China’s Changsha Customs recently introduced the country’s “two-step declaration” system in an effort to streamline cargo processing and expedite customs clearance, China’s General Administration of Customs said in an Oct. 23 notice, according to an unofficial translation. The system aims to “meet the needs of international trade” by allowing companies to avoid submitting paperwork “at one time,” allowing them to first submit “summary declarations” and later submit a “complete declaration” within two weeks. China plans to implement the two-step system, announced in August (see 1908150031), at 10 customs ports, and has already implemented it at Ningbo Customs (see 1908160016).
Exports to China
China disputed claims from Secretary of State Mike Pompeo that China is stealing U.S. intellectual property and that it is “difficult” for companies to make a profit in China, saying the U.S. is engaging in “bullying practices.” A spokesperson for China’s Foreign Ministry pointed to a recent survey r released by the U.S.-China Business Council, which reported that 97 percent of the council’s members ran a profitable business in China. “I wonder how Mr. Pompeo came to the conclusion?” the spokesperson said during an Oct. 22 press conference.
Although Senate Finance Committee Chairman Chuck Grassley represents Iowa, a major pork, corn and soybean exporting state, he's not concerned about the figures President Donald Trump touted as he described the outlines of a Phase 1 deal with China. Trump said China would be buying up to $50 billion in American commodities; other administration figures later clarified the promise was for $40 billion to $50 billion, and it would ramp up over two years.
Export Compliance Daily is providing readers with some of the top stories for Oct. 15-18 in case they were missed.
Venezuela’s oil production will continue to drastically decline in 2020 if Nicolas Maduro stays in power, potentially crippling future Venezuelan oil trade, said Alejandro Grisanti, director of the ad hoc board for Petroleos de Venezuela set up by opposition party leader Juan Guaido. Speaking during an Oct. 22 Atlantic Council panel, Grisanti said Venezuela’s oil production will fall to 450,000 barrels per day in 2020 if Maduro stays in power. The country’s oil production has fallen from 1.5 million to about 750,000 barrels per day this year due to U.S. sanctions, Grisanti said.
China’s Ministry of Commerce recently announced application procedures for sugar and wool import quotas for 2020, according to an Oct. 21 report from the Hong Kong Trade Development Council. Companies must submit applications for China’s “Application and Distribution Procedures for Sugar Import Tariff Quotas” by Oct. 30, the HKTDC said. In the wool and “animal hair” sector, companies will be allocated quotas on a “first come, first served” basis “until all available quotas have been exhausted,” the report said.
Sen. John Cornyn of Texas, who served as the Republican party whip for five years until 2018, said he doesn't think the Hong Kong Human Rights and Democracy Act would come up this week. The most likely way for the Hong Kong bill to move that quickly would be to see if it could be subject to unanimous consent, which means a voice vote with no debate. Bringing up a bill in this way is to "hotline" it.
The U.S. and China appear poised to reach some sort of "mini-deal" before the end of the year, said Bank of America global economists Ethan Harris and Aditya Bhave in an Oct. 18 report. "In our view, both sides see the other as being in a weakened negotiating position," the analysts said. "The US can point to the bigger economic slowdown in China than in the US. China can point to President [Donald] Trump’s impeachment investigation and his desire to maintain a healthy economy going into the election. This argues for a relatively balanced 'win-win' deal."
The government of Canada issued the following trade-related notices as of Oct. 21 (note that some may also be given separate headlines):
China is going to ask the World Trade Organization to authorize retaliatory tariffs on $2.4 billion worth of goods at the WTO's dispute settlement body meeting Oct. 28. If the U.S. disagrees with either the argument that it's not complying with the ruling on countervailing duties, or the amount of retaliation permitted, an arbitrator will decide how much China may retaliate.