Brazil raises tariffs on U.S. tire exports 100%

In retaliation for the way the United States has treated its cotton exports, the Brazilian government has raised import duties on an extensive list of goods, including tires. And the World Trade Organization (WTO) has authorized the sanctions, which could total as much as $829 million.

The “retaliation level” is the second highest in the history of the WTO, according to a press release from Brazil’s Chamber of External Trade (CAMEX). “It results from the U.S. non-compliance with the rulings of WTO panels and its Appellate Body, which confirmed four times that the U.S subsidies to Brazilian cotton producers and exporters breached multilateral trade disciplines.

“The authorized countermeasures may remain in effect as long as the United States persists in the current situation of non-compliance with those disciplines,” according to the release.

Tariffs on passenger tire exports from the U.S. to Brazil will be increased from 16% to 32% by April 7. They will be raised the same amount on “other new pneumatic tires, of rubber, of a kind used for buses and lorries,” under Brazil’s NCM tire code (which closely follows the Harmonized Commodity Description and Coding System, or HS Code, in the U.S.).

“The Brazilian Government regrets having to take these measures, since it believes that trade retaliation does not constitute the most appropriate means to attain international trade on a fairer basis,” said the CAMEX release.

“However, after almost eight years of litigation and over four years of continuing non-compliance with the rulings of the (WTO’s) Dispute Settlement Body on the part of the United States, and in the absence of the offering of concrete and realistic options that could allow for the negotiation of a satisfactory solution to the dispute, it remains for Brazil to exercise its right, as authorized by the WTO.”

CAMEX says Brazil remains open to a dialogue with the U.S. “that may facilitate the achievement of a mutually satisfactory solution to this dispute.”

A U.S. government spokesperson says that for U.S. manufacturers and distributors selling to Brazil, “ this will increase their prices to their customers and could result in a decrease in sales.”

For more information on the tariffs and the goods affected, click on the CAMEX release (a link to the English translation is at the bottom of the page).

(source: http://www.moderntiredealer.com/News/Story/2010/03/Brazil-raises-tariffs-on-U-S-tire-exports-100.aspx)

EU court rejects appeal on China/Vietnam shoe duty

LUXEMBOURG, March 5 - A European court has rejected an appeal by a number of Hong Kong and China-based shoemakers against import duties levied by the European Commission on shoes originating form China and Vietnam.

Luxembourg-based EU General Court dismissed on Thursday all five appeals lodged by the companies against a decision by the EU’s executive arm to impose tariffs of up to 16.5 percent on Chinese leather shoes and 10 percent on those from Vietnam.

“The adoption of anti-dumping duties is not a penalty for earlier behaviour but a protective and preventive measure against unfair competition resulting from dumping practices,” the EU’s second-highest court ruled.

The European Commission imposed the duties in 2006, following a complaint by European manufacturers who argued that they were unable to compete with shoes dumped in the European market by low-cost producers in China and Vietnam.

The dispute has heightened trade tension between the 27-nation bloc and China, its second biggest trading partner after the United States, and its biggest source of imports.

European Union ministers voted in December to extend the import duties for another 15 months, while Beijing launched a dispute at the World Trade Organisation last month over the EU tariffs, saying they were illegal.

The companies argued that they were unfairly treated by the EU’s executive Commission and were not given sufficient rights to defend the anti-dumping charges, and that the Commission failed to carry out a proper analysis of the market before making its decision.

The court rejected these arguments and dismissed the appeals.

(Source: http://www.reuters.com/article/idUSLDE6241PF20100305)

Major Amendments to Custom Tariff of Canada

The Canada Border Services Agency (CBSA) wishes to advise you of certain amendments to the Customs Tariff announced in the Budget which was presented today by the Minister of Finance.

These changes will come into effect March 5, 2010.

The Most-Favoured-Nation (MFN) rate of duty for a number of tariff items is being reduced to zero; while certain others will be subject to a staged reduction to MFN duty‑free.  In a few cases, current tariff items have been split as the reduction to MFN duty‑free for some goods will be immediate and for others will be staged.   The details of which tariff items are affected are found in the attached extract from the Ways and Means Motion.

The changes are expected to be available for use in the Customs Commercial System (CCS) by March 10, 2010 and will be available for use by Electronic Commerce clients one day after the Customs Commercial System is updated.

Updates to the Departmental Consolidation of the Customs Tariff will be produced shortly.  A separate Tariff Notice will be issued to advise you when they will be available.

(Source: http://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2010/tn49-eng.html)

Wigs can’t escape taxman

Bloemfontein - The tax collector must get his share from imported wefts used to attach hair or wigs to a person’s scalp or own hair, the Supreme Court of Appeal (SCA) held on Thursday.

The court upheld an appeal by the Commissioner of the Revenue Service (SARS) concerning the correct tariff classification for customs duty on synthetic fibres and stitched wefts used to adorn hair.

The North Gauteng High Court in Pretoria earlier held the particular products, imported from China, were used to make wigs and duties did not have to be paid as they were not finished products.

However, the SCA found the wefts in question, which were used to create the appearance of a wig by attaching them to a person’s own hair or to the scalp, were not components of a wig or the like, but finished articles.

The court held the fact that expertise and time was needed to attach them to hair or to a scalp did not entail making a new product.

The judgment upheld SARS’s contention that the particular wefts should be classified under a tariff heading that attracts customs duty.

( Source: http://www.news24.com/Content/SouthAfrica/News/1059/0c12a7ed4a0d41899160e01fa4e8000e/04-03-2010-09-21/Wigs_cant_escape_taxman)

WTO: Interactive Service Gives Tariff Research New Sophistication

A new service was added to the WTO’s set of tools for finding out information on customs tariffs on 3 February 2010. The latest addition, “Tariff Analysis Online”, is the WTO’s most versatile so far. It includes the greatest available level of detail on the tariffs that WTO members have legally bound and the rates they are actually charging, summary import statistics, and the ability to analyse these interactively.
Tariff Analysis Online draws on two WTO databases: the Integrated Database (IDB) of tariff and import data, and the Consolidated Tariff Schedules, which contains WTO members’ commitments on tariffs and agricultural subsidies.
It provides users with flexible search criteria and produces a range of analytical reports – the results of the searches – covering both tariffs and imports, in detail and summary levels. Users can manipulate the analysis online and download and print the resulting reports.
The development of the new service is in line with the Market Access Committee’s decision of 13 July 2009 to make detailed information on tariffs available to the public.
The existing Tariff Download Facility is simpler and would be the service of choice for users looking for more basic information. It provides standardized statistical information on bound, applied and preferential tariffs on products defined in slightly less detail, by Harmonized System (HS) six-digit codes, with the ability to compare between countries swiftly.
A third service, the World Tariff Profiles, provides similar information to that of the Tariff Download Facility but for broader product categories.

Pakistan - Value-added textile associations warn of strikes

The associations of value-added textile on Wednesday warned the government of countrywide protests and strikes if it did not restrict the cotton yarn export to maximum 50 million kg per month within the current week. “The government had agreed last month to cap the cotton yarn export to 50,000 kg a month but did not implement its decision, which further increased the commodity shortage on the local market,” said chief co-ordinator of PHMA M Javed Bilwani.

Speaking at a press conference at Pakistan Hosiery Manufacturers Association (PHMA) House, he said that “the government has made us fools with a wrongly scripted SRO on capping of yarn export”. There were also representatives of value-added textile associations including Pakistan Cloth Merchants Association, Pakistan Sweaters Exporters Association, Towel Manufacturers Association, Pakistan Textile Exporters Association, Pakistan Cotton Fashion Apparel Manufacturers Association etc.

Bilwani said: “Despite meeting with Federal Finance Minister Shaukat Tarin who accepted that the respective SRO had encountered problems in its script and said that it will immediately be corrected, but there is still no corrective move by the government.” He added that the grim situation, which was prevailing prior to December 8, 2009 decision, still persisted.

He said: “The government has not stopped the additional volume of yarn export over 50 million kg and still 62 million kg of the commodity was exported, which is a violation of its decision.” He termed the SRO as “eyewash” and mere a piece of paper on which there is no hope of implementation, saying that the value-added textile units are rapidly going towards closures in the wake of cotton yarn shortage.

Read the whole article at  http://yarnsandfibers.com/news/index_fullstory.php3?id=21171&p_type=General#

Philippines: Comprehensive tariff review starts on Monday

The Tariff Commission Monday starts a comprehensive review on most favored nation tariff from HS (Harmonized System) 1-97 of the Tariff and Customs Code covering 11,490 tariff lines with rates ranging from 0 to 65 percent in an effort to assist business in their strategic planning in the next four years.

Tariff Commission Chairman Edgardo B. Abon said the comprehensive tariff review is necessary because the current Comprehensive Tariff Program (CTP) is only up to December 31, 2010.

“Our Tariff and Customs Code is up to 2010 only, so we are doing this to bring out the rates for 2011 to 2015,” Abon said.

MFN tariffs cover the duty rates on imports coming from countries that the Philippines has no trade agreements. At present, the country has free trade agreement with ASEAN, China, Korea, Australia and New Zealand.

“The objective of this review is to make the CTP user friendly, to assist business in doing their strategic planning for the next four years,” Abon added.

The business community is keenly interested in the CTP review because tariff is part of the cost of doing business. The setting of a four-year CTP provides predictability to business.

During the week-long public consultations, Feb. 8-12, Abon said that industry stakeholders can ask for increase, decrease or for retention of existing tariffs but this would still be evaluated by the government in consideration of the other sectors.

Abon also explained that the Commission is not doing the tariff review because of the World Trade Organization but rather, “This is good for the country, not WTO.”

He also stressed that the country’s existing tariff rates are, by far, lower than the bound rates set by the WTO.

Source http://www.mb.com.ph

Dubai Chamber opens Customs office at its headquarters

Press Release

As part of its strategic objectives of supporting the development of business and creating a favourable business environment in Dubai for its members as well as to enhance its working relationship with various Government Departments, the Dubai Chamber of Commerce & Industry inaugurated a Dubai Customs representative office at the Membership and Documentation Services Department on the ground floor of the Chamber’s head office on Monday.

This new facility, that will be followed by another office in the Chamber’s Jebel Ali Branch, is open from Sunday to Thursday 8am to 3pm, and offers services such as Issuance of Customs Business codes, Mirsal 2 system Registration and Customs clearing, Enquiry Services on Harmonized System of Goods (HS Code), Clients Complaint System, Clients Suggestion System, Enquiry Services and Awareness on Customs regulations and requirements.

Said Atiq Juma Nasib, Senior Director - Commercial Services Sector, Dubai Chamber,

“We already have the Municipality Representative Office in the Chamber’s premises and now this Customs Representative Office is another milestone for Dubai Chamber and a constructive step towards providing value-added services for our stakeholders under one roof.”

Nasib further stressed that this move will help us enhance cooperation with various Government entities and also help us in promoting public and private sector partnership as well as our strategic objectives of supporting the economic development of Dubai.

On the other hand, Mrs. Feryal Tawakul, Executive Director of Community Affairs and Government Partnership Division at Dubai Customs expressed her gratitude towards the cooperation between Dubai Chamber and Dubai Customs which reinforces partnership among government entities in the UAE, yields mutual benefits and provides value added services to the business community in Dubai.

Mrs. Tawakul added: “The inauguration of the new Customs office at Dubai Chamber is a step forward towards generating more quality services of the most advanced and international management practices inline with our commitment towards best services delivery standards.” Mrs. Tawakul emphasized that Dubai Customs services take into consideration the importance of partnership as a cornerstone to develop performance, simplify procedures and enhance customers service away from bureaucracy and any complications which will definitely save time, effort and cost.

Presently, Dubai Chamber operates three branches and three representative offices spread all across the Emirates including the Headquarters in Deira, Dubai Airport Free Zone, Jebel Ali Free Zone and Al Awir branches as well as the representative offices in the Dubai Department of Economic Development and Al Twar Center and offers services like Membership (new and renewal); Issuance of Certificates of Origin; Authentication of Commercial Documents and Signatures; Letters of introduction, Information, Attestations, and Assistance in the Legalization of documents.

Banning of Chinese toys- Kids’ Story

Government of India has prohibited import of ‘Toys’ from China appearing under ITC Codes 9501, 9502, 9503 of Schedule – I of ITC(HS) Classifications of Export and Import Items. The prohibition has come with effect from 23 January 2009 and will remain in force for six months. Prohibition covers following toys from China:

9501 Wheeled toys designed to be ridden by children (for example, tricycles, scooters, pedal cars); dolls’ carriages

9502 Dolls representing only human beings

9503 Other toys; reduced-size (”scale”) models and similar recreational models, working or not; puzzles of all kinds

Although DGFT notification No. 82 /(RE-2008)/2004-2009 dated 23 January 2009 says that “Import of Toy” are prohibited, since the prohibition covers all goods falling under Codes 9501, 9502, 9503, even parts of such toys are covered within the said prohibition. The apparent reason for import ban on Chinese toys is concern about child safety. It is believed that Chinese toys contain high level of toxicity injurious to the health of a child. High levels of lead in children’s bodies can cause physical illnesses, including diarrhea and nausea, and can also, reportedly, harm children’s intellectual development and their IQ levels. Phthalates -DEHP, DBP and BBP, commonly added to plastic products to make them soft and pliable, found in soft plastic toys may cause serious long-term side effects, such as hormone malfunctioning and reproductive defects. CPC and other hazardous chemicals used in doll dress are believed to be carcinogenic. It is also alleged that Chinese toys have loose small parts which may come off from the toys while playing and may be a health hazard when swallowed by the child.  Read the rest of this article at http://scooters-for-kids.com/banning-of-chinese-toys-kids-story-2

ASEAN-India: Trade in Goods Agreement

P.K. Dash writes: In 1991, India announced its ‘Look East’ Policy with a view to seeking greater engagement with East Asian countries building upon its historical links with these countries. India became a sectoral dialogue partner of the ASEAN in 1992. India became a Full Dialogue Partner of ASEAN at the 5th ASEAN Summit in Bangkok in 1995 and a member of the ASEAN Regional Forum (ARF) in 1996. With a view to providing an institutional framework for operationalising economic cooperation, India and ASEAN signed a Framework Agreement or Comprehensive Economic Cooperation Agreement (CECA) on October 8, 2003. Negotiations towards a Trade in Goods Agreement commenced in March 2004 and ended in May 2009. In the meantime, ASEAN have signed FTAs with China (2004), South Korea (2006), Japan (2007),Australia & New Zealand (2009).

India-ASEAN Trade in Goods Agreement

On 13^th August 2009, India and the ASEAN (Association of South East Asian Nations) comprising Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia,Myanmar, Philippines, Singapore, Thailand and Vietnam signed the Trade in Goods Agreement under the broader framework of Comprehensive Economic Cooperation Agreement (CECA) between India and the ASEAN. The Agreement has come into force on 1st January 2010 in respect of Malaysia, Singapore and Thailand. In the case of other countries, it will come into force after they complete their internal requirements.

Along with the Trade in Goods Agreement, the following related Agreements have also been signed: (a) Protocol to Amend the Framework Agreement on Comprehensive Economic Cooperation between India and the Association of Southeast Asian Nations,

(b) Agreement on Dispute Settlement Mechanism under the Framework Agreement on Comprehensive Economic Cooperation between India and the Association of Southeast Asian Nations and (c) Understanding on Article 4 of the Trade in Goods Agreement under the Framework Agreement on Comprehensive Economic Cooperation between India and the Association of Southeast Asian Nations.

Read this entire article at   nvonews.com