A Cambridge University Press research paper published this month explores how the Chinese government exercises influence over Chinese firms that conduct foreign direct investment. The paper, which is behind a paywall, shows that China uses state-owned firms to pursue foreign investment and to “promote” the country’s foreign policy objectives. The U.S. has strengthened and revised its Committee on Foreign Investment in the U.S., partly to better scrutinize attempts by Chinese companies to acquire sensitive U.S. technologies through foreign direct investment (see 2001140060). More changes may be coming (see 2103030057, 2107230027 and 2103120042).
India's Directorate General of Foreign Trade updated its Foreign Trade Policy, 2015-2020, section on principles of restrictions and prohibition for imports/exports. The section was amended to bring the language in line with international agreements, the DGFT said Aug. 10. The update said the DGFT may impose restrictions on export of foodstuffs to prevent or relieve critical shortages, imports of fisheries and other products, or as necessary for the "protection of public morals or to maintain public order," among other things.
China’s recently revised customs penalties could provide greater transparency to traders and set out a new penalty system for minor offenses, KPMG said Aug. 10. The revision, which took effect July 15 (see 2106250060), says that penalty relief may be available under certain conditions, including for minor or first-time “non-compliance behaviors,” if the violations can be rectified in a timely manner and if they didn’t result in “significant harm,” KPMG said. China customs may also provide relief if the trader can prove the violation wasn’t intentional.
China reduced its export quotas for refined fuels by 73% year-on-year for the second round of quotas issued for 2021, Reuters reported, citing four people close to the matter. The large drop comes as new taxes on imports of key blending fuels are primed to hike sales of domestically refined fuels. The quotas were issued to six state-run entities along with a private refiner and totaled 7.5 million tonnes -- a clear drop from the 28 million tonnes allotted in the second batch of 2020, Reuters said. The total for 2021 sits at 35.5 million tonnes so far, a 40% deficit from the 2020 numbers at this time last year. Three million tonnes of low-sulphur fuel oil export quotas were also issued separately in the latest round, Reuters said. In June, China began imposing high taxes on imports of light cycle oil, mixed aromatics and diluted bitumen, citing fuel surplus and environmental pollution concerns in the sector, Reuters said.
Japan's Ministry of Finance extended antidumping duties on potassium hydroxide from South Korea and China to Aug. 12, 2026, it said in an Aug. 10 notice. The ministry determined that the expiration of the duties would have resulted in injury to the domestic potassium hydroxide industry, resulting in the extension of the duties, which were set to expire Aug. 8. The duties were originally implemented in 2016 and exclude hydroxide from Hong Kong and Macao. The dumping margin sits at 49.5% for potassium hydroxide from South Korea and at 73.7% for the Chinese goods.
The U.S. Department of Agriculture Foreign Agricultural Service issued a report Aug. 6 detailing China’s new imported dairy product customs procedures (see 2107080023), which now allows importers to certify to possession of testing reports on imported dairy products instead of submitting the originals to the country’s customs agency. USDA released English translations of the report and the annexes, which include guidance for following the new procedures.
India's Directorate General of Foreign Trade published July, August and September export quotas for various types of diagnostic kits and their components, in an Aug. 9 trade notice. The quotas are for 2,504 RT-PCR COVID-19 test kits, 886 RNA extraction kits and 1,700 VTM kits. Online applications to ship these kits may be filled out Aug. 10-17 through the DGFT's ECOM system for export authorizations, the notice said. Interested exporters must submit a copy of the purchase order, copy of the importer-exporter code and the undertaking signed by the authorized signatory on company letterhead that on a date certain all the commitments/orders have been filled.
India's Directorate General of Foreign Trade extended until Aug. 31 the period of modification for Importer-Exporter Codes for the 2021-2022 period, an Aug. 9 trade notice said. The previous deadline was July 31, which itself was an extension of the usual annual electronic updating period of April through June. No fee will be charged for filing the changes during August. Even if there are no changes to report, the IEC information must be confirmed online.
India's Directorate General of Foreign Trade extended until Sept. 30 the Chip Import Monitoring System, currently running on a trial basis to inspect and register imported integrated circuits. The CHIMS portal will become effective on Oct. 1, DGFT said Aug. 9. The registration requirement is for integrated circuits of Harmonized System Codes 85423100, 85423900, 85423200 and 85423300.
Singapore Customs identified four types of bullion coins that meet the requirements as Investment Grade Precious Metals that will be exempted from a Goods and Services Tax starting on Aug. 6. The four coins include Canada Creatures of the North series silver coin, Canada Goose silver coin, United Kingdom Royal Arms platinum coin and South Africa Big Five series platinum coin. To apply for GST exemption for importation of the coins, interested parties may navigate to the Singapore Customs website, www.customs.gov.sg, for instructions on how to proceed.