Foreign Trade News Express | Britain raises import tariffs on textiles, official media speaks out on exchange rates, Philippines implements RCEP regulations to refund excess tariffs
Official media speaks out about exchange rate for the first time
Recently, the RMB has continued to depreciate against the US dollar, and the offshore and onshore RMB exchange rates against the US dollar have fallen below multiple thresholds.On June 21, the offshore RMB fell below the 7.2 mark during trading, which was the first time since November last year.
Against this background, the Economic Daily published an article to speak out.
The article emphasizes that we should maintain a rational understanding in the face of changes in the RMB exchange rate. In the long run, my country's economic growth trend is positive, and the economic fundamentals have strong support for the RMB exchange rate. Judging from historical data, short-term fluctuations in the RMB exchange rate against the US dollar are normal, which fully demonstrates that my country insists on the market playing a decisive role in the formation of exchange rates, allowing the exchange rate to better play its role as a stabilizer of the macroeconomy and the balance of payments.
In this process, the so-called checkpoint data has no practical significance.It is not rational for enterprises and individuals to bet on the depreciation or appreciation of the RMB exchange rate. They need to firmly establish the concept of exchange rate risk neutrality.Financial institutions should leverage their professional advantages and provide exchange rate hedging services to various business entities based on the principles of actual need and risk neutrality.
Back to the present, there is no basis or space for a significant depreciation of the RMB exchange rate.
UPS plans another strike in the US
According to the Chinese American News Agency in Los Angeles, after 340,000 UPS employees voted, 97% of them supported the strike.
One of the largest labor strikes in American history is brewing.
The union wants less overtime, more full-time workers and a mandatory requirement for all UPS trucks to have air conditioning.
If contract talks fail, a strike authorization could begin on August 1, 2023.
The mainstream package delivery service providers in the United States are the United States Postal Service (USPS), FedEx, Amazon and UPS.
However, the other three companies are not enough to make up for the capacity shortage caused by the UPS strike.
If the strike occurs, it will cause another supply chain disruption in the United States.
What could happen is that merchants experience delayed deliveries, consumers have difficulty shipping products, and the entire domestic U.S. e-commerce market falls into chaos.
Philippine Customs Bureau issues RCEP implementation regulations
According to recent reports from Philippine media, the Philippine Customs Bureau issued the conditions for implementing special tariffs under the Regional Comprehensive Economic Partnership (RCEP).
According to regulations, only imported goods from the 15 RCEP member countries can enjoy the preferential tariffs of the agreement.
Goods moving between member states must be accompanied by a certificate of origin.
According to the Bureau of Customs, of the 1,685 agricultural tariff lines that will maintain their current rates, 1,426 will remain zero-rated while 154 will be levied at current most-favored-nation rates.
The Philippine Customs Bureau stated:If the RCEP preferential tariff rate is higher than the rate applicable at the time of import, importers can apply for a refund of the excess duties and taxes paid on the original goods.”
Eurasian Economic Union updates transit declaration procedure
Recently, the Eurasian Economic Union (EEC) held a meeting and approved a new form of transit declaration and the procedure for filling it in electronic and paper documents.
The new procedure has been simplified in many ways compared to the original one.
For example, the first one is to fill in the transit declaration form in both electronic and paper documents;
The second is to fill in the transit declaration form when transporting goods by two or more modes of transport;
The third is the use of transit declarations in international mail transport.
It is reported that the adoption of this decision will enable the customs authorities of EEC member states to fully realize electronic information exchange in relevant common processes, which will have a positive impact on the business environment.
The new border crossing declaration form and completion procedures will take effect on October 1, 2023.
Vietnam's power shortage is difficult to solve, and factories are forced to suspend production
Since the beginning of June, the central and northern regions of Vietnam have experienced rare high temperatures, with midday temperatures soaring to 37°C to 43°C.
Due to the scorching hot weather, Vietnam's electricity supply has a large gap, and the generator rental market in Hanoi and nearby provinces and cities is booming.
As the heat wave hits, several provinces in northern Vietnam, which are densely populated with industrial parks, have experienced a larger power supply gap than in previous years.
A recent report submitted to the government by Vietnam Electricity Corporation said the northern region could face a power supply shortage of 8,000 megawatts, much higher than the previous forecast of 5,000 megawatts.
Vietnamese media reported that industrial parks where factories of multinational companies including Canon are located have experienced 24-hour rotating power outages, and the once busy factories are now silent.
The European Chamber of Commerce in Vietnam recently sent a letter to the Ministry of Industry and Trade of Vietnam, urging relevant departments to take prompt measures to cope with the power shortage.
"The power outages have severely disrupted industrial activities and Vietnam should take urgent measures to avoid damaging the country's reputation as a reliable global manufacturing hub," said Paul Bowrett, vice president of the chamber.
Meanwhile, the entire Southeast Asia region is experiencing a rare high temperature with no sign of ending. Meteorological experts have warned that the El Nino climate phenomenon has already appeared and the global average temperature may reach a new high next year.
UK implements new trade measures for developing countries
The UK's new Developing Countries Trading Scheme (DCTS) came into effect on June 19.
After the new system is implemented, tariffs on bed sheets, table linens and similar products imported from developing countries (such as India) will increase by 20%.
These products will be subject to a most-favored-nation tariff rate of 12 percent, rather than the general preferential reduction rate of 9.6 percent.
It is estimated that the implementation of the new system will result in an increase of approximately £27,000 in tariff expenditures for British importers each year.
The UK's implementation of developing country trade measures is to replace the Generalised System of Preferences implemented before Brexit in 2021.
A spokesman for the UK Department for Business and Trade said that after the new system is implemented, many tariffs will be reduced or eliminated, while the rules of origin will be simplified for developing countries and least developed countries that are the beneficiaries of the measure.
However, a trader in textile imports from the UK said the industry had not yet been widely informed of the upcoming tariff changes.Many textile importers, many of which are small and medium-sized enterprises, may be caught off guard.
Source: Focus Vision
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