Putin offers Belarus zero oil import duties

Russian Prime Minister Vladimir Putin offered Tuesday to abolish import duties on Russian oil for neighboring Belarus starting in 2012.

Putin arrived in Brest, on the Belarus-Polish border, for discussions with the Belarusian prime minister on creating a single economic zone.

Belarus, a former Soviet republic, receives 20 million tons of oil from Russia, two thirds of which it refines and ships to the West in a cargo worth more than a third of all export revenues. Belarus pays full import duties on the Russian oil it exports but none on the oil it consumes. Putin said Tuesday that all tariffs would be waived if Belarus agreed to enter a single economic zone.

“With the creating of the single economic space all internal duties should be removed,” Putin said, adding the zone should come into effect Jan. 1, 2012.

Analysts say Putin wants favors from Belarus in return, such as recognition of the Moscow-friendly breakaway provinces of Georgia. Putin lamented Belarus’ caution over the thorny issue, saying he had hoped Belarus would “quickly, energetically and dramatically support Russia … but this is not happening.”

In what some observers have called a snub to Putin, Belarus’ authoritarian President Alexander Lukashenko was in Caracas on Monday and Tuesday to secure oil deals with Venezuelan President Hugo Chavez.

“Putin is trying to buy Belarus’ loyalty,” said Alexander Klaskovsky, a political analyst. “But Minsk is wary that the Kremlin is being greedy and won’t pay up.” Minsk is the capital of Belarus.

Russia is on a drive to reassert its Soviet-era influence in the former satellite states, and some observers say Putin is trying to keep them on a short leash by using the country’s formidable energy resources.

“Putin … harbors imperial ambitions,” said another analyst, Yaroslav Romanchuk. “And Minsk is trying to make Russia pay a pretty penny for these ambitions.”

Putin also called for a single currency to be adopted between the two nations by 2012.

Lukashenko has ben accused of playing Russia and the West off each other to secure loans and political support from both.

Venezuela, also a strong Russian ally, plans to sell 80,000 barrels of heavy crude a day to Belarus, President Hugo Chavez said Monday.

Russia has its own considerable economic interests in Venezuela.

(source: http://www.businessweek.com/ap/financialnews/D9EFUCE81.htm)

Customs duty dispute leads to death of 37 ostrich chicks

The staff of Pakistan Ostrich Company, an importer of ostrich chicks from Australia and other countries, held a protest demonstration at the Karachi Press Club (KPC) on Tuesday. The protesters were carrying the bodies of the 37 ostrich chicks that died at the Karachi airport, allegedly due to the negligence of Pakistan Customs officials.

A consignment of 120 day-old ostrich chicks imported from Australia by the said company was held by the customs for over 40 hours on Friday night due to a customs duty dispute. This resulted in the death of 37 chicks due to hunger and lack of movement.

An ostrich chick is highly fragile bird and needs immediate care in early days of life including frequent supply of food, water and even a walk otherwise its digestive system develops fatal problems, causing immediate death of the bird.

The protesters termed the death of ostrich chicks a conspiracy against livestock promoting activities in Pakistan. They demanded of the government to take notice of the death of innocent birds due to custom officials’ negligence and formulate a clear policy regarding the import of birds like ostriches as well as their immediate release from the airport.

CEO of Pakistan Ostrich Company, Tahir Latiff told The News that on Friday night the consignment arrived from Australia and was held by the customs staff at the Jinnah International Airport for over 40 hours as they were demanding import duty from the company’s staff at a very high rate.

“Ostrich chicks are normally purchased for 50 to 70 US dollars from abroad and 11 per cent duty is paid to the government by the importer. This time, the custom officials claimed that the ostrich chicks’ price was 371 US dollars and duty should be paid according to that price,” he revealed.

Latiff maintained that his staff had gone to the airport to receive the consignment and were willing to pay the duty as per the original price of the consignment but the customs’ officials demanded a sum that was higher than the actual value and could not be arranged in the night.

“It was Friday night when this happened and there was no senior customs official present at the airport to resolve the issue. The ostrich chicks were packed in boxes and remained at the airport throughout the night and on Saturday. The consignment was only released when the amount demanded by the customs officials was paid to them,” he claimed.

He further said that all over the world, livestock imported from abroad is cleared immediately as it cannot be kept for an indefinite period at the airports and ports and any issues related to the customs duty are settled later on.

“Even now, the dispute between us and the customs’ officials over the import duty persists and it would be settled in coming few days. But unfortunately, the bureaucratic hurdles resulted in the death of 37 ostrich chicks who starved to death,” he claimed.

“Ironically, ostriches are still considered as wildlife species in Pakistan while it is given the status of livestock all over the world due to its immense potential of meeting meat requirements as well as other benefits,” Latiff said.

On the occasion, he demanded of the government to immediately declare ostrich a form of livestock instead of treating the birds as wildlife. He also asked for the removal of import duties on ostriches and facilitation of ostrich farming by providing loans to farmers.

(source: http://www.thenews.com.pk/daily_detail.asp?id=231786)

Russia May Cut Car-Import Duties To Pre-Crisis Levels

Russia is considering reductions in import duties on foreign automobiles to levels charged before the country’s financial crisis, business daily Vedomosti reports Tuesday, citing a letter between government officials.

The reductions will be debated at an upcoming meeting of a federal customs subcommittee, the newspaper quotes Andrei Slepnev, deputy minister of economic development, as writing in a letter to First Deputy Prime Minister Viktor Zubkov. Two officials in the Ministry of Economic Development confirmed the contents of Slepnev’s letter, which was dated March 15, but they stressed the cuts are now only proposals, not final decisions, Vedomosti says.

Since Jan. 12, 2009, Russia has imposed a 30% tariff on imports of new, foreign-brand cars–a 5% percent increase from pre-crisis levels. For imports three to five years old, the rate went to 35% of the vehicle’s cost from 25%, or at least EUR1.20 per cubic centimeter of the vehicle’s engine. On imports older than five years, Russia charges between EUR2.50 and EUR5.80 per cubic centimeter.

The higher rates were initially intended to last nine months but were extended last October to July 2010. Amid the higher duties, imports of new foreign cars have fallen threefold, Slepnev wrote. The share of cars made in Russia rose to 51.5% in 2009 from 40.2% in 2008, he noted.

(Source: http://www.foxbusiness.com/story/markets/industries/transportation/russia-cut-car-import-duties-pre-crisis-levels–vedomosti/)

Europe’s highest court rejects preferential EU treatment for products made in Israeli-occupied Palestinian territory

On February 25, 2010 the European Court of Justice (ECJ) handed down a judgment in Brita GmbH v. Hauptzollamt Hamburg-Hafen. The facts of the case are nothing spectacular, but it is the politically-charged nature of the case and the economic consequences of the ruling that make this case significant.

One of the issues that the ECJ was asked to determine was whether goods produced by an Israeli manufacturer in the West Bank qualify for preferential treatment under the 1995 EC-Israel Agreement. The Agreement basically states that goods produced in the “territory of Israel” shall enjoy preferential treatment, in the form of reduced tariffs, when exporting to EU member states. The ECJ has now ruled that Israeli products from the West Bank (or any other administrative territory of Israel) do not so qualify.

The ruling comes as no surprise to anyone in the EU who has been following the growing vocal disapproval over Israeli labeling practices. For example, on November 11, 2009 the UK government made an official recommendation to make it a criminal offense to label any products from Israeli settlements as having been produced in Israel.

(source: http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=30&article_id=112849)

Ocean Transportation: Why You Should Have Been Ready for ‘10+2′

Analyst Insight: A December 2009 study reveals that as few as 22 percent of companies are ready for the January 26, 2010 mandate date for full Importer Security Filing (ISF) “10+2″ compliance. The economic recovery may foretell huge fines for these companies.

In the post-9/11 era, no issue is more important to the future of ocean transportation than security. Shipping containers pose a devastating risk both of physical and economic loss should a weapon be smuggled into a port. In response to these risks the U.S. Department of Homeland Security and U.S. Customs & Border Protection (CBP) has enacted a new regulation known as the “10+2” rule. On November 25, 2008, the CBP released this rule on importer security filings (ISF) and as of January 26, 2010 the penalty phase will begin.  The “10+2”  rule makes for a more complicated filing because it is a two-party process that requires: 1) importers to provide CBP with 10 data elements about ocean shipments inbound to the U.S. at least 24 hours prior to vessel departure, and 2) ocean carriers to provide 2 data messages at least 48 hours prior to vessel departure.

This rule applies to all maritime cargo loaded at a foreign port that is destined for direct discharge at or transiting through a U.S. port, and companies will face significant fines if they are not in compliance with the new regulation. Penalties include liquidated damages equal to the value of a shipment for failure to file the ISF, and importers may also face potential charges for inaccurate or missing data.

In Aberdeen’s December 2009 study, Supply Chain Visibility Excellence: Reduce Pipeline Inventory and Landed Cost, there were 174 importers surveyed and only 22 percent said they had visibility to the 10 required elements and only 48 percent of them are confident their carriers are prepared to supply the remaining 2 elements.

The Outlook

In 2010, compliance issues will become even more important. According to the monthly Port Tracker (by the National Retail Federation and IHS Global Insight, November 2009), import container volume at the nation’s major retail container ports in February 2010 is expected to increase 16 percent over February 2009.  This represents a break from a 31-month string of year-over-year declines. The NRF is hopeful that this is a sign of economic recovery, but companies should be mindful that increased shipments with noncompliance to “10+2″ could lead to significant economic penalties, impounded cargo and delays.

(source: http://www.supplychainbrain.com/content/nc/home/single-article-page/article/ocean-transportation-why-you-should-have-been-ready-for-10-2/)

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)