China Customs releases several notices on Credit Management of Enterprises
On November 18, 2014, the China General Administration of Customs (GAC) released three important notices on the credit management of enterprises:
The importance of these changes cannot be emphasized enough and companies are strongly advised to make the necessary preparations for the transition.
For more information about these expected changes in the customs credit management of enterprises in China, you may refer to our KPMG China Tax Alert - Issue 28, November 2014 which can be accessed through the following link:
China Customs released Provisional Measures on Credit Management of Enterprises (China Tax Alert) - Issue 28, November 2014
China Customs releases Preferential Policy on Special Customs Supervision Zones
Last November 19, 2014 the GAC released Notice No.83 which allows companies in special customs supervision zones to conduct a “consolidated declaration for goods delivery in batches” for the conversion of bonded goods to non-bonded goods and their physical transfer.
GAC also released Notice No.96 on 31 December 2014 which provides guidelines on how companies in special customs supervision zones can apply for Free Trade Agreement (FTA) benefits. To qualify, companies are required to undergo an application process prior to being allowed to realize such benefits.
Issuance of the Circular for the 2015 China Tariff Schedule
On December 12, 2014, the Customs Tariff Commission of the State Council in China issued the Tariff schedule for 2015 together with the relevant implementation plan both of which entered into effect on January 1, 2015. Companies are encouraged to consult this new tariff schedule and mind any changes that may possibly affect their existing tariff classification, duty rates and/or general import operations so as to make the necessary preparations and adjustments.
China Customs updates HS code classifications
On December 24, 2014, the GAC released Notice No.93 to update certain HS code classifications based on decisions issued by WCO within the year. Other HS codes were also repealed by this Notice. Companies are thus advised to review their current classifications and implement any needed changes so as to ensure their compliance with this new announcement.
In the period from November – December 2014, Shanghai Customs released Notice No.41, No.42 and No.44 in support of the administrative reforms at the China (Shanghai) Pilot Free Trade Zone (SH Pilot FTZ). These reforms include:
As a result of these new regulations, companies in the SH Pilot FTZ are expected to enjoy increased customs facilitation benefits.
Meanwhile, on December 11, 2014, Beijing Customs has announced together with the Beijing Commodity Inspection and Quarantine Bureau that the pilot system dubbed as “One declaration, One inspection and One release” was successfully completed on November 14,2014 and will be fully implemented in Beijing on December 10, 2014. Companies are encouraged to learn more about this system and how to use it to improve their customs clearance processes.