China and Japan sign AEO Mutual Recognition Arrangement

On 26 October, jointly witnessed by the state leaders of China and Japan, the General Administration of Customs of the People’s Republic of China and the Customs and Tariff Bureau of Japan officially signed the Agreement on Mutual Recognition (“MRA”) of the Enterprise Credit Management Scheme of China Customs and the Authorized Economic Operator (“AEO”) Program of Japan. So far, China has signed MRAs with 36 countries and regions, including Singapore, South Korea, Hong Kong, the European Union, Switzerland, New Zealand, Israel, Australia, Japan, etc.

According to the MRA, AEO enterprises from China and Japan can enjoy the following four facilitation measures for the customs clearance of their goods at one another’s control points:

1) Full consideration of AEO qualifications during risk assessment to reduce inspection and supervision;

2) Expedited handling of the goods to be inspected as far as possible；

3) Assignment of dedicated liaison officers to resolve the problems encountered by AEO enterprises during customs clearance;

4) Customs clearance priority treatment by major infrastructure after trade resumption.

 

Announcement on the Relevant Matters Concerning Adjusting the Supervision of Air and Water Transport Entering and Leaving China (Announcement No.127 [2018] of the General Administration of Customs)

In order to implement the State Council’s requirements for institutional reforms, effectively strengthen the competent customs’ supervision of air and water transport entering and leaving China, and further standardize the declaration of electronic data for transport entering and leaving China, the General Administration of Customs has issued the Announcement on the Relevant Matters Concerning Adjusting the Supervision of Air and Water Transport Entering and Leaving China. This announcement will be effective  from 15 November 2018.

Relevant enterprises shall declare the electronic data for transport entering and leaving China to the competent customs in strict accordance with the Measures of the Customs of the People's Republic of China for the Supervision of Transport Entering and Leaving China, Measures for the Administration of Entry and Exit Inspection and Quarantine on Ships of International Sail and the provisions of this Announcement on declaration time limit, data items, and fill-out standards for air and water transport entering and leaving China.

 

Announcement on Issuing the Standards for the Arrangement of Sites for Intensive Customs Inspection of Closed Containers (for Trial Implementation) (Announcement No.130 [2018] of the General Administration of Customs）

In accordance with the Interim Measures of the People's Republic of China for the Administration of Areas under Customs Supervision (Order No. 232 of the General Administration of Customs), the General Administration of Customs has developed the Standards for the Arrangement of Sites for Intensive Customs Inspection of Closed Containers (for Trial Implementation) (see Annex), which are hereby issued. 

 

Operators” (AEO) Codes (Announcement No.131 [2018] of the General Administration of Customs)

In order to further regulate the format for entering “Authorized Economic Operators” (AEO) codes, reduce errors in entering the codes, and enable AEO enterprises for timely enjoyment of the customs clearance facilitation brought by the mutual recognition of AEO enterprises between the Chinese Customs and the Customs of other countries (regions), the relevant matters concerning entering AEO codes are hereby announced as follows: 

Where an overseas consignee or consigner is an AEO from a country (or region) whose Customs has established AEO mutual recognition with the Chinese Customs, the relevant domestic enterprise shall, in the manifests for water and air transport, enter the AEO code of the overseas consignee or consigner in the columns of “AEO code of consignee” and “AEO code of consigner” in the Data Items of the Original Manifest or the Data Items of the Advance Manifest and in the column of “overseas consignee or consigner” in the Customs Declaration Form for the Import (Export) of Goods of the Customs of the People's Republic of China. The AEO enterprise code shall be filled in the following way: "Country (Region) Code + Customs Enterprise Code”. This announcement is effective from 1 November 2018. 

 

Announcement on Launching the Electronic Special-Purpose Seal for Customs Documents and Certificates of the People's Republic of China (Announcement No.132 [2018] of the General Administration of Customs)

In order to promote the construction and implementation of "Single Windows" and "Internet + Customs" for international trade and realize paperless and online processing of all customs documents and certificates with the aim of facilitating customs clearance for taxpaying importers and exporters, customs districts participating in the tax printing reform pilot scheme have adopted the electronic special-purpose seal for customs documents and certificates of the People's Republic of China” since 22 October 2018.

 

Announcement on Adjusting the Supervisory Approach for Imports of Certain Mineral Products (Announcement No.134 [2018] of the General Administration of Customs)

For the purposes of further improving the business environment and reducing customs clearance time at control points, the General Administration of Customs has, based on the trial reform of the supervisory approach for imports of iron ores and after risk assessment, decided to change the supervisory approach for imports of certain mineral products to a “clearance before inspection” mechanism. (including imports of iron ore, manganese ore, chrome ore, lead ore and its concentrate, zinc ore and its concentrate). This Announcement came into effect on the date of its issuance.

 

Announcement on Issuing the Electronic Customs Declaration Format V1.3 for Water and Air Transport Entering and Leaving China or Traveling within China that Carries Goods Regulated by the Chinese Customs (Announcement No.135 [2018] of the General Administration of Customs)

To further standardize the electronic customs declaration format for water and air transport entering and leaving China or traveling within China that carries goods regulated by the Chinese Customs, the General Administration of Customs has, based on its Announcement No.127 [2018], formulated the Electronic Customs Declaration Format V1.3 for Water and Air Transport Entering and Leaving China or Traveling within China that Carries Goods Regulated by the Chinese Customs, which introduces changes to the data items to be declared by water and air transport entering and leaving China. This announcement will take effect from 15 November 2018. 

 

Announcement on the Subsequent Matters related to the Customs’ Pre-Classification Decision (Announcement No.138 [2018] of the General Administration of Customs)

In order to protect the lawful rights and interests of enterprises and ensure orderly and unified classification by the Chinese Customs, the General Administration of Customs has published an announcement on the subsequent matters related to the Customs’ re-classification decision, which are set out as follows:

1. As of January 1, 2019, the previous Written Decisions of the Customs of the People's Republic of China on Pre-Classification of Goods (hereinafter referred to as the Written Decisions on Pre-classification) issued by customs districts directly under the General Administration of Customs will be repealed.
2. During the period between the date of release of this announcement and 31 December 2018, customs clearance for imports and exports of the commodities regulated and required to be declared according to the Written Decisions on Pre-Classification originally issued by those customs districts directly under the General Administration of Customs at checkpoints controlled by such customs districts will be carried out in accordance with these Written Decisions on Pre-Classification.
3. Enterprises seeking pre-classification for their commodities from the Chinese Customs can apply for a decision in accordance with the Interim Measures of the Customs of the People's Republic of China for the Administration of Pre-Determination (Order No. 236 of the General Administration of Customs) and the Notice of the General Administration of Customs on Issues concerning the Implementation of the Interim Measures of the Customs of the People's Republic of China for the Administration of Pre-Determination (Announcement No. 14 [2018] of the General Administration of Customs).

 

Announcement on the Classification Table of Personal Imports of the People's Republic of China and the Table of Dutiable Values of Personal Imports of the People's Republic of China (Announcement No.140 [2018] of the General Administration of Customs)

In accordance with the Notice of the Customs Tariff Commission of the State Council on Issues concerning adjusting the Import Duties of Personal Imports (No. 49 [2018] of the Customs Tariff Commission), the General Administration of Customs has decided to adjust accordingly the categories and duty rates in the Classification Table of Personal Imports of the People's Republic of China and the Table of Dutiable Values of Personal Imports of the People's Republic of China issued in Announcement No. 25 [2016], with the classification criteria and the criteria for determining dutiable values remaining unchanged. The adjustments are hereby published (See Appendixes 1 and 2), effective from 1 November 2018.

 

Announcement on the Relevant Matters Concerning Paperless Operations for Import License Application and Customs Clearance (Announcement No.82 [2018] of the Ministry of Commerce and the General Administration of Customs)

For the purposes of deepening the reform of “simplification of administrative procedures, delegation of powers, combination of decentralization and control, and optimization of services”, improving trade facilitation, and promoting the steady growth of foreign trade, in accordance with the provisions of the relevant laws, administrative regulations and rules such as the Foreign Trade Law of the People's Republic of China, the Administrative License Law of the People's Republic of China, the Regulation of the People's Republic of China on the Administration of the Import and Export of Goods, the Administrative Measures for the Import of Electromechanical Products, and the Measures for the Administration of Automatic Import Licenses for Goods, the Ministry of Commerce and the General Administration of Customs have decided to implement paperless import license application and customs clearance operations for goods administered under an automatic import license or an import license. (except for ozone-depleting substances) nationwide from 15 October 2018.

 

Announcement on the Final Determination on the Anti-dumping Investigation into Imports of Hydroiodic Acid Originating in the United States and Japan (Announcement No.80 [2018] of the Ministry of Commerce)

In accordance with Article 25 of the Anti-dumping Regulations, the investigation authorities have issued a final determination that there was dumping of hydroiodic acid originating in the United States and Japan, which resulted in substantial damage to the  domestic hydroiodic acid  industry. Upon the Ministry of Commerce’s recommendation, the Customs Tariff Commission of the State Council has decided to impose anti-dumping duties on imports of hydroiodic acid originating in the United States and Japan from 18 October 2018 for a period of 5 years.

 

Announcement on the Final Determination on the Anti-dumping Investigation into Imports of Ethanolamines “EA” Originating in the United States, Saudi Arabia, Malaysia and Thailand  (Announcement No.81 [2018] of the Ministry of Commerce)

In accordance with Article 25 of the Anti-dumping Regulations, the investigation authorities has issued a final determination that there was dumping of EA originating in the United States, Saudi Arabia, Malaysia and Thailand, which resulted in substantial damage to the domestic EA industry. Upon the Ministry of Commerce’s recommendation, the Customs Tariff Commission of the State Council has decided to impose anti-dumping duties on imports of EA originating in the United States, Saudi Arabia, Malaysia and Thailand from 30 October 2018 for a period of 5 years.

Announcement on the Implementation of Facilitation Measures for the Regulation of Consumer Goods on Display at the Inaugural China International Import ExpoAnnouncement on Entry Verification Work for the Inaugural China International Import Expo Announcement on the release of the Guidance Notes for the Exhibition of Food and Cosmetics at the Inaugural China International Import Expo of and the Guide for the  Inspection and Quarantine of Food and Cosmetics at the Inaugural China International Import Expo (Announcement No.8,9,10 [2018] of Shanghai Customs)

For the purposes of supporting the successful opening of the inaugural China International Import Expo (CIIE), ensuring the smooth running of the Import Expo and continuously promoting trade facilitation, Shanghai Customs has issued a series of work requirements and facilitation measures in accordance with the relevant laws and regulations after taking into consideration the actual circumstances at the Shanghai control checkpoint and the trade conditions of CIIE. These requirements and measures include the following:

Implementation of a qualification assessment model for consumer goods on display at the Import Expo based on "Product pre-inspection + Compliance statement + Expedited customs clearance“;

When declaring the entry of China Compulsory Certification products ("CCC products") for the Expo, the applicant may specify the use of such CCC products in the form of remarks and fact sheets, and eligible products can be exempted from entry verification.

Formulation of the "Guidance Notes for the Exhibition of Food and Cosmetics at the Inaugural China International Import Expo" and the "Guide for the Inspection and Quarantine of Food and Cosmetics at the Inaugural China International Import Expo".

 

Announcement on the Relevant Matters Concerning the Simplification of Accompanying Documents for Paperless Customs Clearance  (Announcement No.12 [2018] of Shenzhen Customs)

In order to support the steady growth of foreign trade and further promote the reform for paperless customs clearance operations in the Shenzhen Customs district, in accordance with the relevant provisions of the General Administration of Customs, enterprises can choose not to submit accompanying documents, such as contracts, invoices, bills of lading, packing lists, etc., when preparing the recordation list for entry of goods into areas under special customs supervision within the Shenzhen Customs district from overseas or exit of goods from areas under special customs supervision within the Shenzhen Customs district to overseas.

 

Announcement on the Implementation of “Centralized declaration for Goods Imported or Exported by Batches” (Announcement No.15 [2018] of Shenzhen Customs)

In order to facilitate customs clearance for bonded logistics goods in the Shenzhen Customs district, the relevant matters concerning the implementation of  “centralized declaration for goods imported or exported by batches” in areas under special customs supervision and bonded logistics centers (hereafter referred to as “these areas and centers”) have been announced. Enterprises may first undergo the formalities for goods’ actual entry into or exit from these areas and centers using the warehouse entry and exit list and the checkpoint verification and release list through the administration systems for these areas and centers and then complete  customs declaration formalities using the customs declaration form within the prescribed period if goods are allowed to be transported by batches between enterprises within these areas and centers and domestic enterprises outside these areas and centers.

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

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

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