The United Kingdom sanctioned Myanmar Economic Corp. for its role in making funds available to the Myanmar military and its association with senior military figures, Foreign Secretary Dominic Raab announced in an April 1 news release. MEC becomes the latest to be sanctioned following the military coup in the Southeast Asian nation and the subsequent crackdown on peaceful protests (see 2102190057). The conglomerate's assets in the U.K. will be frozen, and U.K. nationals will be barred from dealing with funds owned or controlled by MEC, the release said. “The UK’s latest actions target one of the military’s key funding streams and impose a further cost on them for their violations of human rights,” Raab said.
The European Union extended its sanctions against Bosnia and Herzegovina for one year until March 31, 2022, according to a March 26 European Council decision. Although no one is listed under the sanctions regime, the EC said it is reserving its right to add names to the list should an individual or entity threaten Bosnia and Herzegovina's sovereignty or security. The council also extended until March 31, 2023, the mandate of Operation Irini -- an effort in the Mediterranean to implement the United Nations arms embargo on Libya. The extension of the operation, which also works to monitor and gather information on illegal Libyan exports of oil, was announced in a March 26 news release.
The United Kingdom's Department of International Trade published guidance on how academics should comply with export control measures for their research. The agency is especially concerned with how research could be co-opted for military purposes or for the development or delivery of weapons of mass destruction, and targeted its guidance to researchers who work with overseas colleagues on research, take their work overseas or export their technology. The guidance covers the areas in which research is at risk of requiring an export license, including aeronautical and space technology, nuclear technologies, applied physics, biotechnology, and telecommunications and information technology.
Germany announced a collective export license for armaments from industrial cooperation recognized by France and Germany beginning April 1 under the Treaty of Aachen, Germany's foreign trade agency said in a March 31 notice. The export license marks the deepening integration of the German and French defense industries under the 2019 agreement as arms can now be exported between the countries with greater ease under specific provisions of the agreement.
Belgium extended its reduced value-added taxes on certain COVID-19 related goods and will reduce interest rates on late VATs and duty payments, KPMG said in a March 30 alert. The measures, announced by Belgium March 29, will maintain a reduced 6% VAT rate on the “intra-Community acquisition and import” of “mouth masks” and hydroalcoholic gels until June 30, KPMG said. The country will also temporarily reduce the interest rates for “negligent late payment” of VAT from 9.6% to 4% per year, which will apply to amounts payable April 1 through June 30. Other measures will reduce the threshold for VAT refunds and abolish a mandatory “advance deposit” for certain VAT return filings.
Italy on April 1 launches an online registration portal for value-added taxes, KPMG said in a blog post. Traders will be able to use the portal to register and report VAT for “remote” sales of goods between European Union member states and for certain goods imported from third countries that don’t exceed about $175 in value.
The European Commission imposed antidumping duties on aluminum extrusions from China with duty margins ranging from 21.2% to 32.1%, the commission announced in a March 30 news release. The antidumping investigation began Feb. 14, 2020, following a complaint filed by the association European Aluminium, which represented more than 25% of the European Union's total aluminum extrusion production capacity.
A meningitis vaccine shipment is being held up by Italy's customs agency over suspicions that drugmakers are attempting to circumvent COVID-19 vaccine export controls in the European Union, two people familiar with the matter said, Bloomberg reported. The shipment comes from GlaxoSmithKline Plc and is worth about $10 million. It has been sitting at Rome's airport for about a week awaiting testing to determine the true contents of the vaccines. The delayed shipment may turn out to be collateral damage from the EU's ramped up export control regime, which the bloc extended on March 24 due to concerns that vaccine commitments between developers and the government would not be met (see 2103240016).
The United Kingdom and Thailand signed a memorandum of understanding that established a trade dialogue and committed to further market access negotiations, the U.K.'s Department for International Trade announced in a March 29 news release. The MOU created a Joint Economic and Trade Committee to address market access barriers in agriculture, food and drink, financial services, healthcare and tech as key U.K. issues and power-generating equipment and automobiles as the top Thai concerns. Both sides will work to alleviate mutual concerns over food and drink, fisheries and agricultural sector market access and financial markets access, the release said. “By 2030, 66% of the global middle class will be in Asia and today’s agreement sets out our commitment to deepen ties with some of the fastest-growing markets globally,” International Trade Secretary Liz Truss said.
Nearly a quarter of small businesses in the United Kingdom have decided to stop exporting to the European Union due to Brexit costs and new paperwork, according to a March 29 survey by the Federation of Small Businesses. And 4% of small exporters already have decided to permanently stop selling to the EU following the new trade rules that took effect on Jan. 1, when Britain left the EU, while 11% of small exporters are at least considering completely halting their exports to the bloc. Importers are a slightly different story, with only 17% temporarily suspending purchases from the EU. The Brexit transition has been a logistics fiasco, with 70% of importers and exporters reporting having suffered shipment delays when moving goods around the EU in the first quarter, and 32% having lost goods in transit. To ease these costs, one in 10 exporters is considering establishing a presence in an EU country to ease the process, and more than half of small exporters and importers have sought professional advice to navigate customs, rules of origin and value-added tax obligations.