China Customs streamlines penalty provisions

Revised regulation regarding the administrative penalty procedures

Revised regulation regarding the administrative penalty procedures

China Customs issued a decree that revises a regulation regarding the administrative penalty procedures. The goal is to provide greater transparency as to how China Customs addresses penalties.

The measures in Decree No. 250 are effective 15 July 2021.

In recent years, China Customs actively pursued various reforms, thereby increasing customs clearance efficiency but also creating challenges. With the roll out of self-declarations for importers and exporters, coupled with enhanced follow-up scrutiny by China Customs, an ever-increasing number of declaration issues were identified. This in turn led to significant demands on China Customs’ resources, including with regard to penalty determination.  The revised regulation seeks to address this.

The revised regulation sets out a new penalty system for minor offences and builds on and formalizes existing procedures. Under the new rules, relief for penalties for enterprises may be available when their non-compliance behaviors: (1) are minor or have occurred for the first time; (2) can be rectified in a timely manner; and (3) did not result in significant harm. Penalty relief may also be available when the enterprises can prove that the violation was not intentional.


For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:

Doug Zuvich | +1 312-665-1022 | dzuvich@kpmg.com

 

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