Notice of the Customs Tariff Commission of the State Council on Issues Relating to Adjustments to Import Duties of Inbound Goods (No.49 [2018] of the Customs Tariff Commission)

rates of inbound goods on 30 September 2018, which is as follows:

1. According to the circular, imported drug products will be subject to a tariff rate of 15%; cancer drugs will be subject to a lower value-added tax rate of 3%.

2. Tariff rates for the second and third import tax items would be adjusted to 25% and 50%, respectively.

These adjustments will be effective from November 1, 2018.

 

Announcement of the Customs Tariff Commission of the State Council on Imposing Additional Tariffs on Approximately USD 60 Billion Worth of Imported Goods Originating in the U.S. (Announcement [2018] No.8 of the Customs Tariff Commission)

On 18 September 2018, Customs Tariff Commission of the State Council issued the Announcement on specific implementation matters of the Announcement [2018] No.6 of the Customs Tariff Commission, as follows:

1. Additional tariffs will be levied on goods on the lists of US imports subject to additional tariffs, affixed to the Announcement [2018] No.6 of the Customs Tariff Commission, effective from September 24, 2018, at 00:01; to be specific, 10 percent additional tariffs on 2,493 taxable items of goods listed in the Appendix I and 1,078 taxable items of goods listed in the Appendix II, and 5 percent additional tariffs on 974 taxable items of goods listed in the Appendix III and 662 taxable items of goods listed in the Appendix IV.

2. Other affairs shall be subject to provisions of the Announcement [2018] No.6 of the Customs Tariff Commission.

 

Notice on Tax Collection Policies for Retail of Exports in Cross-border E-commerce Comprehensive Pilot Zones (Cai Shui [2018] No.103)

Ministry of Finance, the State Administration of Taxation, Ministry of Commerce and General Administration of Customs jointly issued the Notice on tax collection policies for retail of exports in cross-border e-commerce comprehensive pilot zones, which is as follows:

Where the exports of an e-commerce export enterprise in a comprehensive pilot zone for which a valid proof of purchase has yet to be obtained satisfy all the following criteria simultaneously, the export shall be subject to trial implementation of value-added tax and consumption tax exemption policies. Expediting the establishment of e-commerce exports statistics monitoring system to promote healthy and speedy development of cross-border e-commerce. The General Administration of Customs shall transmit electronic information of e-commerce exports declaration lists to the State Administration of Taxation on regular basis. 

This Notice shall be implemented with effect from 1 October 2018.

 

The Circular on the Increase of Export Tax Rebates for Electromechanical and Cultural Product (Cai Shui [2018] No.93)

Ministry of Finance and the State Administration of Taxation issued the Circular on the Increase of Export Tax Rebates for Electromechanical and Cultural Product, which is as follows:

The export tax rebate for such products as multi-component integrated circuits, non-electromagnetic interference filters, books and newspapers will be raised to 16%, that for bamboo carving products and wooden fans to 13%; that for basalt fibers and related products and safety pins to 9%.

This Circular shall be implemented with effect from 15 September 2018.

 

Announcement on Issuing the Administrative Ruling on Commodity Classification for 2018 (Announcement No.115 [2018] of the General Administration of Customs)

The General Administration of Customs accepted the applications for administrative ruling on the classification of four commodities, including “Camera Control Unit HDCU-2080” and rendered an administrative ruling on the classification of the relevant commodities, which is hereby issued. This Announcement shall be implemented with effect from the issuance date.

 

Announcement on Implementing the Mutual Recognition of “Authorized Economic Operators (AEO)” between the Customs Authorities of China and Israel (Announcement No.116 [2018] of the General Administration of Customs)

In November 2017, the customs of China and Israel entered into a mutual recognition agreement on Rules of the Customs of the People’s Republic of China on Credit Management of Enterprises and the “Authorized Economic Operators (AEO)” System, and decided to officially implement the Agreement as of 1 October 2018. The relevant matters are hereby announced as follows:

In accordance with the provisions of the Agreement, the customs authorities of China and Switzerland shall mutually recognize each other's “authorized economic operators” (hereinafter referred to as “AEOs”), and provide customs clearance facilitation for the goods imported from each other's AEOs. The Customs of China and Israel will offer the following convenience measures for mutual-recognized AEO enterprises on clearance of imports. When Chinese AEO enterprises export goods to Israel, they need to notify importers in Israel the AEO enterprise code, the Israeli importers shall fill up applications according to requirements of Israel Customs, then the Israel Customs will offer relevant convenience measures after confirming the identities of Chinese AEO enterprises. If Chinese enterprises import goods from Israeli AEO enterprises, they need to fill the AEO codes of the foreign shippers in the “code of foreign shipper” section of import declaration and the “AEO enterprise code of shipper” section of delivery form.

 

Announcement on Ceasing the Use of the Original Electronic Payment System for Customs Duties and Fees (Announcement No.117 [2018] of the General Administration of Customs)

The General Administration of Customs issued this Announcement on 14 September 2018 to facilitate the payment of customs duties  of import/export goods. The General Administration of Customs (“GAC”) has decided to cease the use of original electronic payment system for customs duties and fees as from 1 October 2018 and switch to the new electronic payment system. In addition, the GAC has also repealed the Announcements No. 17 and No.53 [2011], the Announcement No.78 [2014] and the Announcement No.24 [2015] as from 1 October 2018.

 

Announcement on Quarantine Requirements for Seed Potatoes Imported from Britain (Announcement No.118 [2018] of the General Administration of Customs)

The General Administration of Customs issued the Quarantine Requirements for Seed Potatoes Imported from Britain on 17 September 2018, the seed potatoes that comply with Quarantine Requirements for Seed Potatoes Imported from Britain shall be allowed to be imported. This Announcement shall come into force on the date of issuance.

 

Announcement on Upgrading the New Customs Clearance Management System for Express Delivery Items (Announcement No.119 [2018] of the General Administration of Customs)

In order to improve efficiency of customs clearance for express delivery items, the General Administration of Customs (“GAC”) decided to upgrade the new  Customs Clearance Management System for express delivery items (“the  new express delivery item system”). The GAC currently issued the announcement on relevant matters of the new express delivery item system. This Announcement shall be implemented with effect as from 25 September 2018.

1. The express delivery item entering and exiting China in category of documents (hereinafter referred to as the express delivery item of Category A) and the express delivery items entering and exiting China in category of personal articles (hereinafter referred to as the express delivery items of Category B) remain the same as those stated in Announcement No.19 [2016] of General Administration of Customs. While the  express delivery items entering and exiting China in category of low-value goods (hereinafter referred to as the express delivery item of Category C) are adjusted, The “express delivery item of Category C” means the goods worth RMB 5,000 or below (excluding freight charges, insurance expenses, and miscellaneous charges ).

2. The upgrading new express delivery item system shall be applicable to the declaration of the express delivery items of Category A, B and C.

3. The relevant inspection and quarantine systems for the declaration of the express delivery items in category of A, B and C are out of use.

4. The express delivery operators shall faithfully make declaration to the Customs and provide relevant materials in accordance with requirements of the Customs.

 

Announcement on Customs Regulatory Matters Relating to Seaborne Inbound and Outbound Consolidated Transshipment Cargo (Announcement No.120 [2018] of the General Administration of Customs) 

For the purposes of promoting development of port logistics industry, the General Administration of Customs issued the Announcement on the customs supervision for sea port inbound and outbound consolidated transshipment cargo, which is hereby given on the relevant matters as follows:

Consolidated cargo in inbound and outbound transshipment referred to in this Announcement (hereinafter referred to as the "consolidated transshipment cargo") shall include international transshipment goods required to be unpacked and consolidated in China; less-than-containerload cargo imported into China together with international transshipment cargo and unpacked in China; less-than-containerload cargo exported from China together with international transshipment cargo.

Adjust transmission requirements under the "Data Items of International Transshipment Order", and see Appendix for the revised "Data Items of International Transshipment Order". Imports in consolidated transshipment cargo shall be declared with the Customs within 14 days from declaration of entry of transportation vehicle; international transshipment cargo shall be reshipped out of China within three months, or deferred for three months for reshipping out of China under special circumstances and upon approval by the Customs.

The contents of this Announcement shall be implemented with effect from 1 December 2018.

 

Announcement on Upgrading the Online Platform of Customs Administrative Examination and Approval (Announcement No.121 [2018] of the General Administration of Customs)

For the purposes of deepening the reform of the customs administrative examination and approval system, the General Administration of Customs (GAC) has upgraded the online platform of customs administrative examination and approval. GAC decided to add 4 inspection and quarantine approval items and 4 links for counterparts of inspection and quarantine approval items into the original platform. Applicants shall submit relevant materials electronically in accordance with relevant requirements when processing the online administrative and approval procedures. The file format shall refer to the Announcement No.69 [2014] of the General Administration of Customs.

The Announcement shall come into effect as from 30 September 2018.

 

Announcement on the Preliminary Ruling on the Anti-dumping Investigation against Imports of Butan-1-ol Originating in Taiwan Region, Malaysia and the U.S. (Announcement No.67 [2018] of the Ministry of Commerce)

Ministry of Commerce issued the results on the Anti-dumping Investigation filed in the Announcement No.83 [2017] and confirmed the existence of dumping for imported butan-1-ol originating in Taiwan region, Malaysia and the U.S. As of 4 September 2018, import operators shall pay relevant margin to the Customs of the People's Republic of China at the rate determined by this ruling for each company when importing the Products under Investigation.

The margin shall be levied by means of ad valorem on the basis of dutiable value authorized by China Customs, and the calculation formula is: margin = (dutiable value authorized by China Customs × margin ratio) × (1+import value-added tax rate).

 

Announcement on Case-filing of the Final Review of the Anti-dumping Measures against Imports of Polyvinyl Chloride Originating in the United States, South Korea, Japan, and Taiwan Region (Announcement No.68 [2018] of the Ministry of Commerce)

According to the Announcement No.30 [2018] of Ministry of Commerce, the anti-dumping measures against imports of polyvinyl chloride originating in the United States, South Korea, Japan, and Taiwan Region will expire on 28 September 2018. in July 2018, the Ministry of Commerce received a formal application for expiry review on anti-dumping measures officially submitted by the enterprise on behalf of the industry of polyvinyl chloride in China and decided to conduct expiry review investigations into the anti-dumping measures on imports of polyvinyl chloride originating in the United States, South Korea, Japan, and Taiwan Region. Relevant matters are hereby announced as follows:

Decided by Ministry of Commerce, during the expiry review investigation of the anti-dumping measures, the imports of polyvinyl chloride originating in the United States, South Korea, Japan, and Taiwan Region will still be subject to anti-dumping duties within the scope and at the rate released in the Ministry of Commerce Announcement No.48 [2003], Announcement No.69 [2018] and Announcement No.36 [2015]. The investigation begins on 29 September 2018 and will end before 28 September 2019.

 

Announcement on the Declaration Requirements and Procedures for Ferroalloy Export Licenses in 2019 (Announcement No.71 [2018] of the Ministry of Commerce)

In order to reduce the emission of industrial pollution, protect the environment and coordinate with the state’s industry policies, Ministry of Commerce hereby issued the Announcement on the Declaration Requirements and Procedures for Ferroalloy Export Licenses in 2019. Category A enterprises and category B enterprises engaging in ferroalloy product operations that satisfy requirements could submit applications to the competent commercial departments of provinces, autonomous regions and municipalities separately listed on the State Plan. The Ministry of Commerce will publish the list of qualified enterprises after the examination and approval.

 

Announcement on Total Allowable Import Volume and Application Conditions and Procedures of Non-state Trading of Crude Oil in 2019 (Announcement No.72 [2018] of the Ministry of Commerce)

Ministry of Commerce issued the Announcement on Total Allowable Import Volume and Application Conditions and Procedures of Non-state Trading of Crude Oil in 2019, which includes: Allowable import volume of non-state trading of crude oil in 2018 is 202 million tons; conditions and application materials for imports of non-state trading crude oil; distribution principle of crude oil, procedures of application and approval.

 

Announcement on Total Quantity, Distribution Principle and Related Procedures of Import Tariff Quotas on Fertilizers in 2019 (Announcement No.73 [2018] of the Ministry of Commerce)

Ministry of Commerce issued the Announcement on Total Quantity, Distribution Principle and Related Procedures of Import Tariff Quotas on Fertilizers in 2019, which includes: total import tariff quota on fertilizers is 13.65 million tons, including 3.3 million tons for urea, 6.9 million tons for diammonium phosphate and 3.45 million tons for compound fertilizer; “first come, first served" will be adopted for enterprises that apply for import tariff quotas on fertilizers; enterprises could apply for import tariff quotas on fertilizers to authorities issuing licenses for import tariff quotas on fertilizers that entrusted by the Ministry of Commerce. Management institutions of tariff quotas will accept applications for import tariff quotas on fertilizers from 15 December 2018 and issue the 2019 Certificate for Import Tariff Quotas on Fertilizers.

Announcement on Adjusting the Acceptance of Administrative Approval Matters and the Approval Power (Announcement No.7 [2018] of Xiamen Customs)

Xiamen Customs adjusted certain acceptances of administrative approval matters and the approval power. These adjustments include the issuance of hygiene licensing at frontier ports; production, processing and storage locations registration for the entry and exit of plants and animals and their related products; approval for inspection and appraisal of import and export commodities. The Xiamen Customs also repealed the Announcement of Xiamen Inspection and Quarantine Bureau on Implementing Administrative License under the Entrustment (Announcement No.7 [2015]) on 28 September 2018.

 

Changsha Customs Issued the first written decision on the advance ruling for classification of Customs (Changsha Customs)

On 31 September 2018, Changsha Customs made the advance ruling for classification on 2 commodities whose validities will be 3 years. The advance ruling is applicable for Customs in China.

 

The pilot program on guarantee and insurance of tariffs starts (Shanghai Customs and Guangdong Customs)

The General Administration of Customs decided to start the pilot reform on guarantee and insurance of tariffs in 10 customs offices directly under the General Administration of Customs for the period from 1 September to 31 October 2018. The insurance companies will directly provide the Customs guarantee insurance for the import and export enterprises, enterprises purchase tariff guarantee insurance from the insurance companies. These enterprises could carry out relevant businesses after the confirmation of the Customs. 

 

Announcement on the Working Rules for the Approval and Management of Quarantine on Imported Foods (Announcement No.15 [2018] of the Nanjing Customs ) 

On 5 September 2018, Nanjing Customs made several modifications on the Appendix VII of Announcement No.13 [2018] of Nanjing Customs. Nanjing Customs has adjusted the scope and catalogue of some imported foods for the quarantine approval.This Announcement will be implemented as from the date of issuance.

Northern China
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       

Central and Eastern China
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 China 
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

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