] have long maintained that tariffs raise prices for consumers and create friction with trade partners, ultimately inhibiting economic growth,” the organization said Feb. 2.
Indonesia has given its customs officials the authority to stop counterfeit goods at the border, and just in 2020, has already seized $1 billion rupiah, or $73,000, worth of counterfeits that were set for export, according to Iwan Freddy Hari Susanto, charge d'affaires for the Indonesian Embassy. He was testifying Jan. 31 at a hearing on Indonesia's eligibility for the Generalized System of Preferences benefits program, and was describing numerous actions the country has taken to improve protections for intellectual property rights holders.
Japan hopes to quickly reach a trade agreement with the United Kingdom after Brexit based on the European Union-Japan Economic Partnership Agreement, two Japanese officials said Jan. 31. Japan wants to “promptly” agree to a trade deal with the U.K. to minimize impacts on Japanese companies after Brexit, Japan’s minister of economy, trade and industry said during a press conference, according to an unofficial translation of a transcript. “If a trade agreement between the U.K, and the [European Union] is not reached by the end of the transition period, the activities of Japanese companies may be adversely affected,” the minister said. “The idea is to work on construction quickly.” Japan will continue to operate its Brexit Service Desk (see 1910040013) during the transition period, the minister added.
China’s Ministry of Commerce recently issued a circular detailing the expansion of its pilot program for cross border e-commerce retail imports, according to a Jan. 30 report from the Hong Kong Trade Development Council. The program will add 50 “cities or regions,” including the whole Hainan Island, which are now able to conduct “bonded import business” for online imports.
India’s Gujarat High Court ruled that no Goods and Services Tax can be imposed on ocean freight transportation regarding transport services provided by a person outside India who imports goods into the country, according to a Jan. 29 KPMG post. The court ruled on a case in which a taxpayer imported coal into India from “various countries” and paid customs duties on the value of the coal and the ocean freight transportation costs, the post said. The taxpayer was also required to pay “integrated GST” on the ocean freight, leading to “double taxation” on the freight. The court ruled that the GST “with regard to the transport services” could not be imposed.
Eliminating Thailand's eligibility for the Generalized System of Preferences program, because of a complaint from pork producers, would hurt U.S. importers more than Thai businesses, one witness said, and would be unlikely to convince the country to allow pigs fed with ractopamine to be imported. China and the European Union also ban meat that was fed the growth-enhancing drug. Dan Anthony, testifying on behalf of the GSP Action Committee, told the panel of government officials that they should put great weight on the potential harm to U.S. importers as they make their decision. He gave the example of a 25-person company that imports from Thailand, and had to pay $60,000 to $70,000 a month in tariffs during the two years GSP was not in force. Once it was renewed, the North Carolina company hired 17 full-time employees, and today, employs 70 people.
China’s Foreign Ministry criticized a U.S. bill passed by the House Jan. 28 that would sanction Chinese officials for government interference in certain Tibetan affairs, calling the bill a breach of international norms. During a Jan. 29 press conference, a ministry spokesperson said China is “firmly opposed to” the bill and urged the U.S. to “correct its mistake,” according to a transcript in English released by the Chinese Embassy in Washington. The bill, which modifies the Tibetan Policy Act of 2002, would require the U.S. to sanction Chinese officials who interfere in the succession of the Dalai Lama, an effort that the bill calls a “serious human rights abuse.”
The U.S. Department of Agriculture Foreign Agricultural Service released a report on U.S. exports to Taiwan that were rejected or destroyed during 2019, including the findings in each case and the types of goods most susceptible to rejections. Taiwan rejected or destroyed 53 agricultural imports from the U.S. that were deemed non-compliant with Taiwan’s Food and Drug Administration food safety standards, with chemical residue on imports accounting for 34 of the rejections. Vietnam detected the chemical residue “fluopyram” on 11 shipments, including blueberries, broccoli, onion, lettuce and fruit powder. The second-largest source of violations was food additives, with 11 rejections, USDA said.
Small and medium-sized companies can apply to attend one of the Australian government's free training seminars on U.S. export controls during March in Sydney, Canberra, Adelaide, Brisbane, Melbourne and Perth, Australia said Jan. 23. The two-day seminars will provide companies with “practical expertise of current best practice” for dealing with technologies controlled under the International Traffic in Arms Regulations and the Export Administration Regulations, it said. The seminars are open to manufacturers and companies involved in research and development with “immediate intent or actively involved with US technologies subject to these regulations.”
India plans to increase import duties on about $56 billion worth of goods, including a range of electronics, electrical goods, chemicals and handicrafts, according to a Jan. 24 report from Reuters. The announcement could be made by India’s finance minister during the presentation of the annual budget on Feb. 1, the report said. Higher duties are likely to target 50 items, including mobile phone chargers, industrial chemicals, lamps, wooden furniture, candles and jewelry, Reuters said. Import tariffs could increase by 5 percent to 10 percent, and could directly impact smartphone manufacturers and other retailers, the report said.