April 2000 News

Barbados Implements WTO Bound Duty Rates Offering Greater Access for U.S. Exporters

Barbados met a key WTO obligation April 1, by eliminating restrictive import licensing procedures and imposing in their place WTO-approved bound duty rates on a broad selection of agricultural products and manufactured items. At the same time, Barbados eliminated its remaining 35 percent surcharge on imported goods. Bound duty rates, ranging from a low of 40 percent to a high of 243 percent, continue to offer significant levels of protection. Even with these duties, however, the changes will offer new market access opportunities for U.S. exporters.

Taiwan/WTO: Key Tax Law Passes, Will Permit Reform of Alcohol and Tobacco Markets

Taiwan's legislature on March 28 passed a key, long-awaited tax bill which provides the legal basis for the WTO-inspired elimination of Taiwan's antiquated monopoly system for alcohol and tobacco. With its passage, attention has now turned to when the new system will be implemented. On March 28, Taiwan's Legislative Yuan (LY) passed the Tobacco and Alcohol Tax Law (TATL), the legislative twin of the Tobacco and Alcohol Administration Law (TAAL), which was passed by the LY in June, 1999. Together, the two bills provide the legal basis for the WTO-inspired restructuring of Taiwan's alcohol and tobacco markets, which are currently run on a monopoly basis under the Taiwan Tobacco and Wine Monopoly Board (TTWMB). The laws, will lead to the abolition of the TTWMB monopoly and allow prices for beer, wine, spirits, and tobacco products to be determined by the market. The existing monopoly tax system will be replaced by a more regular set of sales taxes and tariffs, and private production of alcohol and tobacco, until now banned, will be completely liberalized in phases within three years of implementation of the new system. MOF is finalizing five sets of implementing regulations for the TATL and TAAL. The first of these has already been posted for comment on the MOF website.

Jordan is WTO's 136th Member

Jordan became the 136th member of the World Trade Organization yesterday, after the General Council approved its accession package over three months ago. Not only has Jordan signed on to the WTO agreements, but it has committed to two plurilateral agreements -- on government procurement and on trade in civil aircraft. The working party to facilitate Jordan's entry into the trade body was constituted in 1995.

Saudi Ministers Adopt Foreign Investment Code

Saudi Arabia's Council of Ministers endorsed a new foreign investment code April 10. The code is a list of principles meant to be incorporated into follow-on legislation. Among the principles endorsed are enhanced rights of foreign investors to move their profits outside the country; enhanced rights of property ownership for foreign investors; and increased transparency. In comments to the press, the Saudi Finance Minister said that the code also contemplates changes in the taxation of foreign corporations. The council also approved the establishment of a general investment commission to provide information and assistance to foreign investors, including assistance in having license applications approved in thirty days' time. Prince Abdullah Bin Faisal Bin Turki Al- Saud was appointed governor of the commission with the rank of minister.

Philippines: Preshipment Inspection Ends, Customs Assumes All Clearance Responsibilities

On March 31, 2000, the Philippine Government's contract with Societe Generale de Surveillance (SGS) for Preshipment Inspection services ended. As of April 1, The Bureau of Customs (BOC) assumed full responsibility for all customs clearance functions. Importers will no longer need to obtain a clean report of findings (CRF) from SGS, and there will no longer be any physical Preshipment Inspection requirement for exporters. All import declarations will now be filed by the importer or its agent directly with the BOC and processed through its computerized Automated Customs Operating System (ACOS). The BOC has established a "Super Green Lane," initially for the top 120 importers, which promises immediate clearance. The mechanism will eventually be expanded to cover the top 1000 importers. Other imports will be subject to normal risk assessment procedures through green, yellow or red channels, according to procedures outlined in regulations CAO 2- 1999, CMO 24-99, 25-99, 26-99, and 27-99, all issued in December 1999. Copies of CAO 2-99, CAO 2-2000, CMOS 25-99, 26-99 And 27-99, DOF/DTI joint order 2-99 and other pertinent regulations may be obtained from the Commercial section of the U.S. Embassy in Manila, or email: val.huston@mail.doc.gov.

Annual Review of Telecommunications Trade Agreements

United States Trade Representative Charlene Barshefsky recently announced the results of this year's annual review of certain foreign countries' compliance with telecommunications trade agreements under Section 1377 of the Omnibus Trade and Competitiveness Act of 1988. This year's Section 1377 review addressed alleged telecommunications services trade barriers of nine trading partners: Japan, Mexico, South Africa, Peru, Germany, Canada, the United Kingdom, Israel and Taiwan. Israel committed to terminate an objectionable measure by December 31, 2001, and Taiwan eliminated certain exclusivity rights from three licenses eventually issued to new entrants. The review established a June 15 deadline for further review of Germany, South Africa and the United Kingdom; a July 28 deadline for further review of Japan and Mexico; and, a October 2 deadline for further review of Canada and Peru. Ambassador Barshefsky released the results of the Section 1377 review regarding Japan on March 30. Read Ms. Barshefsky's comments (no longer available)

Invitation for Comments: Expiration of the U.S. - Canada Softwood Lumber Agreement

The Office of the United States Trade Representative (USTR) and the Trade Policy Staff Committee (TPSC) is requesting public comment on Softwood Lumber Practices in Canada and softwood lumber trade between the United States and Canada. Public comment is sought in light of the April 2001 expiration of the U.S. - Canada Softwood Lumber Agreement. Under this agreement, fee-free exports of softwood lumber from Alberta, British Columbia, Ontario and Quebec were limited to 14.7 billion feet a year without fees. The USTR and TPSC seek written views with repect to economic and environmental aspects of softwood lumber practices, related United States-Canada softwood lumber trade issues and possible negotiation concerning Canadian provincial lumber practices and softwood lumber trade between the United States and Canada. Comments are due by noon Friday, April 14, 2000 and should be submitted to: Industry Consultations Program, Department of Commerce, 14th and Constitution Avenue, NW, Room 2015B, Washington DC 20230. Comments may also be sent by fax at (202) 482-4452, email at Advisory Center@www.ita.doc.gov. For more information see the ICP website at www.ita.doc.gov/icp (no longer available)