China’s April 9 decision to lower taxes on certain imported goods likely won’t have a large impact on imports or trade, according to an expert on China business. The move, announced by the Chinese Ministry of Commerce, will reduce the tax rate on certain goods -- such as books, computers, food, furniture and medicine -- from 15 percent to 13 percent. It will also reduce import tax rates on other products, including sporting goods, textiles and electronic appliances, from 25 percent to 20 percent (see 1904080006).
China is lowering tax rates on certain imported goods, hoping to boost imports and domestic consumption, according to a notice from the Chinese Ministry of Commerce and a report from state-run news agency Xinhua. The change will take effect April 9, the notice said. China will reduce the tax rate of some goods -- such as books, computers, food, furniture and medicine -- from 15 percent to 13 percent, the report said. China will also reduce the rates on products that include sporting goods, textiles, electronic appliances and bicycles from 25 percent to 20 percent. The report also said that certain medicinal imports that are subject to the 3 percent import value-added tax rate, including “anti-cancer drugs and medicines for rare diseases,” will “enjoy [a] favorable tax rate.”
The European Union updated its Market Access Database to include “detailed information on rules adopted” by the United Kingdom “that would apply on UK imports from the EU in the event of a no-deal Brexit,” it said in an April 8 press release. “This is a part of the Commission’s efforts to help industry be prepared in case the United Kingdom leaves the European Union without a negotiated deal,” the release said.
The Trump administration is expected to complete a review of the current scope of U.S. export controls on countries subject to arms embargoes, including China, and may make potential regulatory changes by May 10, according to an April 5 blog post from Steptoe & Johnson. The administration’s review stems from a section of the 2018 Export Control Reform Act, which requires a “review relating to countries subject to comprehensive United States arms embargo.” The act specifically requires the Commerce, State and Defense departments, among others, to review export controls on trades with “military end uses and military end users,” according to the post.
Treasury’s March settlement with Stanley Black & Decker serves as a compliance guide for U.S. companies and represents an important peek into how the Treasury's Office of Foreign Assets Control plans to issue enforcement settlements throughout 2019, according to an April 1 report by WilmerHale.