Customs Policy Update – March 2018
GAC notice on adjusting the way of declaring diamond for industrial uses imported and exported through general trade (Announcement〔2018〕No. 21)
To facilitate business operation and to promote the steady and healthy development of the domestic diamond market, the General Administration of Customs (“GAC”) adjusted the way of declaring diamond for industrial uses imported and exported through general trade on 2 March 2018. In particular, industrial diamonds under tariff codes 71022100, 71022900, 71049011, 71051020 are not required to go through customs declaration procedures at the diamond exchange centre, and such diamonds shall be subject to related customs duties and input VAT as stipulated by the law. The notice is effective upon release.
Measures of the General Administration of Customs of the People’s Republic of China for Enterprise Credit Management issued by GAC (GAC Decree No.237)
In order to promote the establishment of social credit management system, create an enterprises credit management system for import/export activities, as well as promote the security and convenience of trading activities, the Measures of the General Administration of Customs of the People’s Republic of China for Enterprise Credit Management (“the Measures”) was issued on 3 March 2018, which will come into effect on 1 May 2018. The Interim Measures of the General Administration of Customs of the People’s Republic of China for Enterprise Credit Management (“the Provisional Measures”), issued as Decree No.29 by the GAC, was abolished simultaneously.
As compared with the Provisional Measures, the Measures has made several updates in various areas such as expanding the scope of information to be collected by the Customs for the evaluation of the overall credit status of companies, updating the management measures for enterprises with different credit ratings, establishing the criteria for determining discredited enterprises acting in bad faith and developing a list for enterprises with abnormal credit information. At the same time, the Measures have included many joint incentives and punishments implemented by various authorities with more preferential treatments are granted to enterprises with high credit rating while stricter treatments are imposed on those with poor credit rating, which will widen the gap between the measures adopted for enterprises with different customs credit ratings.
On 12 March 2018, KPMG China released China Tax Alert to introduce and analyse the above decree, please click the following link for details: General Administration of Customs Issued New Enterprise Credit Management Measures Favorable to High Credit Enterprises.
The notice released by GAC and National Development and Reform Commission (“NDRC”) on the revision of 16 unit consumption standards for processing trade (GAC Announcement〔2018〕No. 22)
GAC and NDRC issued 16 revised unit consumption standards for processing trade including the Unit Consumption Standards for Processing Trade in Frozen Plaice Products on 5 March 2018, which will come into effect on 6 April 2018, while the former versions of 16 unit consumption standards for processing trade including the Unit Consumption Standards for Processing Trade in Frozen Plaice Products are annulled simultaneously.
The notice released by GAC on starting using the Bonded Goods Verification and Reconciliation Checklist (Announcement〔2018〕No. 23)
In order to promote the implementation of the management reform of bonded goods verification and reconciliation checklist, and to connect the processing trade with the data management for the grade of material number of enterprises under bonded supervision, GAC decided to start using the Bonded Goods Verification and Reconciliation Checklist on 26 March 2018.The notice has specified related issues and standardised the way for which the Checklist should be completed, which will come into effect on 1 July 2018. Before 1 July 2018, customs districts which have commenced pilot implementation of this scheme can carry out relevant activities pursuant to this notice.
The notice released by GAC to expand the scope of self-declaration and self-tax payment (GAC Announcement〔2018〕No. 24)
In order to speed up the reform of tax collection and administration, GAC decided to expand the scope of self-declaration and self-tax payment on 29 March 2018, in particular “self-declaration and self-tax payment” is applicable for import declaration forms under preferential trade agreement. The notice will come into effect on 10 April 2018.
The notice released by Ministry of Commerce of People’s Republic of China (“MOFCOM”) on imminent expiry of some anti-dumping and countervailing measures in the second half of 2018 (MOFCOM Announcement〔2018〕No. 30)
On 15 March 2018, MOFCOM announced a list regarding the imminent expiry of some anti-dumping and countervailing measures which will expire from 1 July 2018 to 31 December 2018. Natural person, legal person or relevant organization of the relevant domestic industries or on behalf of the relevant domestic industries may apply to MOFCOM for expiry review in written form 60 days before the expiration date of the anti-dumping and countervailing measures.
Local Customs Regulation Update
The notice released by Gongbei Customs on the abolishment of the Notice of Preliminary Price Verification and the Notice of Preliminary Determination of the Country of Origin of Imported Goods (Gongbei Customs Notice〔2018〕No. 4)
Based on the Interim Administrative Measures on Advance Ruling of Customs of the People’s Republic of China (GAC Order No. 236) and the Notice released by GAC Regarding the Issues on the Implementation of the Interim Administrative Measures on Advance Ruling of Customs of the People’s Republic of China (GAC Announcement 〔2018〕No.14), Gongbei Customs abolished the Notice of Preliminary Price Verification (Gongbei Customs Notice 〔2011〕No. 6) and the Notice of Preliminary Determination of the Country of Origin of Imported Goods (Gongbei Customs Notice〔2013〕No. 3) from 2 March 2018.
The notice released by Shanghai Customs on adjusting the measures for tax reduction and exemption
Shanghai Customs issued the notice on the adjustment of the management measures for tax reduction and exemption on four items (including scientific research, scientific and technological development and teaching supplies imported by scientific and technological research institutes verified by Shanghai Municipality and the National Enterprise Technology Center) on 6 March 2018, and Shanghai Customs representative office located in Technology Innovation Center will be responsible for the implementation. The notice is effective upon release.
The notice released by Zhanjiang Customs regarding the introduction of eligible intermediary agencies into the service provider pool to perform customs audit
Based on the Regulations on Customs Audit and other relevant rules and regulations, Zhanjiang Customs has reviewed the applications and decided that 20 eligible intermediary agencies including KPMG Huazhen LLP Guangzhou Branch are chosen and included into the service provider pool which have met the relevant standards to perform customs audit under customs authorization.
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