Exports to Europe have been greatly affected, many shipping companies have detoured, and the UK will impose carbon tariffs before 2027丨Foreign Trade News Express
Exports to Europe have been significantly affected!
Do you remember the "Ever Given" ship jam in the Suez Canal in 2021?
This time, things could be even worse!
The Red Sea is located at the junction of the two continents of Asia and Africa. Its southern end is connected to the Arabian Sea and the Indian Ocean through the Bab el-Mandeb Strait, and its northern end is connected to the Mediterranean Sea and the Atlantic Ocean through the Suez Canal.The route through the Bab el-Mandeb Strait, the Red Sea and the Suez Canal is one of the busiest shipping routes in the world.
Usually, the Asia-Europe route, especially the Europe-Europe route, mainly goes through the Red Sea channel, which is the main channel for Asia-Europe maritime trade. According to the Neue Zürcher Zeitung,About 12% of global cargo transits the Red Sea and the Suez Canal。
Mediterranean Shipping Company, CMA CGM, Maersk Group, Hapag-LloydMany shipping giants, including the company, have suspended the navigation of their container ships in the Red Sea and its adjacent waters.COSCO SHIPPING, OOCL and EvergreenVerbal notification has been given to suspend cargo pickup on the Red Sea route.ONE Ocean Network ShippingCurrently, we have also verbally notified
Stop cargo pickup on the Red Sea route.
Under the current situation, many ships have already turned around urgently before reaching the Bab el-Mandeb Strait. Earlier this month, Linerlytica, an analysis agency for the container market, released a report saying that the probability of ships being attacked in the Red Sea has increased, which may cause 30% of the container fleet to change course.
The International Chamber of Shipping warned that cargo ships avoiding the Suez Canal and sailing around the Cape of Good Hope at the southwestern tip of Africa would mean increased sailing costs, more shipping days and corresponding delays in delivery times.
The industry is concerned that if the situation in the region deteriorates further, the detour or suspension of ships will have a huge impact on the global supply chain. Analysts at Norwegian analysis agency Xeneta predict that depending on the scale and duration of the disruption to the Suez Canal route, the increase in ocean freight rates could be as high as 100%.
According to the UK government statement, the list of specific products covered under the initial product categories, as well as other design and delivery details, will be decided through public consultation in 2024.
According to the tracking statistics of a shipping big data platform in the industry, as of the 19th,The number of container ships passing through the Bab el-Mandeb Strait, located at the junction of the Red Sea and the Gulf of Aden, has dropped to zero.，This suggests that the key access to the Suez Canal has been paralyzed.
In less than a month, about 16 ships of various types were attacked or even seized.International shipping continues to be disrupted, and many shipping companies have recently announced the suspension of sailing in the Red Sea.
So far, major global container shipping companies have begun or are about to suspend operations on the Red Sea-Suez route.
The London insurance market has also listed the southern waters of the Red Sea as a high-risk area. If merchant ships need to pass through this area, they must inform the insurer in advance and purchase additional war insurance.
This is also the first time that regional geopolitical conflicts have had a significant impact on China's trade with Europe.
As shipping companies implement their response plans and strategies, potential impacts include:Delays in delivery, additional costs caused by detours push up freight rates, increases in fuel consumption and related costs, reduced available capacity trigger freight rate increases, route adjustments aggravate operational disruptions at ports and terminals, and extended voyage times disrupt empty container allocations, resulting in container shortages at the port of origin, disrupted shipping schedules, and ships are forced to change routes.
The announcement also pointed out that unless an escort solution is adopted, shipping companies may eventually be forced to reroute all ships on the affected routes around the Cape of Good Hope in Africa, which will consume at least 2.5 million TEUs of capacity, or about 9% of the global container fleet, resulting in a shortage of available capacity worldwide. Affected by the turbulent situation in the Red Sea, the SCFI index hit a 12-month high a few days ago. Available capacity will be further reduced in the short term, and spot freight rates will continue to rise in the next few weeks, and this momentum is expected to continue until the end of January.
For global foreign trade people, in addition to detouring the Cape of Good Hope, China-Europe express trains and air transport may also be alternatives.
Huifeng International would like to remind all customers that they must pay attention to freight risks when exporting to the Middle East and Europe. While pursuing market diversification, more time and backup plans should be reserved.
Huifeng International can customize and deploy solutions for you based on the information sorted out by the platform and the customer's own needs. Welcome to consult.
Suspension of tariff concessions on some products under the Cross-Strait Economic Cooperation Framework Agreement
On December 21, according to the Ministry of Finance website, the State Council Tariff Commission issued an announcement that Taiwan has unilaterally adopted discriminatory prohibitions and restrictions on mainland products, violating the provisions of the Cross-Strait Economic Cooperation Framework Agreement. According to the Cross-Strait Economic Cooperation Framework Agreement, the State Council Tariff Commission decided to suspend tariff concessions on some products in the Cross-Strait Economic Cooperation Framework Agreement in accordance with regulations and procedures. It is hoped that Taiwan will take effective measures to cancel trade restrictions on the mainland.
Original announcement and product list:
http://gss.mof.gov.cn/gzdt/zhengcefabu/202312/t20231221_3923283.htm
Singapore to suspend remittances to China through non-bank and non-card channels
Over the past year, reports of bank accounts being frozen when remitting money from Singapore to China have increased, attracting the attention of the Monetary Authority of Singapore (MAS).
Recently, the Singapore police said that from last year to December 15 this year, the police had received more than 670 reports of bank accounts being frozen after remittances to China, involving an amount of about 13 million Singapore dollars (nearly 70 million yuan).
The Monetary Authority of Singapore issued a statement on December 18 saying:From January 1, 2024, local licensed cross-border remittance companies will stop using non-bank and non-card channels to remit money to individuals in China. They can only remit money to China for their customers through banks, bank card network operators or licensed financial institutions, and are not allowed to remit money through overseas third-party agents. This regulation will last for 3 months, until March 31, 2024.
The United States makes preliminary anti-subsidy ruling on pea protein from China
According to the China Trade Relief Information Network on December 14, on December 12, 2023, the U.S. Department of Commerce announced an affirmative preliminary anti-subsidy ruling on pea protein imported from China. The preliminary ruling was: Yantai Oriental Protein Tech Co., Ltd. (Yantai Oriental Protein Tech Co., Ltd.) The tax rate is 16.46%, Zhaoyuan Junbang Trading Co., Ltd. (Zhaoyuan Junbang Trading Co., Ltd.) The tax rate is 15.09%, the tax rate for non-cooperative enterprises is 342.53%, and the average tax rate for other exporters/producers is 15.78%.
The U.S. Department of Commerce is expected to make a final anti-subsidy ruling on April 22, 2024.3504.00.1000, 3504.00.5000, and 2106.10.0000Products under item.
UK to impose carbon tariffs by 2027
The British government recently announced that it will implement a new import carbon tax mechanism before 2027, imposing additional taxes on imported goods from countries with lower or no carbon tax to ensure that the carbon tax on imported goods is equivalent to that of products produced in the UK.
The carbon tax is levied on the following subjects:Steel, aluminum, fertilizers, hydrogen, ceramics, glass and cementand other carbon-intensive products.
The charge would depend on the amount of carbon emissions involved in producing the imported goods, and the gap between the carbon price in the country of origin (if any) and the carbon price faced by UK producers.
The UK government said that the UK CBAM mechanism applies to scope 1 and scope 2 emissions of imported products, as well as the embodied carbon emissions of some products in upstream links such as raw materials and processing. However, unlike the EU CBAM mechanism, the UK CBAM mechanism will not involve the purchase and trading of emission certificates.
This move is seen as the British government's response to the EU's introduction of a carbon border adjustment mechanismOn October 1 this year, the EU carbon border adjustment mechanism was officially launched and entered the transition phase. Until 2026, the EU will begin to impose carbon taxes on products such as cement, steel, aluminum, fertilizers, electricity and hydrogen imported into the EU.
According to the China Council for the Promotion of International Trade report,The main commodity categories exported by China to the UK in 2021 were electromechanical equipment, followed by nuclear reactors, boilers, machinery and parts, and furniture.In 2021, China's steel exports to the UK amounted to US$2.45 billion, accounting for 2.8% of China's total exports to the UK. According to a Huatai Futures research report, China exported a total of 519,000 tons of aluminum to the UK and the EU in 2020, accounting for 11.2% of total aluminum exports.
China and Singapore sign protocol to further upgrade free trade agreement
Recently, Chinese Minister of Commerce Wang Wentao and Singaporean Minister of Trade and Industry Gan Kim Yong, on behalf of the governments of China and Singapore respectively, signed the Protocol on Further Upgrading the Free Trade Agreement between the Government of the People's Republic of China and the Government of the Republic of Singapore (hereinafter referred to as the "Protocol") .
In the upgraded protocol, China and Singapore made commitments to open up services and investment in a negative list model, providing a broader market space for investors and service providers on both sides, and further expanding cooperation in emerging areas such as the digital economy.
The signing of the upgraded protocol is a new milestone in China-Singapore economic and trade relations, which will further stimulate the potential of service trade and investment cooperation between the two countries and provide a more solid institutional guarantee for enterprises to participate in each other's markets. Next, China and Singapore will speed up the implementation of their respective domestic legal procedures and strive for the upgraded protocol to take effect as soon as possible.
China and Australia implement mutual recognition of “Authorized Economic Operators” (AEO)
The mutual recognition of "Authorized Economic Operators" (AEO) between China and Australia will be officially implemented from the 14th. After the implementation of mutual recognition, China and Australia will recognize each other's AEO and provide customs clearance convenience for goods imported from each other's AEO enterprises.
The announcement pointed out that the customs clearance facilitation measures granted to each other's AEO enterprises include: speeding up customs clearance by reducing document review and physical inspection; giving priority to inspection of goods that require physical inspection; taking into account the qualifications of AEO enterprises when conducting risk assessments; designating customs liaison officers to communicate and handle problems encountered by AEO enterprises in customs clearance; and striving to provide fast customs clearance after the interruption and resumption of international trade.
Iraq imposes tariffs on imports, including gold
The Iraqi Border Crossings Authority announced that, in accordance with Cabinet Resolution No. 23672 of 2023, tariffs will be imposed on imported goods, including gold, from December 1, 2023 to support business development and standardize import processes.
one,The fixed tariff is 2 million Iraqi dinars for a 20-foot container and 3 million Iraqi dinars for a 40-foot container.
2. Adjust the additional tariff on tobacco and cigarettes from 20% to 10%.
3. A one-month transition period will be given to importers of mobile phones, cigarettes and cars. The General Administration of Customs will compare the HS codes of the above three commodities with the HS codes of the Iraqi Central Bank's remittance platform. The relevant authorities will set up a joint committee to inspect warehouses. If there are contraband, they will be dealt with according to customs and anti-money laundering laws.
Fourth, regarding the import of gold, the Cabinet meeting issued Resolution No. 23671 of 2023, which clarified that gold importers must be companies officially registered with the Company Registry of the Ministry of Trade and are allowed to transfer money to foreign countries through the banking system. Gold imports are only allowed to be transported by air, and random inspections are carried out by the General Administration of Customs and the Central Bureau of Standardization and Quality Control.
South Korea releases first import key inspection project in the second half of 2023
On December 12, 2023, the Ministry of Food and Drug Administration (MFDS) of South Korea released the first import key inspection items in the second half of 2023. The details are as follows:
(1) Inspection of re-imported substandard food (including collection inspection of substandard food), including the inspection items during the initial inspection and the substandard items of the product;
(2) Inspect the use standards of unqualified tar pigments (including unqualified pigments) and qualified tar pigments according to food additive standards and specifications;
(3) Preservative testing: sodium dehydroacetate, sorbic acid and its salts (sodium, potassium, calcium), benzoic acid and its salts (sodium, potassium, calcium), para-oxacyclic acid (methyl, ethyl), propionic acid and its salts (sodium, calcium);
(4) Antioxidants include butylated hydroxytoluene, butylated hydroxyanisole, tert-butylhydroquinone, molasses propyl, calcium disodium sodium and calcium disodium sodium.
For more details, see:
https://www.mfds.go.kr/brd/m_767/view.do？seq=33589&srchFr=&srchTo=&srchWord=&srchTp=&itm_seq_1=0&itm_seq_2=0&multi_itm_seq=0&company_cd=&company_nm=&page=1
Source: Focus Vision, Shipping Network, Customs Release, Shipping Today, etc.
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