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The Daily Bugle Weekly Highlights: Week 22 (25-29 May 2020)

Every Monday we post the highlights out of last week’s FCC Export/Import Daily Update (“The Daily Bugle”). Send out every business day to approximately 8,500 readers of changes to defense and high-tech trade laws and regulations, The Daily Bugle is a free daily newsletter from Full Circle Compliance, edited by James E. Bartlett III, Salvatore Di Misa, and Elina Tsapouri.

We check the following sources daily: Federal Register, Congressional Record, Commerce/AES, Commerce/BIS, DHS/CBP, DOE/NRC, DOJ/ATF, DoD/DSS, DoD/DTSA, FAR/DFARS, State/DDTC, Treasury/OFAC, White House, and similar websites of Australia, Canada, U.K., and other countries and international organizations.  Due to space limitations, we do not post Arms Sales notifications, Denied Party listings, or Customs AD/CVD items. To subscribe, click here.

Last week’s highlights of The Daily Bugle included in this edition are:

  1. EU Commission Updates; Tuesday, 26 May 2020; Item #4.
  2. DHS/CBP Publishes Guidances on Section 301 China Extension of Certain Product Exclusions; The Daily Bugle; Thursday, 28 May 2020; Item #7.
  3. USTR Publishes Notice of Product Exclusions; The Daily Bugle; Thursday, 28 May 2020; Item #4.
  4. Canada TID: “Joint Statement by the Minister of Foreign Affairs of Canada, UK, Australia and USA Responding to China’s Proposed New Security Law for Hong Kong”; The Daily Bugle; Friday, 29 May 2020; Item #4.
  5. Netherlands TCA: “The Prohibition on The Export of PPE is Lifted From 26 May 2020 Onwards”; The Daily Bugle; Friday, 29 May 2020; Item #6

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EU Commission Updates

(Source: Official Journal of the European Union) [Excerpts]

 

Commission Implementing Regulation (EU) 2020/693 of 15 May 2020 concerning the classification of certain goods in the Combined Nomenclature

The goods described in column (1) of the table set out in the Annex shall be classified within the Combined Nomenclature under the CN code indicated in column (2) of that table.

   Binding tariff information which does not conform to this Regulation may continue to be invoked in accordance with Article 34(9) of Regulation (EU) No 952/2013 for a period of three months from the date of entry into force of this Regulation.

   This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States. …

Notice to exporters concerning the application of the EU system for registered exporters (REX system) for exports from the EU to Eastern and Southern African States within the framework of the EU-ESA interim Economic Partnership Agreement

   -Until 31 August 2020 (included), the ESA States shall grant preferential tariff treatment to products originating in the EU upon submission of either a movement certificate EUR.1 or an invoice declaration, made out by approved exporters within the meaning of Article 24 or by any exporter for any consignment consisting of one or more packages containing originating products whose total value does not exceed EUR 6 000;

   -From 1 September 2020, the ESA States shall grant preferential tariff treatment to products originating in the EU exclusively upon submission of invoice declarations made out by exporters registered in the EU’s REX system or by any exporter for any consignment consisting of one or more packages containing originating products whose total value does not exceed EUR 6 000. …

* Council Decision (EU) 2020/678 of 18 May 2020 on the position to be taken on behalf of the European Union in the CETA Joint Committee established under the Comprehensive Economic and Trade Agreement (CETA) between Canada, of the one part, and the European Union and its Member States, of the other part, as regards the adoption of a decision setting out the administrative and organisational matters regarding the functioning of the Appellate Tribunal.

   The position to be taken on behalf of the European Union in the CETA Joint Committee as regards the adoption of a decision setting out the administrative and organisational matters regarding the functioning of the Appellate Tribunal shall be based on the draft decision of the CETA Joint Committee (4).

This Decision shall enter into force on the date of entry into force of the Agreement. …

 

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DHS/CBP Publishes Guidances on Section 301 China Extension of Certain Product Exclusions

(Source: CSMS #42837261 and CSMS #42839255, 27 May 2020) [Excerpts]

 

* CSMS #42837261 – GUIDANCE: Section 301 Tranche 4A – $300B: Fourth Round of Product Exclusions from China (9903.88.47)

BACKGROUND

On May 13, 2020, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 28693 announcing the decision to grant the fourth round of certain requested exclusions from the Section 301 duty related to goods covered under List 1 Annex A (Tranche 4A – $300B Action).

These product exclusions relate to the imposed additional duties announced in 84 FR 43304 and 84 FR 45821 on Chinese goods with an annual aggregate trade value of approximately $300 billion.  The product exclusions will retroactively apply as of the September 1, 2019 effective date of the $300 billion action (Tranche 4A), and will extend through September 1, 2020. 

The scope of each exclusion is governed by the scope of the HTSUS 10-digit classification and product descriptions in the Annex to 85 FR 28693, and not by the product descriptions set out in any particular request for exclusion.  A link to the Federal Register Notice is embedded in this message.

The functionality for the acceptance of the fourth round of products of China excluded from Section 301, Tranche 4A – $300B Action duties will be available in the Automated Commercial Environment (ACE) by 7am, Eastern Daylight Time on May 21, 2020.

GUIDANCE

Instructions for the trade on submitting entries to CBP containing the Section 301 product exclusions announced in 85 FR 28693 are set out below:

  • In addition to reporting the regular Chapters 33, 39, 65, 84 and 85 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.47 (Articles, the product of China, as provided for in U.S. note 20(zz) to this subchapter, each covered by an exclusion granted by the USTR for imported merchandise subject to the exclusion).
  • Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when exclusion under HTS 9903.88.47 is claimed.

* CSMS #42839255 – GUIDANCE: Section 301 China Extension of Certain Product Exclusions Covered under Tranche 1 – $34B -Action

BACKGROUND

On May 15, 2020, the U.S. Trade Representative (USTR) published Federal Register (FR) Notice 85 FR 29503 to extend by up to 12 months on certain product exclusions covered by the May 14, 2019 notice (see 85 FR 21389) for Section 301 duties on China ($34B Action – Tranche 1). 

These product exclusions relate to the imposed additional duties on Chinese goods with an annual trade value of approximately $34 billion, apply retroactive to the July 6, 2018 effective date of the $34 billion action, and will extend to December 31, 2020. 

The scope of each exclusion is governed by the scope of the HTSUS 10-digit classification and product descriptions in the Annex per FR notice 85 FR 29503; not by the product descriptions set out in any particular request for exclusion.  A link to the Federal Register Notice is embedded in this message.

The functionality for the acceptance of the extended product exclusions will be available in the Automated Commercial Environment (ACE) as of 7 am eastern standard time, May 21, 2020.

GUIDANCE

Instructions for importers, brokers and filers on submitting entries to CBP containing products granted exclusions by the USTR from the Section 301 measures as set out in 85 FR 29503 are set out below.

  • In addition to reporting the regular Chapters 84 and 90 classifications of the HTSUS for the imported merchandise, importers shall report the HTSUS classification 9903.88.08 (Articles, the product of China, as provided for in U.S. note 20(k) to this subchapter, each covered by an exclusion granted by the USTR for imported merchandise subject to the exclusion).
  • Importers shall not submit the corresponding Chapter 99 HTS number for the Section 301 duties when HTS 9903.88.08 is submitted.

 

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USTR Publishes Notice of Product Exclusions 

(Source: Federal Register, 28 May 2020) [Excerpts]

 

* 85 FR 32094: Notice of product exclusion.

* AGENCY: Office of the United States Trade Representative.

* ACTION: Notice of product exclusions.

* SUMMARY: In September 2018, the U.S. Trade Representative imposed additional duties on goods of China with an annual trade value of approximately $200 billion as part of the action in the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property, and innovation. The U.S. Trade Representative initiated a product exclusion process in June 2019, and interested persons have submitted requests for the exclusion of specific products. This notice announces the U.S. Trade Representative’s determination to grant certain exclusion requests, as specified in the Annex to this notice, and corrects technical errors in previously announced exclusions.

* DATES: The product exclusions announced in this notice will apply as of September 24, 2018, the effective date of the $200 billion action, and extend to August 7, 2020. The amendments announced in this notice are retroactive to the date that the original exclusions were published.

 

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Canada TID: “Joint Statement by the Minister of Foreign Affairs of Canada, UK, Australia and USA Responding to China’s Proposed New Security Law for Hong Kong”

(Source: Global Affairs Canada, 28 May 2020)

 

François-Philippe Champagne- Minister of Foreign Affairs of Canada

Statement

“Signatories to this statement reiterate our deep concern regarding Beijing’s decision to impose a national security law in Hong Kong.

“Hong Kong has flourished as a bastion of freedom. The international community has a significant and longstanding stake in Hong Kong’s prosperity and stability. Direct imposition of national security legislation on Hong Kong by the Beijing authorities, rather than through Hong Kong’s own institutions as provided for under Article 23 of the Basic Law, would curtail the Hong Kong people’s liberties, and in doing so, dramatically erode the autonomy and the system that made it so prosperous.

“China’s decision to impose the new national security law on Hong Kong lies in direct conflict with its international obligations under the principles of the legally-binding, UN-registered Sino-British Joint Declaration. The proposed law would undermine the One Country, Two Systems framework. It also raises the prospect of prosecution in Hong Kong for political crimes, and undermines existing commitments to protect the rights of Hong Kong people – including those set out in the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights.

“We are also extremely concerned that this action will exacerbate the existing deep divisions in Hong Kong society; the law does nothing to build mutual understanding and foster reconciliation within Hong Kong. Rebuilding trust across Hong Kong society by allowing the people of Hong Kong to enjoy the rights and freedoms they were promised can be the only way back from the tensions and unrest that the territory has seen over the last year.

“The world’s focus on a global pandemic requires enhanced trust in governments and international cooperation. Beijing’s unprecedented move risks having the opposite effect. As Hong Kong’s stability and prosperity are jeopardized by the new imposition, we call on the Government of China to work with the Hong Kong SAR Government and the people of Hong Kong to find a mutually acceptable accommodation that will honor China’s international obligations under the UN-filed Sino-British Joint Declaration.”

 

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Netherlands TCA: “The Prohibition on The Export of Personal Protection Equipment is Lifted From 26 May 2020 Onwards”

(Source: Netherlands Tax and Customs Administration, 28 May 2020)

 

From 26 May 2020, an export authorisation is no longer needed for certain items of personal protection equipment.

The equipment concerns mouth and nose protection equipment, protective garments, and spectacles and visors for the protection of the eyes.

From 26 April 2020, it was an obligation to get an export authorisation for such personal protection equipment pursuant to Regulation (EU) 2020/568. This terminates on 26 May 2020 and from that date onwards you may export personal protection equipment without an authorisation. 

You can find the complete list of the items subject to the prohibition in Annex I of the Regulation (EU) 2020/568.

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