Export Compliance Daily is providing readers with some of the top stories for May 18-22 in case you missed them.
The top executive for customs policy at UPS said the consequence of the COVID-19 pandemic will be that companies “reassess everything” about supply chains. Norm Schenk, executive vice president for customs policy, was on a panel that included the director of corporate customs for a major logistics provider, the head of customs for a major automaker, and the executive director of the Georgia Ports Authority. The panelists, hosted by the U.S. Chamber of Commerce on May 19, agreed that even after the crisis is over, trading will not return to how it was.
The Commerce Department’s Bureau of Industry and Security is preparing to issue several additional export controls over emerging technologies and is finalizing a long-awaited advance notice of proposed rulemaking for foundational technologies, BIS officials said. The emerging technology controls will be released “within the next few weeks,” an official said, while the foundational technology ANPRM will soon be sent for interagency review and for feedback by technical advisory committee members before being publicly released.
The Office of Information and Regulatory Affairs began an interagency review for a final rule from the Commerce Department that will implement certain export control decisions from the 2020 Australia Group meeting. The rule, received by OIRA May 5, will add certain “rigid-walled, single-use cultivation chambers and precursor chemicals” to the Commerce Control List. The rule would also amend the Export Administration Regulations by revising biological and chemical controls on the CCL.
The U.S. Chamber of Commerce, in an updated list of its priorities for a U.S.-United Kingdom free trade agreement, said it wants a “single, comprehensive agreement,” not a phased approach that resolves just “a subset of issues.” The Chamber released its list the same day negotiations began (see 2005050014) May 5. It wants the U.S. and the U.K. to eliminate all tariffs on industrial goods, to address non-tariff barriers in industrial goods, and for the U.K. to end what the Chamber calls “non-science-based restrictions on agricultural trade.” The Chamber also is calling for the administration to promptly remove Section 232 tariffs on British steel and aluminum.
Exports to the European Union rose by 5.9% in 2019, the U.S. Chamber of Commerce said in its annual report on the business ties between Western Europe and the U.S. Exports to Belgium, Spain, Austria, Bulgaria and Denmark were all up by double digits, with the most growth in Austria, where exports were 60% above 2018 levels. However, the growth was about half the pace of 2018, when exports to the EU grew by 11%.
Canada, Australia and five other countries issued a joint statement saying they are committed to keeping trade lanes open and stressed the importance of refraining from imposing export controls during the COVID-19 pandemic. Trade should continue to “flow unimpeded” during the pandemic and should not hamper global air and sea ports, Australia, Brunei Darussalam, Canada, Chile, Myanmar, New Zealand and Singapore said in a March 25 joint statement. “We recognise that it is in our mutual interest to ensure that trade lines remain open, including via air and sea freight, to facilitate the flow of goods including essential supplies,” the countries said.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said the export restrictions on masks, respirators, medicines and other goods needed for responding to the COVID-19 pandemic is “a bad cycle,” and he urged the president and world leaders “to work together on a coordinated response on the epidemic.” Grassley, who was speaking with reporters on a conference call March 16, said restrictions reduce global supply and lead to higher prices. “I was encouraged to see the G7 leaders' statement today,” he said, which mentioned support for global trade.
The auto industry publicly asked the Trump administration not to rush into certifying readiness for the U.S.-Mexico-Canada Agreement's entry into force, given the fact that “a global pandemic is significantly disrupting our supply chains, and the industry is throwing all available resources into managing production through this crisis for our employees and for the broader U.S. economy.”
China’s Commerce Ministry held calls with the American Chamber of Commerce in China and the European Union Chamber of Commerce in China last week to discuss trade and business issues related to the coronavirus outbreak, according to an unofficial translation of a March 13 ministry notice. China said the calls, which included more than 200 member companies, were intended to address any problems for companies facing delays in resuming production and trade in China, which the ministry said should resume “as soon as possible.” The sides also discussed China’s economy, “corporate assistance policies, labor shortages, inadequate epidemic prevention materials, and logistics.”