Notice on Adjustment to the Relevant Lists in Major Technical Equipment Import Tax Policies (MOF, GAC, SAT jointly Announcement [2019] No. 38)

The Ministry of Finance, Ministry of Industry and Information Technology, General Administration of Customs, State Administration of Taxation and National Energy Administration jointly released the Announcement on Adjustment to the Relevant Lists in Major Technical Equipment Import Tax Policies. The relevant contents are as follows:

1. The List of Major Technical Equipment and Products Supported by the State (2019 Revision) and the List of Key Components and Raw Materials Imported for Major Technical Equipment and Products (2019 Revision) were implemented with effect from 1 January 2020. Where an eligible domestic enterprise needs to import goods for the purposes of manufacturing such equipment or products, customs duties and import value-added tax shall be exempted.
2. The List of Imported Non-tax-exempt Major Technical Equipment and Products (2019 Revision) was implemented with effect from 1 January 2020. Where projects and enterprises that enjoy import tax incentives approved after 1 January 2020 import self-use equipment (as well as technologies and accessories and spare parts imported along with the aforesaid equipment in accordance with contracts), the import tax shall be levied in accordance with the regulations. Announcement [2018] No. 42  and Announcement [2012] No. 83 shall continue to apply to equipment imported on or before 30 June 2020 by the aforesaid projects and enterprises that received approval on or before 31 December 2019. Effective 1 July 2020, equipment set out in the list imported by the aforesaid projects and enterprises shall be subject to import tax in accordance with the regulations.

 

Announcement on Paying VAT by Instalments for Equipment Imported for Active Matrix Organic Light-Emitting Diode (AMOLED) Display Devices (MOF, GAC, SAT jointly Announcement [2019] No. 47)

This announcement was jointly released by the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation. To support domestic entities that manufacture new-type display devices, the policy of paying VAT by instalments for imported equipment of AMOLED display device projects is implemented as follows:

1. For the importation of key equipment for AMOLED display device projects from 1 January 2019 to 31 December 2020, an enterprise is allowed to settle import VAT payable by paying instalments within 6 years (72 consecutive months) after the importation of the first piece of equipment. The enterprise is required to pay 0% in the first year and 20% of total import VAT per year from the second to the sixth year (12 consecutive months per year) . The enterprise is also allowed to pay higher percentages of the total tax amount during these periods.
2. During the tax instalment payment period, the manufacturer shall provide a tax payment guarantee (i.e. (bank deposits or bank letters of guarantee) for its unsettled import VAT accepted by customs in accordance with customs guarantee provisions. No interest or late payment surcharge will be charged for late tax payments.
3. Any import VAT already settled by enterprises cannot be refunded.
4. Detailedd measures in respect of the aforesaid policy on tax instalment payments should be based on the Interim Provisions on Paying VAT by Instalments for Equipment Imported for AMOLED Display Device Projects.

 

Announcement on the Cancellation of Tax-Exempt Limits Administered under the Relevant Import Tax Policies for New-type Display Devices (MOF, GAC, SAT jointly Announcement [2019] No. 50) 

In order to further leverage import tax policies and adapt to the rules of the market economy, the Ministry of Finance, General Administration of Customs, and State Administration of Taxation jointly revised the Notice on the Relevant Import Tax Policies for Supporting the Development of the New-type Display Device Industry (Cai Guan Shui No. 62 [2016]) as follows:

1. Delete some wordings in section 4 of the appendix attached to the notice, i.e. “within the approved annual import limit” and “the annual import tax-exempt limit for the components and parts shall be based on the gross value and useful life of the imported production equipment, and the limit should be calculated as the formula set our in Appendix 3, regarding ‘annual import tax-exempt limit for components and parts needed for the maintenance of imported production equipment’. If components and parts imported by the domestic new-type display device manufacturer exceed the aforesaid limit, the components and parts shall be subject to import tax in accordance with the regulations. .Delete some wordings in section 6 of the appendix attached to the notice, i.e. “as for the components and parts needed for the maintenance of imported production equipment imported by domestic new-type display device manufacturers within the specified scope, the National Development and Reform Commission and the Ministry of Industry and Information Technology will send a letter to inform the Ministry of Finance for the coefficients used in the formula set out in Appendix3 regarding ‘gross value of the imported production equipment’ and ‘useful life of the equipment’. The Ministry of Finance, together with the General Administration of Customs and the State Administration of Taxation, will then determine the new-type display device manufacturer’s annual import tax-exempt limit for components and parts needed for the maintenance and promulgate the notice.
2. Delete “Formula for the import tax-exempt limit of the components and parts needed for the maintenance of imported production equipment” in appendix 3 attached to the notice.

 

Announcement on the Cancellation of Tax-Exempt Limits Administered under the Import Tax Policies for Key Science and Technology Projects (MOF, NDRC, SAT, GAC, MST jointly Announcement [2019] No. 52)

In order to further leverage import tax policies and adapt to the rules of the market economy, the Ministry of Finance, the National Development and Reform Commission, the State Administration of Taxation, the General Administration of Customs and the Ministry of Science and Technology jointly revised the Relevant Import Tax Policies for Key Science and Technology Projects (Cai Guan Shui No. 28 [2010]) as follows:

1. Delete “and the imported amount should be within a reasonable range” in section 5.1 of the Appendix.
2. Delete “and the import tax involved” in section 6 of the Appendix.
3. Revise “within the tax-exempt limit“ to “within the range” in section 10.2 of the Appendix.
4. Delete “tax-exempt limit of the imported material” in Appendix 1: Confirmation Letters for the Imported Materials of Key Science and Technology Projects (Issues) .
5. Delete “apply for the import tax-exempt limit and tax-exempt amount” in section 3 of Appendix 2.
6. Delete the three columns i.e. “import quantity,” “import amount” and “import tax amount”, as well as “Note: Import amount unit: USD 100,000; Import tax amount unit: CNY 100,000” in Table 1 and Table 2 of Appendix 2.

 

Announcement on Adjusting and Expanding the List of Cross-border e-Commerce Retail Imports (MOF, MOC, GAC jointly Announcement [2019] No. 96)

The Ministry of Finance, the Ministry of Commerce, the General Administration of Customs and other 10 government departments jointly release the Announcement on Adjusting and Expanding the List of Cross-border e-Commerce Retail Imports. The relevant contents are as follows:

In order to implement the requirements of the State Council for adjusting and expanding the List of Cross-border e-Commerce Retail Imports and to promote the healthy development of the cross-border e-commerce retail import sector, the List of Cross-border e-Commerce Retail Imports (2019 Version) was released, and it has been effective since 1 January 2020.

Additionally, on that date the Announcement of 13 Departments including the Ministry of Finance on Adjusting the List of Cross-border e-Commerce Retail Imports (Announcement [2018] No. 157) was repealed.

 

Announcement on the Uniform Handling of Major Declarations through the International Trade “Single Window” (GAC, MT, NT jointly Announcement [2019] No. 197)

The General Administration of Customs, the Ministry of Transport and the National Immigration Administration announced that from 16 December 2019, declarations of imported and exported goods, manifests and transportation will be handled by the international trade “Single Window.” Other declaration channels will only be used for emergencies.

 

Announcement on Temporarily Suspending the Imposition of Additional Tariffs on Certain Imported Goods Originating from the U.S. (CTC Announcement [2019] No. 7)

The Customs Tariff Commission of the State Council decided to temporarily suspend the imposition of additional tariffs on certain imported goods originating from the U.S. The relevant issues are as follows:

1. .From 12:01 a.m. on 15 December 2019, the additional tariffs imposed on certain goods set out in the Announcement of the Customs Tariff Commission of the State Council on the Imposition of Additional Tariffs on Certain Imported Goods Originating from the U.S. (Third Batch) (CTC Announcement [2019] No.4) have been temporarily suspended.
2. From 12:01 a.m. on 15 December 2019, the Announcement of the Customs Tariff Commission of the State Council on Resuming the Imposition of Additional Tariffs on Motor Vehicles and Spare Parts Originating from the U.S. (CTC Announcement [2019] No.5) has been temporarily suspended.

 

Announcement on the Second Set of Exemption Lists for the First Batch of U.S. Products Subject to Additional Tariffs  (CTC Announcement [2019] No. 8)

The Customs Tariff Commission of the State Council has organised the review of the valid applications and decided to exclude certain products from the first group of U.S. products subject to additional tariffs. Such products will not be subject to additional tariffs imposed by China as countermeasures against the U.S. Section 301 measures from 26 December 2019 to 25 December 2020 (for 1 year).

 

Announcement on the Issuance of the Customs Import and Export Tariffs of the People’s Republic of China (2020) (CTC Announcement [2019] No. 9)

The Customs Import and Export Tariffs of the People’s Republic of China (2020) was released by the Customs Tariff Commission of the State Council on 26 December 2019, and became effective on 1 January 2020. Where any other law or administrative regulation includes other adjustments to import and export tariff items and rates, the provisions of such laws or administrative regulations shall prevail.

 

Announcement on the 2020 Plan for Adjustments to Provisional Import and Export Tariff Rates (CTC Announcement [2019] No. 50)

From 1 January 2020, the Customs Tariff Commission of the State Council made adjustments to the import and export tariff rates for certain commodities, which mainly include:

I. Adjustments to import tariff rates

1.Most favoured nation (MFN) tariff rates

• Provisional tariff rates shall apply to 859 imported commodities (excluding the tariff quota commodities) starting from 1 January 2020. Provisional import tariffs for seven IT products will be cancelled effective on 1 July 2020
• The MFN tariff rates for imported IT products listed in the appendix attached to the Amendment to the Schedule of Tariff Concessions for the Accession of the People’s Republic of China to the WTO shall be reduced for the fifth time effective on 1 July 2020.

2.Tariff quota rates

• Eight categories of commodities, including wheat, shall still be subject to the administration of tariff quotas, for which tariff rates remain unchanged. Specifically, the tariff quota rate of 1% shall still apply to three types of fertilizers, i.e. urea, compound fertilizer and diammonium phosphate. Sliding scale duties shall still apply to a certain quantity of cotton imported beyond the quota.

3.Conventional tariff rates and preferential tariff rates.

• In accordance with the trade or preferential tariff agreements signed between China and relevant countries or regions, except for the conventional tariff rate approved by the State Council before, the conventional tariff rates between China and New Zealand, Peru, Costa Rica, Switzerland, Iceland, Singapore, Australia, South Korea, Chile, Georgia, Pakistan or nations which are signatories to the Asia-Pacific Trade Agreement ("APTA") shall be further reduced effective on 1 January 202.
• If the MFN tariff rates are lower than or equal to the conventional tariff rates, the provisions of the relevant agreements shall prevail. If there is no provision in the agreements, the lower rate shall be applied.

II. Export tariff rates

Effective on 1 January 2020, export tariffs rates or export provisional tariff rates shall still apply to 107 exported commodities including ferrochrome, for which the tariff rates and the categories of commodities remain unchanged.

 

Announcement on Adjusting Certain Domestic Subheading Annotations (CTC Announcement [2019] No. 51)

The Customs Tariff Commission of the State Council released the announcement on adjusting certain domestic subheading annotations on 30 December 2019.

 

Announcement on Smooth Transition in the Administration of Imports and Exports of Commercial Cryptography (MOFCOM Announcement [2019] No. 38)

The State Cryptography Administration, the Ministry of Commerce and the General Administration of Customs released the Announcement on the Smooth Transition in the Administration of Imports and Exports of Commercial Cryptography on 30 December 2019. The relevant contents are as follows:

1. Before the list of commercial cryptography subject to import licencing and export controls are released, importation and exportation of commercial cryptography shall apply to current licencing criteria and processes in accordance with the relevant laws and regulations.
2. Importation of cryptographic products and equipment containing cryptographic technology shall be handled in accordance with State Cryptography Administration Announcements No. 18 and No. 27 jointly released by the State Cryptography Administration and the General Administration of Customs.
3. Exporters of commercial cryptographic products shall submit their applications for a “Commercial Cryptographic Product Export Licence” to the State Cryptography Administration or the local Cryptography Administration in their respective province, district or city.
4. After completing the list of commercial cryptography subject to import licencing and export controls, the Ministry of Commerce, the State Cryptography Administration and the General Administration of Customs will jointly release another announcement to implement import licencing and export controls for commercial cryptography.

This announcement was effective from 1 January 2020.

 

Announcement on the Catalogue of Goods Subject to Automatic Import Licencing in 2020 (MOFCOM Announcement [2019] No. 63)

In accordance with the Foreign Trade Law of the People’s Republic of China, the Administrative Regulations of the People’s Republic of China for the Import and Export of Goods, the Administrative Measures for the Automatic Import Licencing of Goods, the Administrative Measures for the Import of Electromechanical Products, the Implementation Measures for Automatic Import Licencing for Electromechanical Products and other relevant laws, administrative regulations and provisions, the Ministry of Commerce and the General Administration of Customs released the Catalogue of Goods Subject to Automatic Import Licencing in 2020, which came into effect on 1 January 2020. Announcement [2018] No. 101 released by the Ministry of Commerce and the General Administration of Customs was abolished upon the effectiveness of aforesaid Catalogue.

 

Announcement on Relevant Matters Concerning Paperless Operations in the Application Process for Import Licencing and Customs Clearance (MOFCOM Announcement [2019] No. 64 )

In order to deepen the reform regarding “Delegate Power, Streamline Administration and Optimize Government Services”, and for the purposes of promoting “Internet + government” services, improving foreign trade management and facilitating the steady growth of foreign trade, in accordance with the Foreign Trade Law of the People’s Republic of China, the Administrative Licencing Law of the People’s Republic of China, the Administrative Regulations of the People’s Republic of China for the Import and Export of Goods, the Multiple Provisions of the State Council on Online Government Services, the Administrative Measures for Automatic Import Licencing of Goods, and other relevant laws, administrative regulations and provision, the Ministry of Commerce and the General Administration of Customs decided to implement paperless operations in the application process for import licencing and customs clearance.

 

Announcement on the Catalogue of Goods Subject to Import Licences in 2020 (MOFCOM Announcement [2019] No. 65)

In accordance with the Foreign Trade Law of the People’s Republic of China, the Administrative Regulations of the People’s Republic of China on the Import and Export of Goods, the Administrative Regulations for Ozone Depleting Substances, the Administrative Measures for the Import Licencing of Goods, the Administrative Measures for the Import of Electromechanical Products, the Administrative Measures for the Import of Specific Used Electromechanical Products and Goods and other relevant laws, administrative regulations and provision, the Ministry of Commerce and the General Administration of Customs released the Catalogue of Goods Subject to Import Licence in 2020. The Catalogue came into effect on 1 January 2020. Announcement [2018] No. 107 released by the Ministry of Commerce and General Administration of Customs was abolished upon the effectiveness of aforesaid Catalogue.

 

Announcement on the Catalogue of Goods Subject to Export Licences in 2020 (MOFCOM Announcement [2019] No. 66)

In accordance with the Foreign Trade Law of the People’s Republic of China, the Administrative Regulations of the People’s Republic of China on the Import and Export of Goods, the Administrative Regulations on Ozone Depleting Substances, the Administrative Measures for the Export Licencing of Goods and other relevant laws, administrative regulations and provision, the Catalogue of Goods Subject to Export Licences in 2020 (“the Catalogue”) and other relevant documents were released.

 

Announcement on the Issuance of the Catalogue of Dual-Use Items and Technologies Subject to Import and Export Licencing (GAC Announcement [2019] No. 68)

In accordance with the Administrative Measures for Import and Export Licencing for Dual-use Items and Technologies (MOC, GAC Order [2005] No. 29) and the Import and Export Tariffs of the People’s Republic of China of 2019, the Ministry of Commerce and the General Administration of Customs have adjusted the Catalogue of Dual-use Items and Technologies Subject to Import and Export Licencing.

The announcement was effective from 1 January 2020. On this date the Catalogue of Dual-use Items and Technologies Subject to Import and Export Licencing (MOC, GAC Announcement [2018] No.104) was repealed.

 

Announcement on Accepting ATA Carnets for Temporarily Imported Sporting Goods (GAC Announcement [2019] No. 193 )

The General Administration of Customs announced that they would accept ATA carnets for sporting goods that are temporarily imported starting on 1 January 2020. Goods used in sport competition, sport performances and trainings are allowed to be temporarily imported with ATA carnets.

 

Announcement on Implementing the Catalogue for Guiding Industry Restructuring (Version 2019)  (GAC Announcement [2019] No. 196 )

On 30 October 2019, the National Development and Reform Commission promulgated the Catalogue for Guiding Industry Restructuring (Version 2019) through the Order No. 29. This Catalogue became effective on 1 January 2020. On 11 December 2019, the General Administration of Customs made an announcement on some issues related to the implementation of the Catalogue.

 

Announcement on Matters Concerning the Networking of Electronic Information Regarding Origins under the China-Georgia Free Trade Agreement (GAC Announcement [2019] No. 198)

For the purposes of facilitating customs regulation-compliant clearance for goods under the Free Trade Agreement between the Government of the People’s Republic of China and the Government of Georgia (hereinafter referred to as the “Agreement”), the General Administration of Customs announced on 13 December 2019 that the “China-Georgia Electronic Origin Information Exchange System” would be officially launched on 1 January 2020 in order to transmit electronic data regarding certificates of origin in real-time under the Agreement.

 

Announcement on Lifting the Embargo on Aftosa Disease from Japan (GAC Announcement [2019] No. 200)

The General Administration of Customs announced that they would abolish the embargo on Aftosa Disease from Japan and allow artiodactyla animals and their products to be imported from Japan. The announcement was effective upon its release. Announcement [2010] No. 45, which was jointly released by the former General Administration of Quality Supervision and Inspection and the Ministry of Agriculture, was simultaneously repealed.

 

Announcement on Lifting the Embargo on Mad-cow Disease from Japan (GAC Announcement [2019] No. 202)

The General Administration of Customs announced that they would abolish the embargo on boneless beef harvested from cattle that are less than 30 months old from Japan. The announcement was effective upon its release. Announcement [2001] No. 143, which was jointly released by the former General Administration of Quality Supervision and Inspection and the Ministry of Agriculture, simultaneously repealed. The requirements for inspecting and quarantining boneless beef from Japan will be formulated separately.

 

Announcement on Improving the Inspection and Supervision of Inbound Bonded Oil (GAC Announcement [2019] No. 204)

For the purposes of implementing the Notice by the State Council on Effectively Replicating and Promoting the Fifth Group of Reform Pilot Programmes for Pilot Free Trade Zones (the State Council Letter No. 38 [2019]), the General Administration of Customs announced that starting on 31 December 2019 they would replicate and promote the “inspection and supervision system for bonded oil entering China” on a nationwide level. The aforementioned inspection and supervision system was originally launched on a trial basis by the China (Zhejiang) Pilot Free Trade Zone from 31 December 2019.

 

Announcement on the Issuance of the Revised Administrative Measures for the Origins of Imported and Exported Goods under the Free Trade Agreement between the Government of the People’s Republic of China and the Government of the Republic of Sngapore (GAC Announcement [2019] No. 205)

The State Council has approved the Protocol of the Government of the People’s Republic of China and the Government of the Republic of Singapore on Revising the Free Trade Agreement between the People’s Republic of China and the Republic of Singapore. Consequently, the revised administrative measures for the origins of imported and exported goods officially became effective on 1 January 2020.

The General Administration of Customs released administrative measures for accurately determining the origin of imported and exported goods under the Free Trade Agreement, and those measures became effective on 1 January 2020.

 

Announcement on Issues Related to the Imposition of Special Safeguard Measures on the Import of Agricultural Products under the Free Trade Agreement (GAC Announcement [2019] No. 207）

The General Administration of Customs released the Announcement on Issues Related to the Imposition of Special Safeguard Measures on the Import of Agricultural Products under the Free Trade Agreement on 23 December 2019. The relevant contents are as follows:

1. The “Relevant Agricultural Products” mentioned in the announcement refer to four categories of agricultural products imported from New Zealand under twelve HS codes and two categories of agricultural products imported from Australia under eight HS codes for which China is implementing special protection management measures. The “Agricultural Products in Transit” mentioned in the announcement refer to agricultural products whose contracts have been signed and that are already on their way to China before the date the special safeguard measures came into effect.
2. The consignee or agent for the imported goods (hereinafter referred to as the “importer”) shall declare the agricultural products to Customs in accordance with the declaration filing regulations under the Free Trade Agreement after the arrival of the means of transportation have been declared.
3. .When the amount of agricultural products imported exceeds the trigger levels of the conventional tariff rates, customs will release relevant information on the “Single Window,” the “Internet +” platform, and the “Online Customs” APP. This relevant information includes the conventional tariff rates, which are applied to Agricultural Products in Transit, as well as the most-favoured-nation (MFN) rates, which are applied to agricultural products imported after the conventional rates’ trigger levels have been reached.
4. .For Agricultural Products in Transit that were declared and imported after the special safeguard measures were implemented, importers can apply for “Documentation of the Applicable Tariff Rates for the Imported Agricultural Products in Transit” (hereinafter referred to as the “Transit Document”) from customs upon the actual arrival of the goods. The importers should log on to the “Single Window,” the “Internet +” platform or the “Online Customs” APP, enter the relevant information and provide the following documents in the “Application System for Documentation of the Applicable Tariff Rates for Imported Agricultural Products in Transit”:Valid certificates of originnvoices, packing lists and contractsRelevant documents that prove the departure and arrival time of the means of transportation.
5. When declaring Agricultural Products in Transit that are subject to the applicable conventional tariff rates, the importer should write down “997” in the “Nature of Exemption” column, write down “Special Case” in the “Exemption” column, and write down the certificate of origin document number and the “Transit Document” number in the Remarks section.

The announcement became effective on 1 January 2020. Additionally, on this date General Administration of Customs Announcements [2008] No. 91, [2014] No. 96, [2015] No. 66 were repealed.

 

Announcement on Simplifying the Process for Extending the Validity Period for Bonded Logistics Centres (Type B) (GAC Announcement [2019] No. 210)

The General Administration of Customs announced that from 1 January 2020, extension applications for bonded logistics centres (Type B) will be examined and approved by the direct supervising customs. An enterprise that operates a bonded logistics centre (Type B) shall perform the period extension application procedures 30 days before the date on which the “Registration Certificate for Bonded Logistics Centre the (Type B)” is set to expire, and such application will be accepted by direct supervising customs. After the application is approved by the customs, the valid period of the registration certification will be extended 3 years.

 

Announcement on the Issuance of the Administrative Standards for Designated Customs Supervision Sites (GAC Announcement [2019] No. 212)

The General Administration of Customs released the Administrative Standards for Designated Customs Supervision Sites on 23 December 2019. The relevant contents are as follows:

• The designated supervision sites refer to the work sites (premises) that fulfil customs supervision requirements related to the prevention of and protection against diseases and epidemics carried by animals and plants. These supervisory work sites are used to examine, inspect and quarantine certain imported animals and plants and their products that are deemed to be high risk. 
• The designated supervision sites include:
• (1) Designated supervision sites for imported meat,
• (2) Designated supervision sites for imported chilled fishery products,
• (3) Designated supervision sites for imported cereals,
• (4) Designated supervision sites for imported fruit,
• (5) Designated supervision sites for imported edible aquatic animals,
• (6) Designated supervision sites for imported plant seedlings,
• (7) Designated supervision sites for imported timber,
• (8) Isolation quarantine sites for imported animals,
•  (9) Designated supervision sites for ther imported high-risk animals and plants and their products.

1. If there are applications for different types of designated supervision sites within the same area, in principle, the supervision sites should be planned and built in an integral manner within the same area or in neighbouring areas in order to form an integrated designated supervision site and implement intensive monitoring.
2. The relevant parties or corporates that plan to set up the designated supervision site should report to the People’s Government at the provincial level (hereinafter referred to as the “local government”) in order to develop the project and assess its feasibility. The local governments should lead in the establishment of a national biosecurity and food safety protection mechanism. Additionally, they should establish an emergency response system for major animal diseases, major plant epidemics, major food safety events, and other unexpected events. Finally, the local governments should coordinate to establish a prevention and control system for quarantine risks.

 

Announcement on the Cancellation of Validity Terms for the Registrations of Declaration Enterprises and their Branches (GAC Announcement [2019] No. 213)

On 24 December 2019, the General Administration of Customs announced that it would cancel validity terms for the registrations of declaration enterprises and their branches. The relevant contents are as follows:

1. From the date of the announcement, the validity terms for the registrations of declaration enterprises and their branches nationwide are changed to “long-term.”
2. For “Registration Certificates for Declaration Enterprises” that were approved before the announcement date and whose validity terms extend 1 December 2019, the relevant declaration enterprises and branches do not need to update their certificates, and their customs business would not be affected.
3. However, declaration enterprises and branches whose certificates expired before 30 November 2019 need to re-submit their filing and registration in order to conduct declaration business again.

 

Announcement on Promoting the Comprehensive Reform of “Two-step Declaration” (GAC Announcement [2019] No. 216)

The General Administration of Customs released the Announcement on Promoting the Comprehensive Reform of “Two-step Declaration” on 26 December 2019. The relevant contents are as follows:

1. The import consignees or agents may declare imported goods via “Two-step Declaration” on the international trade “Single Window” or on the “Internet + Customs” online platform. Those not subject to restrictions, limitations, inspections or quarantine and with no taxes payable can file a summary declaration via the “Online Customs” APP.
2. If the customs credit rating of domestic consignees and consignors is “general” or above, the “Two-step Declaration” may be used for the imported goods.
3. The current declaration method may also be used during the promotion period for the “Two-step Declaration.” Enterprises may choose at their own discretion.

The announcement became effective on 1 January 2020. Other related matters shall be implemented in accordance with General Administration of Customs Announcement [2019] No. 127.

 

Announcement on Simplifying and Standardising Customs Verification and Making Processing Trade More Convenient (GAC Announcement [2019] No. 218)

The General Administration of Customs released the Announcement on Simplifying and Standardising Customs Verification and Making Processing Trade More Convenient on 26 December 2019. The simplified processes are as follows:

• Handbook establishment (revise) only needs to be declared once, and the filing database declaration is cancelled.
• E-handbook establishment (revise) only needs to be declared once, and the commodity category relationship declaration is cancelled.
• Outsourced processing only needs to be declared once, and its delivery record declaration is cancelled.
• Deep processing transit only need to be declared once, and its advance applications and delivery records are cancelled.
• Transfers of the remaining material only need to be declared once, and its risk deposits are no longer collected.
• Taxes on domestic sales of processing trade materials only need to be declared once, and a deadline has been set for tax filing.
• Supervision over non-priced equipment has been optimised, and the process for terminating supervision has been simplified.
• The monitoring of low-value auxiliary materials has been made more innovative, and it has been incorporated into bonded material management.

 

Announcement on Promoting and Implementing Inspection Supervision Facilitation Measures for Imported Auto Components and Parts (GAC Announcement [2019] No. 219)

The General Administration of Customs released the Announcement on Promoting and Implementing Inspection Supervision Facilitation Measures for Imported Auto Components and Parts on 27 December 2019. The relevant contents are as follows:

1. For imported auto components and parts only subject to commodity inspection, the enterprises can transfer the goods directly to the destination, and the customs authority at the destination shall perform the on-site inspection and sampling inspection. In emergencies, enterprises can enjoy inspection priority in accordance with the relevant laws and regulations.
2. Based on the Announcement on Promoting and Implementing Admission Facilitation Measures for Imported Auto Components and Parts (GAC Announcement [2019] No. 157), the General Administration of Customs has decided to expand the range regarding admission facilitation measures for imported auto components and parts in Beijing, Tianjin, Shanghai, Chongqing, Guangzhou, Shenzhen, Hangzhou and Ningbo. For imported auto components and parts subject to CCC certification, customs will accept the certification issued by the certification authority, and generally will not implement any sampling inspections.
3. However, where sampling inspection is required in accordance with early warning measures related to major quality and safety risks, the customs will implement relevant supervision based on the actual risk order.

The announcement was effective on 30 December 2019.

 

Announcement on Adjustments for the Catalogue of Imported and Exported Commodities Subject to Inspection (GAC Announcement [2019] No. 220)

The General Administration of Customs announced that from 1 January 2020, 199 HS codes involving fabric, garments, textile machinery, and cold rolled steel plates shall no longer be subject to additional customs supervision requirement “A.” No import inspection is required for such items.

 

Announcement on Matters Relating to Regulatory Measures for Market Procurement Trade and Related Regulatory Methods (GAC Announcement [2019] No. 221)

The General Administration of Customs released the Announcement on Matters Relating to Regulatory Measures for Market Procurement Trade and Related Regulatory Methods on 27 December 2019. The relevant contents are as follows:

1. The market procurement trade method refers to the method whereby qualified operators procure goods within a market cluster area recognised by the commerce authorities and conduct export customs clearance procedures. Goods with a total value of USD 150,000 or less may be declared using a single Customs declaration form. The market procurement trading measures are not applicable for some exported goods.
2. Foreign trade operators engaging in market procurement trade shall complete the market procurement trade operator registration formalities with the local commerce authorities, and complete the registration formalities for the consignee or consignor of imported or exported goods with Customs pursuant to the relevant regulations.
3. Foreign trade operators shall be responsible for the veracity and legitimacy of the exported goods for which they act as agents. Commodity information that has been confirmed by the market procurement goods confirmation system shall be shared with customs online through the integrated market procurement trade administration system. Customs shall rely on the integrated market procurement trade administration system to implement supervision and administration on exported goods under market procurement trade.
4. .Exported goods under market procurement trade shall be declared to the local customs. The customs at the place the goods to be exported from China, shall implement supervision for transit exported goods under market procurement trade.
5. For exported goods for which inspection and quarantine should be performed at the place of procurement, foreign trade operators should establish a management system to track qualified suppliers, conduct acceptance checks and maintain traceability. These operators should provide the information related to their business locations and warehouses to the customs authority, and they should submit their inspection and quarantine applications to the customs at the place of procurement before filing export declarations.
6. The customs supervision method code is "1039" and its name (both full name and short name) is "market procurement."

The announcement was effective immediately after release. Additionally, on this date GAC Announcement [2014] No. 54 and the former General Administration of Quality Supervision and Inspection Announcement [2012] No. 31 were repealed.

 

Announcement on Ceasing the Verification of “Certificates of Approval for Foreign-invested Enterprises” (GAC Announcement [2019] No. 226)

The General Administration of Customs announced that from 1 January 2020, when foreign-invested international cargo transport agent enterprises apply for the establishment of customs clearance for inbound and outbound express consignment business, or when foreign-invested consignees or consignors conduct cancellation of their enterprises, customs would no longer verify their “Certificate of Approval for Foreign-invested Enterprises”.

 

Announcement on the Issuance of the Customs Standards for the Certification of Enterprises (GAC Announcement [2019] No. 229)

On 27 December 2019, the General Administration of Customs released the Customs Standards for the Certification of Enterprises including specific standards for cross-border e-commerce platform enterprises and for inbound and outbound express operators, implemented together with the Customs Measures of the People’s Republic of China for the Administration of Enterprise Credit.

1. .The cross-border e-commerce platform enterprises that apply for customs certification should simultaneously meet the general standards set out in the Customs Standards for the Certification of Enterprises and the specific standards for consignees and consignors of imported and exported goods and cross-border e-commerce platform enterprises.
2. Inbound and outbound express operators that apply for customs certification should simultaneously meet the general standards set out in the Customs Standards for the Certification of Enterprises and the specific standards for customs declaration enterprises and for inbound and outbound express operators
3. Cross-border e-commerce platform enterprises and inbound and outbound express operators that have applied to customs certification management should conduct self-assessments and make improvements in accordance with the general and specific standards set out in article 1 and 2 in the announcement.

This announcement will be effective from 1 March 2020. Starting 1 September 2020, customs will re-certify the above-mentioned enterprises in accordance with article 1 and 2 in the announcement.

 

Announcement on Abolishing 447 Sets of Industrial Standards for Entry-exit Inspection and Quarantine (GAC Announcement [2019] No. 231)

The General Administration of Customs decided to abolish 447 sets of industrial standards for entry-exit inspection and quarantine on 31 December 2019. The announcement was effective immediately upon its release.

 

Announcement on Adjusting the Filing Format for Customs Declaration Forms for Imported and Exported Goods (GAC Announcement [2019] No. 232)

The General Administration of Customs issued the Announcement on Adjusting the Filing Format for Customs Declaration Forms for Imported and Exported Goods on 31 December 2019. The announcement pointed out that enterprises that make customs declarations via electronic data exchange can generate electronic data declaration forms in accordance with the requirements set out in the announcement. The announcement was effective immediately upon its release.

Announcement on Regulating the Declaration of “Destination Inspection and Quarantine Agency” Items in Declaration Forms (Beijing Customs Announcement [2019] No. 16)

On 4 December 2019, Beijing Customs released the Announcement on Regulating the Declaration of “Destination Inspection and Quarantine Agency” Items in Declaration Forms. If the enterprise does not fill the declaration form in accordance with the provisions and this results in the customs authority at the destination being unable to perform the inspection or results in an inconvenience to the enterprise’s business, the enterprise should submit an application to revise the “Destination Inspection and Quarantine Agency” item in the declaration form.

 

Announcement on Launching the Global ATA Carnet Electronic System (Beijing Customs Announcement [2019] No. 17)

Beijing Customs released the Announcement on Launching the Global ATA Carnet Electronic System on 13 December 2019. The announcement pointed out that system testing has been completed and that the Mercury System would be launched for Beijing Capital International Airport and Beijing Daxing International Airport on 1 January 2020.

Northen Region 
Eric Zhou
China Trade and Customs Services
Lead Partner
Email: ec.zhou@kpmg.com
Tel: +86 (10) 8508 7610

Helen Han    
Partner 
Email:h.han@kpmg.com
Tel:+86 (10) 8508 7627       

Eastern and Western Region
Anthony Chau 
Partner
Email: anthony.chau@kpmg.com
Tel: +86 (21) 2212 3206

Dong Cheng
Partner
Email: cheng.dong@kpmg.com
Tel: +86 (21) 2212 3410

Rachel Tao
Director
Email: rachel.tao@kpmg.com
Tel: +86 (21) 2212 3473   

Southern Region
Grace Luo
Partner
Email: grace.luo@kpmg.com
Tel: +86 (20) 3813 8609

Vivian Chen
Partner
Email: vivian.w.chen@kpmg.com
Tel: +86 (755) 2547 1198

Phillip Xia
Director
Email: philip.xia@kpmg.com
Tel: +86 (20) 3813 8674

Stella Jin
Director
Email: stella.jin@kpmg.com
Tel: +86 (755) 2547 1152

Hong Kong
Daniel Hui    
Partner
Email: daniel.hui@kpmg.com
Tel: +852 2522 7815