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May 12th , 2023

April Foreign Trade Data: On May 9th, the General Administration of Customs announced that China’s total import and export volume in April reached 3.43 trillion yuan, a growth of 8.9%. Among this, exports amounted to 2.02 trillion yuan, with a growth of 16.8%, while imports amounted to 1.41 trillion yuan, a decrease of 0.8%. The trade surplus reached 618.44 billion yuan, expanding by 96.5%.

According to customs statistics, in the first four months, China’s foreign trade increased by 5.8% year-on-year. China’s imports and exports with ASEAN and the European Union grew, while those with the United States, Japan, and others declined.

Among them, ASEAN remained China’s largest trading partner with a total trade value of 2.09 trillion yuan, a growth of 13.9%, accounting for 15.7% of China’s total foreign trade value.

Ecuador: China and Ecuador Sign Free Trade Agreement

On May 11th, the “Free Trade Agreement between the Government of the People’s Republic of China and the Government of the Republic of Ecuador” was formally signed.

The China-Ecuador Free Trade Agreement is China’s 20th free trade agreement signed with foreign countries. Ecuador becomes China’s 27th free trade partner and the fourth in the Latin American region, following Chile, Peru, and Costa Rica.

In terms of tariff reduction in goods trade, both sides have achieved a mutually beneficial outcome based on a high level of agreement. According to the reduction arrangement, China and Ecuador will mutually eliminate tariffs on 90% of tariff categories. Approximately 60% of the tariff categories will have tariffs eliminated immediately after the agreement takes effect.

Regarding exports, which is a concern for many in foreign trade, Ecuador will implement zero tariffs on major Chinese export products. After the agreement takes effect, tariffs on most Chinese products, including plastic products, chemical fibers, steel products, machinery, electrical equipment, furniture, automotive products, and parts, will be gradually reduced and eliminated based on the current range of 5% to 40%.

Customs: Customs Announces the Mutual Recognition of Authorized Economic Operator (AEO) between China and Uganda

In May 2021, the customs authorities of China and Uganda officially signed the “Arrangement between the General Administration of Customs of the People’s Republic of China and the Uganda Revenue Authority on the Mutual Recognition of China’s Customs Enterprise Credit Management System and Uganda’s Authorized Economic Operator System” (referred to as the “Mutual Recognition Arrangement”). It is set to be implemented from June 1, 2023.

According to the “Mutual Recognition Arrangement,” China and Uganda mutually recognize each other’s Authorized Economic Operators (AEOs) and provide customs facilitation for goods imported from AEO enterprises.

During customs clearance of imported goods, the customs authorities of both China and Uganda provide the following facilitation measures to each other’s AEO enterprises:

Lower document inspection rates.

Lower inspection rates.

Priority inspection for goods requiring physical examination.

Designation of customs liaison officers responsible for communication and addressing issues encountered by AEO enterprises during customs clearance.

Priority clearance after the interruption and resumption of international trade.

When Chinese AEO enterprises export goods to Uganda, they need to provide the AEO code (AEOCN + a 10-digit enterprise code registered and filed with Chinese customs, for example, AEOCN1234567890) to the Ugandan importers. The importers will declare the goods according to the customs regulations of Uganda, and the Ugandan customs will confirm the identity of the Chinese AEO enterprise and provide relevant facilitation measures.

Anti-Dumping Measures: South Korea Imposes Anti-Dumping Duties on PET Films from China

On May 8, 2023, the Ministry of Strategy and Finance of South Korea issued Announcement No. 2023-99, based on the Ministry’s Order No. 992. The announcement states that anti-dumping duties will continue to be imposed on imports of Polyethylene Terephthalate (PET) films, originating from China and India for a period of five years (see the attached table for the specific tax rates).

Brazil: Brazil Exempts Import Tariffs on 628 Machinery and Equipment Products

On May 9, local time, the Executive Management Committee of Brazil’s Foreign Trade Commission made a decision to exempt import tariffs on 628 machinery and equipment products. The duty-free measure will remain in effect until December 31, 2025.

According to the committee, this duty-free policy will allow companies to import machinery and equipment worth over 800 million US dollars. Enterprises from various industries, such as metallurgy, power, gas, automotive, and paper, will benefit from this exemption.

Among the 628 machinery and equipment products, 564 are categorized under the manufacturing sector, while 64 fall under the information technology and communication sector. Prior to the implementation of the duty-free policy, Brazil had an import tariff of 11% on these types of products.

United Kingdom: UK Issues Rules for Importing Organic Food

Recently, the Department for Environment, Food and Rural Affairs of the United Kingdom released rules for importing organic food. The key points are as follows:

The consignee must be located in the UK and approved to engage in organic food business. Importing organic food requires a Certificate of Inspection (COI), even if the imported products or samples are not intended for sale.

Importing organic food to the UK from countries outside the European Union (EU), European Economic Area (EEA), and Switzerland: Each shipment of goods requires a GB COI, and the exporter and the exporting country or region must be registered in a non-UK organic register.

Importing organic food to Northern Ireland from countries outside the EU, EEA, and Switzerland: The organic food to be imported needs to be verified with the official agency to confirm if it can be imported to Northern Ireland. Registration in the EU TRACES NT system is required, and an EU COI for each shipment of goods must be obtained through the TRACES NT system.

For more details, please refer to the official sources.

United States: New York State Enacts Law Banning PFAS

Recently, the governor of New York State signed Senate Bill S01322, amending the Environmental Conservation Law S.6291-A and A.7063-A, to prohibit the intentional use of PFAS substances in clothing and outdoor apparel.

It is understood that California law already has bans on clothing, outdoor apparel, textiles, and textile products containing regulated PFAS chemicals. Additionally, existing laws also prohibit PFAS chemicals in food packaging and youth products.

The New York Senate Bill S01322 focuses on banning PFAS chemicals in clothing and outdoor apparel:

Clothing and outdoor apparel (excluding clothing intended for severe wet conditions) will be banned starting from January 1, 2025.

Outdoor apparel intended for severe wet conditions will be banned starting from January 1st, 2028.