Trade Policy

July 2026 New Regulations: A Quick Guide for International Traders – Key Compliance Points That Affect Your Bottom Line

Tariff Adjustments

Canada Lowers Tariff on Chinese EVs from Over 100% to Approx. 6%

     Under a new quota agreement reached with China, the Canadian government will import up to 49,000 Chinese-made electric vehicles over 12 months at a preferential tariff rate of around 6%. Previously, these vehicles were subject to a 100% tariff, which effectively locked them out of the market. The annual quota will increase by 6.5% each year. Canadian Prime Minister Carney stated that initial imports will be mostly Teslas, with a wider variety of models and lower prices to follow, though the rollout will be carefully managed. The agreement, which took effect on March 1, 2026, replaced the 100% tariff imposed in 2024.

UK Steel Import Duty-Free Quotas Cut by 51%, New Rules Effective July 1

     The UK government has announced details of steel trade measures taking effect from July 1, 2026. Tariff-free steel imports will be limited, with overall quota volumes reduced by 51% compared to the previous Steel Safeguard. The total quota volume will be 3.2 million tonnes. Any imports exceeding these quotas will face a 50% tariff. The measure applies to steel products that can also be produced in the UK. The previous safeguard quotas and the 25% additional safeguard duty will cease to apply after June 30, 2026. A transitional arrangement applies to goods under contract before March 14, 2026, imported between July 1 and September 30, 2026 – these will not face the 50% tariff or count toward quota volumes.

UK Brings Forward Low-Value Import Tariff Exemption Cancellation to October 2028

     The UK government has brought forward the cancellation of the tariff exemption for imports valued at £135 or below to October 2028, six months earlier than the previous deadline of March 2029. The move is in response to the expansion of ultra-low-price platforms such as Shein and Temu, which have been impacting local brands. Earlier, 16 major UK retailers jointly called for an accelerated reform. The Treasury stated the measure will create a level playing field and combat tax evasion. The government will also review the VAT collection mechanism for online platforms to ensure cross-border sellers comply with tax obligations.

Brazil Restores Zero-Tariff Import Quotas for EVs

     On June 23, 2026, the Executive Management Committee of Brazil's Foreign Trade Chamber (CAMEX) decided to restore zero-tariff import quotas for CKD (Completely Knocked Down) and SKD (Semi-Knocked Down) electric vehicles, effective July 1, 2026. The quota, valid for six months, totals USD 463 million, consistent with the standards in place before January this year. Above-quota imports: SKD vehicles will be subject to a 35% tariff, while CKD vehicles continue at 14%. CBU (Completely Built Up) vehicles are not subject to any quota restrictions.

Bangladesh Cuts Solar Import Duties to Zero for 5 Years

     On June 11, 2026, Bangladesh's Finance Minister announced in parliament the 2026-27 national budget, declaring that import duties, regulatory duties, supplementary duties, and advance income tax on solar components would all be reduced to zero. Previously, comprehensive import duty rates on solar equipment ranged from 26.2% to 58.6%: PV modules faced about 26.2%, inverters up to 37%, and mounting structures up to 58.6%. Now all are duty-free. The zero-duty period extends to June 30, 2031. Solar power generation projects, including self-built plants, enjoy 0% income tax until June 30, 2035. Residential and commercial users of solar power receive a 5% tax rebate on electricity bills.

Nigeria: Reduces Import Duties on Food, Vehicles, and Industrial Raw Materials

     The Nigerian federal government has implemented significant tariff reductions on 127 categories of goods, including food, vehicles, and industrial inputs, effective July 1, 2026, aiming to ease inflation and stimulate manufacturing. Under the new regime:

     - Passenger vehicle duties: reduced from 70% to 40%

     - Bulk rice duties: reduced from 70% to 47.5%

     - Raw cane sugar duties: reduced from 70% to 55%-57.5%

     - Crude palm oil duties: reduced from 35% to 28.75%

     - Mass transit buses and electric vehicles: fully exempt from import duties

     - Manufacturing machinery: 0% duty

Colombia Imposes 35% Tariff on Certain Imported Footwear

     According to a decree issued by the Colombian government, a 35% tariff will be applied to certain low-priced imported footwear products to protect the domestic shoe industry. The tariff applies when the declared FOB value of imported footwear is at or below specified thresholds. The measure covers products under tariff headings 6401, 6402, 6403, 6404, and 6405, with price thresholds ranging from USD 7 to USD 11 per pair. Colombia's Ministry of Trade, Industry and Tourism stated the move aims to counter the rapid growth of footwear imports from countries without free trade agreements with Colombia and to protect local industry development.

 Policy & Regulatory Updates

Ministry of Commerce Issues Announcement to Combat Violations in Strategic Mineral Dual-Use Item Export Controls

     On June 24, 2026, China's Ministry of Commerce issued Announcement No. 26 of 2026, titled "On Further Improving the Handling of Reports on Violations Concerning Export Control of Strategic Mineral Dual-Use Items". Effective July 1, 2026, any organization or individual may report suspected violations of laws and regulations on the export of strategic mineral dual-use items. The announcement details 13 categories of reportable violations. Reporting channels include an online platform and a dedicated hotline. Verified reports may result in rewards for whistleblowers.

Ministry of Commerce Adds 20 Japanese Entities to Export Control List and 20 to Watch List

     To safeguard national security and fulfill international obligations such as non-proliferation, China's Ministry of Commerce has added 20 Japanese companies to its export control list and another 20 to a watch list. The entities are primarily defense-related firms. Exports of dual-use items to the 20 controlled entities are prohibited. For the 20 watch-listed entities, stricter end-user and end-use reviews will be applied, and exports involving Japanese military users or purposes, or any other end-uses that may enhance Japan's military capabilities, will not be approved.

Ministry of Commerce Initiates Anti-Dumping Investigation into Pea Starch from Canada

     On June 30, the Ministry of Commerce issued Announcement No. 25 of 2026, its preliminary ruling in the anti-dumping investigation into pea starch imports from Canada. The investigating authority preliminarily found that pea starch imports from Canada, causing material injury to China's domestic pea starch industry, and that a causal relationship exists between the dumping and the injury.

Ministry of Commerce Adds 10 U.S. Entities to Export Control List

     On June 22, the Ministry of Commerce issued Announcement No. 23 of 2026, adding 10 U.S. entities to the export control list.

June 30: Export Declarations for Lathes, Milling Machines, and Grinders Upgraded

     On June 5, 2026, the General Administration of Customs issued Announcement No. 77 of 2026 (on Standardizing Export Declarations for Lathes, Milling Machines, Grinders, and Related Material Processing Equipment), effective June 30, 2026.

General Administration of Customs Standardizes Export Declarations for Drones and Related Items

     On June 9, the General Administration of Customs issued Announcement No. 78 of 2026, standardizing export declarations for drones and related items. The announcement covers unmanned aerial vehicles, unmanned airships, related equipment and components, and civil counter-unmanned aerial vehicle systems. Effective June 30, 2026.

State Council Regulations on Outbound Investment Take Effect July 1

     The State Council's Regulations on Outbound Investment, adopted at the 83rd executive meeting of the State Council on April 17, 2026, take effect July 1, 2026. The regulations stipulate that investors conducting outbound investment activities must not export or use goods, technology, services, or related data that the state prohibits from export, nor may they export or use restricted items without proper authorization.

Russia Extends Precious Metal Scrap Export Ban to November 2026

     Russia's temporary ban on the export of precious metal waste and scrap has been extended for six months, effective June 1. The restriction will remain in place until November 30, 2026. Originally implemented in 2022 and set to expire on May 31, the ban covers waste and scrap plated with precious metals, as well as electronic and electrical equipment waste primarily used for extracting precious metals. Exemptions apply to cathode antimony ingots and precious metal scrap samples (up to 500g per batch) exported by refining enterprises. The government stated the measure aims to increase capacity utilization at domestic refining enterprises.

Russia Expands Cosmetics Labeling Regulations to Daily Necessities and Hygiene Products

     The Russian government has revised cosmetics labeling regulations to cover certain daily necessities, hygiene products, and toiletries. The voluntary labeling pilot phase for these goods will end on September 1, 2026, with mandatory implementation from that date. All market participants (manufacturers, importers, and sellers) must register in the national monitoring system by September 1 and complete equipment commissioning and system integration testing within 15 days. Physical labeling of goods or packaging will begin October 1, 2026, while wholesale and retail data reporting will start October 1, 2027. Reporting deadlines for some categories (e.g., razor blades) have been adjusted to February 1, 2027.

Russia Launches EAEU Goods Arrival Verification System

     Effective June 1, Russia officially launched the SPOT goods arrival verification system to monitor goods entering EAEU member states. Importers must declare and prepay indirect taxes two days in advance, and goods will be assigned a unique QR code for customs verification. The system initially applies to road freight, with exemptions for certain entities and special categories. The Russian Ministry of Finance estimates the measure will generate approximately RUB 300 billion in additional annual fiscal revenue.

Indonesia Issues Technical Regulations Centralizing Exports of Coal, Palm Oil, and Ferroalloys

     Indonesia's Ministry of Trade has issued technical regulations to place exports of coal, palm oil, and ferroalloys under the control of a single central government-owned enterprise. The regulations took effect June 1. Exporters of these commodities must now report their export activities to the designated state-owned enterprise. The policy applies a phased transition from June to December 2026.

Kazakhstan Extends Timber Export Ban, Effective June 12

     Effective June 12, 2026, for a period of six months, Kazakhstan prohibits the export of certain categories of timber products from its territory by any means of transport, regardless of country of origin. Exceptions apply only to coniferous railway sleepers (and other sleepers) originating in Kazakhstan, and wood pellets originating in Kazakhstan. A similar six-month export ban was previously in effect from December 12, 2025.

Vietnam Tightens New Rules on Chinese Transit Goods: Only 4 Border Gates Open, Max 30-Day Stay

     Vietnam has implemented new transit transport regulations, significantly tightening supervision over Chinese goods in road transit to prevent origin fraud and tariff circumvention. Key points:

     - Chinese transit goods are only permitted through 4 designated border gate pairs (Lao Cai–Hekou, Huu Nghi–Youyiguan, Mong Cai–Dongxing, Dong Dang–Pingxiang)

     - All other border crossings are closed to Chinese transit goods

     - Goods may remain in Vietnam for a maximum of 30 days, extendable up to three times

     - All transit goods require prior permits; prohibited items are not allowed

     - Closed-loop supervision applies: original packaging and condition must be maintained – processing, repackaging, or swapping is strictly prohibited; violations will result in cargo detention

Russia Implements Tobacco Trade Licensing System from July, Effective March 2027

     The Russian State Duma has passed amendments to the law on tobacco product circulation regulation, mandating licenses for wholesale, retail, and mobile sales of tobacco and nicotine products. Licenses are valid for up to 5 years. Wholesale licenses are issued by the Russian Alcohol and Tobacco Regulatory Authority, while retail and mobile sales licenses are issued by regional executive authorities. Applicants must connect to the national product traceability information system and comply with health protection requirements. The new rules take effect March 1, 2027, but applications may be submitted early from October 1, 2026. The legislation also introduces a remote retail ban on tobacco, nicotine products, hookahs, and related equipment.

July 1: EU Steel Regulations Take Effect

     The EU is tightening steel import tariff quotas. Annual duty-free steel import quotas have been reduced by 47% from 33.82 million tonnes to 18.3 million tonnes. Imports exceeding quotas are subject to a uniform 50% additional tariff. A new "melt and pour" origin determination rule has been introduced: the country of origin for steel is determined by where the first melt and pour occurred; simple processing in third countries does not change origin. Exporters must retain complete melt-and-pour traceability documentation.

Singapore: Tightens Controls on Regulated Electrical Appliances – Even Personal Imports Require Registration

     On June 24, Singapore's National Environment Agency (NEA) announced that from July 1, 2026, individuals and businesses importing regulated electrical appliances for personal use must register with the NEA in advance and comply with energy efficiency standards. Non-compliant appliances will not be allowed entry, and violators face fines of up to SGD 10,000 per offense.

U.S.: Mandatory Electronic Filing (eFiling) of Certificate Data for Regulated Imported Consumer Products

     Effective July 8, 2026, the U.S. Consumer Product Safety Commission (CPSC) will implement mandatory electronic filing (eFiling) of certificate data for regulated imported consumer products. Products requiring a Children's Product Certificate (CPC) or General Certificate of Conformity (GCC) must be filed electronically through the ACE system at the time of import. The CPSC has listed approximately 600 U.S. HTS codes covering products such as ATVs, bicycle helmets, bicycles, button and coin batteries, child chairs, pacifiers, toys, and more.

South Africa from September: 25 High-Risk Product Categories from China Require Pre-Shipment Inspection

     The South African government has announced that from September 20, 2026, a Pre-Shipment Verification of Conformity (PVoC) program will be implemented for 25 high-risk non-regulated product categories imported from China. Categories include furniture, building materials, auto parts, toys, and gas equipment. Products must obtain a Certificate of Conformity (CoC) before shipment. The South African Bureau of Standards (SABS) is responsible for appointing inspection bodies. A 6-month transition period is currently in place. The program is first being piloted for China and will eventually expand to other exporting countries. Exporters should promptly check their HS codes and contact accredited bodies to prepare for compliance.