Announcement of the Customs Tariff Commission of the State Council on Suspending Imposing Additional Tariffs on Motor Vehicles and Spare Parts Originating in the U.S. (CTC Announcement No.10 [2018])     

On 14th December, 2018, the Customs Tariff Commission of the State Council issued the announcement on suspending imposing additional tariffs on motor vehicles and spare parts originating in the U.S., according to which the 25% additional tariff on 144 items and the additional 5% tariff on 67 items would be suspended from 1st January through 31st March, 2019. 

 

Notice of the Customs Tariff Commission of the State Council on the Adjustment Plan for Provisional Import and Export Tariff Rates in 2019 (CTC Notice No.56 [2018])

On 22nd December, 2018, the Customs Tariff Commission of the State Council issued the Notice on the Adjustment Plan for Provisional Import and Export Tariff Rates in 2019, which mainly includes the following:

Adjust the import tariff rates by imposing provisional tariff rates on 706 items of goods from 1st January, 2019 and abolishing the provisional tariff rates for 14 types information technology products from 1st July, 2019. Continue to implement tariff quota management for 8 categories of merchandise, such as wheat, with the tariff rates unchanged. 

Adjust the export tariff rates by levying export tariffs or imposing provisional tariff rates on 108 items such as ferrochrome, with the tariff rates remain unchanged, and abolishing 94 provisional export tariffs. 

 

Announcement of the Ministry of Commerce and the General Administration of Customs on Matters Related to Revising Automatic Import Licensing Measures for Goods (MOFCOM and GACC Announcement No.95 [2018]) 

On 10th December, 2018, the Ministry of Commerce and the General Administration of Customs issued the announcement of decision on revising automatic import licensing measures to be effective from 1st January, 2019, which includes the following two parts:

1. Cancellation of the Automatic Import Licensing Measures for goods under 118 HS codes which covers 15 product types including steam turbines, automotive products, engines (not for vehicles prescribed in Chapter 87) and key components, hydraulic turbines and other power devices, chemical equipment, food machinery, paper-making machinery, textile machinery, metal smelting and processing equipment, electrical equipment, railway locomotives, mobile communications products, ships, medical equipment, gaming consoles, etc. 
2. Implementation of Automatic Import Licensing Measures for automotive products under HS codes 8704210000 and 8704310000.

 

Announcement of Relevant Matters Regarding the Catalogue Adjustment for Used Mechanical and Electrical Products Prohibited from Import (MOFCOM and GACC Announcement No.106 [2018])

On 26th December, 2018, the Ministry of Commerce and the General Administration of Customs issued the adjusted catalogue of used mechanical and electrical products prohibited from import to be effective from 1st January,2019. The adjusted catalogue includes part of the mechanical and electrical products prescribed in Chapters 70, 73, 76, 84, 85, 87 and 90. The Catalogue of Prohibited Imports (Second Batch) issued by the Ministry of Foreign Trade and Economic Cooperation, the General Administration of Customs and the General Administration of Quality Supervision and Inspection on December 27, 2001 would be abolished at the same time. 

 

Announcement of the Catalogue of Goods Subject to Import License Administration in 2019 (MOFCOM and GACC Announcement No.107 [2018])

On 26th December, the Ministry of Commerce and the General Administration of Customs issued the Catalogue of Goods Subject to Import License Administration in 2019 (the "Catalogue") to be effective from 1st January 2019 in accordance with the Foreign Trade Law of the People‘s Republic of China, Regulations of the People’s Republic of China on the Administration of Import and Export of Goods, Regulation on the Administration of Ozone Depleting Substances and Measures for Administration of Import of Specified Used Mechanical and Electronic Products . The Catalogue includes products prescribed in Chapters 29, 38, 84, 85, 89 and 90. The Catalogue of Goods Subject to Import License Administration in 2018 issued by the Ministry of Commerce, the General Administration of Customs and the General Administration of Quality Supervision and Inspection on 22nd December, 2017 will be abolished upon effectiveness of the Catalogue.

 

Announcement of the Catalogue of Goods Subject to Import License Administration in 2019 (MOFCOM and GACC Announcement No.108 [2018])

On 26th December, 2018, the Ministry of Commerce and the General Administration of Customs issued the Catalogue of Goods Subject to Export License Administration in 2019 (the "Catalogue") to be effective from 1st January, 2019. The Catalogue of Goods Subject to Export License Administration in 2018 issued by the Ministry of Commerce and the General Administration of Customs will be abolished upon effectiveness of the Catalogue, which includes the following stipulations:

Foreign trade operators of the goods listed in the Catalogue shall apply to the Ministry of Commerce or the competent local commercial departments entrusted by the Ministry of Commerce for the Export License of the People's Republic of China (the "export license") and go through the formalities of customs declaration, inspection and release with the export license.

Continue to suspend the state trade administration on general trade exports of lubricating oil (HS 27101991), lubricating grease (HS 27101992) and lubricating base oil (HS 27101993). Where a foreign trade operator exports the above-mentioned goods by means of general trade, it shall apply for an export license with an export contract for the goods. 

The export license of the "non-one-batch-one-license" system can be used not more than 12 times for customs clearance within its validity period. If this limit is exceeded, the customs shall stop accepting customs declarations. 

 

Announcement on Cancelling the Certificate of Business Conditions and Production Capacity of Processing Trade Enterprises (MOFCOM and GACC Announcement No.109 [2018]) 

On 29th December, 2018, the Ministry of Commerce and the General Administration of Customs issued the Announcement on Cancelling the Certificate of Business Conditions and Production Capacity of Processing Trade Enterprises, which mainly including the following:

From 1st January, 2019, enterprises engaged in processing trade business will no longer need to apply for the "Certificate of Business Conditions and Production Capacity". In order to carry out processing trade business, enterprises must log on to the " System of Information About Business Conditions and Production Capacity of Processing Trade Enterprises" (at https://ecomp.mofcom.gov.cn/), fill out the "Form of Information About Business Conditions and Production Capacity of Processing Trade Enterprises”, and certify the authenticity of the information. Enterprises providing false information will be discredited with a negative credit record, and measures such as lowering the credit rating at the Customs shall be taken in accordance with laws.

 

Announcement on Extending the Duty-free Shopping Policy to Cover Visitors Leaving Hainan by Ship (MOF, GACC, and SAT Announcement No.175 [2018])

On 26th December, 2018, the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation issued the Announcement on Extending the Duty-free Shopping Policy to Cover Visitors Leaving Hainan by Ship to be effective from 28th December, 2018, which mainly includes:

1. Visitors aged 16 or over can purchase duty-free goods at Hainan's shops for departing visitors and their online sales channels with return ship tickets and valid identity documents. Before leaving the island, they may pick up the goods at the pick-up points at the Xiuying Port or Xinhai Port in Haikou with the ship tickets, purchase proofs, and identity documents. (A pick-up point will be established at the South Port Terminal in Haikou after the conditions are ripe.)
2. The relevant duty-free policies apply to the total annual purchase amount of a visitor on the island regardless of whether he/she leaves the island by air, train or ship, provided that the amount does not exceed the current quota.

 

Announcement on Issuing the Decision on the Classification of Certain Merchandise (GACC Announcement No. 183 [2018])

On 6th December, 2018, the General Administration of Customs published the Announcement on Issuing the Decision on the Classification of Certain Merchandise in 2018 to be effective from 1st January, 2019. The announcement covers the decision on the classification of 27 types of merchandise including semiconductor wafer testers and camera lenses and on the of repealing the classification of three types of merchandise including synthetic rubber.

 

Announcement on Revising the Content of the Import and Export Declaration Form and the Format of Electronic Declaration Messages (GACC Announcement No. 185 [2018])

On 7th December, 2018, the General Administration of Customs issued the Announcement on Revising the Content of the Import and Export Declaration Form and the Format of Electronic Declaration Messages to be effective from 9th December, 2018, which includes the following: 

1. In the “Product Qualification” section of the single window declaration interface, the “Reconciliation Quantity Unit” field is added to “Editing Product License/Approval/Filing Information”. If “Reconciliation Quantity” in “Editing Product License/Approval/Filing Information” is set, “Reconciliation Quantity Unit” must be set as well.
2. The format of electronic messages for import and export declaration has been revised. 

 

Announcement of Relevant Matters on Further Optimizing the Registration Management of Customs Declaration Entities (GACC Announcement No.191 [2018])

On 7th December, 2018, the General Administration of Customs published the Announcement of Relevant Matters on Further Optimizing the Registration Management of Customs Declaration Entities to be effective from 1st February, 2019 to simplify relevant registration procedures and reduce institutional transaction costs for the entities. It includes the following: 

Branches established by import or export consignees or consignors in accordance with laws may file the branches with the local Customs authorities of the branches with the Customs Declaration Entity Registration Form. Then, the consignees and consignors and their filed branches may make import and export customs declaration throughout the country. The consignees and consignors shall bear legal liabilities for the actions of their branches.

 

Announcement on the Full Implementation of Paperless Customs Transit Operations (GACC Announcement No.193 [2018]) 

On 10th December, 2018, the General Administration of Customs issued the Announcement on the Fully Implementation of Paperless Customs Transit Operations to be effective from 1st January, 2019, which includes the following:

Unless the Customs requires relevant paper documents, enterprises no longer need to submit a hard-copy customs transit declaration form or vehicle load list, or submit the hard-copies of the Vehicle Load Register, the Book of Customs Supervision and Control on Inbound and Outbound (Port) of International Vessels of Chinese Nationality, and the Driver Visa Book for inspection. The announcement clarifies the management of complete commercial seals or intelligent locks on the carriages of vans or doors of containers carrying transited goods, and stipulates declaration after import and export goods arrive at customs supervision areas. 

 

Announcement on the Regulation of Imported and Exported Retail Merchandise in Cross-border E-Commerce (GACC Announcement No.194 [2018])

On 10th December, 2018, the General Administration of Customs issued the regulation announcement in accordance with the relevant policies of China on imported and exported retail merchandise in cross-border e-commerce to be effective from 1st January, 2019. If an domestic enterprise engaged in cross-border e-commerce has signed a sales contract, the effective date of the regulation may be extended to March 31, 2019. 

The regulation covers the cross-border e-commerce enterprises and consumers (buyers) who make retail merchandise import or export transactions through cross-border e-commerce platforms and transmit relevant electronic data of the transactions according to customs requirements. The announcement stipulates matters including enterprise management, customs clearance management, site management, quarantine, inspection and logistics management, and merchandise return management.

 

Announcement on Standardizing Customs Verification (GACC Announcement No. 195 [2018])

In order to standardize customs verification, ensure unified law enforcement by the customs and protect the legitimate rights and interests of the inspected entities, the General Administration of Customs issued the Announcement on Standardizing Customs Verification on 12th December, 2018. 

The announcement mainly regulates the preparation of Customs Inspection Records, Customs Inquiry Records and Customs Sampling Certificates performed during customs verification. Where requiring an inspected entity to make rectification in accordance with relevant laws, administrative regulations and rules, the customs shall issue the Notice of Customs Verification and Rectification. It shall also create the Verification Records after verification.

The announcement will be effective from 1st January, 2019, upon which the Announcement of the General Administration of Customs on Conducting the Follow-up Verification (GACC Announcement No. 28 [2017]) will be repealed.

 

Announcement on the Promotion of “Independent Duty Return Filing and Payment” for Domestic Sales of Processing Trade Materials and Parts (GACC Announcement No. 196 [2018])

On 13th December, 2018, the General Administration of Customs issued the Announcement on the Promotion of “Independent Duty Return Filing and Payment” for Domestic Sales of Processing Trade Materials and Parts to be effective from 1st January, 2019. 

When preregistering duty return for processing trade materials and parts sold domestically, import and export enterprises and entities no longer need to enter the "First Import Date of Materials" after selecting "Independent Duty Return Filing and Payment". They can use the customs duty (fee) calculator of the preregistration system to calculate the relevant duty and fees payable, and confirm the calculation results displayed by the system, and submit the result to the customs together with the preregistered customs declaration form. 

 

Announcement on Matters Concerning Updating the Management System for Special Customs Supervision Areas for the Second Phase of Golden Custom Project (GACC Announcement No. 197 [2018]) 

On December 14, 2018, the General Administration of Customs released the Announcement on Matters Concerning Updating the Management System for Special Customs Supervision Areas for the Second Phase of Golden Custom Project (the "System") to be effective from the release date.

The System is applicable to bonded zones, export processing zones, bonded logistics zones, cross-border industrial zones, bonded port zones, comprehensive bonded zones and other special areas. The updated System supports business in the special areas such as bonded maintenance and commissioned processing. The updated business data exchange interface specifications can be downloaded from the bulletin column of the China E-port website (www.chinaport.gov.cn). 

 

Announcement on Relevant Matters Concerning “Exit before Customs Declaration” (GACC Announcement No. 198 [2018])

On 14th December, 2018, the General Administration of Customs published the announcement to be effective immediately on implementing the “Exit before Customs Declaration” innovative supervision policy in special areas and bonded logistics centres (type B) (the “Centres”).

“Exit before Customs Declaration” refers to the business model that allows enterprises in the special areas and Centres to go through the formalities of shipping exported goods out of the special areas or Centres using the information systems (management system for special customs supervision areas for the second phase of the Golden Custom project and bonded logistics management system) and verification and release lists, and then conduct customs declaration. Enterprises should adopt the national customs clearance integration model for goods to which the "Exit before Customs Declaration" mode applies.

 

Announcement on Relevant Matters Concerning “Bonded Ore Blending” (GACC Announcement No. 199 [2018]) 

On 14th December, 2018, the General Administration of Customs published an announcement to be effective immediately on conducting the "bonded ore blending" business to promote the development of Special Areas. 

"Bonded ore blending" refers to the business model whereby enterprises in Special Areas carry out simple physical processing and blending of iron ore imported in a bonded manner and then ship it out of the areas or country. The iron ore should be inspected and monitored by the customs before being shipped into the areas. Only those meeting the compulsory national standards can be shipped into the areas. If it does not meet the standards, it should be returned or quarantined as required by the customs. Enterprises should establish an information management system that meets customs supervision requirements, and electronically record the import, export, transfer and storage of goods. the enterprises should also designate places for separately storing the iron ore for "bonded ore blending". 

 

Announcement on Relevant Matters Regarding Supervision of Bonded Maintenance (GACC Announcement No. 203 [2018])

On 14th December, 2018, the General Administration of Customs published the Announcement on Relevant Matters Regarding Supervision of Bonded Maintenance to be effective from 1st January, 2019, which include the following:

Qualified enterprises shall submit the "Notes on the Development of Bonded Maintenance Business by Enterprises", "Maintenance Contract Signed by Enterprise" and "Maintenance Authorization from Brand Owner or Agent" to the customs for shipping goods with damaged parts, function failures, or quality defects from abroad in a bonded manner for regulated inspection and maintenance. 

Materials and parts for bonded maintenance can be imported in a bonded or non-bonded manner. Where bonded imports are applicable, enterprises shall carry out verification and writing-off on the basis of maintenance work orders. Enterprises engaged in bonded maintenance should set up bonded maintenance books (manuals), and keep electronic records of goods to be repaired, repaired goods and non-repairable goods. Where an enterprise imports materials and parts for bonded maintenance in a bonded manner, the bonded maintenance book (manual) shall also include electronic records of the materials and parts. 

 

Announcement on the Quantities and Trigger Levels of Agricultural Products Imported from Australia in 2019 (GACC Announcement No. 209 [2018])

On 26th December, 2018, the General Administration of Customs issued the Announcement on the Quantities and Trigger Levels of Agricultural Products Imported from Australia in 2019, which includes the following:

China has been implementing special protection management measures since 1st January, 2009 for four categories of agricultural products imported from New Zealand under twelve HS codes (the "four categories of agricultural products"). In 2018, China's in-transit imports of agricultural products in the first category (HS codes 04012000, 04014000 and 04015000) and the agricultural products in the fourth category (HS codes 04061000, 04063000 and 04069000) have exceeded the trigger levels for 2019. Therefore, the conventional tariff rates are not applicable to the agricultural products imported from New Zealand in 2019. When importing the four categories of agricultural products, importers shall go through the relevant procedures stipulated in the GACC Announcement on the Implementation of Special Protection Measures for Agricultural Product Imports under the Free Trade Agreement Between the Government of the People's Republic of China and the Government of New Zealand (GACC Announcement No. 91 [2008]). 

 

Announcement on the Implementation of Special Protection Measures for Beef Imported from Australia in 2018 (GACC Announcement No. 210 [2018]). 

On 27th December, 2018, the General Administration of Customs issued the Announcement on the Implementation of Special Protection Measures for Beef Imported from Australia in 2018. By 27th December, 2018, the amount of beef import declarations (HS codes: 02011000, 02012000, 02013000, 02021000, 02022000, and 02023000) subject to the special protection measures had reached 172,840 tons, which exceeded the trigger level (170,000 tons) of the measures for 2018. Therefore, the MFN rates will be applied again to beef originating in and imported from Australia under the Agreement from 28th December, 2018.

Announcement of Shenzhen Customs on Implementing Simplified Health and Quarantine Supervision Measures for Imported Biological Research and Development Samples (Announcement No.18 [2018]) 

On 5th December, 2018, Shenzhen Customs released an announcement on implementing simplified sanitary and quarantine supervision measures for imported biological R&D samples in accordance with the relevant regulations of the General Administration of Customs. The announcement took effect immediately after the release and mainly include the following:

The customs simplifies health and quarantine supervision for biological R&D samples imported by relevant enterprises and scientific research institutes for their testing, research and development, scientific and technological innovation, etc., implements risk management on biological R&D samples, and simplifies the risk pre-assessment procedures required in accordance with regulations.

For R&D enterprises and entities that import low-risk biological R&D samples with the same name and specifications many times in a year, the customs offers a convenient arrangement of one-time approval and multiple write-offs. If the imported biological R&D samples need to be inspected, the customs implements an optimized inspection process for faster customs clearance. 

 

Announcement of Shenzhen Customs on Relevant Matters Concerning the Simplification of Exhibits Inspection and Quarantine (Announcement No.19 [2018])

On 5th December, 2018, Shenzhen Customs released an announcement on relevant matters concerning exhibits inspection and quarantine in the Shenzhen Customs area, to be effective from the date of release, to implement simplified exhibits inspection and quarantine measures for important international exhibitions held in Shenzhen.

The announcement mainly covers three exhibits inspection and quarantine areas, including simplifying the approval procedures for exhibits inspection and quarantine, implementing an innovative exhibits supervision mode, and optimizing the exhibits inspection mode. The competent customs shall be responsible for the supervision and management of the exhibition site and for the subsequent writing-off and disposal. 

 

Announcement of Shanghai Customs on Clarifying Matters Related to Direct Stowage Plan Changes for and Shortshipping of Exported Goods (Announcement No.16 [2018]) 

On 12th December, 2018, Shanghai Customs issued the Announcement of Shanghai Customs on Clarifying Matters Related to Direct Stowage Plan Changes for and Shortshipping of Exported Goods, which mainly includes the following: 

After the relevant formalities concerning direct stowage plan changes or shortshipping are completed, the nature and quantity of the original cargo shall not change. If they are changed due to special circumstances, an approval from the customs is required. The customs of the place where the original means of transport leaves the country shall be responsible for handling the formalities. 

The announcement will be effective from 25th December, 2018, upon which the Interim Measures of Shanghai Customs on Administration of Stowage Plan Changes for and Shortshipping of Exported Goods (Shanghai Customs Announcement No.3 [2003]).

 

Announcement of Tianjin Customs on Implementing the “Register in One Zone and Operate in Multiple Zones” Business Model in China (Tianjin) Pilot Free Trade Zone (Announcement No. 9 [2018]) 

On 7th December, 2018, Tianjin Customs released the Announcement on Implementing the “Register in One Zone and Operate in Multiple Zones” Business Model in China (Tianjin) Pilot Free Trade Zone to be effective immediately.

Enterprises registering and obtaining customs registration codes in any of the four special areas (namely, Tianjin Port Free Trade Zone, Tianjin Bonded Logistics Park, Comprehensive Bonded Zone in Tianjin Binhai New Area, Tianjin Dongjiang Bonded Port Area) within the Pilot Free Trade Zone are allowed to set up a register for the “Management System for Special Customs Supervision Areas for the Second Phase of Golden Custom Project” and request customs services with the codes in the other areas, which addresses the need of the enterprises for integrated operations. 

 

Announcement of Tianjin Customs on Relevant Matters Concerning the Bonded Exhibition of Bonded Imported Goods for Cross-border E-commerce by Enterprises in Special Customs Supervision Areas in the China (Tianjin) Pilot Free Trade Zone (Announcement No. 10 [2018]) 

On 18th December, 2018, Tianjin Customs issued the Announcement on Relevant Matters Concerning the Bonded Exhibition of Bonded Imported Goods for Cross-border E-commerce by Enterprises in Special Customs Supervision Areas in the China (Tianjin) Pilot Free Trade Zone, which mainly includes the following:

Bonded exhibition of bonded imported goods for cross-border e-commerce (hereinafter referred to as "bonded exhibition") can be carried out outside the zone within Beijing, Tianjin and Hebei. The site for bonded exhibition should be a permanent exhibition site.

The goods shipped out of the zone for bonded exhibition shall be returned to the zone within six months from the date of outbound shipment. If the period should be extended due to special circumstances, the enterprises in the zone shall apply to the competent customs for extension 30 days before the expiration of the period and within the validity period of the guarantee letter. The period can be extended with the consent of the competent customs, and the enterprises should complete the extension procedure in the "Management System for Special Customs Supervision Areas for the Second Phase of Golden Custom Project". Extension can be performed for a maximum of three times, and the period can be extended by up to six months each time. 

 

Announcement of Tianjin Customs on Implementing “Entry before Declaration” in Special Customs Supervision Areas (Announcement No. 11 [2018]) 

On 28th December, 2018, Tianjin Customs released the Announcement on Implementing “Entry before Declaration” in Special Customs Supervision Areas to be effective immediately, which mainly includes the following:

"Entry before Declaration" refers to the business model whereby the enterprises registered with the customs in the special areas (the "enterprises in the areas") first ship, by means of tran-customs transportation, imported goods that meet customs regulations from ports to the customs-approved places in the special areas, and then complete the customs declaration formalities within a specified period. Enterprises in the areas to which the business model applies should establish computer management systems in line with customs supervision requirements to send data that meets customs supervision requirements to the customs network through customs-specified authentication measures and data exchange platforms or other computer networks. 

Northen 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       

Eastern and Western 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