Customs Increase Emphasis on Dutiable Value, HS Classification and Country of Origin

Oct. 23 – The General Administration of Customs (GAC) has released GAC Order [2009] No. 49, that aims to strengthen customs enforcement by focusing on the dutiable value of imported goods, the harmonized system (HS) classification of imported and exported goods, and processing trade beginning October 1.

The GAC’s revenue target for the year is higher despite decreasing imports and exports that has subsequently slowed dutiable income. The GAC is now under pressure to implement a new declaration to ease the enforcement of customs rules and ensure that the correct amount of revenue is collected.

The GAC order will enable customs to request supplementary declarations in relation to the dutiable value, HS classification and country of origin of imported and exported goods.

These areas are key factors for determining duty and value-added tax liabilities:

Compliance Requirements
A supplementary declaration can be completed in response to a written request made by Customs, or voluntarily by the declarant of the imported / exported goods. They are also non-specific; supplementary declarations may be made in respect of all product categories.

Where customs requests a supplementary declaration, the declarant should respond within 5 working days, or customs may independently assess the dutiable value, HS classification and country of origin. Various departments, such as the verification center and field customs may also request a supplementary declaration. Goods can be cleared after this is accepted, however customs may still initiate further validation in respect of the area under question.

The supplementary declaration forms part of the declaration to customs. A declarant is obliged to submit a complete and accurate supplementary declaration. Submission of an inaccurate supplementary declaration violates rules and can result in financial penalties or a delay in the clearance of the goods.

Customs Procedures
Customs are not obliged to provide immediate decisions to supplementary declarations. However, customs should release the goods immediately if they accept the declared information in the original declaration form.

If customs no longer accept the original declaration form, they may re-value the goods or reject the preferential duty rate applied. All Customs departments, including the verification center and field customs, (customs clearance processing) can request a supplementary declaration from the declarant. However, on a case-by-case basis, it may be possible for the declarant to pay a guarantee (cash deposit) to obtain customs clearance and then complete the supplementary declaration in order to speed up clearance times.

The supplementary declaration requires the declarant to provide additional and even sensitive information in order to verify the dutiable value, HS code and country of origin that was stated on the original declaration. Previously, this information would only be requested during a post-importation audit. Now it may be required at import or export of goods.

In addition, unexpected customs clearance delays may be experienced while  the supplementary declaration is being completed. If so, clearance of the goods under cash deposit may be requested. This may reduce the impact of unexpected customs clearance delays.

Dairy tariff cut will not hurt Indonesian producers: NZ minister

The Jakarta Post ,  Jakarta   |  Tue, 10/20/2009 10:09 PM  |  Business

New Zealand Trade Minister Tim Groser assured Indonesian dairy producers on Tuesday that the elimination of import tariffs on dairy products from New Zealand to Indonesia under the ASEAN free trade framework would not affect local farmers.

Indonesia’s farmers have voiced fears that the tariff elimination will be followed by an influx of New Zealand dairy products, further hurting their sales.

Groser said the elimination of the current import tariff of about 5 percent would hardly affect the retail price of its products, shrugging off fears that cheaper prices would create unfair competition with local producers.

Groser is in Jakarta to attend the inauguration of President Susilo Bambang Yudhoyono.

Progress slow in tackling US trade dispute: Canada

By Joel Barry (AFP)

DALLAS, Texas — Some progress has been made toward confronting Washington’s “Buy American” provisions but a swift resolution to the trade dispute is unlikely, Canadian Trade Minister Stockwell Day said Monday.

“We’ve made some headway,” Day said after talks with his US and Mexican counterparts at a North American Free Trade Agreement meeting in Dallas, Texas.

“It’s not a sprint, it’s a marathon,” Day said.

The US stimulus bill allocates 260 billion dollars to states and cities provided that only American-made steel and equipment be bought with the funding.

Ottawa has been hoping the Obama administration would make an exception for Canadian goods in return for a guarantee that city and provincial bids would be open to US firms.

“They’ve looked at the proposal and came back with some thoughts,” Day told reporters. “We think this is workable.”

Day also said that the strengthening of the Canadian dollar — partly arising from his country’s “boring but stable” banking system that eluded the US banking crisis — posed a further challenge to exporters north of the border.

He quoted analysts as saying it could reach parity with the US dollar by the end of the year.

Regarding US-Mexican trade relations, US Trade Representative Ron Kirk said American exporters — particularly in California’s agriculture sector — have been feeling the impact of retaliatory tariffs Mexico implemented after US legislators cut funding to a program allowing Mexican trucks to operate in the United States.

Mexico said it would impose import duties on 89 items, from grapes to toilet paper, but Kirk said not all of the threatened tariffs have been implemented.

“The Mexicans were very shrewd by how they targeted (US) imports,” he said at a press conference.

Mexico’s Secretary of Economy Gerardo Ruiz Mateos sidestepped a question asking if Mexico might lift the tariffs in advance of any resolution of the cross-border trucking issues.

He noted that Transportation Secretary Ray LaHood was meeting with Mexican Transportation Secretary Molinar Horcasitas in Washington soon to discuss the problem.

Asked if narco-violence in northern Mexico was hurting regional trade, Ruiz Mateos said that the Mexican government was taking measures to restore stability while introducing high-tech equipment at crossing points that not only can detect contraband and guns in truck trailers but also greatly reduce transit time from “four hours to 10 minutes.”

The United States, Mexico and Canada did, however, agree to look into streamlining regulatory differences to boost trade as part of a workplan for enhancing “competitiveness, strengthening institutions, and communications and transparency” under NAFTA.

The 1994 NAFTA trade pact created the largest trading bloc in the world by eliminating import tariffs on goods circulating among partners Canada, the United States and Mexico.

“Since all tariff cuts under the agreement have been implemented, we asked officials to pursue cooperation in other areas, including reducing unnecessary regulatory differences to ensure the free flow of goods, services and capital through modern and efficient borders,” said a statement issued after the meeting.

“This forward-looking workplan should draw upon the work already underway, as well as incorporate new elements, developed in consultation with all relevant stakeholders,” it added.

The ministers also agreed to establish an ad hoc working group to explore cooperation on protecting the environment.

They wanted an agreement “at the working level” by early next year for liberalization of NAFTA rules to step up trade on environmental goods.

Source:  http://www.google.com/hostednews/afp/article/ALeqM5ijMg7Ej-RTJwzJgVAlV41Hm0f3Gg

Indonesia To Cut Import Tariffs in 2010

JAKARTA, Indonesia — The Indonesian government has announced it will reduce import tariffs on vehicles next year. The government sees this as the final cut in MFN (most favored nation) tariff rates as required under World Trade Organization regulations. Import tariffs on completely knocked down (CKD) products are reduced by 33 percent.

Some of the smaller players in this market are expected to get a boost from the news, especially those who assemble their vehicles in Indonesia and have to compete against the dominant Japanese manufacturers. Among these are Hyundai, Kia, Peugeot, and even luxury-carmakers Mercedes-Benz and BMW. For importers of luxury cars such as Volvo and Audi, the benefits will be more marginal.

The CKD tariff cuts will also provide some encouragement to those manufacturers that have expressed an interest in establishing new assembly operations in the country, including Volkswagen, China’s Geely and also General Motors — which ceased local production of the Blazer SUV in the early 2000s.

Current tariffs on vehicles imported under bilateral and regional trade agreements such as the ASEAN Free Trade Agreement (AFTA) will not be affected. Duties on completely built (CBU) vehicles imported from qualifying member countries will remain at a maximum of 5 percent.

More… http://www.edmunds.com/insideline/do/News/articleId=158869

Free trade versus tariffs

The debate over the future trajectory of South Africa’s economic policy is about much more than the powers of Trevor Manuel and the planning ministry.

Bubbling under for the past five years at least has been an argument within government about trade.

Put crudely, the question is whether South Africa is more likely to prosper if local companies are exposed to global competition and forced to lower their prices while improving their products, or if, on the contrary, we need to shelter them behind tariff and regulatory barriers that will enable them to grow stronger before they take on the world.

Right now this debate is taking place against the backdrop of reforms in the architecture ofinternational finance and a tussle over the future of the World Trade Organisation’s (WTO) Doha development round.

These are discussions that can easily be lost in the technical minutiae of multilateral negotiations and the dry language of economics, but they are crucial to the future shape of our economic policy landscape.

The Mail & Guardian is collaborating with the South African Institute of International Affairs to try to draw more people into the conversation.

M&G editor Nic Dawes initiates the collaboration this week by interviewing Trade and Industry Minister Rob Davies, a robust proponent of the view that South Africa needs to protect emerging and strategic industries, and a leading activist among developing country ministers involved in negotiations at the WTO.

Read more: http://www.mg.co.za/article/2009-10-19-free-trade-versus-tariffs

An objective analysis of tea imports for re-export

By Lalith Hettiarachchi Chairman, Sri Lanka Tea Board

With the tea crisis some months back, public opinion was created insinuating that the import of low quality tea to Sri Lanka is directly affecting the tea prices of Sri Lanka. Although at many a forum attempts were made to dispel this misconception, it started coming up again and again. The issue was taken up in the Parliamentary Consultative Committee (PCC) meeting several times culminating with a recent meeting at the PCC to discuss this issue fully.

In October 1980, the Cabinet of Ministers had decided that import of tea is allowed to Sri Lanka subject to (a) not allowing such imported low grade teas to be sold locally and (b) having taken adequate precautions to charge the applicable duty for the proportion of Ceylon tea blended with the imported tea at the point of export.

The basic objectives of this scheme for allowing imports of tea for blending purposes were:-

(i) To develop Sri Lanka as a tea hub amongst the tea producing countries of the region,

(ii) Allow import of cheap teas to be blended with Ceylon teas to regain the progressively losing value added benefit on the export of packets and tea bags,

(iii) To face the market competition in the world offering the consumers blends of teas with cheaper filler type teas obtained from international sources,

(iv) To allow import of CTC and green teas for blending and re-export.

It should be noted here that at this particular time only about 10% of our teas were exported as value added and we were widely known as a bulk tea exporter. The result was that the international tea blenders were making big profits from our teas that got blended in their hands with other origin teas. The argument therefore was to get that benefit for our local blenders/packers. This was a prudent and timely decision.

Read this entire article at it’s source: http://www.sundaytimes.lk/091011/FinancialTimes/ft09.html

U.S. Customs and Border Protection Selects the Acadis Readiness Suite to Modernize Training Management

Envisage Technologies Software to Replace Existing Legacy System at Six Training
Academies
BLOOMINGTON, Ind.--(Business Wire)--
Envisage Technologies will implement its Acadis Readiness Suite at six U.S.
Customs and Border Protection (CBP) law enforcement training academies across
the United States thanks to a contract award from the U.S. Department of
Homeland Security. CBP will implement the Acadis Readiness Suite at its training
academies in Glynco, Ga.; Artesia, N.M.; Harper`s Ferry, W.Va.; Charleston,
S.C.; Front Royal, Va. and El Paso, Texas. 

To modernize key aspects of its law enforcement training operations, CBP plans
to employ the following Acadis Readiness Suite modules: training management
system; automated scheduling; automated testing; qualification/certification
management; and reporting. 

"Since the events of September 11, our academies have seen significant increases
in training demands," said Meka Seawright, chief of the Technology Resource
Branch for the Office of Training Development (OTD). "To meet these escalating
needs, we have implemented a strategy to identify critical training bottlenecks
early and apply technology where appropriate to alleviate resource constraints.
As a result, our training academies have been able to keep pace with
skyrocketing demands and continue to provide world-class training to all of our
law enforcement personnel." 

With this contract CBP will upgrade the legacy Academy Class Management System
(ACMS) with a modern enterprise platform designed to simplify complex tasks and
increase training throughput by automating key aspects of academy operations.
Acadis will help integrate CBP`s critical, high-liability training operations
and information into a comprehensive, legally defensible, enterprise solution. 

"CBP has been a true thought leader in the application of technology and
standardization to increase training throughput," said Ari Vidali, Envisage
Technologies chief executive officer. "The organization was a pioneer in
implementing Internet technology for law enforcement training in the early
1990s. With this contract, CBP is taking its training strategy to the next
level. Our Acadis Readiness Suite ensures CBP will meet increased training

Read more at http://www.reuters.com/
demands and its resource challenges well into the future."