While Vietnam, Taiwan, and Switzerland exceeded thresholds established by the Treasury Department to identify potentially unfair currency practices, a report from the department released April 16 said there is no evidence that they manipulated their currency to gain unfair trade advantage. The report noted that in early 2021, Treasury offices began “enhanced bilateral engagement with Vietnam and is working with the Vietnamese authorities to develop a plan with specific actions to address the underlying causes of Vietnam’s currency undervaluation.” It was already engaged with Switzerland on the topic, and will continue those discussions. It said similar talks should be done with Taiwan. The report noted that the Taiwanese currency appreciated in 2020, but given the strength of Taiwan's economy that year, it did not rise as much as would be expected.

Treasury Secretary Janet Yellen said the U.S. is working with the world's 20 largest economies in the hopes of arriving at “a global minimum corporate tax rate that can stop the race to the bottom.” If that agreement included an approach to taxation of the digital giants such as Google and Facebook, that would also deflate the digital services tax controversy, which could otherwise lead to additional 25% tariffs on more than $800 million in goods (see 2103290049).

The U.S. should boost efforts to counter China’s unfair trading practices and work closer with allies on trade restrictions, said Janet Yellen, President-elect Joe Biden’s nominee for Treasury secretary. Yellen, speaking before the Senate Finance Committee Jan. 19, said the administration will increase pressure and work multilaterally against China’s unfair subsidies, illegal technology transfers and other trade issues. “China is clearly our most important strategic competitor,” she said, and the U.S. needs to “take on Chinese abusive, unfair and illegal practices,” including illegal dumping, trade barriers, lopsided subsidies and forced technology transfers, which is giving China an “unfair technological advantage.” If confirmed, Yellen said, Treasury will cooperate more with allies but will still impose unilateral restrictions if they are warranted. “These practices, including China's global labor and environmental standards, are practices that we’re prepared to use the full array of tools to address,” she said.

The Alcohol and Tobacco Tax and Trade Bureau is adopting as permanent a temporary rule that amended its regulations to change excise tax return due dates and remove bond requirements for some taxpayers. The rules, in place since January 2017, allow taxpayers who were liable for $1,000 or less in excise taxes on distilled spirits, wines and beer for the previous calendar year, and expect to be liable for $1,000 or less in excise taxes for the current calendar year, to file returns on an annual basis. TTB is also finalizing the removal of bond requirements for taxpayers that are eligible to pay excise taxes on beer and non-industrial spirits and wine using quarterly or annual return periods.

Imports are not covered by a 90-day extension to deadlines for excise taxes payable to the Alcohol and Tobacco Tax and Trade Bureau, a CBP spokeswoman said by email. “Federal excise taxes are NOT being deferred for imported TTB products,” she said. TTB recently postponed by 90 days all due dates for paying excise taxes to TTB on wine, beer, distilled spirits, tobacco products, cigarette papers and tubes, firearms, and ammunition (see 2004020061).

The Alcohol and Tobacco Tax and Trade Bureau is postponing due dates for payments of federal excise taxes to help businesses affected by the COVID-19 pandemic, but it’s still unclear whether imported products will benefit from the extension. “Effective immediately, all due dates for paying Federal excise taxes to TTB on wine, beer, distilled spirits, tobacco products, cigarette papers and tubes, firearms, and ammunition are postponed 90 days from the due date otherwise prescribed,” TTB said in a guidance posted March 31. But the extension applies only to excise tax payable to TTB, and the guidance directs importers to contact CBP for information about imported products.

The Alcohol and Tobacco Tax and Trade Bureau is finalizing changes to its regulations on labeling and advertising of wine, distilled spirits and malt beverages. The agency’s final rule adopts “certain liberalizing and clarifying changes that were proposed, and that could be implemented quickly to provide industry members greater flexibility,” it said. The final rule takes effect May 4.

Treasury Secretary Steven Mnuchin hasn't talked specifically to cargo airlines' executives, though he said with regard to passenger airlines “I've had conversations around the clock with all the airline CEOs.” Mnuchin spoke to reporters after leaving the Senate Republicans luncheon. “Essential travel, we want to have airlines that operate, maybe on a reduced basis. Airlines have a short-term liquidity issue, and absolutely, that's something we talked about today” with Senate Republicans. “I've also spoken to the [House] Speaker about that,” he said.

Treasury Secretary Steven Mnuchin, testifying on the president's budget at a hearing Feb. 12, was asked repeatedly about what the Organization for Economic Cooperation and Development might do on taxing digital companies, precluding France's digital services tax.

The Treasury Department announced that China is a currency manipulator after the Chinese yuan fell to its lowest level compared to the dollar in 11 years.