Customs Policy Update - for the Period of October 2019
Customs Policy Update - for the Period of October 2019
Monthly Update on Customs Policies, October 2019
Announcement of the General Administration of Customs on Matters concerning the Handling of Voluntary Disclosure of Tax-related Violations (GAC Announcement [2019] No. 161)
On 17 October 2019, the General Administration of Customs issued an announcement stating that under any of the following circumstances, import/export enterprises or organisations that voluntarily disclose tax-related violations will be exempted from administrative penalties: 1. Voluntary disclosure to the customs within 3 months from the date when the tax-related violation occurs; 2. Voluntary disclosure to the customs within 3 months after the tax-related violation occurs, with the amount of evaded or underpaid tax accounting for less than 10 percent of the payable tax, or the amount of evaded or underpaid tax being less than RMB 500,000. Please refer to the Announcement for specific requirements and the materials needed.
With regard to the Announcement concerning the Handling of Voluntary Disclosure of Tax-related Violations, on 21 October 2019, KPMG China released China Tax Alert: New Policies on Voluntary Disclosure from Customs, Drivers for Enterprises to Improve their Compliance Level. For details, please see the link below:
Announcement of the Ministry of Commerce on Terminating the Final Review of Anti-dumping Measures Imposed on Imported PVC Originating in the United States, South Korea, Japan and Taiwan jurisdiction (Announcement of the Ministry of Commerce [2019] No. 43)
The Ministry of Commerce decided that no anti-dumping duties will be levied on imported PVC originating in the United States, South Korea, Japan and Taiwan jurisdiction, effective from 29 September 2019.
Import Tariff Quotas for Fertiliser, Distribution Principles and Related Procedures for 2020 (Announcement of the Ministry of Commerce [2019] No. 45)
On 25 October 2019, the Ministry of Commerce announced the import tariff quotas for fertiliser for 2020. Please refer to the Announcement for specific distribution principles and application methods.
Announcement of the Ministry of Commerce on Goods Export Quotas (Announcement of the Ministry of Commerce [2019] No. 47)
On 31 October 2019, the Ministry of Commerce announced the export quotas for liquorice roots and its preparations, artificially planted ephedra for medicinal purpose, live swine (exported to Hong Kong Special Administrative Region (i.e. SAR), China and Macao SAR, China), live bovine (exported to Hong Kong SAR and Macao SAR), live fowls of the species Gallus Domesticus (exported to Hong Kong SAR), sawn timber, mat rush and its preparations. Entities may apply for export quotas for related commodities from 1 November 2019.
Announcement of the State Administration of Taxation on Matters Related to the Administration of VAT Invoices (SAT Announcement [2019] No. 33)
On 9 October 2019, the State Administration of Taxation announced the relevant requirements for VAT general taxpayers applying for input VAT credit or export tax refund upon receipt of the customs special payment notice for import VAT (i.e. the customs payment notice):
- When VAT general taxpayers obtain a customs payment notice in which only one payer is indicated, they should log on to the respective provincial (district or municipal) VAT invoice selection & confirmation platform to search and select the information related to the customs payment notice for the purpose of obtaining the input VAT credit or export tax refund. If the information from the platform is inconsistent with the actual situation or the corresponding information is not available on the platform, the customs payment notice should be uploaded. As soon as the information is consistent after the system audit and comparison, the taxpayers can again log on to the platform to search and select the information related to the customs payment notice for the purpose of obtaining the input VAT credit or export tax refund.
- When VAT general taxpayers obtain a customs payment notice in which two payers are indicated, the customs payment notice should be uploaded. As soon as the information is consistent after the system audit and comparison, the taxpayers can log on to the platform to search and select the information related to the customs payment notice for the purpose of obtaining the input VAT credit or export tax refund.
Abnormal customs payment notices that are identified as inconsistent, missing, duplicated or stranded through the system audit and comparison will be handled in the following ways:
- For those customs payment notices which are identified as inconsistent or missing through the system audit and comparison, the taxpayers should apply to the tax authority in charge for data modification or verification with the original copy of the customs payment notice.
- For those customs payment notices which are identified as duplicated through the system audit and comparison, the taxpayers may apply to the tax authority in charge for verification.
- For those customs payment notices which are identified as stranded through the system audit and comparison, they will then enter the next audit and comparison phase, and the taxpayers do not need to apply for data verification.
VAT general taxpayers who have obtained a customs payment notice issued after 1 July 2017 should log on to the selection & confirmation platform or apply for audit and comparison within 360 days from the date of issuance.
The requirements related to the customs payment notice will become effective from 1 February 2020.
Announcement on Quarantine Requirements for Fresh Dates Imported from Egypt (GAC Announcement [2019] No. 153)
On 10 October 2019, the General Administration of Customs issued an announcement stating that it would allow the import of qualified fresh dates from Egypt. Please refer to the Announcement for relevant quarantine requirements.
Announcement on Matters Concerning the Networking of Electronic Country of Origin Information under the Free Trade Agreement between China and Singapore (GAC Announcement [2019]) No. 155)
On 14 October 2019, the General Administration of Customs issued an announcement stating that the “China-Singapore Electronic Country of Origin Information Exchange System” would be officially launched on 11 November 2019 in order to realise real-time transmission of electronic Country of Origin data under the <Free Trade Agreement between the Government of the People's Republic of China and the Government of the Republic of Singapore>. This system will also realise the real-time transmission of the electronic data on certificates of Country of Origin and circulating certificates issued in Singapore under the <Framework Agreement on Comprehensive Economic Co-operation between the People's Republic of China and the Association of Southeast Asian Nations (ASEAN)>, as well as the real-time transmission of electronic data on the certificates of non-manipulation for goods transited through Singapore. This Announcement also clarified the specific requirements for “Import Declaration” and “Export Declaration” for the networking of electronic Country of Origin information under the Free Trade Agreement between China and Singapore, and it provided detailed specifications on filling-in information.
Announcement on Promoting and Implementing Admission Facilitation Measures for Imported Auto Parts (GAC Announcement [2019] No. 157)
On 16 October 2019, the General Administration of Customs issued an announcement stating that, in principle, sampling inspection is no longer needed for certain imported auto parts involving CCC certification, as the customs will accept the certificate issued by the accredited certification body. For those auto parts that required sampling inspection due to the involvement of early warning measures for significant quality and safety risk, the inspection will be implemented in accordance with customs’ actual risk control instructions. The Announcement has been effective since 1 November 2019.
Announcement on Conducting Bonded Goods Leasing and Bonded Futures Delivery Business in Comprehensive Bonded Zones (CBZs) (GAC Announcement [2019] No. 158)
On 16 October 2019, the General Administration of Customs issued an announcement that required leasing enterprises in CBZs should establish customs E-book and truthfully declare the import, export, transfer, and deposit of leased goods. Leasing enterprises and lessees should report the entry and exit of leased goods to the customs in accordance with current regulations. The relevant procedures for the import of leased goods, tax declaration and payment for rent, renewal of leases, hire purchases, changes of lease contracts, etc. will be handled at the same customs office and are subject to its supervision.
The Announcement also clarifies that bonded futures delivery business in CBZs should be carried out at the trading places approved by the State Council or the futures-related management organisation under the State Council. The goods should belong to the categories listed on the futures exchange approved for bonded futures delivery by the futures-related management organisation under the State Council. The futures exchange shall file the goods of the bonded futures delivery business and the designated delivery warehouse with the General Administration of Customs for recordkeeping. Electronic accounts should be established for bonded futures delivery business carried out in a delivery warehouse. Furthermore, the Announcement also clarifies the specific conditions and declaration requirements for bonded futures delivery business.
The Announcement became effective on the date of issuance.
Announcement of the General Administration of Customs on Adjusting the Supervision Model for the Weight Appraisal of Imported Bulk Commodities (GAC Announcement [2019] No.159)
On 17 October 2019, the General Administration of Customs issued an announcement stating that the current practice of carrying out the weight appraisal of imported bulk commodities batch-by-batch would be adjusted to a model, whereby the customs will carry out the appraisal upon the application of an enterprise; where necessary, the customs may carry out the appraisal ex officio. Consignees of imported bulk commodities or their agents must truthfully declare the weight to the customs, and the customs will conduct random inspections and verifications of the declared weight. This Announcement was implemented and became effective on 1 November 2019.
Announcement on the Implementation of Admission Supervision by Phases and Speeding-up Port Inspection and Release (GAC, State Drug Administration Announcement [2019] No. 160)
The General Administration of Customs issued an announcement that clarified that under certain circumstances, when the customs notice has been obtained, imported goods may be approved for pick up and departure from the entry port of customs supervision zone and approved for sale or use. Please refer to the Announcement for the detailed circumstances and the relevant requirements. The Announcement will be implemented with effect from 15 November 2019.
Announcement of the General Administration of Customs on Matters Relating to Expedited Handling of Simple Cases (GAC Announcement [2019] No. 162)
On 21 October 2019, the General Administration of Customs issued an announcement that clarified the types of simple cases in which the expedited handling procedure could be applied:
- Any case to which the provisions of Items 1 and 2 of Article 15 of the <Implementation Regulations of the Customs of the People‘s Republic of China on Administrative Penalties> (hereinafter referred to as the “Penalty Regulations”) shall apply;
- Any case where a customs declaration enterprise or customs declaration agent fails to reasonably examine the truthfulness of the information provided by the principal, or neglects its work in a way, leading to the occurrence of the circumstances as prescribed in Items 1 and 2 of Article 15 of the Penalty Regulations;
- Any case to which Articles 20 through 23 of the Penalty Regulations apply;
- Any case that involves carrying currency into or out of China in violation of customs supervision provisions;
- Any case where the value of smuggled goods and articles discovered in the traveling inspection channel is not more than RMB 50,000;
- Any case where the value of other goods in violation of customs' surveillance provisions is not more than RMB 500,000 or the value of the articles is not more than RMB 100,000; or
- Any case where the laws, administrative regulations and departmental rules stipulate warnings or fines of not more than RMB 30,000.
The customs will, after conducting an on-site investigation, prepare and issue an administrative penalty notice in a timely manner, and will prepare and issue an administrative penalty decision within 5 working days after the case is filed.
The Announcement will be implemented with effect from 1 December 2019.
Announcement on the Issuance of the List of Designated Supervision Sites for Imported Wood (GAC Announcement [2019] No. 165)
The General Administration of Customs published the List of Designated Supervision Sites for Imported Wood on its official website (www.customs.gov.cn), and dynamic management has been implemented for the designated sites. Please see the Announcement for details.
Announcement on the Publication of Revised Country of Origin Criteria under the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) (GAC Announcement [2019] No. 167)
On 25 October 2019, the General Administration of Customs issued an announcement that provided the revised Country of Origin criteria of subheading 2710.19. The revised criteria will be implemented with effect from 1 November 2019.
Announcement on Further Standardising the Environmental Inspection of Imported Motor Vehicles (GAC Announcement [2019] No. 168)
On 28 October 2019, the General Administration of Customs issued an announcement that stipulated that all customs offices will conduct environmental inspections of imported motor vehicles, including appearance inspection, on-board diagnostic system inspection, and exhaust pollutant detection. Motor vehicles listed in the compulsory product certification catalogue must complete environmental protection-related tests and obtain compulsory product certification. The Announcement will be implemented with effect from 1 November 2019.
Local Customs Regulation Update
Notice of Xiamen Customs on the Full Implementation of Electronic Power of Attorney for Customs Clearance
On 8 October 2019, Xiamen Customs issued an announcement that clarified that if consignees and consignors of imported and exported goods entrusts a customs declaration agent with handling customs declaration procedures, then the consignees and consignors (the entrusting party) and the customs declaration agent (the entrusted party) should sign an electronic power of attorney for customs clearance to establish an entrustment relationship through the International Trade Single Window or China e-Port. When completing the customs declaration procedure, the customs declaration agent should submit the file number of the electronic power of attorney for customs clearance and the customs declaration form data in the customs clearance management system.
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