Latest news with #Importers
Yahoo
2 days ago
- Business
- Yahoo
Trump Widens Metal Tariffs to Target Baby Gear and Motorcycles
(Bloomberg) -- President Donald Trump stunned the logistics industry on Friday by widening his steel and aluminum tariffs to include more than 400 consumer items that contain the metals, such as motorcycles and tableware. Customs brokers and importers in the US were given little notice to account for the change, which went into effect Monday and did not exclude goods in transit. A Photographer's Pipe Dream: Capturing New York's Vast Water System Chicago Schools Seeks $1 Billion of Short-Term Debt as Cash Gone A London Apartment Tower With Echoes of Victorian Rail and Ancient Rome Festivals and Parades Are Canceled Amid US Immigration Anxiety Princeton Plans New Budget Cuts as Pressure From Trump Builds The new tariff inclusion list was posted by the Customs and Border Protection agency just as many were leaving for the weekend and appeared in the Federal Register on Tuesday, creating fresh headaches for trade professionals. Official guidance has been muddled, especially for goods already on their way to the US, and it's unclear whether the metals levies stack on top of country-by-country tariffs. Having weathered six months of Trump's trade war and a pandemic that triggered mass supply disruptions, it's hard to rattle the freight carriers, cargo owners and middlemen that keep cross-border commerce moving. But the scope and implementation speed of this latest notice took many by surprise. 'We've had a lot of these 11th-hour implementations throughout 2025, this one in particular impacts every single client I have to an enormous degree,' Michigan-based customs broker Shannon Bryant said in an interview. 'Earlier announcements at least had some in-transit exemptions so at least importers could make reasonable buying decisions,' said Bryant, president of trade compliance advisory service, Trade IQ. 'This one was unique in that way — it's very much a 'gotcha.'' The new list includes auto parts, chemicals, plastics and furniture components — demonstrating the reach of Trump's authority to use sectoral tariffs. That is separate from the executive power he invoked for his so-called reciprocal tariffs. 'Basically, if it's shiny, metallic, or remotely related to steel or aluminum, it's probably on the list,' Brian Baldwin, a vice president of customs in the US at logistics giant Kuehne + Nagel International AG, wrote in a post on LinkedIn. 'This isn't just another tariff — it's a strategic shift in how steel and aluminum derivatives are regulated.' Compliance Costs The difficulty with applying tariffs to derivative products lies in determining what percentage of an item is made from the targeted materials. Flexport, a digital freight forwarder, said in a blog post that 'for many brands, this means chasing suppliers for detailed data: aluminum weight, percentage of customs value, and country of cast/smelt.' The compliance burden, Flexport said, 'is significant.' This tranche of tariffs is also particularly expansive, including items such as motorcycles, cargo handling equipment, baby booster seats, tableware and personal care products that come in metal containers or packaging. Jason Miller, a professor of supply chain management at Michigan State University, conservatively estimates that the metals tariffs now cover about $328 billion worth of goods, based on 2024 import data. That's six times greater than in 2018 and a big jump from the $191 billion worth of goods covered prior to the change, he said in an email to Bloomberg News. Broker's Plea Bryant, whose clients include cosmetics and commercial cookware importers, sent a letter to her elected officials in Washington on Monday warning that the complexity of overlapping tariffs is becoming unworkable even for professionals. 'For small importers,' she wrote, 'it's impossible.' 'I'm trying to think of a client that's not impacted,' Bryant said. 'These are American companies that employ American people that are being ambushed by their own government.' Trump first imposed steel and aluminum tariffs in 2018 with the goal of boosting US output by making it more expensive for Americans to buy foreign material. But several major suppliers including Canada, Mexico and the European Union were ultimately exempted, and US industries have said they're still struggling to compete with imports. Big Steel Applauds In June, Trump fulfilled a campaign promise by doubling the levy on steel and aluminum to 50% and also sought feedback from industry on how to broaden it further. Lourenco Goncalves, chief executive officer of US steelmaker Cleveland-Cliffs Inc., applauded the expanded tariff list in a statement on Monday, thanking the Trump administration for 'taking decisive and concrete action that will deter tariff circumvention occurring in plain sight with stainless and electrical steel derivative products.' There's very likely more to come. At the end of July, the Trump administration imposed a 50% duty on semi-finished copper imports valued at more than $15 billion and ordered officials to come up with a plan to slap tariffs on an array of other copper-intensive goods. 'This isn't over,' said Pete Mento, DSV's global customs director, in a social media post on Monday. 'The next list will surely be for copper and I expect that to be equally as miserable.' Reference Shelf: Chaotic Tariff Rollout Leaves US Importers Short on Details (1) US INSIGHT: Importers Still Cover Most Tariffs Despite Revisions Why Trump Doubled Down on Steel and Aluminum Tariffs: QuickTake Foreigners Are Buying US Homes Again While Americans Get Sidelined What Declining Cardboard Box Sales Tell Us About the US Economy Women's Earnings Never Really Recover After They Have Children Americans Are Getting Priced Out of Homeownership at Record Rates Yosemite Employee Fired After Flying Trans Pride Flag ©2025 Bloomberg L.P. Sign in to access your portfolio
Khaleej Times
30-07-2025
- Business
- Khaleej Times
Steps needed to boost local currency settlement in UAE dirham and Indian rupee
Almost two years have passed since the Local Currency Settlement Agreement between India and UAE. The United Arab Emirates was the first country with which India signed the Comprehensive Economic Partnership Agreement (Cepa) as well as a Local Currency Settlement (LCS) Agreement. The LCS agreement was signed in July 2023, though both countries started discussions and negotiations one year back in the year 2022. However, the LCS has not picked up to the expectations despite concerted efforts of both the central banks, while Cepa has seen good progress. The less-than-expected performance not only required soul searching but also efforts to address some of the concerns raised by parties on both sides of the spectrum. After signing the first LCS agreement with the UAE, India has signed three more LCS agreements with Sri Lanka, Maldives, and Indonesia. The mechanism of settlement is very simple — exporters can receive the export proceeds in dollars or other major currencies, the local currency of the importing country, and in the currency of the exporting country. However, the US dollar has dominated the trade settlements. This effort is not aimed at de-dollarisation but arranging settlement in bilateral trade or even trilateral trade in the respective currencies of countries involved. The process is as follows — Indian exporter - export to UAE - invoice in UAE dirham - payment in UAE dirham - UAE dirham credited in a bank account in UAE. UAE exporter - export to India - invoice in Indian rupee - payment in Indian rupee - Indian rupee credited in a bank account in India. However, the invoicing and settlement can be in any respective currencies of two countries i.e. invoicing for export to India can be in UAE dirhams too, and export to UAE can be in Indian rupees too. But the objective of the LCS is to encourage the trade partners of the respective countries to deal in partner countries' local currencies too, away from US dollar. A few problems and hurdles mentioned by the United Bank Federation of UAE and other stakeholders were addressed by the Reserve Bank of India. However, there have been many other concerns that still need to be resolved. On January 14, 2025, to promote the use of the Indian Rupee (INR) in cross-border transactions, the Reserve Bank of India amended some of the regulations of the Foreign exchange Maintenance Act (Fema). Two major changes were: 1. The Foreign Currency Accounts (FCA) Amendment allowed Indian exporters to maintain FCAs with banks outside India for all export transactions (goods and services) and receive advance payments for goods/services to be exported by them. 2. Persons resident outside of India (PROI) are permitted to open Special Non-Resident Rupee (SNRR) Accounts for all 'permissible current and capital account transactions' with authorised dealer (AD) banks in India as well as their branches outside of India. They can do same (opening INR account) with UAE banks also. The first and foremost clarification is that the LCS doesn't include only trade transactions, but also retail business, thus giving a chance to the NRI customers and Indian businesses alike outside India, means providing them banking in INR with permitted transactions. Thus, NRIs can open INR accounts outside India in local banks which can offer interest also for those accounts. A major problem faced by the LCS arrangement is the trade deficit between India and the UAE. The trade balance is in favour of the UAE which has naturally raised the issue of the use of surplus rupee because of trade settlement. While the Reserve Bank of India is working on various suggestions of banking partners in UAE, it brought out a welcome change that the balance in INR in foreign countries can also be used for payments of proceeds with third countries having LCS arrangements with India. For example, payments for the tea import to the UAE can be made in INR to Sri Lanka which has an LCS agreement with India. Another positive development brought out by RBI is that foreign banks have been allowed to invest INR surplus in permissible current account transactions, with the only clause that they must register as Foreign Portfolio Investor (FPI) in India. Thus, they can invest in Indian equity and stock markets and other permissible investments. A misconception exists in the business fraternity and even individuals also that settlement through LCS will require an additional or different set of documents which is wrong. LCS also operates with the same set of documents which otherwise is required for US dollar transactions. Despite these steps taken by central banks, there are still a few pain points that need to be addressed to popularise local currency settlements. Besides the trade deficit, another concern is the ready availability and maturity of the forex market for the two currencies. As of now, there is no active treasury market for quotes in forward and future markets, as well as currency and interest derivatives. A free market quote without referring to the US dollar is important to develop confidence and sentiment. Despite efforts of two governments and two central banks, small players and exporters are not very clear about the mechanism and benefits as well as LCS itself. There is a need for more promotion, clarification, and sessions about the benefits of this mechanism. There is a demand for the establishment of a bilateral line that should be enabled by the central banks of the two countries in their respective currencies for settlement of trade as well as permitting the drawing in case of need to make it more flexible and practical. The effort should be to encourage those companies which are having offices and subsidiaries, associate companies, or joint ventures to operate in local currencies as they are present on both sides and settlement, as well as overall natural hedge, will be efficient and effective for them. In this regard moving Indian exporters to LCS will be practically easy as payment in Dirham which is pegged to dollars will be easily acceptable and even in rupee those companies having a presence in India and UAE will help in settling transactions easily and cost-effectively. Some of the sectors like gems and jewellery, gold and textiles can help in popularising the local currency settlements. The writer is Chief Executive Officer, State Bank of India, DIFC, Dubai.
Yahoo
17-06-2025
- Business
- Yahoo
Extended Producer Responsibility (EPR) now law in Kenya
Kenya has implemented the Sustainable Waste Management (Extended Producer Responsibility) Regulations, Legal Notice No 176 of 2024, marking a major shift in how waste is managed in the country. Effective from 4 November 2024, the rules place the onus on producers, importers and brand owners to manage the entire life cycle of their products. Under these new extended producer responsibility (EPR) regulations, firms must register with the National Environment Management Authority (NEMA), develop take‑back systems, pay fees tied to product volumes, and submit annual reports—all by the compliance deadline of 4 May 2025. All entities introducing goods, packaging or products into Kenya—whether through manufacturing, import or rebranding—must register with NEMA and obtain an annual licence. This includes importers of listed items, obligated to register and pay EPR fees within six months of the regulations coming into force. Registration involves submission of a four‑year compliance plan and secures a Producer Responsibility Number necessary for product clearance. The regulations mandate producers to implement take‑back schemes—such as deposit‑refund systems or collection partnerships—to ensure post‑consumer waste is responsibly collected and processed. EPR fees, set by the Cabinet Secretary, are paid based on the volume of products placed on the market and support waste infrastructure. Producers must also maintain detailed records covering production volumes, waste collection, recycling and disposal, submitting annual reports to NEMA and county authorities. These EPR regulations stem from the Sustainable Waste Management Act of 2022, which codified principles like the polluter‑pays model, zero‑waste ideology and circular economy frameworks. The Act tasks the Cabinet Secretary with creating regulations to operationalise these principles, now realised through the EPR rules. Previous measures—including the 2017 single‑use plastic bag ban—have helped tackle pollution, but take‑back schemes and mandatory EPR fees represent a more comprehensive, lifecycle‑focused strategy. Businesses are urged to register by 4 May 2025, design effective waste collection programmes, engage with producer responsibility organisations (PROs), and improve product recyclability through design and consumer education. Joining PROs can ease the administrative burden, enabling collective compliance. Enforcement will be robust—companies failing to register or submit accurate data may face legal action, financial penalties or licence revocation. Kenya's new EPR regulations mark a defining moment in promoting sustainable waste management, closing the loop through shared responsibility. As businesses navigate registration, take‑back schemes and fee payments, the success of these measures will hinge on effective collaboration between producers, PROs, NEMA, counties and the public. "Extended Producer Responsibility (EPR) now law in Kenya" was originally created and published by Packaging Gateway, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Khaleej Times
20-05-2025
- Business
- Khaleej Times
India implements stricter rules for gold, silver imports from UAE
India has enforced restrictions on gold and silver imports from UAE under the Comprehensive Economic Partnership Agreement (CEPA) between the two countries, according to Indian media reports. The restrictions apply to import of the precious metals in unwrought, semi manufactured and powdered form. The imports will be allowed only through nominated agencies, qualified jewellers and valid tariff rate quota holders under the CEPA, according to Indian media reports. This move follows some importers passing off 99 per cent gold shipments as platinum alloy, to benefit from lower duty rates. To prevent this malpractice, authorities have introduced distinct Harmonised System (HS) tariff codes for platinum containing 99 per cent or more pure platinum, according to Indian media reports, along with gold dore and silver dore. After the signing of India-UAE CEPA, the trade between the two countries rose from $20.88 billion in 2022 to $28.15 billion in 2024, accounting a growth of around 35 per cent.
Express Tribune
11-02-2025
- Business
- Express Tribune
Beverage industry calls for tariff reforms
Listen to article KARACHI: Pakistan's food and beverage industry has urged the government to implement tariff reforms to lower production costs, enhance exports, and support local industrial growth. The All Pakistan Fruits and Vegetables Exporters, Importers, and Merchants Association (PFVA) has proposed budgetary measures, including increasing taxes on finished goods and reducing taxes on raw materials. PFVA emphasised the crucial role of the food and agriculture sector in Pakistan's economy. However, high tariffs on essential raw materials, packaging components, and imported production elements are limiting growth. Provisional real GDP data for the first quarter of fiscal year 2025 showed a modest growth of 0.9% compared to 2.3% in the same quarter of fiscal year 2024. This slowdown was primarily due to a sharp deceleration in agriculture sector growth to 1.2% in Q1-FY25, down from 8.1% in the same period last year, according to the State Bank of Pakistan (SBP) governor while announcing the monetary policy on January 27. The proposed reforms focus on cost reduction, efficiency enhancement, and export growth, said Waheed Ahmed, Patron-in-Chief of PFVA. "By reducing production costs and ensuring a level playing field for local manufacturers, Pakistan can strengthen its presence in international markets." One key recommendation is lowering import duties on packaging materials such as plastic and paperboard, which currently face high tariffs of 16% and 20%, respectively. PFVA suggests standardising these duties to 8-10% and offering exemptions for exporters, which could significantly reduce packaging costs and make Pakistani products more competitive internationally. While the government has implemented the Export Facilitation Scheme (EFS) to benefit exporters, certain suppliers who do not directly export but supply processed materials to exporters are still subject to duties, Ahmed noted. PFVA suggests that suppliers of exporters should either be exempt from duties (0%) or be allowed to import materials at a nil-tax rate. This would enable local exporters to obtain materials at lower costs, making their products more competitive globally. To protect local agricultural produce, PFVA proposes increasing the Regulatory Duty (RD) on imported tomato paste from 20% to 40%, encouraging manufacturers to use locally grown tomatoes. This measure is expected to boost demand for domestic agricultural products and reduce reliance on imports. Despite a current customs duty of 20% and an RD of 20%, imported tomato paste prices remain lower than local production costs, Ahmed stated. The government should encourage local manufacturers to source from domestic agriculture, boosting investment in food processing and strengthening local supply chains to prevent excessive reliance on imports. He urged the government to review import data on agricultural products to implement protective measures and support domestic farmers. Another critical reform focuses on reducing import duties on aseptic bags used in juice packaging, which currently face high customs and regulatory duties, including a 20% customs duty, 6% additional customs duty, and 10% RD. Lowering these taxes would cut juice production costs and strengthen the competitiveness of local manufacturers. Additionally, PFVA recommends shifting the 20% Federal Excise Duty (FED) on fruit juices to the import stage of aseptic packaging, preventing tax loopholes and ensuring fairer taxation. The government currently imposes a 20% FED on locally supplied fruit juice in aseptic packaging. However, many local manufacturers bypass this tax by importing materials, producing juices domestically, and selling them in the market without paying the appropriate taxes. Instead of imposing FED at the final product stage, Ahmed suggests applying a 20% FED on aseptic packaging at the import stage. This would prevent tax evasion and ensure that all industry players operate under the same tax conditions. "The impact will manifest in increased government revenue and a level playing field for all manufacturers," he said. These reforms aim to create a more stable tariff structure, attract investments, and support local manufacturers, he added. If implemented, they could enhance Pakistan's processed food exports, strengthen domestic production, and align with the government's broader economic growth strategy. The industry is urging policymakers to incorporate these measures into the upcoming budget to ensure long-term sustainability and global competitiveness.
