2nd September 2013

Did You Know? Issue 165

1. ATA Carnet Scheme to grow: 2. UK Strategy to become a World Leader in Agricultural Science and Technology: 3. US export control reform: new final rules take effect January 2014:4. AEO Mutual Recognition Agreements: 5. New ISBP:  6. EU concludes trade deal with Georgia:  7. GCC States removed from EU GSP from 1st January 2014: 8. New Sanctions on Syria 6th September 20139. New UK OGEL announced for Joint Strike Fighter
1. ATA Carnet Scheme to grow: The ICC and World Chambers Federation (WCF) are working to increase the reach of the ATA Carnet Scheme – Bahrain, Indonesia and Brazil are moving ahead for acceptance of this scheme in 2014 while India is looking at extending the current usage of this document. 
Bahrain prepares to implement ATA Carnet System: Bahrain ratified the International Convention on the temporary admission of goods – the so-called Istanbul Convention – in May 2012 and is now taking steps to implement the ATA Carnet System into its standard customs procedures.  Training is taking place in Bahrain but it is expected that Carnets will be accept for certain temporary movements from 2014.
As part of Indonesia’s move towards globalization, Indonesian Customs, jointly with ICC Indonesia and the Indonesian Chamber of Commerce and Industry, is preparing the implementation of the ATA System in Indonesia.  They aim to announce Indonesia’s ratification of the Convention on the temporary admission of goods (the so-called Istanbul Convention) at the World Trade Organization Ministerial Conference, being held in Bali in December, as well as to implement the ATA Carnet System for the temporary duty and tax-free import and export of goods in Indonesia in early 2014.
Brazil made a major advance toward implementation of the ATA Carnet system in August 2013 by seeking proposals for a NGA (National Guaranteeing Association) for the Brazilian ATA Carnet system which should be selected by February 2014.
2. UK Strategy to become a World Leader in Agricultural Science and Technology: Press Release by UK Government Department for Business Innovation & Skills (BIS) said that there will be a £160 million technology boost for UK agricultural industries with the aim of making the UK a world leader in agricultural science and technology. UK’s new strategy is to deliver sustainable, healthy and affordable food for future generations.  Breakthroughs in nutrition, informatics, satellite imaging, remote sensing, meteorology and precision farming mean the agriculture sector is one of the world’s fastest growing sectors.
Developed in partnership with industry, the Agricultural Technologies Strategy will ensure everyone from farmers and retailers, to cooks and shoppers share the benefits these exciting opportunities bring.
Read More
3. US export control reform: new final rules take effect January 2014: As part of the Obama Administration’s Export Control Reform (ECR) initiative, the US Department of State’s Directorate of Defense Trade Controls (DDTC) and the US Department of Commerce’s Bureau of Industry and Security (BIS) have issued their second set in a series of final rules redefining how the US Government protects sensitive technologies and regulates exports of munitions and commercial items with military applications. This includes multiple proposed amendments to the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR). These new final rules define items regulated for export in four categories of the US Munitions List (USML) administered by the State Department:
  • Category VI – Vessels of War and Special Naval Equipment
  • Category VII – Ground Vehicles
  • Category XIII – Materials and Miscellaneous Articles
  • Category XX – Submersible Vessels and Related Articles
Less sensitive items previously controlled in these categories have been moved to the Commerce Control List. With this publication, 8 of the 21 USML categories have now been rebuilt under ECR. The State and Commerce versions of these rules are now available online and will take effect on January 6, 2014.
Read the official publication by the US Department of State
4. AEO Mutual Recognition Agreements: The EU currently has mutual recognition agreements in place with Japan and the US. China’s is under negotiation, with hopes for a resolution in 2013/14, and negotiations with Canada, New Zealand, and the Republic of Korea are due to start shortly.
5. New ISBP:  in July 2013 the ICC published a new version of the International Standard Banking Practice (ISBP) for handling letters of credit under UCP600.  We are now able to supply these to clients – if anyone is interested in purchasing a copy please email back
6. EU concludes trade deal with Georgia:  The European Union and Georgia successfully concluded negotiations for a Deep and Comprehensive Free Trade Area (DCFTA), as part of the Association Agreement between them. The Association Agreement, together with the DCFTA, will provide for the close political association and economic integration of Georgia with the EU.  The comprehensive FTA, negotiated in just 17 months and seven rounds, will see Georgia gaining better access to the EU market for its goods and services through EUR1 agreement rather than the GSP Scheme. This will boost access for Georgian goods to the EU market whilst also increasing consumer safety in Georgia.
7. GCC States removed from EU GSP from 1st January 2014: Under the revised scheme, current trade preferences will be lifted for the Gulf Cooperation Council (GCC) countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates) because all these countries have been classified for a long time as high-income economies by the World Bank. Some have a pro -capita income which is higher than many (or all) EU Member States. This means that from 1 January 2014, normal customs duties will apply on all products from GCC countries
8. New Sanctions on Syria 6th September 2013: On 27 May 2013 the EU agreed to lift the arms embargo against Syria while retaining all other trade and financial sanctions. The UK has decided to impose national controls on the supply of certain equipment that might be used for internal repression and which was previously subject to EU-wide embargo. New UK legislation implementing these changes comes into force on 6 September 2013.  Further information
9. New UK OGEL announced for Joint Strike Fighter: The Export Control Organisation is in the process of drafting an Open General Export Licence for the Joint Strike Fighter project (JSF, also known as F-35 or Lightning II). It is expected to publish this by the middle of October 2013. Read More
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