Customs Policy Update – April 2018
Measures for Enterprise Credit Management by the Customs Administration of the PRC (GAC Decree No. 237, or the Credit Measures) was announced on March 3, 2018 and implemented on May 1, 2018. The General Administration of Customs announced the following matters:
From May 1, 2018, the Criteria of Certified Enterprises of the Customs Administration (GAC Announcement No. 82 ) will still be effective. The Customs will implement the certification procedure for enterprises in accordance with Credit Measures the and Criteria of Certified Enterprises of the Customs Administration.
For a discredited enterprise certified under the The Interim Measures of the General Administration of Customs of the People’s Republic of China on Enterprise Credit Management (GAC Decree No. 225), if the enterprise has been under the administration for discredited enterprises for one full year and there is no more occurrence of the circumstances described in Article 12 of the Credit Measures , the Customs will reclassified it as a general-credit enterprise.
Regarding the above GAC decree about enterprise credit management, on 12 March KPMG China published a China Tax Alert General Administration of Customs Issued New Enterprise Credit Management Measures Favourable to High Credit Enterprises , for more detail, please click here.
Entry-Exit Inspection and Quarantine has been integrated into the General Administration of Customs (institutional reform plan of the State Council) and the integrated qualification filing of customs declaration and quarantine and inspection for enterprise (GAC Announcement No.28 )
According to the institutional reform plan of the State Council approved by the First Session of the 13th National People's Congress, the Entry-Exit Inspection and Quarantine of the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) was integrated into the General Administration of Customs (GAC). The reform has been officially effective since April 20. The customs authorities have a new look and changes have been made to the ports, resulting in “everything is done once at the same service window”.
At the same time, the GAC has optimized and integrated the qualification filing of customs declaration and quarantine and inspection for enterprise, and specified the integrated procedures.
On April 28, 2018, GAC released Decree No.238 and decided to modify the content, related to entry-exit inspection and quarantine, in existing 71 rules and regulations accordingly. Decree No.238 shall come into force from May 1, 2018. For more information, please kindly refer to:
Announcement of the Customs Tariff Commission of the State Council on Lowering Import Tariffs for Drugs (Ministry of Finance Announcement No.2 )
In order to reduce the drug cost burden for cancer patients and provide more medication options, from May 1, 2018, all common drugs including anticancer drugs, alkaloid drugs with anti-cancer effects and imported proprietary Chinese medicine will have a temporary tariff rate of zero.
Notice on Value-Added Tax Policies for Anticancer Drugs (Cai Shui No. 47 )
From May 1, 2018, VAT general taxpayers that are engaged in the production, sale, wholesale and retail of anticancer drugs, can choose to pay VAT based on the 3% rate in accordance with the simplified method. For imported anticancer drugs, the import VAT rate will be reduced to 3%.
Notice on Issuing the Supplementary Provisions for Provisional Measures for the Administration of Inbound Duty-Free Shops at Ports (Ministry of Finance Announcement No.4 )
In order to further promote the healthy development of duty-free shops at entry ports, the Ministry of Finance has made additional provisions for the Provisional Measures for the Administration of Inbound Duty-Free Shops at Ports (Cai Guan Shui No.8 ).
Notice on Suspension of Tariff Reduction Obligations on Several Imported Products Originating in the United States (Ministry of Finance Announcement No.13 )
The Customs Tariff Commission of the State Council decided to suspend tariff reduction obligations for certain imported goods originating in the United States. The details are as follows:
- The tariff reduction obligations for 120 items of imported goods originating in the United States, including fruits and other products, shall be suspended, and additional tariffs of 15% shall be imposed on the basis of the current applicable tariff rates.
- The tariff reduction obligations for 8 items of imported goods originating in the United States, including pork and other products, shall be suspended and additional tariffs of 25% shall be imposed on the basis of the current applicable tariff rates.
This Notice shall come into force from April 2, 2018.
Announcement on Imposing Additional Tariffs on Several Imported Products Originating in the United States (Ministry of Commerce Announcement No.34 )
Additional tariffs will be imposed on imports of soy beans and other agricultural products, automobiles, chemicals, and aircrafts originating in the United States. The new tariff rate is 25%, and the amount affected is an equivalent of USD 50 billion imports by China from the United States in 2017. The final measures and effective date is to be further announced.
Regarding the above trade conflict between China and U.S., on 8 May KPMG China published a China Tax Alert China - U.S. Trade Conflict and Implications to Import and Export Enterprises in the Two Countries, for more detail please click here.
Announcement on the Regulations Regarding Anti-dumping and Countervailing (Ministry of Commerce Decree No. 2, 3, and 4 )
The 111th Ministerial Meeting of the Ministry of Commerce on March 14, 2018 reviewed and passed the Rules for Hearings of Anti-dumping and Countervailing Duty Investigations, Rules for Anti-dumping Investigations by Questionnaires and Rules for midterm review of Dumping and Dumping Margin, which are hereby published and shall come into force from May 4, 2018. For more information, please kindly refer to:
Ministry of Commerce, Ministry of Industry and Information Technology, China Atomic Energy Authority, General Administration of Customs, State Administration for Science, Technology and Industry for National Defence Announcement No. 36 
In order to implement UN Security Council Resolution No. 2375, it is prohibited to export to North Korea dual-use items and technologies related to weapons of mass destruction and their means of delivery as well as dual-use goods of conventional arms published in this announcement. This announcement comes into force on the date of announcement.
Announcement on Cancelling Printing the Certification Page of the Export Goods Declaration Form (Specifically for Export VAT Refund) (GAC Announcement No. 26 )
In order to further the implementation of the paperless reform of customs clearance operations and reduce the circulation of paper documents, the General Administration of Customs has decided to completely eliminate printing the certification page of the export goods declaration form (specifically for export VAT refund). The relevant system will stop running from April 30.
Announcement on Registration Management for Cross-border E-Commerce Payment Companies (GAC Announcement No. 27 )
From the issuance of this announcement onwards, cross-border e-commerce payment companies should submit relevant qualification certificates when apply for registration with the customs authority.
Announcement Concerning Matters on Country-of-origin Electronic Data Exchange under the China-Pakistan Free Trade Agreement (GAC Announcement No. 29 )
The “China-Pakistan Country-of-origin Electronic Data Exchange System” has officially gone live since April 30, 2018 (inclusive), realizing real-time transmission of electronic data of country of origin under the Free Trade Agreement.
Announcement on Abolishing Allowing Companies to formally Archive their Import and Export Documents by themselves (GAC Announcement No. 31 )
General Administration of Customs decided to abolish Announcement No. 29 , after which enterprises will no longer allowed to formally archive documents by themselves. However, documents retained by enterprises which are within the retention period, shall continue to be retained by the enterprises in accordance with Announcement No. 92 . This announcement shall come into force from June 1, 2018.
Local Customs Regulation Update
Announcement on Measures to Further Optimize the Business Environment and Facilitate Cross-border Trade in Beijing and Tianjin (Joint Announcement No. 1 and No. 2 )
The Beijing Municipal Commission of Commerce, the Tianjin Port Service Office, Beijing Customs, Tianjin Customs, the Beijing Entry-Exit Inspection and Quarantine Bureau and the Tianjin Entry-Exit Inspection and Quarantine Bureau jointly released some specific measures to further optimize cross-border trade in Beijing and Tianjin. Specific measures include: optimization of customs declaration and inspection process, facilitation of the document handling process, promotion of paperless declaration, promotion and application of "single window" for international trade, establishment and publication of expense list etc., totalling 16 measures.
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