Vietnam will “temporarily suspend rice exports” due to the coronavirus COVID-19 pandemic, according to a March 25 report from CustomsNews, the mouthpiece for Vietnam Customs. The virus has caused a spike in global demand for food reserves, including rice, which has dwindled Vietnam’s domestic rice supply as exports have increased, the report said. If rice exports continue at their current rate, Vietnam “may face a shortage of rice for domestic consumption,” the report said. Under the measure, Vietnam will not sign new rice export contracts until it stabilizes its domestic supply, according to a March 25 report in the Bangkok Post.
India blocked exports of hydroxychloroquine and “formulations made from hydroxychloroquine,” according to a March 25 notice from the country’s Directorate General of Foreign Trade. Researchers are studying the drug as a possible medication for treating COVID-19, according to a March 24 Reuters report. India also banned exports of ventilators and sanitizers (see 2003240045).
The South Korean food market has been “seriously hit” by the impacts of the COVID-19 pandemic and some importers have reported a “large drop” in sales, according to a U.S. Department of Agriculture Foreign Agricultural Service report released March 23. The USDA said the “strong” U.S. dollar is making imports in South Korea more expensive, and air and sea freight costs are “trending higher as supply chains face disruption.” Although importers are facing challenges, trade has not been “significantly disrupted,” the report said, partly due to South Korea’s swift response to the virus.
India announced bans on exports of ventilators and sanitizers, to maintain medical supplies locally amid the COVID-19 pandemic, according to a March 24 notice from the country’s Directorate General of Foreign Trade. The ban blocks exports of “all ventilators,” including “any artificial respiratory apparatus or oxygen therapy apparatus or any other breathing appliance/device,” the notice said. The notice provides Indian Trade Clarification Harmonized System codes for blocked goods that fall under the categories of ventilators and sanitizers. India previously announced export restrictions on certain pharmaceutical ingredients (see 2003160047) and has banned exports of certain surgical masks.
Hanoi’s Noi Bai International Airport will be site of the launch of an automated customs management system in May, allowing international airline operators to digitally send air freight data and e-airway bills to Vietnam Customs, according to a March 23 report from the Hong Kong Trade Development Council. The national system, a “one-stop cargo clearance service” called the Aviation National Single Window, will provide traders and carriers with 24-hour online access to submit clearance updates and access to multiple government agencies. Previously, air freight carriers were required to submit paper records and airway bills to the customs agency for every flight, the report said.
China increased its value-added tax refund rates for exports, according to a March 24 report from the Hong Kong Trade Development Council. The change, which took effect March 20, raised the refund rates for nearly 1,100 products to 13% and raised the rates for another group of about 400 products to 9%. Products with a 13% rate now include porcelain sanitary ware, metal products, gemstone and chemical; goods with a 9% rate include plant growth regulators, fruits and meat, the report said.
China’s General Administration of Customs released a list of measures for increasing restrictions and streamlining port procedures during the coronavirus disease COVID-19 outbreak, including increased “interception and crackdown” on “unqualified anti-epidemic materials,” according to an unofficial translation of a March 19 notice. China said it has destroyed or returned more than 300,000 imports of “unqualified” protective equipment and stressed that the country needs to import “immunized materials” for domestic production of the equipment. As part of the measures, China is establishing “green channels” for agricultural products and other food imports at “key ports,” 24-hour advance clearance for certain imports and priority inspections. The measures will “simplify customs clearance procedures and reduce customs clearance costs throughout the process,” China said, which includes payment deferrals for certain taxes and reduced late payment fees for money owed to China’s GAC. China previously announced reduced penalties for delayed import declarations and other measures to ease customs procedures (see 2003120019 and 2002250031).
Shanghai introduced time-limit standards for port services, detailing how long trucks, ships and other cargo may remain at port, according to a March 23 Hong Kong Trade Development Council report. Shanghai is requiring at least 90% of trucks to complete the delivery or pick-up of containers within one hour, the report said, and certain vessels, depending on their capacity, must “complete their operations” within 12 hours, 24 hours or 36 hours of berthing at the port. Shanghai also announced measures that shippers can take before arriving at the port, to speed up the process, including online appointments for picking up cargo and inspection appointments. China has reportedly increased scrutiny of incoming cargo vessels as it tries to control the coronavirus outbreak, leading to unloading delays and backlogs of hundreds of thousands of containers (see 2003190041).
China’s commerce ministry recently announced plans to simplify outbound direct investment filings through a paperless procedure that will “reduce the burdens” on investors, according to a March 23 Hong Kong Trade Development Council report. Companies no longer have to submit paper documents when seeking approval for outbound investments and will instead be able to upload the documents as PDF files to the ministry, the report said. As China seeks to streamline outbound investment, the U.S. has increased restrictions on screening procedures for foreign direct investment as it tries to keep China from acquiring sensitive U.S. technology (see 2002260042).
The Cambodian-Vietnam border temporarily closed March 20 as both countries seek to limit the spread of the novel coronavirus COVID-19, according to a March 19 report from CustomsNews, the mouthpiece for Vietnam Customs. The closure blocks all air, water and land travel between the two countries in an attempt to “avert the inconvenience of quarantine” requirements, the notice said, but does not apply to Vietnamese and Cambodian holders of “diplomatic and official passports.” Cambodia has suggested the two countries work together “so transport of goods across the common border can be carried out without disruption.”