Customs Policy Update - for the Period of June 2018
Customs Policy Update - for the Period of June 2018
Customs Policy Update – June 2018
Special Administrative Measures (Negative List) for Foreign Investment Admission (Edition 2018) (NDRC and the Ministry of Commerce Decree [2018] No. 18)
The Special Administrative Measures (Negative List) for Foreign Investment Admission (Edition 2018) will be effective as from July 28, 2018. The special administrative measures for foreign investment admission (negative list for foreign investment access) specified in the Catalogue of Industries for Guiding Foreign Investment (Revision 2017) are repealed simultaneously, while the catalogue of encouraged industries for foreign investment is still valid.
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Special Administrative Measures (Negative List) for Admission of Foreign Investments to Pilot Free Trade Zones (Edition 2018) (NDRC and the Ministry of Commerce Decree [2018] No. 19)
The Special Administrative Measures (Negative List) for Admission of Foreign Investments to Pilot Free Trade Zones (Edition 2018) will be effective as from July 28, 2018. The Special Administrative Measures (Negative List) for Admission of Foreign Investments to Pilot Free Trade Zones (2017 Version) shall be repealed simultaneously.
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Announcement of the Customs Tariff Commission of the State Council on Imposing Additional Duty on Imported Goods (Worth USD 50 Billion) Originating in the United States (Customs Tariff Commission of the State Council Announcement [2018] No.5)
In response to the additional duty imposed by the United States, the Customs Tariff Commission of the State Council has decided to impose additional duty of 25 percent on 659 goods worth USD 50 billion, which are originating in the United States. To be specific, China will impose additional duty on 545 goods worth USD 340 billion, which are imported from the United States, as from July 6, 2018. Relevant matters are provided as follows:
- A total of 545 goods under such categories as agricultural products, automobiles and aquatic products are subject to additional duty from July 6, 2018. Please see attached list 1 for the specific scope of products.
- For 114 goods under such categories as chemical products, medical device and energy products, the time when the additional duty will be imposed will be announced separately. See attached list 2 for the specific scope of products.
- For imported goods originating in the United States in the attached list 1 and 2, an additional duty of 25 percent will be imposed, in addition to the current method of imposition and applicable duty rate. The existing policies on bonded goods and duty reliefs remain unchanged, and the additional duty imposed this time shall not be exempted or reduced.
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Notice of the Customs Tariff Commission of the State Council on Implementing the Conventional Tariff Rates Set at the Second Amendment to the Asia Pacific Trade Agreement (Customs Tariff Commission of the State Council Announcement [2018] No.4)
According to the Regulations of the People’s Republic of China on Import and Export Duties and the Second Amendment to the Asia Pacific Trade Agreement approved by the State Council, the Customs Tariff Commission of the State Council decided to adopt conventional tariff rates on imports from Bangladesh, India, Laos, South Korea and Sri Lanka starting from July 1, 2018. Specific tax rates for tax items could be found in the attached notice. For more information, please kindly click here.
The General Administration of Customs also issued the Announcement on Implementing the Conventional Tariff Rates Set at the Second Amendment to the Asia Pacific Trade Agreement (GAC Announcement [2018] No.65) and the Announcement on Amending the Rules of Origin under the Second Amendment to the Asia Pacific Trade Agreement (GAC Announcement [2018] No.69) in accordance with the above Notice. For more information, please kindly refer to:
Notice of the Customs Tariff Commission of the State Council on Applying Zero Tariff to Certain Goods under the CEPA in the Second Half of 2018 (Customs Tariff Commission of the State Council [2018]No.28)
In accordance with the Mainland and Hong Kong Closer Economic Partnership Arrangement and the relevant supplements thereto, the Customs Tariff Commission of the State Council has decided to apply zero tariff from July 1, 2018 to four goods originated in Hong Kong as recently passing the negotiations on the origin criteria. Please see the Annex for the detailed list.
The General Administration of Customs issued the Announcement on Issuing the Origin Criteria for the Newly Added Goods Entitled to Zero Tariff under CEPA with Hong Kong as of July 1, 2018 and Other Related Matters in accordance with the above Notice. For more information.
Announcement on the Administration of Circulation of Bonded Goods under Customs Special Supervision Area and Bonded Logistics Centers (Type B) (GAC Announcement [2018] No.52 [2018])
The General Administration of Customs hereby announced the matters concerning the administration of circulation of bonded goods (equipment carry-over) under customs special supervision area and bonded logistics centers (type B) as follows: The transferred-in enterprises and the transferred-out enterprises shall, after reaching consensus on the information on the circulation of bonded goods (equipment carry-over) through consultation, submit the bonded verification and endorsement lists in accordance with the requirements of GAC Announcement [2018] No.23 and fill in the corresponding columns in accordance with requirements of this Announcement, and consolidate and compare the transferred-in or transferred-out commodity codes under the bonded verification and endorsement lists. The Announcement will be implemented as from July 1, 2018.
Announcement on Matters concerning Enterprises’ Access to the Unified Information Technology System for Cross-Border E-Commerce (GAC Announcement [2018] No.56)
In order to promote the development of cross-border e-commerce and facilitate customs clearance, the General Administration of Customs hereby announced the relevant matters concerning enterprises’ access to the Unified Information Technology System for Cross-Border E-Commerce as follows:
- Provide the function of list enter under the united version cross-border system.
- Publish message standards for access of enterprises to the united version of cross-border system.
- Enterprises will assume legal responsibility for the electronic data that they declare and transmit to the Customs.
Announcement on Issuing Detailed Implementation Rules for the Administration of Registration of Domestic Consignee of Imported Solid Waste Can Be Used as Raw Materials (GAC Announcement [2018] No.57)
According to Measures for the Inspection, Quarantine, Supervision and Administration of Imported Solid Waste Can be Used as Raw Materials, the General Administration of Customs developed the Detailed Implementation Rules for the Administration of Registration of Domestic Consignee of Imported Solid Waste Can Be Used as Raw Materials and issued the announcement, which will be implemented as from August 1, 2018. If the enterprise have registered as domestic consignees of imported solid waste and used such waste for processing and utilization, the enterprise shall apply for new license with regional customs offices at the locality of industrial and commercial registration. If the registered enterprise used the waste for trade, the registration of enterprise shall automatically become invalid.
Announcement on the Comprehensive Promotion of the Reform of Processing Trade Regulation Regarding an Enterprise as a Unit (GAC Announcement [2018] No.59)
The General Administration of Customs decided to comprehensively promote the reform of processing trade regulatory model regarding an enterprise as a unit.
Enterprises apply to adopt the new regulatory model must be production enterprises engaged in processing trade activities in their own names and satisfy one of the following conditions:
- Customs credit rating is generally authorized or above;
- For general authority enterprises, the internal processing trade goods flow and data flow shall be transparent and clear, the logical links shall be completed, the material consumption could be traced, and requirements of customs regulatory are satisfied.
Meanwhile, the General Administration of Customs also clarifies the implements regarding handbook establishment, period for the handbook cancellation and verification, subcontracting, consolidated declaration for domestic sales, factory transfer, and residual materials transfer.
During the period for cancellation and verification, enterprises shall complete the cancellation and verification formalities with the customs by self-declaration. If the period is over 1 year, enterprises shall make annual declaration reports.
For the Announcement on the Reform of Processing Trade Regulation Regarding an Enterprise as a Unit, KPMG China has issued the China Tax Alert – China Customs Comprehensively Promotes the Reform of Processing Trade Regulation Regarding an Enterprise as a Unit. For more information, please kindly click here.
Announcement on Revising the Instructions of the Customs of the PRC for filling the Customs Declaration Forms for the Import and Export of Goods (GAC Announcement [2018] No.60)
The General Administration of Customs revised the Instructions of the Customs of the PRC for filling the Customs Declaration Forms for the Import and Export of Goods (GAC Announcement [2017] No.13). The requirements for filling in below columns have been revised: pre-entry number, customs number, domestic consignee/consignor, recordation number, mode of transport, name and voyage number of means of transport, consumer and user/manufacturer and seller, nature of tax collection or exemption, type of packaging, shipping marks and remarks, item number, name of commodities, specifications number, domestic destination/domestic source of goods, declaring organization, etc. In addition, the following columns are added in the Instructions, which are foreign consignee/consignor, commodity storage location, port of shipment, port for import/export and self-declaration and tax payment.
Announcement on Amending the Formats of Declaration Forms for Imported Goods and Exported Goods and Recordation Lists of Imported and Exported Goods (GAC Announcement [2018] No.61)
According to requirements under the Announcement No.60 [2018] of the General Administration of Customs, the General Administration of Customs decided to revise formats of relevant forms as follows: 9 new items are added in the declaration form for imported goods (including “page number/page” and “foreign consignor”); 7 new items are added in the declaration form for exported goods (including “page number/page” and “foreign consignee”); 12 new items are added in the recordation list of imported goods (including “contract number” and “type of packaging”); 12 new items are added in the recordation list of exported goods (including “contract number” and “port for export”).
Announcement on the Format of Electronic Message for Declaration Forms for Imported Goods and Exported Goods (GAC Announcement [2018] No.67)
According to the revision of the Announcement No.60 [2018] of the General Administration of Customs, the General Administration of Customs established the format of electronic message for declaration forms for imported goods and exported goods. Relevant information could be downloaded from the bulletin board in the portal website of the General Administration of Customs. The Announcement will be implemented as from August 1, 2018.
Announcement on Starting the Electronic Data Transmission Services Regarding Guarantee of Consolidated Tax Levying (GAC Announcement [2018] No.70)
In order to facilitate enterprises to handle the guarantee of consolidated tax levying, optimize tax services and improve the business environment, the General Administration of Customs decided to start electronic data transmission services regarding guarantee of consolidated tax levying since July 1, 2018. The electronic data transmission system regarding guarantee of consolidated tax levying achieves the following electronic businesses via the horizontally connected system of the Ministry of Finance, General Administration of Customs, Treasury and People’s Bank of China: guarantee recordation, change and cancellation; deduction, return and claim of guarantee limitation. Guarantee electronic data transmitted by the electronic data transmission system has the same legal effect as the paper document. If the Customs has received the guarantee electronic data by this system, the corresponding paper documents will no longer be accepted. Guarantee institutions should complete joint test with the General Administration of Customs before starting this system. The Announcement will be implemented as from July 1, 2018.
Announcement on Promoting Paperless Submission of Commodity Classification Information (GAC Announcement [2018] No.73)
The General Administration of Customs decided to promote and implement the paperless submission of commodity classification information around the country. Consignors and consignees of imported and exported goods could submit required information of commodity classification via relevant customs systems. Specific steps are as follows: consignors and consignees of imported and exported goods sign in the “Customs Affairs Contact System” via the “Internet + Customs” integration platform or the website of China Port, to receive notices on commodity classification from the Customs and return the electronic information (company stamp or electronic signature is required). Please see the Announcement No.69 [2014] of the General Administration of Customs to learn about the standards for scanning electronic information or transferring document formats. The Announcement will be implemented as of the issuance date.
Announcement on Promoting the New Generation of Electronic Payment System for Customs Duties and Fees (GAC Announcement [2018] No.74)
The General Administration of Customs decided to promote the new generation of electronic payment system for customs duties and fees around the country from July 1, 2018. Enterprises can log in the “single window”, “Internet + Customs” platform to pay customs duties and fees with the new generation of electronic payment system. Commercial banks and import & export enterprises shall voluntarily use the new generation of electronic payment system to process the electronic payment of customs duties and fees, and shall also comply with the Operational Rules on the New Generation of Electronic Payment for Customs Duties and Fees.
Announcement on Issues concerning the Implementation of the Vessel Tonnage Tax of the PRC (GAC Announcement [2018] No.77)
Announcement on Issuing the List of Countries (Regions) Entitled to the Preferential Rate of Vessel Tonnage Tax (GAC Announcement [2018] No.80)
The Vessel Tonnage Tax of the People’s Republic of China shall be implemented with effect from July 1, 2018. The General Administration of Customs issued relevant matters as follows: Vessel tonnage tax is classified into 3 different payment period, which are 1-year payment, 90-day payment and 30-day period. The person-in-charge of a taxable vessel can selected the payment period; The person-in-charge of a taxable vessel shall log in the “Application System of Customs Vessel Tonnage Tax License” by “Internet + Customs”, “Single Window” of international trade and other customs and enterprises affair platform, input and send application information of vessel tonnage tax license to the Customs; If the person-in-charge of a taxable vessel chooses to pay vessel tonnage tax over the counter, he shall submit the first page of the payment certificate with the stamp of tax payment by the receiving bank to the Customs; If the person-in-charge of a taxable vessel chooses to pay vessel tonnage tax electronically, he shall complete the recordation of electronic payment on the vessel tonnage tax in accordance with requirements of Announcement No.6 [2014] of the General Administration of Customs. Meanwhile, the General Administration of Customs issued the List of Countries (Regions) Entitled to the Preferential Rate of Vessel Tonnage Tax.
Announcement on Adjusting the Heading and Tariff Rate for Rice (GAC Announcement [2018] No.78)
According to the notice of the Customs Tariff Commission of the State Council, in order to adapt to the technological progress and trade development requirements, the General Administration of Customs adjusted the heading and tariff rate for rice in Customs Import and Export Tariff as from July 1, 2018 in accordance with changes in domestic rice industry standards.
Announcement on Issuing the Restrictions of Import Ports for Solid Waste (GAC Announcement [2018] No. 79)
The General Administration of Customs and the Ministry of Ecology and Environment issued the Announcement on the Restrictions of Import Ports for Solid Waste as follows: The allowed imported solid waste shall be imported from ports under the Catalogue of Restricted Import Ports for Solid Waste, and relevant customs formalities should be completed. Importers shall fill in the codes of customs districts under the Catalogue of Restricted Import Ports for Solid Waste, during the course of applying for the import license of solid waste. The Announcement will be implemented as from January 1, 2019.
Local Customs Regulation Update
Announcement of Shanghai Customs on Adjusting Business Agencies for Registration of the Transport Enterprises and Vehicles Undertaking the Road Transportation of Customs Supervision goods within the Territory of China (Shanghai Customs Announcement [2018] No.5)
According to the Measures of the Customs of the People’s Republic of China for the Administration of Transport Enterprises and Vehicles Undertaking the Road Transportation of Goods under Customs Supervision within the Territory of China (Order No. 121 of the General Administration of Customs, Revision of Order No. 240 of the General Administration of Customs), from June 19,2018, if enterprise applies for registration in the area supervised by Shanghai Customs regarding the transport enterprises and vehicles undertaking the Road Transportation of customs supervision goods within China, the in-charge customs of the enterprise shall be responsible for registration affairs.
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Announcement of Tianjin Customs (Tianjin Customs Announcement [2018] No.4)
In order to further optimize the business environment and further deepen the electronic clearance of Tianjin Harbor, Tianjin Customs stopped stamping the special stamp for inspection and quarantine on delivery order of imported dismantling and assembling container since June 11, 2018. The companies working on dismantling and assembling container in Tianjin Harbor shall process goods delivery procedures with the electronic clearance instructions.
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Announcement of Guangzhou Customs on Expanding the Reform of Paperless Registration of Consignors and Consignees for Imported and Exported Goods to Zhaoqing, Shaoguan, Qingyuan, Yunfu and Heyuan (Guangzhou Customs Announcement [2018] No.2)
In order to continuously deepen the reform of “simplification of administrative procedures and delegation of powers to lower levels, integration of decentralization with administration and optimization of services”, and improve the management level of customs services, Guangzhou Customs decided to expand the reform of paperless registration of consignors and consignees for imported and exported goods to Zhaoqing, Shaoguan, Qingyuan, Yunfu and Heyuan since July 1, 2018.
For more information, please kindly click here.
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