Foreign traders, please check: a quick overview of the new regulations! (July)

01.Nine departments: support cross-border e-commerce enterprises to "borrow the sea"

 

According to the website of the Ministry of Commerce, the Ministry of Commerce and other nine departments issued opinions on expanding cross-border e-commerce exports and promoting the construction of overseas warehouses (hereinafter referred to as "opinions").

 

The opinions mentioned that support cross-border e-commerce enterprises to "borrow the sea". Support cross-border e-commerce platforms, exports, payments, logistics, overseas warehouses and other enterprises to participate in the China Import and Export Fair (Canton Fair), the Global Digital Trade Expo and other key exhibitions. Support the market-oriented principle to improve the existing local cross-border e-commerce exhibition level, for key products, key markets to organize overseas special promotion, docking activities. Encourage conditional places to organize enterprises to participate in overseas exhibitions, and provide more display and docking platforms for cross-border e-commerce enterprises.

 

Opinion details:

http://www.mofcom.gov.cn/article/zwgk/gkzcfb/202406/20240603515722.shtml

 

02.The Ministry of Commerce and other three departments issued an announcement on the implementation of export control on the relevant items.

 

The Ministry of Commerce (MOFCOM), the General Administration of Customs (GAC) and the Ministry of Equipment Development of the Central Military Commission (MEDC) have issued Announcement No. 21 of 2024 on the Implementation of Export Controls on Relevant Items. The announcement states that export control is imposed on equipment, software and technology related to aerospace structural parts and engine manufacturing, equipment, software and technology related to gas turbine engine/gas turbine manufacturing, equipment, software and technology related to space suit windows, and items related to ultra-high molecular weight polyethylene fiber.

 

Original announcement:

http://www.mofcom.gov.cn/zfxxgk/article/gkml/202405/20240503513396.shtml

 

 

03.Multi-bank landing directory registration business

 

Recently, the State Administration of Foreign Exchange (SAFE) issued the Circular on Further Optimizing the Management of Trade Foreign Exchange Businesses (hereinafter referred to as the Circular) to optimize the way of handling the directory registration of trade foreign exchange receipts and expenditures enterprises (hereinafter referred to as the Directory Registration), and to make it clear that the Directory Registration will be changed from being handled by each branch of the SAFE to being handled by the banks in China directly from June 1 onwards. The Notice is effective on the first day of the Notice's entry into force.

 

On the first day of the Notice coming into effect, a number of banks, including Agricultural Bank of China, Bank of China, China Construction Bank, China Merchants Bank, Bank of Ningbo, etc., launched online and offline dual-channel, one-stop service to realize the enterprises to "run less".

 

Original text of the notice:

https://www.gov.cn/zhengce/zhengceku/202404/content_6943880.htm

 

 

04.U.S. enforces cosmetic FDA registration

 

On December 29, 2022, U.S. President Joe Biden signed and passed the Modernization of Cosmetic Regulations Act of 2022 (MoCRA). The Act makes significant revisions to the previous Federal Food, Drug, and Cosmetic Act (FD&C Act), and the new regulations mandate factory registration and product list registration for cosmetic companies.

 

According to the requirements of the bill, before July 1, 2024, all U.S. domestic or foreign cosmetic manufacturers and processors to the U.S. must complete the enterprise registration, the responsible person needs to complete the product listing. For the expiration date is not completed for the export of cosmetics may face the risk of withholding refusal of entry and so on.

 

 

05.U.S. requirements for wooden furniture, wood imports need to be fully declared

 

A few days ago, the U.S. Department of Agriculture Animal and Plant Health Inspection Service (APHIS) announced that the Lacey Act, Phase VII was formally implemented, the Lacey Act, Phase VII of the full implementation of the Act not only means that the United States to strengthen the supervision of imported plant products, but also means that all imports into the U.S. wooden furniture and lumber, whether it is used for furniture manufacturing, construction or other purposes, must be declared.

 

It is reported that the update will extend the coverage to a wider range of plant products, including wooden furniture and wood, requiring all imports to be declared, unless they are made entirely of composite materials. The declaration includes the scientific name of the plant, the import value, the quantity and the name of the plant in the country where it was harvested.

 

Translated with DeepL.com (free version)

 

06.Turkey Imposes 40% Additional Tariff on Chinese-Made Vehicles

 

On June 8, the Turkish Gazette issued Presidential Decree No. 8639, which stipulates that an additional 40% import tariff will be levied on fuel and hybrid passenger vehicles of Chinese origin and under customs code 8703, and will be implemented 30 days after the date of issuance (July 7th). According to the gazette publication, the minimum tariff is $7,000 (about RMB 50,000) per vehicle. So far, all Chinese passenger cars exported to Turkey are covered by the tariff increase.

 

In March 2023, Turkey imposed an additional 40% surcharge on tariffs on electric vehicles imported from China, raising the tariff to 50%, and in November 2023 Turkey took another step against Chinese cars, imposing import "licenses" and other restrictions on Chinese electric vehicles.

 

It is reported that there are still affected by the implementation of electric passenger car import license in November last year, part of China's electric cars stranded in Turkey customs can not be cleared, to the Chinese export enterprises to bring losses.

 

 

07.India on China's polyvinyl chloride paste resin levied temporary anti-dumping duties

 

On June 13, India's Revenue Department of the Ministry of Finance issued Circular No. 09/2024-Customs (ADD) stating that it accepts India's Ministry of Commerce and Industry's preliminary anti-dumping ruling recommendation made on April 26, 2024 on polyvinyl chloride paste resin originating from or imported from mainland China, South Korea, Malaysia, Norway, Thailand and Taiwan (Poly Vinyl Chloride Paste Resin). The anti-dumping preliminary ruling made by the proposed decision on the above countries and regions of the products involved in the imposition of provisional anti-dumping duties for a period of six months, respectively, as follows: the Chinese mainland for 115-600 U.S. dollars / ton, South Korea for 0-41 U.S. dollars / ton, Malaysia for 317-375 U.S. dollars / ton, 118-168 USD/tonne for Taiwan, 195-252 USD/tonne for Thailand and 328 USD/tonne for Norway.

 

The Indian customs codes of the products involved are 39041010, 39041020, 39041090, 39042100, 39042200, 39043010, 39043090, 39049000, 39044000, and 39049090. The products involved do not include the following products: PVC paste resins with a K-value of less than 60K, PVC blending resins, copolymers of PVC paste resins, battery diaphragm resins, and polyvinyl chloride paste resins under the brand name "Biovyn" produced by Innovyn Europe Ltd. This measure is effective from the date of publication of this notification in the Official Gazette.

 

 

08.Korea made anti-dumping preliminary ruling on China PET resin

 

On May 30, the Korean Trade Commission (KTC) issued Notice No. 2024-12 (Case No. 23-2024-1), making a preliminary affirmative anti-dumping ruling on PET resin or Polyethylene Terephthalate Resin originating from China, and recommending that the Ministry of Planning and Finance (MoPF) of Korea impose temporary anti-dumping duties on the enterprises involved, of which, the Chinese enterprises are not eligible for anti-dumping duties. The Ministry of Planning and Finance recommended the imposition of provisional anti-dumping duties on the enterprises involved, of which the Chinese manufacturers Hainan Yisheng Petrochemical Company Limited, Yisheng Chemical & Petrochemical Company Limited, their affiliates and exporters were all subject to a duty rate of 6.62%, China Resources Chemical Materials Technology Co.

 

The products involved include terephthalic acid (TPA) and monohydric alcohol, made from polymerized ethylene glycol (MEG) with a viscosity value of greater than or equal to 78 ml/g; renewable PET resins are also under investigation in this case. The Korean tariff number of the products involved is 3907.61.0000.

 

 

09.Colombia Manganese Sulfate Preliminary Anti-Dumping Ruling on China

 

On June 17, 2024, the Ministry of Trade, Industry and Tourism of Colombia published on its official website Notice No. 157 of June 6, 2024 and its corrigendum (Notice No. 175 of June 14, 2024), which made a preliminary anti-dumping ruling on manganese sulfate originating from China, and initially ruled that a provisional anti-dumping duty of 33.41% should be imposed on the product in question, and that the measure should be valid for six months. The Colombian tariff number of the product in question is 2833.29.90.00, and the announcement is effective from the next day of publication.

 

Translated with DeepL.com (free version)

 

10.Thailand FDA Issues Medical Device Quality System Regulations

 

 

The Thai Food and Drug Administration (FDA) has issued the Ministry of Public Health Circular B.E. 2566 on Good Manufacturing Practices (GMP Circular) and the Ministry of Public Health Circular B.E. 2566 on Good Importing and Distributing Practices (GISP Circular), which are intended to regulate the quality systems of medical device manufacturing facilities as well as medical device importers and distributors.quality systems as well as importers and distributors of medical devices.

 

From July 2024, new manufacturers of medium-risk to high-risk medical devices will have to comply with the standards set out in the GMP Circular (which includes the obligation to obtain a GMP certificate, a Thai Conformity Assessment Standard TCAS 13485 certificate or an ISO 13485 certificate). Manufacturers of low-risk medical devices and animal medical devices will also be required to improve their production facilities to comply with the quality system required by the GMP Notification (although they are not required to obtain a GMP certificate, TCAS 13485 certificate or ISO 13485 certificate).Under the GMP Notification, manufacturers of moderate to high risk medical devices that received a GMP certificate for the previous standard prior to July 2024 may continue to operate without obtaining a new certificate, but they will still be required to comply with the new standards set forth in the GMP Notification. However, the new required certificates must be obtained within the given grace period.According to the GISP notification, importers and distributors of medical devices must start preparing their quality systems for importing and distributing medical devices.By January 2029, all medical device importers and distributors must fully comply with the GISP notification.

 

 

11.Thailand to impose VAT on imports below 1,500 baht

 

June 24 - Thai Finance Ministry officials have announced that the Minister of Finance has signed a proclamation approving the imposition of a 7% value-added tax (VAT) on imported goods priced at no more than 1,500 baht from July 5, 2024 onwards. Currently, Thailand exempts such goods from VAT. The fee will be collected by Customs between July 5 and December 31, 2024, after which it will be taken over by the Revenue Department, the announcement noted. The plan, which was approved in principle by the Cabinet on June 4, is aimed at preventing an influx of cheap imports, especially from China, into the domestic market.

 

12.Indonesia Removes Import License (PI) Requirement for Cosmetics

 

Indonesia's Trade Minister's Decree No. 8 of 2024 (Permendag 8/2024) was issued on an emergency basis and came into effect immediately.The issuance of the Trade Minister's Decree No. 8 of 2024 was seen as a remedy for the large number of containers stranded in Indonesian ports as a result of the issuance of the Trade Minister's Decree No. 36 of 2023 (Permendag 36/2023).The following are the requirements for customs clearance of imported cosmetic products after the implementation of the new policy:

 

1. Before March 10, 2024

Basis: Import policies and regulations in Trade Minister Decree No. 20 of 2021 and Trade Minister Decree No. 25 of 2022Customs Clearance Documentation Requirements:

Import Surveillance Report (LS)

Import Customs Declaration (SKI)

 

2. March 10 - May 17, 2024 (stranded goods)

Basis: Permendag 8/2024

 

Types of goods listed in Appendix I and Appendix II (including cosmetics, 136 HS electronics, traditional medicines, 37 HS footwear, etc.) can be cleared by requiring only an Import Surveillance Report (LS).

 

Customs Clearance Documentation Requirements:

Import License (PI) (not required)

Import Surveillance Report (LS)

Import License (PI) (not required)

 

3. After May 17, 2024

Basis: Permendag 8/2024 Import Policy and Regulations

 

Customs Clearance Documentation Requirements:

Import Surveillance Report (LS)

Import Declaration (SKI)

 

With the introduction of Permendag 8/2024, cosmetic products arriving at Indonesian ports after March 10, 2024 are exempted from the submission of the import license (PI), and are only required to submit the Import Supervision Report (LS) and Import Declaration (SKI) for customs clearance.

 

For the export of cosmetics companies in Indonesia, is a good news, please note that the two documents need to be completed before the goods arrive at the port of Indonesia.

 

 

Translated with DeepL.com (free version)

 

13.Mexico to combat low-cost customs clearance

 

Mexico's National Tax Service (SAT) issued an announcement that it will soon revise its foreign trade rules to define the low price declaration and tax avoidance behavior that exists in the process of importing apparel, electronics, toys, and other commodities by e-commerce platforms and express delivery enterprises as the crime of smuggling and tax fraud.It is understood that some businesses will take advantage of Mexico's tariff loopholes to avoid general import tax and VAT, and these sellers will divide their goods into multiple small parcels and reduce their value to within the duty-free limit.In response, the SAT said, "Failure to pay taxes as well as non-compliance with non-tariff regulations and restrictions can incur smuggling and tax fraud offenses."At the same time, SAT also pointed out that some logistics companies may be subjectively unaware of the situation, but they have in fact become accomplices in tax evasion, and therefore also responsible for cross-border trade tax evasion.

 

 

14.Europe and the United States sanctioned Russia

 

On June 12, 2024, local time, the U.S. Department of State and Treasury OFAC issued a notice imposing sanctions on more than 300 individuals and entities involving overseas branches of Russian financial institutions, including VTB Shanghai and VTB Hong Kong. As a result of this executive order, banks in third countries will be reluctant to deal with high-risk Russian clients.This time it is actually a significant expansion of the secondary sanctions program against Russia.

 

About 2/3 of the new sanctions list this time are entities, including IT and aviation related companies, vehicle manufacturers and machine builders, etc., to discourage foreign companies from assisting Russia in circumventing Western sanctions. After several rounds of sanctions, the number of sanctioned entities in Russia has increased to more than 4,500.

 

On June 24, local time, the Council of the European Union issued a statement on its official website, officially announcing the 14th round of sanctions against Russia.In this round of sanctions, the EU will prohibit reloading services in the EU for Russian liquefied natural gas transiting to third countries, including ship-to-ship transshipment and ship-to-shore transshipment, as well as reloading operations.The EU will also prohibit new investments in Russia, as well as the supply of goods, technology and services for LNG projects under construction, such as the Arctic LNG 2 project and the Murmansk LNG project. The EU prohibits operators from using the Russian-developed SPFS financial information service system within or outside its borders.

 

 

15.China to grant visa-free access to Australia and New Zealand

 

On June 13, China announced that it would include New Zealand in the scope of unilateral visa-free countries, and on June 17, China announced that it would include Australia in the scope of unilateral visa-free countries, and that holders of Australian ordinary passports would be allowed to enter and stay in China for 15 days without a visa for business, tourism and transit. In addition, China and Australia also jointly announced that they will provide each other's citizens with multiple-entry visas valid for three to five years in order to promote business exchanges, encourage tourism experiences and facilitate family reunions.

Since last year, China has been expanding the scope of unilateral visa-free countries. So far, China has granted unilateral visa-free access to France, Germany, Italy, the Netherlands, Spain, Switzerland, Ireland, Hungary, Austria, Belgium, Luxembourg and other countries, while China has also realized mutual exemptions with Thailand, Singapore, Malaysia, Georgia and other countries.

 

16.Ecuador canceled visa-free for Chinese citizens

 

Ecuador announced on June 18 that it would suspend a visa waiver agreement signed with China for Chinese citizens, and since July 1, Chinese citizens cannot enter Ecuador visa-free.The Ministry of Foreign Affairs (MFA) said the China-Ecuador mutual visa waiver agreement has played an important and positive role in bilateral people-to-people exchanges and practical cooperation in various fields since it came into effect in August 2016, the MFA said. The Chinese government firmly opposes any form of smuggling activities. In recent years, Chinese law enforcement authorities have made heavy efforts to rectify crimes and offences against state (border) administration, maintaining a strict and high-pressure situation against various people-smuggling organizations and unlawful elements engaging in people-smuggling activities, and achieving remarkable results. At the same time, Chinese law enforcement agencies are cooperating with relevant countries to jointly crack down on cross-border smuggling activities, repatriate smuggled persons, and jointly maintain the order of international exchanges of people.

 

17.Brazil announced a new program of import tax on cross-border parcels

 

Local time on June 25, Brazil's Federal Revenue Service announced a new round of import tax for cross-border parcels on its official website in the form of an open letter to the specific program and details.The specifics include:

A 20% import tax on all imported e-commerce parcels under $50, a move that provides a level playing field for e-commerce platforms that are not approved to join the PRC program;

A 60% import duty on imported e-commerce parcels of US$50-3,000, but with a reduction of US$20 per parcel, which will benefit sales of home appliances, home furnishings and electronics;

E-commerce platforms enrolled in the Compliance Tax Payment Program can enjoy the convenience of early pre-declaration and fast customs clearance.

 

Although the new policy has not yet completed the final approval process, the Brazilian government has been quick to announce specific implementation details, showing the enormous pressure it is facing on cross-border tax reform.

On June 25, local time, the Brazilian Federal Tax Administration announced the specific program and details of the new round of import tax for cross-border parcels in an open letter on its official website.The specifics include:

A 20% import tax on all imported e-commerce parcels under US$50, a move that provides a level playing field for e-commerce platforms that are not approved to join the PRC program;

A 60% import duty on imported e-commerce parcels of US$50-3,000, but with a reduction of US$20 per parcel, which will benefit sales of home appliances, home furnishings and electronics;

E-commerce platforms enrolled in the Compliance Tax Payment Program can enjoy the convenience of early pre-declaration and fast customs clearance.

 

Although the new policy has not yet completed the final approval process, the Brazilian government has been quick to announce specific implementation details, showing the enormous pressure it is under in terms of cross-border tax reform.

 

(* Information collated from the Internet)