8465028-v6\WASDMS 1 International Trade Compliance Update (covers customs and other import requirements, export controls and sanctions, trade remedies, WTO and anti-corruption) May 2019 See our webinars, conferences, seminars section , for contact details and registration information for our new webinar for our 16th annual Global Trade and Supply Chain webinar series, titled “2019: What Happened to International Trade? Keeping pace with evolving challenges ”, as well as links to past webinars and information on other events.Also, Links to video recordings, PowerPoint and handout materials of the 2018 Santa Clara Year-end Import and Export Review and Links to presentation materials from the Asia Pacific International Business and Trade Client Conference (Tokyo, November 2018). For news, visit our blog: For international trade compliance updates, visit www.internationaltradecomplianceupdate.com regularly.For more articles and updates on trade sanctions and export controls, please visit http://sanctionsnews.bakermckenzie.com/ regularly.For resources and news on international trade, especially in Asia, visit our Trade Crossroads blog http://tradeblog.bakermckenzie.com/.To find out how BREXIT (Brexit from the European Union) may affect your business, visit http://brexit.bakermckenzie.com/ For more compliance news and commentary from around the world, visit http://globalcompliancenews.com /.Note: Unless otherwise stated, all information in this update is sourced from international organizations (UN, WTO, WCO, APEC, INTERPOL, etc.), EU, EFTA, Eurasian Economic Union, Customs Official gazettes, official websites, newsletters or press releases from trade unions or government agencies.Specific sources are usually available by clicking on blue hypertext links.Please note that, as a general rule, information related to fishing is not included.This Issue: World Trade Organization (WTO) World Customs Organization (WCO) Other International Affairs Americas – Central America Americas – North America Americas – South America Asia Pacific Europe, Middle East and North Africa Africa (except North Africa) Trade Compliance Enforcement Actions – Imports, Exports , Intellectual Property, FCPA Newsletters, Reports, Articles, etc. WTO TBT Notifications CBP Rulings: Download and Search CBP Rulings: Revocation or Amendment of European Classification Regulations Revisions to CN Explanatory Notes Article 337 Action Anti-dumping , Countervailing Duty and Safeguard Investigations, Orders and Commentary Editor International Trade Compliance Update Editor International Trade Compliance Update Stuart P. Seidel Washington, DC +1 202 452 7088 [email protected] This may qualify as an “attorney advertisement” in certain jurisdictions Jurisdictions require notification.Previous results do not guarantee similar results.See last page for copyright and disclaimer See last page for copyright and disclaimer Baker McKenzie International Trade Compliance Update | May 2019 8465028-v6\WASDMS 2 World Trade Organization (WTO) Australia ratifies the Government Procurement Agreement WTO announces that Australia has Ratified the WTO’s Government Procurement Agreement (GPA) and submitted the instrument of accession to the WTO Secretariat on April 5.Australia will become the 48th WTO member bound by the GPA, the announcement said.The GPA will enter into force for Australia on 5 May 2019, 30 days after the date of its instrument of accession.Six RTAs reviewed The RTAs were held on 1 April 2019.The new Chair of the Committee, Ambassador Carlos Mario Forradori of Argentina, chaired the first Committee meeting of 2019.Agreements reviewed include: Closer Economic Partnership Arrangement between Hong Kong, China and Macau, China Chile-Thailand Free Trade Agreement China-Georgia Free Trade Agreement Georgia-European Free Trade Association (EFTA) Free Trade Agreement CACM) The results of each audit of Ecuador’s accession to the EU trade agreement, Colombia and Peru can be found via the announcement link.Trade Policy Review: Bangladesh, Samoa The fifth review of Bangladesh’s trade policies and practices took place from 3-5 April 2019.The review was based on the report of the WTO Secretariat and the report of the Government of Bangladesh.The first review of Samoa’s trade policies and practices took place on 10-12 April 2019.The review is based on the report of the WTO Secretariat and the report of the Government of Samoa.WTO addresses ‘essential security interests’ claim for the first time On April 5, 2019, the WTO circulated in Russia the Panel Report – Measures on Transit Transport (DS512).The decision is the first time a WTO panel has had to decide on the WTO’s jurisdiction over a member’s claim that its actions are in compliance with Article 21 (basic security immunity from WTO rules).Ukraine filed the dispute in September 2016 after the Russian Federation restricted Ukraine’s use of road and rail to trade goods with several former Soviet republics.Ukraine claims that these measures appear to be inconsistent with: Articles V:2, V:3, V:4, V:5, X:1, X:2, X:3(a), XI:1, XVI: 4 1994 General Agreement on Tariffs and Trade (GATT 1994); Russian Federation Protocol of Accession Part I, paragraph 2 (which contains paragraphs 1161, 1426 (first sentence), 1427 (first sentence), 1427 (first sentence) of the report of the Working Group on Accession to the Russian Federation first and third sentences) and paragraph 1428) Russian Federation).International Trade Compliance Update is a publication of Baker McKenzie’s Global International Business and Trade Practice Group.Articles and reviews are designed to provide our readers with information on recent legal developments and issues of importance or interest.They should not be considered or relied upon as legal advice or advice.Baker McKenzie advises on all aspects of international trade law.Comments on this update may be directed to the editor: Stuart P. Seidel Washington, DC +1 202 452 7088 [email protected] Notes on spelling, grammar and dates – in keeping with Baker McKenzie’s global nature, original spelling, non- The grammar and date formatting of US English language material has been preserved from the original source, whether or not the material appears in quotation marks.Most translations of documents in languages other than English are unofficial, carried out through automated procedures, and are for informational purposes only.Depending on the language, readers using the Chrome browser should automatically get a rough to excellent English translation.Acknowledgments: Unless otherwise stated, all information is from official international organizations or government websites, or their communications or press releases.Click the blue hypertext link to access the source document.This update contains public sector information licensed under the UK Open Government License v3.0.In addition, update the use of the material in accordance with the European Commission policy implemented by the Commission decision of 12 December 2011.Baker McKenzie International Trade Compliance Update | May 2019 8465028-v6\WASDMS 3 Russia claims that these measures are those it deems necessary to protect its essential security interests, in response to the international relations emergency that occurred in 2014 , and to Russia’s fundamental security interests.Russia invoked GATT Article XXI(b)(iii), arguing that actions taken under Article XXI are “self-judgmental” and exempt from WTO scrutiny because they are necessary to protect its “essential security interests”.”Russia stated that once Article XXI was invoked, the WTO would no longer be able to review the issue and, therefore, the panel had no jurisdiction to further address the issue. Article XXI(b)(iii) provides, inter alia, that” In times of war or other emergencies in international relations”, GATT parties may take such actions as they deem necessary to protect their essential security interests in times of war or other emergencies in international relations. The panel disagrees and believes that The WTO panel is empowered to examine various aspects of members’ invocation of Article XXI(b)(iii). Specifically, the panel found that while the chapeau of Article XXI(b) allows members to take “as they deem necessary” action to protect its essential security interests, but this discretion is limited to the three that fall objectively under Article XXI(b). (emphasis added.) XXI(b) provides that: (b) prevent any Party from taking its any action deemed necessary to protect its essential security interests (i) in relation to fissionable material or material from which such material is derived; (ii) in connection with the trafficking of arms, ammunition and instruments of war and the direct or indirect supply of military installations other goods and materials; (iii) filmed in times of war or other emergencies of international relations; or once it has been determined that the required circumstances exist, it is generally for each member to define what it considers to be its essential security interest. In addition, the panel found that the specific language “in its opinion” implied a “necessity” for the members themselves to determine their actions to protect their essential security interests. The panel found that Russia has satisfied the invocation of Article XXI(b)( iii), therefore, GATT Article XXI(b)(iii) covers transit bans and restrictions. On April 26, 1994, the Dispute Settlement WTO proceedings in which the United States claims Article XXI is its responsibility for steel and aluminum.] Recent Disputes The following disputes were recently brought to the WTO. Click on the case (“DS”) number below to go to the WTO website page for information on the Dispute Details. DS. No. Case Name Date DS582 India – Tariff Treatment of Certain Goods in the Information and Communication Technology Sector – EU Advisory Request 09-04-19 Baker McKenzie International Trade Compliance Update | May 2019 8465028-v6\ WASDMS 4 DS. No. Case Name Date DS583 Turkey – Certain Measures Concerning Manufacture, Import and Marketing of Medicines. EU Consultation Request 10-04-19 DSB Activity Dispute Settlement Body (DSB) or Dispute Resolution during the period covered by this update The parties took the following actions or reported the following activities. Panel requests not listed (click ‘DS’ number to view case summary, click ‘Activity’ to view latest news or documents): DS Number Case Name Event Date DS512 Russian Federation – related measures05-04-19 26-04-19 DS534 United States – Anti-dumping Measures Using Differential Pricing Method for Softwood from Canada (Complainant: Canada) Panel of Experts Report Released 09-04-19 DS495 Republic of Korea – Import Ban and Testing and Certification Requirements for Radionuclides (Complainant: Japan) Appellate Body Report Released DSB Officially Adopted 11-04-19 26-04-19 DS517 China – Certain Tariffs Quota Agricultural Products (Complainant: US) Panel Report Released 18-04-19 DS511 China – Domestic Support for Agricultural Producers (Complainant: US) DSB Officially Adopted 26-04-19 DS521 EU – For Certain Cold Rolled Flat Steel Anti-dumping measures on products originating from Russia (Comparative Complainant: Russia) Second Panel Request by Russia DS576 Qatar – Certain Measures on Goods Originating from the United Arab Emirates (Complainant: UAE) First Panel Request by UAE DS490 DS496 Indonesia – Safeguards for Certain Steel Products {Complainant: Chinese Taipei, Vietnam) Compliance Reporting TBT Notification Under the Agreement on Technical Barriers to Trade (TBT Agreement), WTO members are required to report to the WTO all reports that may affect the Proposed technical regulations for trade.The WTO Secretariat distributes this information to all member countries in the form of “notices”.Please see the separate section on WTO TBT notifications for a summary table of notifications issued by the WTO within the past month.World Customs Organization (WCO) Announcements and Press Releases [dd-mm-yy] Date Title 01-04-19 Fifth Meeting of the Middle East and North Africa Regional Capacity Building Coordinators 02-04-19 WCO Supports the European Region to Implement Cross-Border E-Commerce Framework of Standards WCO Asia Pacific Regional Training Center inaugurated in Xiamen, China WCO Supports Angola Free Trade Agreement Implementation Baker McKenzie International Trade Compliance Update | May 2019 8465028-v6\WASDMS 5 Date Title WCO and OSCE deploy specialised customs for Central Asia The PITCH training Tunisia is improving its training system West African customs implements its regional interconnection project to manage its transit operations05-04-19 Building a regional framework for customs integrity in West Africa08-04-19 WCO highlights its e-commerce at UNCTAD e-commerce week Working WCO welcomes establishment of India Customs Cooperation Fund 09-04-19 Niger Customs has 20 trainers available as capacity developers10- 04-19 WCO supports Jamaica Customs to improve collaborative environment among Cross Border Regulatory Authorities (CBRA), build Single Window Environment 11-04-19 Fourth WGRKC Meeting: Momentum for RKC Comprehensive Review WCO Successfully Held Session – CIS Member States Regional TRS Workshop12-04-19 Montenegro National Workshop on Customs Valuation and Database Use19 -04-19 WCO Conference UNIDO-AUC International Forum on Quality Infrastructure CBC10: Looking Back, Embracing the Future Tunisia holds WCO regional security workshop PSCG discusses key issues at WCO headquarters WCO supports Swaziland’s Advance Ruling System on Classification, Origin and Valuation 17-04-19 CCWP (Customs Cooperation Working Group) 28 March Expert Meeting WCO Regional Training Center opens in Bishkek, Kyrgyzstan 25-04-19 SAFE Working Group launches discussions on AEO 2.0 WCO’s new anti-corruption program highlights at Brussels Integrity Subcommittee meeting 26-04-19 Strategic Trade Controls Enforcement Event – March 2019 The Gambia prepares to join MENA Convention members to discuss challenges and solutions for an efficient transit system World Customs Organization European Region Customs Chiefs Meeting held in Russia 29-04-19 Strategic Trade Controls Enforcement National Training , Jamaica, April 2019 WCO and EU join forces for a new project!On April 30, 2019, Jamaica Customs Service WCO participated in the International Drug Enforcement Conference Other International Affairs African Continental Free Trade Area (AFCFTA) African Continental Free Trade Area (AFCFTA) AfCFTA received the necessary 22 country approvals under Tralac (Trade Laws) Centre), on 2 April 2019, the Gambia Parliament approved the African Continental Free Trade Area (AfCFTA), becoming the 22nd country to do so.The AfCFTA was signed on 21 March 2018 by 44 member states of the African Union (AU), followed by 8 more and now has the 22 ratifications required to enter into force.Under the terms of the AfCFTA, the agreement requires 22 approvals to take effect.As of April 10, 19 out of 22 countries have received parlia- Baker McKenzie International Trade Compliance Update | May 2019 8465028-v6\WASDMS 6 Psychological Approval has sent its ratification (usually confirmation of ratification of the agreement) Diplomatic Letters) deposited with the custodian, paving the way for the entry into force of the AfCFTA.This meant that only 3 other countries had to deposit their instruments of ratification with the AUC chair in order to reach the 22-member threshold.Thirty (30) days after reaching this threshold, the AfCFTA will take effect.However, some agreements (investment, intellectual property and competition), key timetables (tariff concessions) and annexes (most-favored-nation exemptions, air transport, regulatory cooperation, etc.) are still in the works and may not be ready until 2020.According to Tralac, 19 countries that have deposited their AfCFTA ratification instruments with the AUC President are Ghana, Kenya, Rwanda, Niger, Chad, Republic of Congo, Djibouti, Guinea, eSwatini (formerly Swaziland), Mali, Mauritania, Namibia , South Africa, Uganda, Côte d’Ivoire (Côte d’Ivoire), Senegal, Togo, Egypt and Ethiopia.The three countries that have received parliamentary approval but still need to deposit their instruments of ratification with the depositary are Sierra Leone, Zimbabwe and The Gambia.As of the end of March 2019, only three African countries had not signed the AfCFTA Consolidated Text: Benin, Eritrea and Nigeria.CITES Notification to Parties The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) has issued the following notification to Parties: Date Title 03-04-19 2019/021 – Strengthening synergies among national biodiversity-related conventions Level: Improving the availability and quality of existing guidelines and tools 05-04-19 2019/022 – Registration of operations for the captive breeding of Appendix I animal species for commercial purposes 18-04-19 2019/023 – New Zealand – Changes to New Zealand CITES licensing 21-04-19 2019/024 – COP 18: Statement by the Secretariat 26-04-19 2019/025 – Postponement of COP 18 and Standing Committee 71 and the 72nd Session (SC71 and SC72) FAS GAIN Report Below is a partial list of the recently released Global Agricultural Information Network (GAIN) report by the U.S. Foreign Agricultural Service (FAS) Food and Agriculture Import Regulations and Standards (FAIRS) and Exporters Guide series and other reports related to import and export requirements.These provide valuable information on regulatory standards, import requirements, export guidelines and MRLs (Maximum Residue Limits).Information about and access to other GAIN reports can be found on the FAS GAIN Reports website.Member GAIN Report Algeria FAIRS Report Algeria FAIRS Report Algeria Trade Policy Update Bangladesh FAIRS Report Baker McKenzie International Trade Compliance Update | May 2019 8465028-v6\WASDMS 7 Member GAIN Report Bosnia and Herzegovina Exporter’s Guide Brazil Exporter’s Guide Canada Canada Remove Federal Barriers to Domestic Alcohol Sales Canada Canada Issues Final Decision on Three Fungicides Canada Canada Issues Partial Final Regulatory Decision on Neonicotinoids Canada FAIRS Report China National Rice Standard (GB-T 1354-2018) Frozen Livestock and Poultry Products Standards Ecuador Show Report Ecuador Show Report El Salvador Show Report El Salvador Show Report Indonesia issues new regulations on import of animal feedIndonesia feed additives registration guidelines Japan Japan proposes to designate 7 new food additives Notify WTO Revised Residue Standard for Monetel FAIRS Report Peru FAIRS Report Saudi Arabia FAIRS Report Saudi Arabia FAIRS Report Saudi Arabia FAIRS Report South Africa FAIRS Report Spain Exporter Guidelines Taiwan Pesticide Import Tolerance Application Process Thailand FAIRS Report Tunisia List of Products Requiring Pre-Import Supervision Ukraine FAIRS Report VietnamFAIRS Report Vietnam FAIRS REPORT AMERICA – CENTRAL AMERICA Central American Customs Agencies Delay Adoption of New Electronic Commodity Declaration On March 28, 2019, the Central American Council of Ministers for Economic Integration (COMIECO) approved Resolution 410-2019 to incorporate the Central American Single Declaration ( DUCA) implementation postponed until May 7, 2019.[See Costa Rica Originally, the Unitary Declaration of Central America (DUCA) was adopted on 7 December 2018 by COMIECO Resolution 409-2018 and became effective on 1 April 2019, superseding Baker McKenzie International Trade Compliance Update | May 2019 8465028 -v6\WASDMS 8 Three documents: Central America Single Customs Form (FAUCA), International Land Customs Single Declaration for Goods in Transit (DUT) and Goods Declaration for use in Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama.El Salvador Documents Date Series and № Topic 05-03-19 DGA № 005-2019 Implementation of Única Centroamericana (DUCA) Official Gazette of Panama The following documents (except food safety standards) of interest to international traders are published on Gaceta Oficial – figures for the period covered (Official Gazette – Digital): Publication Date Title 04-04-19 Commerce and Industry: Res.№ 002 (02-04-19) Implementation of special agricultural safeguards for certain products under the US-Panama Free Trade Agreement 25-04-19 National Customs Authorities: Resolution No. 119 (22-04-19), which includes new virtual Customs Scope is placed within the procedures set forth in Resolution No. 488 on 26-10-18 for the transfer of non-nationalized goods through official computer systems and other provisions of national customs authorities Americas - North America Canada Canada Revised U.S. List Steel and Aluminum Mitigating Countermeasures On April 15, 2019, the Treasury Department released a revised List of Mitigation Measures for Imports of Steel, Aluminum, and Other Goods from the United States.The latest changes to Schedule 3 of the U.S. Tax Relief Order (the "Relief Order") were made pursuant to U.S. Tax Relief and Relief Order Amendment Order No. 2019-1, effective April 15, 2019.In response to U.S. tariffs on Canadian steel and aluminum, the Government of Canada has implemented reciprocal countermeasures on imports of U.S. steel, aluminum and other goods effective July 1, 2018 To protect the competition of businesses affected by Canada’s countermeasures Forces, the government has announced that: Certain steel and aluminum products will be eligible for exemption from the surtax paid or payable under the U.S. Surtax Order (Steel and Aluminum); Certain other goods will be eligible for exemption under the U.S. Surtax Order (Other goods) Additional taxes paid or payable.Baker McKenzie International Trade Compliance Update | May 2019 8465028-v6\WASDMS 9 Relief Order Schedule 1, Schedule 2, Schedule 3 and Schedule 4 Commodities currently covered are listed below. For Schedule 1 goods, indefinite relief is granted for steel and aluminum products imported from the United States on or after July 1, 2018.For Schedule 2 goods, a limited period of relief is granted from July 1, 2018 For steel and aluminum products imported from the United States, until April 30, 2019 For Schedule 3 goods, for goods imported from the United States Imported steel and aluminium products are granted relief. This relief is limited to certain listed importers, for a certain period of time and subject to the applicable conditions set out in Schedule 3. For goods in Schedule 4, other goods imported from the United States on or after July 1, 2018 may be exempted indefinitely, subject to the applicable conditions set forth in the relief order.The latest changes to Schedule 3 of the Relief Order were made pursuant to US Tax Relief and Relief Order Amendment Order No. 2019-1, effective April 15, 2019.Changes to Schedule 3 of the Relief Order, shown in bold, include: , 124, 127, 128, 130 to 142, 144 to 200, 209 to 219; Add items 220 to 314.For the full timeline of the relief order, please see the Treasury Notice.Canada Removes Safeguards for Category 5 Steel on April 28 Customs Notice 18-17 - April 16, 2019 Temporary safeguards imposed on certain steel imports were revised to reflect the Canadian International Trade Tribunal (CITT) in its The findings in the report follow an investigation into safeguards for seven categories of steel [see below].Pursuant to the order imposing the interim safeguard measure, in the event that the CITT recommends a final safeguard measure, the interim safeguard measure is effective for 200 days from the effective date. CITT recommends final safeguard measures for imports of heavy plate and stainless wire; therefore, temporary safeguard measures for these commodities will remain in effect until May 12, 2019 (inclusive).Under Canadian law, if the CITT does not recommend a final safeguard, an interim safeguard is effective for 200 days from the date the interim safeguard is ordered. CITT has not proposed final safeguard measures for imports of concrete rebar, energy pipe products, hot rolled sheet, pre-painted steel and wire rod; therefore, the temporary safeguard measures for these commodities will remain in effect until April 28, 2019 (inclusive).The government is reviewing the CITT recommendations and will make further announcements in due course, including additional duties on goods subject to temporary safeguard measures. Baker McKenzie International Trade Compliance Update | May 2019 8465028-v6\WASDMS 10 Temporary on corresponding goods Until the safeguards expire, importers must continue to obtain import licenses for certain goods or pay additional duties on the import of these products.CITT Publishes Report on Steel Safeguard Inquiry On April 4, 2019, the Canadian International Trade Tribunal (CITT or Tribunal) released its report on April 3 in the Import Safeguard Investigation of Certain Steel Commodities [Inquiry No. GC-2018 -001].CITT was instructed to conduct safeguards investigations of certain steel products imported into Canada.Inquiry commodity categories are: (1) thick plate, (2) concrete reinforcement, (3) energy pipe products; (4) hot-rolled plate, (5) color-coated steel plate, (6) stainless steel wire rod, (7) wire rod.The purpose of the investigation is to determine whether any of these commodities were imported into Canada in quantities and conditions that would have been the primary cause of serious injury or threat to domestic producers of such commodities.The order directs the court to consider Canada’s international trade rights and obligations.The order stipulates that certain imports will be excluded from the court’s investigation — namely imports from the United States, Israel and other Canada-Israel Free Trade Agreement (CIFTA) beneficiaries of Chile and Mexico (except for energy pipes and electrical wiring). ) sticks from Mexico).The order requires the arbitral tribunal to make separate determinations for subject goods originating from and imported from certain free trade agreement partners, where it determines that imports have increased, serious injury, or threat.Specifically, the arbitral tribunal must determine whether the underlying goods originating from Panama, Peru, Colombia, Honduras and the Republic of Korea (Korea) were the primary cause of serious injury or threat.The tribunal must also determine whether the energy pipe product or wire originating in and imported from Mexico constitutes a significant proportion of the total energy pipe product or wire imports, or whether it contributed significantly to serious injury or threat.The specific treatment of imports from countries that benefit from General Preferential Tariffs (GPT) is also outlined.The arbitral tribunal’s findings and recommendations are as follows: The arbitral tribunal finds that the importation of heavy plates from the accused countries (except for goods originating in Korea, Panama, Peru, Colombia and Honduras) is increasing in quantity and condition, causing damage to the domestic industry The main reason for the threat of serious damage and recommends remedial action in the form of a tariff rate quota (TRQ) from the target country, except for goods originating in Korea, Panama, Peru, Colombia, Honduras, or other countries whose goods are eligible for GPT treatment conditions of. The Tribunal finds that although there has been a significant increase in the import of concrete rebar from the relevant country, this increase and the conditions under which the relevant rebar was imported did not cause serious injury, nor did it cause serious injury.Threats of serious injury to domestic industry and remedial action against concrete rebar is not recommended.ii. Three.iv. Seven.register.register.Interested in learning more?Dirt and Stone; Asphalt Matter; Seconds.second.bull.Korea); res.Previous results do not guarantee similar results.all rights reserved.Previous results do not guarantee similar results.
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