french, soft, wheat

French soft wheat exports forecast lower

French soft wheat exports in 2020-21 are forecasted lower due to weather.

French soft wheat exports outside of the EU are now estimated at 6.6 million tons, down from an initial projection of 7.75 million tons and 51% below a record 13.46 million tons in 2019-20.

FranceAgriMer has been anticipating a steep drop in exports in 2020-21 after France’s wheat crops fell by around a quarter this year due to adverse weather, Reuters said.

It’s estimated France would ship between 1.5 million and 2.5 million tons to Algeria, far below the 5 million tons in previous years.

Sales to China should reach 1 million tons, possibly up to 2 million if French wheat remains competitive and China has increasing needs for human and feed use, Reuters said.

Exports to Morocco, another traditional market for French wheat, were estimated at around 1 million tons while West Africa was seen importing between 1 million and 1.5 million tons of the grain.

Expected soft wheat exports to other EU countries and Britain in 2020-21 were revised down to 6.4 million tons.

Soft wheat stocks at the end of this season are now projected at 2.9 million tons, compared with an initial forecast of 2.6 million.

2019-20 French soft wheat estimates

France’s soft wheat exports outside of the E.U. are expected to increase 14% to a four-year high in the 2019-20 crop year, according to FranceAgriMer.

Exports of soft wheat are estimated at 11 million tons, the highest since 2015-16.

France had a rare shipment of wheat to China at the beginning of the season, and traders are hopeful French wheat will regain market share in West Africa and see extra demand from Morocco, which had a poor harvest.

However, competition from the Black Sea and possibly Argentina could cap exports.

Officials are estimating France has harvested its second-largest soft wheat crop on record. FranceAgriMer estimated the crop at 39.45 million tons, about 16% higher than last year’s total.

Within the E.U., French soft wheat exports are expected to increase by 14%. Domestic demand is expected to also increase due to a 21% rise in animal feed use.

ports of singapore.

Ports of Singapore: What about them?

The ports of Singapore are all those specialized maritime coasts for the maritime treatment of vessels that require logistical management to leave any cargo in that territory, ranging from food to motor vehicles.

The creation of the ports of Singapore was not with the intention of expanding trade, but rather a necessity due to not having enough land to carry out agricultural activities or the consolidation of large companies.

For the Singapore government, seaports are considered for the purchase of all goods and services that cannot be processed within their limitations, as it in turn functions as a way to strengthen alliances with other states and market their services.

Main sea ports of Singapore

Singapore Container Port Terminal

It is located right on the Malaysian peninsula, in the northern part of the Riau Islands on its border with Indonesia. It is considered the smallest area among the towns in Singapore.

Within its facilities there are two terminals called: Jurong Port and PSA Corporation Limited, being the only active seaports in the country.

Both are capable of serving any type of vessel, including large container vessels with bulk cargo, general cargo, mountainous or ro – ro vessels.

Jurong Port

It is a terminal that works as an operator based in the country, its purpose is to mobilize and move all types of freight, either cargo or bulk.

Annually this port registers approximately 40 thousand requests for the unloading of goods and services on its lands.

On the land level, it has good connections to the Jalan Ahmad Ibrahim Road, one of the trunk roads leading to the main Jurong Highway, the popular Seraya Avenue and Sugnei Jurong.

Its infrastructure has 32 moorings in all the docks and coasts of the ports of Singapore, its resistance is 15 thousand tons in weight, so it can be able to move a large number of containers or TEUs.

Its beginnings were in 1965, as an initiative of the Singapore Economic Development Board(EDB) for the sustained increase in the growth of the port city.

PSA Corporation Limited

Its operations are hosted for the mobilization and movement of containers in the terminals of: Tanjong Pagar, Pasir Panjang, Keppel and Brani.

Its service capacity is good, as a result of its availability of 52 docks dedicated to TEUs, and its working hours is 365 days a year, 24 hours a day.

For merchants, this is one of the most advanced PSA port areas in Singapore. Its infrastructure is based on a 16-meter-deep mooring, including several cranes assembled on the coast capable of moving 22 rows of TEUs.

Its port instrumentation system has added values, therefore, it is more advanced with the adaptation of the latest versions of machinery for maritime exploitation with limits of up to six grippers.

For better organization, it has a car terminal in the case of boats with automotive materials and others for activities with containers.

Why should I choose any of the Singapore ports for my transactions?

The ports of Singapore have good machinery for grabbing and moving goods in less time, not to mention that their customs laws are quite flexible and friendly unlike other ports.

Another interesting point is that if the company plans to expand its products, maybe the ports of Singapore are a good option.

This country is characterized by higher levels of exports, that is, the purchase of products abroad because, being a small nation, they necessarily need to buy inputs abroad.

They can also serve as an intermediary when it comes to establishing alliances with world traders in Malaysia or Indonesia.

Because Singapore offers better deals in reducing costs for procedures, it is more attractive for companies to disembark in these ports and then transport to neighboring countries.

If you are interested in conforming a export or import company in Singapore, you might be interested in this article.

Chinese cargo containers in the port

China’s exports growth in August

China’s exports growth accelerated in August while imports edged lower as the world’s second-largest economy extended its recovery from the coronavirus pandemic.

China’s exports rose 9.5% over a year earlier to $235.2 billion, up from July’s 7.2% growth, data from the General Administration of Customs showed Monday. Imports declined 2.1% to $176.3 billion, compared with the previous month’s 1.4% contraction.

China’s exporters have benefited from its relatively early reopening from a shutdown to fight the virus while competitors in many other countries still face anti-disease controls that disrupt business.

Exports to the United States rose 20% to $44.8 billion despite tariff hikes imposed by the Trump administration in a fight with Beijing over its technology ambitions and trade surplus. Imports of American goods gained 2% to $10.5 billion.

The changes were due mostly to lower prices and comparison with last August’s relative weak exports, according to Julian Evans-Pritchard of Capital Economics. Evans-Pritchard estimated the volume of goods exported rose 9.7% from a year earlier while import volumes rose 9.5%.

Other exporters have benefited from increased Chinese demand for their goods after growth in the world’s second-largest economy rebounded to 3.2% over a year earlier in the three months ending in June. Activity the previous quarter fell 6.8%, the deepest slump since at least the mid-1960s.

China’s exports and import details

China’s exports to the 27-nation European Union, China’s biggest foreign market, fell 20.1% from a year earlier to $35.7 billion. Imports of European goods tumbled 29.7% to $22.5 billion.

China’s global trade surplus swelled by 72% over a year earlier to $58.9 billion. That was down from July’s $62.3 billion gap.

Chinese importers have benefited from a slump in global prices for oil and many other goods due to weak demand caused by virus-related shutdowns.

Fast-growing exports included integrated circuits, smartphones, auto-data processors and household appliances.

That suggests “China still has some trade partners that are willing to import Chinese technology” despite tension with Washington, Iris Pang of ING said in a report.

Still, Pang warned Chinese exporters of higher-tech goods might face trouble as Washington tightens curbs on access to U.S. components in a feud with Beijing over technology and security.

 “This could affect exports of technological products and services in the coming months,” said Pang.

Export import, singapore, global trade

Export Import: how to set up a Company in Singapore

If you plan to conduct an export import business activity, Singapore will be a perfect jurisdiction for incorporating such a venture. This city-state is a world-class player in global commerce.

Its strategic location in the center of Southeast Asia, its air and sea links to facilitate inter-regional and global trade have led to its emergence as a major trade hub in the global supply chain. It now ranks as the 14th largest exporter and the 15th largest importer in the world.

Today, we will talk about the procedure to set up a trading company, the necessary permit requirements, and the long-term compliance obligations that you should consider if you plan to conduct import, export, or transit activities in Singapore.

Why is Singapore an export import hub?

There are several reasons for Singapore’s emergence as an export import center. These are:

  • Favorable geographical location.
  • Reliable infrastructure.
  • Business-friendly regulations.
  • Attractive tax regime.
  • Stable financial system.
  • Low corruption.
  • Skilled manpower.

These factors have attracted nearly 70% of the world’s largest commodity trading companies, that generate more than US$1 trillion in annual turnover from their Singapore operations.

Steps to set up your export import company in Singapore

In order to start a trading business, you need to register your Singapore company first. The agency in charge of this is called Accounting and Corporate Regulatory Authority (ACRA) which is the national regulator of business entities in Singapore.

The procedure is similar to incorporating any other enterprise. The most suitable form for a trading enterprise is a private limited company. Foreigners are required to work with a Singapore-based corporate services provider to incorporate their company.

After the incorporation process, the company will receive a Unique Entity Number (UEN), which is a standard and unique identification number for each Singapore entity. Al government agencies use the UEN to identify the company in a simple way.

Regulations to have in consideration

Once your company is registered, and has obtained a UEN, you may begin your trading activities. Note that your company must follow the relevant import or export regulations to be in compliance with the laws.

Importing goods into Singapore

To carry out the import activities you must obtain the necessary permits by following a series of steps we briefly mention below.

  • Activate Customs Account: First you should activate the company’s Customs Account at the Singapore Customs website, after which you will receive a Customs approval letter.
  • Apply for Inter-Bank GIRO Account: To pay duties, taxes, fees, and other charges on the services provided by Singapore Customs, you need to register and maintain an Inter-Bank GIRO (IBG) account.
  • Furnish security: After obtaining the IBG, in certain cases the government requires you as an importer or your declaring agent to provide financial security.
  • Apply for permits and licenses: You will need a customs permit to import the goods. As an importer, you may register yourself as a declaring agent or appoint a declaring agent to act on your behalf.  However, Singapore legislation defines certain goods as controlled goods. These require an additional permit from Competent Authorities (CA) before they may be imported into Singapore.
  • Prepare documents for customs clearance: After you’ve obtained the necessary permits, the last step is cargo clearance. The appropriate documents must be submitted at an entry point. These documents must be preserved for five years from the date of customs permit approval, in either physical or digital form.

Exporting goods

The procedure for fulfilling export requirements is similar to that for importing goods. With only a few differences, we mention below.

  • Apply for permits and licenses: As in the case for importing, additional permits or licenses from the respective Competent Authorities (CA) are required to export controlled or strategic goods.
    • Controlled Goods: It is important to check if your goods have restrictions imposed upon them by Singapore’s Competent Authorities. You will have to look-up if your products are subject to a restriction with the appropriate Competent Authorities on how to obtain the relevant permit.
    • Strategic Goods: This category includes goods and technology that are intended or likely to be used as weapons of mass destruction. If you plan to export Strategic Goods, you will have to apply for a Strategic Goods Control Permit through the TradeNet system.

Customs value in international trade and its importance

Determining the value of a merchandise is considered one of the main points of great importance in trading. Therefore, the Customs value is required on a mandatory basis in order to calculate the duty payable on the imported product within the international conversion rules.

What is Customs Valuation?

According to the World Trade Organization it is defined as the customs procedure applied to determine the customs value of imported goods.

Background on Customs Value

Since 1950, many countries have performed their calculations based on the value established by Brussels by a product value method in a free market settled by both buyer-seller parties. Nonetheless, this practice led to deviations in the declarations that affected the customs offices.

Thus, a positive valuation system was established named ¨Code of Valuation of the Tokyo Round¨ based on the real price paid for the merchandise. This was later replaced by the current WTO agreement that basically is essentially the same as the Code of Tokyo and applies only to the valuation of goods for the purpose of applying ad valorem duties on imports.

This WTO Agreement on Customs Valuation establishes a system that is reliable because it adjusts the current realities of foreign trade and prohibit the use of arbitrary or fictitious values.

“Valuation at customs must be based, except in certain cases, on the actual price of the goods being valued, which is generally indicated on the invoice. This price, plus the adjustments corresponding to certain elements listed in Article 8, is equivalent to the transaction value, which constitutes the first and main method referred to in the Agreement¨.

Methods applied to determine the Customs Value according to the WHO

• Transaction value

• Transaction value of identical goods

• Transaction value of similar goods

• Deductive method

• Reconstructed value method

• Last resort method

Institutions in charge of the Application of the Customs Value Agreement

• Committee on Customs Valuation

• Technical Committee on Customs Valuation

Importance of Customs Value

All the regulations that establishes the Customs Value of a merchandise have the main objective of maintaining an equitable, uniform and neutral valuation system that allows the customs authorities of each country to obtain the real costs of each product and in turn establish tariffs and payments and set the export taxes or import activity.

Automatic permits reduce risks in import operations

One of the great protocols that must be complied with within the customs logistics processes in some countries are automatic permits which generate greater speed and minimize the risks within the process; to understand what it is we are going to define it in this article.

What are automatic permissions?

Basically, it is a process that allows customs authorities to obtain prior information on imports of certain goods so they perform a risk analysis of the operation that will be executed.

Importance of automatic permits

This type of permits works as part of the trade facilitation scheme in each country; the automatic notices and permits allow the customs authority to carry out better statistical control of import and export operations.

One of the countries that applies the use of automatic permits is Mexico, here are some of the requirements that apply to request this procedure.

• Merchandise description.

• Commercial brand (s) and models.

• Type of customs office of entry.

• Tariff code.

• Rate measurement unit.

• Commercial invoice number.

• Issue date of the commercial invoice.

• Marketing unit of measure according to the commercial invoice.

• Quantity (volume) to be imported according to the marketing unit of measure.

• Conversion factor.

• Marketing currency according to the commercial invoice.

• Total value of the commercial invoice in terms of the marketing currency.

• Value of the merchandise to be imported according to the commercial invoice in terms of the marketing currency.

• Exporting country to the national territory.

• Country of origin of the merchandise.

The purpose is to use this information as an instrument to prevent and combat recurrent harmful practices such as the incorrect classification of goods, undervaluation and triangulation of origin of the same which may affect the operation of strategic industries for national economic activity. 

What happens if I do not comply with this procedure?

It is important to consider that failing to apply for permits and notices can lead to delays in your shipments at the customs of the Tax Administration System of each country.

The requirements to manage this type of permits vary according to the type of product or merchandise to be imported, and it only applies to the definitive import regime, meaning, the entry of a product or merchandise from a foreign origin into the country for a definite time and it must be managed for each tariff code.