Recent Foreign Trade Information

RMB surged this week
In the past week, the US dollar/RMB has hovered around 7.3, and this week it has started to break through downwards, with the RMB continuing to rebound. One of the recent catalysts is the Federal Reserve's suspension of interest rate hikes in November, which it believes has replaced rate hikes to achieve tightening effects. Institutions such as Goldman Sachs predict that the rate hike cycle has come to an end.
This week, the Chinese yuan surged, and on November 15th, its gains expanded. The yuan appreciated nearly 500 points against the US dollar that week, returning to below 7.3.
Institutional strategists and traders interviewed by reporters generally stated that towards the end of the year, the peak pressure of RMB depreciation has passed. Liu Jie, Macro Strategy Director of Standard Chartered China, stated that as the Chinese economy bottoms out and rebounds, seasonality becomes positive, capital outflows slow down, monetary policies of the Federal Reserve and the People's Bank of China will gradually converge, and China US relations show signs of stability. The period of maximum depreciation pressure on the RMB may have ended. The US dollar/RMB may remain fluctuating in the 7.25-7.35 range throughout the year, as seasonal demand will drive the RMB to appreciate before the end of the year and before the Lunar New Year.
India
Or stop importing Chinese knitwear
At present, the Indian textile industry is facing dual pressures of slowing export demand and a large influx of imported fabrics and clothing. According to the All India Knitting Association, imported supply is devouring domestic demand.
According to a survey conducted by the association, the undervalued synthetic knitted fabrics imported from China result in an annual loss of 685 million US dollars.
The association explained in a letter to the Prime Minister's Office that from April to August 2023, synthetic fiber knitted fabrics imported under the HSN code 60063200 accounted for 74% of the total synthetic fiber knitted fabrics, with an average price of $1.41 per kilogram. In contrast, India's domestic production cost is currently hovering at $4 per kilogram.
In response, the association stated that due to unfair competition, India's domestic industry is losing market share. More importantly, low-priced imported goods are devouring domestic demand. Therefore, the agency requires the Indian government to take immediate measures to restrict the import of synthetic knitted fabrics from China at below cost prices. It not only recommends the government to immediately impose anti-dumping duties, but also recommends implementing quality control orders on finished products rather than raw materials such as fibers and yarns.
EU
Release CBAM Guidelines for Carbon Border Regulation Mechanism

The Carbon Border Adjustment Mechanism (CBAM) is an environmental policy tool aimed at imposing carbon emission costs and climate environmental management fees on imported products at the EU market carbon trading price level, in order to reduce the risk of so-called "carbon leakage" in the EU.

According to CBAM, in the final (post transition) stage, EU authorized declarants representing certain commodity importers will purchase and surrender CBAM certificates for the implied emissions of their imported goods. Due to the fact that the prices of these certificates are derived from the quota prices of the European Union Emissions Trading System (EU ETS), and the fact that the Monitoring, Reporting, and Verification (MRV) rules are designed based on the MRV system of the EU Emissions Trading System, this will equalize the carbon emission prices between imported goods and goods produced in facilities participating in the EU Emissions Trading System.
This guide is part of a series of guidance documents and electronic templates provided by the European Commission, aimed at supporting the unified implementation of CBAM during the transition period (October 1, 2023 to December 31, 2025). It introduces CBAM and the concept used to report the emissions contained in imported goods from the European Union. This guide does not add mandatory requirements for CBAM, but aims to help with correct understanding and promote implementation.
In addition to the CBAM guidelines, the EU has also released the "CBAM: CHECKLIST FOR EU Importers" to help importers of goods covered by the Customs Border Control Regulations ensure that they are aware of and comply with the new rules.
Australia
Import and production of small air conditioning equipment with emissions exceeding 750GWP will be prohibited
Starting from July 1, 2024, Australia will prohibit the import and manufacturing of small air conditioning equipment that uses refrigerants with a Global Warming Potential (GWP) exceeding 750.
Prohibited products:
Design equipment that uses refrigerant exceeding 750 GWP, even if these equipment are imported without refrigerant;
Portable, window type, and split type air conditioning equipment with a refrigerant filling capacity not exceeding 2.6 kilograms for cooling or heating spaces;
Equipment imported under licenses, as well as small batch imported equipment imported under exempted licenses.
Prohibition does not apply to products:
Air conditioning equipment for mobile devices such as RVs and ships;
Computer room air conditioning equipment;
Equipment imported under exemption license regulations, such as personal equipment, return to Australia equipment, and temporary imported equipment.
Currently, the equipment for sale is not affected, and equipment imported or manufactured before July 1, 2024 will be allowed to be sold after that date.

Indonesia
Impose import tax on bicycles, watches, and cosmetics
Indonesia has imposed additional import taxes on four types of goods through Regulation No. 96/2023 of the Ministry of Finance on Customs, Consumption Tax, and Taxation Regulations for the Import and Export of Consigned Goods. Cosmetics, bicycles, watches, and steel products have been subject to import tariffs starting from October 17, 2023. The new tariff for cosmetics is 10% to 15%; The new tariff for bicycles is 25% to 40%; The new tariff on watches is 10%; The new tariff on steel products can reach a maximum of 20%.
The new regulations also require e-commerce companies and online suppliers to share imported product information with the General Administration of Customs, including the names of companies and sellers, as well as the categories, specifications, and quantities of imported goods.
The new tariff is a supplement to the tariff regulations of the Ministry of Trade in the first half of the year, when an import tax of up to 30% was imposed on three types of goods: shoes, textiles, and handbags.
It is reported that Indonesia's move aims to protect its domestic market from excessive foreign commodity shocks, while promoting the healthy development of local industries and improving their competitiveness.
Indonesia will establish a whitelist for e-commerce imports
The Indonesian government has recently added four categories of goods, including books, movies, music, and software, to the e-commerce import whitelist, which means that even if the price of these goods is less than $100, they can be traded across borders through e-commerce platforms.
According to the Indonesian Minister of Trade, although the types of goods on the whitelist have been determined, the government will reassess the whitelist every six months.
Recently, under the leadership of the Indonesian Minister for Economic Affairs Coordination, relevant government departments held a coordination meeting to tighten the inflow of imported goods and discussed the procedures for import trade.
In addition to establishing a whitelist, the government also stipulates that thousands of goods that were previously able to be traded directly across borders must be subject to customs supervision, and the government will reserve one month as a transitional period.
Previously, the Indonesian government's new e-commerce law had six major priorities:
One is that social commerce platforms cannot directly trade goods or services, and can only provide promotional and promotional functions for goods and services.
Secondly, the minimum price for overseas manufactured goods sold directly to Indonesia through e-commerce platforms by merchants shall not be less than $100 per piece.
Thirdly, the Indonesian government will establish a whitelist of imported e-commerce products.
Fourthly, goods imported from Indonesia will receive the same treatment as domestic goods, such as food that must have halal certification, and beauty products that must have a cosmetics distribution license from BPOM.
The fifth is to prohibit e-commerce platforms from acting as producers of goods, which means that e-commerce platforms are prohibited from selling their own produced goods.
Sixth, the Indonesian government strengthens data regulation on e-commerce platforms to ensure that user data is not abused.
Bengal
The world's second largest clothing exporter saw a double-digit decline in October
According to the Bangladesh Financial Express, Qimai QIMA, a company that provides quality control and supply chain auditing for over 30000 brand merchants in over 100 countries, recently released a report stating that the global clothing procurement pattern is changing this year, and global brands and retailers are pushing to increase procurement from China and reduce procurement from Bangladesh.
The latest report from QIMA shows that since 2019, the inspection and audit demand of Western clothing buyers in Bangladesh has experienced a year-on-year decrease of 10% between January and September this year, while in China it has increased by 14%.
The report points out that global clothing brands and retailers are pushing to increase procurement from China and reduce procurement from Bangladesh. The report states that American buyers, in particular, seem to be reducing their purchases of textiles and clothing from Bangladesh.
In addition, due to concerns about economic recession and a slowdown in Western consumer spending, brands and retailers may once again prioritize China as a supplier to take advantage of its well-established manufacturing industry system.
The report suggests that Bangladesh actively promote the diversification of export commodities, including synthetic fiber textiles, footwear, leather, household textiles, and electronic products, to protect its exports from future shocks.
The Daily Sun of Bangladesh reported that according to the latest data released by the Bangladesh Export Promotion Agency, Bangladesh's clothing exports decreased by 13.93% in October, from $3.68 billion in the same period last year to $3.17 billion. In October 2023, Bangladesh's overall exports decreased by 13.64% compared to the same period last year.
policy
New Policy for 3C Certification Pilot of Imported Information Technology Equipment
The State Administration of Market Regulation and the General Administration of Customs have recently issued an announcement, deciding to adjust the mandatory product certification (CCC certification) requirements for imported information technology equipment in pilot areas (applicable to Shanghai, Guangdong, Tianjin, Fujian, Beijing Pilot Free Trade Zone, and Hainan Free Trade Port). For information technology equipment imported within the scope of CCC certification in pilot areas, the certification client can use a self declaration evaluation method to prove that the product meets the electromagnetic compatibility standards of CCC certification when applying for CCC certification.
Original announcement:
https://www.cnca.gov.cn/zwxx/gg/lhfb/art/2023/art_8e57674ae0e64258a3ef8f9679cfa1ee.html