Regulatory Compliance updates October 2022

October 24, 2022

Canada: launched the CARM Client Portal

CARM Release 1: May 25, 2021: Release 1 launched the CARM Client Portal, a self-service tool that will facilitate accounting and revenue management processes with the CBSA. The CARM Client Portal is available to importers and brokers, as well as trade consultants who currently submit rulings on behalf of importers. Those who have onboarded to the portal are able to view their transactions and statements of account, request a ruling and pay invoices with new electronic payment options.
CARM Release 2: 2023 (timeline to be announced): Release 2 will expand the functionalities of the CARM Client Portal by adding:

  • electronic commercial accounting declarations with ability for corrections and adjustments
  • new requirements related to the Release Prior to Payment (RPP) program
  • harmonized billing cycles
  • new offsetting options
  • electronic management of appeals and compliance actions

Canada: Excise duty framework for vaping products

The Government of Canada has introduced an excise duty (vaping duty) on vaping products through a new excise duty framework. The vaping duty and the vaping excise stamp apply to vaping substances that are manufactured in Canada or imported, and that are intended for use in a vaping device in Canada. The excise duty framework for vaping products comes into effect on October 1, 2022.

China customs added new fields in customs declaration to sterilization of Non-cold chained import cargoes 

In order to support implementation of latest epidemic prevention and control requirements against non-cold chained import cargoes issued by China National Health Commission, China Customs announced to add two additional fields- “Whether the preventive disinfection has been implemented” and “Date of departure” into both templates of Customs Declaration Sheet and Record list of inbound goods, to oblige the importer to declare the information in the clearance. The measure went effective on Sep 19th, 2022. According to the definition in the announcement, “Preventive disinfection” is the disinfection of places and articles that may be contaminated by pathogenic microorganisms when there is no clear source of infection. The field provides check option, including "yes" and "no". If the domestic consignee or its customs declaration agent has conducted" preventive disinfection ", choose "Yes", otherwise choose "no".

European Union adopts eighth package of sanctions against Russia

The EU Oct 6th adopted its 8th package of Russia sanctions in response to the recent Russian annexation of Ukraine’s Donetsk, Luhansk, Zaporizhzhia and Kherson regions.
The package:

  • Prohibits the provision of maritime transport and technical assistance, brokering services or financing or financial assistance, related to the maritime transport to third countries of crude oil (as of 5 December 2022) or petroleum products (as of 5 February 2023) which originate in or are exported from Russia.
  • Introduces a ‘price cap derogation’ that allows the provision of the above if the oil or petroleum products are purchased at or below a pre-established price cap (see previous post concerning G7 agreement.
  • The prohibition for EU vessels to provide maritime transport for such products to third countries will apply as of the date in which the Council will unanimously decide to introduce the price cap.
  • Imposes import restrictions on finished and semi-finished steel products that either originate in Russia or are exported from Russia, machinery and appliances, wood pulp and paper, cigarettes, plastics, vehicles, textiles, footwear, leather, ceramics, certain chemical products, cosmetics, and elements used in the jewellery industry (for example, stones and precious metals).
  • Restricts the sale, supply transfer or export of additional goods used in the aviation sector.
  • Imposes additional export restrictions on items which may contribute to Russia’s military, industrial and technological enhancement, or the development of its defence and security sector, including coal and coking coal (used in industrial plants), certain electronic components (found in Russian weapons), additional chemicals and goods that can be used for capital punishment, torture or other cruel, inhuman or degrading treatment.
  • Bans the sale, supply, transfer or export of civilian firearms and their essential components and ammunition, military vehicles and equipment, paramilitary equipment and spare parts.
  • Imposes sanctions on people and entities said to have played a role in the organisation of the recent “referenda” (such as the Central Election Commission (CEC) of the Russian Federation), representatives of the defence sector (such as high-ranking and military officials), entities providing the Russian armed forces with weapons or fighter aircraft and figures spreading disinformation about the war (such as Russian political scientist Aleksander Dugin and singers Yulia Chicherina and Nikolay Rastorguev).
  • Broadens the listing criteria for specific designations to include the those who facilitate the circumvention of EU sanctions.
  • Bans EU nationals from holding any posts on the governing bodies of certain Russian state-owned or controlled legal persons, entities or bodies.
  • Bans all transactions with the Russian Maritime Shipping Register (by adding it to the list of state-owned enterprises subject to a transaction ban), a 100% State-owned entity which performs activities related to the classification and inspection, including in the field of security, of Russian and non-Russian ships and crafts.
  • Bans the provision of crypto-asset wallet, account or custody services to Russian persons and residents, regardless of the total value of those crypto-assets (previously, up to €10,000 was allowed).
  • Bans the provision of architectural and engineering services, IT consultancy services and legal advisory services to the government of Russia or legal persons established in Russia.
  • Extends the geographical scope of the restrictions introduced on 23 February (notably the import ban on goods from the non-government-controlled areas of the Donetsk and Luhansk oblasts) to cover also the non-controlled areas of the oblasts of Zaporizhzhia and Kherson.

Japan bans chemical weapons goods export to Russia 

Japan's government banned the export of materials that may be used for chemical weapons to 21 Russian organizations, including science laboratories.

Russia closes territory to road transport of certain countries

The President signed an Executive Order on Some Aspects of International Road Transport of Goods.
The Executive Order has been signed in light of some foreign states’ unfriendly actions aimed at adopting restrictions against citizens of the Russian Federation and Russian legal entities, which contradicts international law, to protect the national interests of the Russian Federation and in accordance with Federal Law No. 127-FZ, dated June 4, 2018, On Measures (Countermeasures) in Response to Unfriendly Actions of the United States and Other Foreign States.

Under the Executive Order, the Government of the Russian Federation is authorised to adopt a ban on international road transport of goods across the territory of the Russian Federation for vehicles of international carriers registered in the states that have adopted restrictions against citizens of the Russian Federation and Russian legal entities in the area of international road transport of goods.
Various food, clothing, and technological products, as well as medical supplies, were exempt from the ban. 

Switzerland approves increasing VAT rates in 2024

Switzerland approves the, after the voting procedure that took place the last 25 September.
As a result, the Swiss VAT rates will change as follows:

  • Standard VAT rate: 8.1%, instead of the current 7.7%
  • Reduced VAT rate: 2.6%, instead of the current 2.5%
  • Special VAT rate for accommodation: 3.8%, instead of the current 3.7%

It is expected that the new VAT rates enter into force in January 2024.

Ukraine: Banned the export of goods to the Russian Federation

On September 27, 2022, the Cabinet of Ministers adopted a resolution “On the ban on the export of goods from Ukraine to the customs territory of the Russian Federation.” This is stated in the press release of Ukrainian Ministry of Economy. The resolution provides for a ban on the export of goods outside the customs territory of Ukraine under foreign economic contracts, the trade or destination country of which is the Russian Federation. The document will be in force until the day of termination or abolition of martial law and termination of the Russian Federation’s use of unfriendly actions against Ukraine.

United States: Extension of import restrictions on archaeological and ecclesiastical ethnological materials from Guatemala 

This notification amends the U.S. Customs and Border Protection (CBP) regulations to reflect an extension of import restrictions on certain categories of archaeological and ecclesiastical ethnological materials from Guatemala to fulfill the terms of the new agreement, titled ‘‘Memorandum of Understanding between the Government of the United States of America and the Government of the Republic of Guatemala Concerning the Imposition of Import Restrictions on Categories Of Archaeological and Ethnological Material of Guatemala.’’ CBP Dec. 12–17, which contains the Designated List of archaeological and ecclesiastical ethnological material from Guatemala to which the restrictions apply, is being extended for an additional five years by this final rule.
This notification is effective from September 29, 2022

United States: CBP Announces Additional Partnerships for New and Expanded Services

U.S. Customs and Border Protection announced 24 tentative selections for new reimbursable services agreements that will promote cross-border trade and facilitate essential travel to the United States. These public-private partnerships will allow approved private sector and state and local government entities to reimburse CBP for expanded services for incoming commercial and cargo traffic and international traveler arrivals in Arkansas; California; Colorado; Connecticut; Delaware; Florida; Georgia; Idaho; Illinois; Louisiana; Maryland; Nevada; New Jersey; New York; North Carolina; Oklahoma; Pennsylvania; Rhode Island; South Carolina; Texas; the U.S. Virgin Islands; Utah; and Washington.

Since the Reimbursable Services Program began in 2013, CBP has expanded it to include 316 stakeholders.  The program has provided more than 1.1 million additional processing hours at the request of CBP’s partners—accounting for the processing of more than 16.7 million travelers and more than 2 million personal and commercial vehicles. Authorized by Section 481 of the Homeland Security Act of 2002, reimbursable services agreements increase CBP’s ability to provide new or enhanced services on a reimbursable basis by creating partnerships with private sector and government entities.  Reimbursable services under this authority include customs, agricultural processing, border security services, immigration inspections and support services at ports of entry.


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