Customs Policy Update - for the Period of November 2019
Customs Policy Update - for the Period of November 2019
Monthly Update on Customs Policies, November 2019
Announcement of the Preferential Tax Policies for the Imported Exhibits Sold During the Second China International Import Expo (Cai Guan Shui Announcement  No.36)
The Ministry of Finance, the General Administration of Customs and the State Taxation Administration jointly announced the Preferential Tax Policies for the Imported Exhibits Sold During the Second China International Import Expo (CIIE). The relevant contents are as followed:
- The exhibits imported and sold in reasonable quantities during the second CIIE held from November 5, 2019 to November 10, 2019, shall be exempted from import tariff , and subject to 70% of import value-added tax and import consumption tax.
- The sales quota for some listed exhibitors to enjoy the above-mentioned preferential tax policy shall not exceed the specified quota. The sales quota for other exhibitors to enjoy the preferential tax policy shall not exceed USD 20,000. The specific list of exhibitors is determined by the China International Import Expo Bureau and National Exhibition and Convention Centre (Shanghai) Co., Ltd.
- Exhibits exceeding the sales quota for enjoying preferential tax policies and not returning to overseas are subject to taxation in accordance with relevant state regulations.
Announcement of Continuous Implementation of VAT Policies for the Procurement of Equipment by R&D Institutions (Announcement of the Ministry of Finance, Ministry of Commerce and State Administration of Taxation  No.91)
The Ministry of Finance, Ministry of Commerce and State Administration of Taxation jointly announced the Continuous Implementation of VAT Policies for the Procurement of Equipment by R&D Institutions. The relevant contents are as followed:
- Domestic-funded R&D institutions and foreign-funded R&D centres, which enjoy full refund of VAT for their purchases of domestic-manufactured equipment, shall be jointly accredited by the Ministry of Finance, the General Administration of Customs, the State Administration of Taxation and other authorities. Such R&D institutions or centres includes: national engineering research centres, enterprise technological centres, national key laboratories and other scientific or technological enterprises or platforms.
- Depends on the date of establishment, foreign-funded R&D centres which apply for the full refund of VAT for their purchases of domestic-manufactured equipment shall meet the relevant requirements of the following criteria: Research and development expense standards, the number of full-time researcher and the accumulated value of purchased equipment since establishment.
- The accredited domestic-funded R&D institutions or foreign-funded R&D centre shall not enjoy the tax refund policies in case of any serious violation to tax law or dishonesty.
Announcement of Preferential Taxation Policies for the 2022 Olympic and Paralympic Winter Games in Beijing (Cai Guan Shui Announcement  No.92)
The Ministry of Finance, the State Administration of Taxation and the General Administration of Customs jointly announced the Preferential Taxation Policies for the 2022 Olympic and Paralympic Winter Games in Beijing. The relevant contents are as followed:
- Designated goods or services provided by the sponsors, suppliers, franchisors and their subcontractors of the International Sponsorship Program, Global Supply Program, Global Franchise Program to the Beijing 2022 Olympics and Paralympic Winter Games Organising Committee (hereinafter referred to as the Beijing Winter Olympics Organising Committee) in accordance to the agreement, shall be exempt from value-added tax and consumption tax;
- Regarding the Olympic goods imported by the IOC and its related entities or its domestic institutions in the form of temporary import and not returned to overseas within the prescribed time, the related import tariff and import taxes shall be paid back (imported vehicles being valued at not less than 90% of the prices of new vehicles for taxation purposes), except for the following circumstances:
- Consumables that are directly used in the Beijing Winter Olympics including but not limited to the broadcast, reporting and exhibition of the Olympic Games, and are consumed during the Olympic Games, with supporting documents issued by Beijing Winter Olympics Organising Committee;
- Damaged goods that cannot be return to overseas, and have supporting documents issued by the Beijing Winter Olympics Organising Committee;
- Goods that are donated to people’s government or government agency at the county level and above, legal entity of the Winter Olympic venues, specific sports organisations and non-profit organisations, etc. (the list of the beneficiary organisations is determined by the Beijing Winter Olympics Organising Committee) and have supporting documents issued by the Beijing Winter Olympics Organising Committee.
Announcement of Launching the Pilot Program for the Reform of “Separating Operating Permits from Business Licenses” in All Pilot Free Trade Zones (Announcement of State Council  No.25）
The State Council has announced the reform of “separating operating permits from business licenses” for enterprise-related business licensing items will be carried out from 1 December 2019 in the Pilot Free Trade Zones of Shanghai, Guangdong, Tianjin, Fujian, Liaoning, Zhejiang, Henan, Hubei, Chongqing, Sichuan.
The General Administration of Customs made the following statement on some of the contents of the above announcement:
- For the Customs Declaration Enterprises Registration applied by the enterprises registered in the pilot free trade zone, the approval procedures will be replaced by the record-filing procedures. For the approval of Export Food Production Enterprises, the approval procedures will be replaced by the record-filing procedures across the country.
- The approval and issuance of the Sanitation Permit of Port (Related to Public Premises) within the port zone of the national pilot free trade zone shall be subject to notification commitment.
- Optimise the approval services of the Inspection Licensing for Conducting the Inspection and Identification of Imported and Exported Commodities, the Sanitation Licensing of Port (Related to Food and Drinking Water) and other customs business across the country.
Guiding Opinions of the CPC Central Committee and the State Council on Promoting High-quality Trade Development
The State Council issued the Guiding Opinions on Promoting High-quality Trade Development on 19 November, 2019, which mainly include the following contents:
- Optimise international market layout: deepen the trade cooperation with countries jointly building the Belt and Road Initiative;
- Optimise domestic regional layout: improve the production capacity in the eastern region, support the mid-western and northeast regions to accelerate their development and enhance the development of border economic cooperation zones and cross-border economic cooperation zones;
- Optimise trade modes: strengthen general trade mode, enhance the processing trade mode, promote the development of maintenance, testing and other business and explore new trade modes;
- Actively expand imports: further reduce import tariffs and institutional costs in due time, expand imports of advanced technologies, equipment and parts, and boost the import of productive services such as R&D, energy conservation and environmental protection services;
- Strive to develop trade in services: accelerate the development of digital trade, improve the technology import and export management system and explore the negative list management system for cross-border trade in services;
- Promote effective interaction between trade and two-way investment: continue to increase market accessibility for foreign investment, foster a number of overseas economic and trade cooperation zones, and vigorously develop foreign project contracting;
- Promote the coordinated development of trade and environment: strictly control the import and export of high-pollution and high-energy-consumption products;
- Promote the development of new trade business forms: promote the construction of cross-border e-commerce comprehensive pilot areas, improve cross-border e-commerce retail import and export management mode, optimise customs clearance process and establish a full-calibre customs statistics system;
- Accelerate the cultivation of various foreign trade clusters: speed up the development of demonstration areas for the transformation and upgrading of processing trade, promote the construction of various open platforms such as national new areas, economic and technological development zones and special customs supervision zones;
- Establish an efficient cross-border logistics system: promote the construction of cross-border infrastructure and facilitation of transportation.
Announcement on Revising the Format of Electronic Declaration Message for Import and Export Water and Air Cargo Manifest (GAC Announcement  No. 171)
The General Administration of Customs announced to revise the format of electronic declaration message for import and export water and air cargo manifests. The declaration message revised includes: Original Manifest, Advance Distribution Manifest, Load Manifest, Arrival Report, etc. The announcement entered into force on 15 November 2019.
Announcement of Consulting Service of Pre-classification of Import Commodity Samples (GAC Announcement  No. 172)
Based on the needs of the import and export entities for pre-classification of commodity samples, the General Administration of Customs make the following announcement on the matters related to the consulting service of pre-classification of import commodity samples:
- The applicants of the consulting service of pre-classification of import commodity samples should be the consignee of the import goods.
- Applicants can submit their application to the in-charge customs for consulting services of pre-classification of the following commodity samples:
> Commodities with quality and security pre-assessment certificate before shipping;
> The samples of the commodities to be imported.
- If the consulting result of the pre-classification of import goods becomes invalid due to the revision of the Customs Import and Export Tariff of the People's Republic of China, Annotations on Commodities and Items subject to Customs Import and Export Tariff , Annotations on Domestic Sub-items of Customs Import and Export Tariff of the People's Republic of China or any other classification and its relevant regulations, the applicants can resubmit the consulting application for this good again.
- If the applicant needs to apply for advance ruling, the handling shall still follow the relevant provisions of Administrative Measures on Advance Rulings.
The announcement will enter into force on 20 December 2019.
Announcement of Abolishing the Import Restriction on US Poultry (GAC Announcement  No. 177)
The General Administration of Customs announced that starting from 14 November 2019, the import restriction imposed on US poultry under the announcement  No. 19,  No. 103,  No. 58,  No. 100 and  No. 8 jointly issued by the former General Administration of Quality Supervision and the former Ministry of Agriculture shall be abolished. The US poultry that meets the requirement of Chinese laws and regulations is allowed to be imported.
Announcement of Adjusting the Declaration Requirements for the Goods under the Preferential Trade Agreement Entering or Leaving the Special Customs Supervision Zones (Premises) (GAC Announcement  No. 178）
The General Administration of Customs decided to adjust the declaration requirements for the goods under the preferential trade agreement entering or leaving special customs supervision zones (premises) as follow:
- For the imported goods that apply for the agreement tax rate or preferential tax rate when they are re-imported from the areas (premises) for domestic sale, when the goods enter the areas (premises) from abroad, the consignee or agent (hereinafter referred to as "the importer") no longer needs to fill in the import declaration form or the entry record form pursuant to the declaration form filling requirements under the preferential trade agreement.
- When the above-mentioned goods are re-imported from the areas (premises) for domestic sale, the importer shall fill in the import declaration form in accordance with the declaration form filling requirements under the preferential trade agreement, and can choose the method of "paperless customs clearance" or "paper customs declaration" to file the document of provenance.
- If the actual condition of the goods inspected at the time of domestic sales indicates processing beyond the minor processing level or scope stipulated in the relevant preferential trade agreement compared with the condition when the goods enter the areas (premises) from abroad, the goods shall not enjoy the agreement tax rate or preferential tax rate.
The announcement will be effective from 1 January 2020. Additionally, on this date the GAC Announcement  No. 36 ,  No. 96 and  No. 53 will be repealed.
Announcement of Relevant Matters Concerning Prohibition of Transit of Special Items (GAC Announcement  No. 180)
According to The Border Health and Quarantine Law of the People's Republic of China and its relevant provisions of implementation rules, the General Administration of Customs decided to prohibit the transit of micro-organisms, human tissues, biological products, blood and its product and other special items that have a high risk of biological safety.
The announcement entered into force immediately after release.
Announcement of Issuing the List of the Fourth Group of Filed Pre-shipment Inspection Institutions for Imported Solid Waste That Can Be Used as Raw Materials (GAC Announcement  No.183)
In accordance with the provisions of the Measures for the Supervision and Administration of Inspection and Quarantine of Imported Solid Wastes as Raw Materials and the Implementing Rules for the Supervision and Administration of Pre-shipment Inspections of Imported Solid Waste as Raw Materials, on 28 November 2019, the General Administration of Customs announced the list of the fourth group of recorded pre-shipment inspection institutions for import solid wastes as raw materials.
Local Customs Regulation Update
The Layout Planning of the Huangpu Customs of the Bonded Warehouses and Export Supervisory Warehouses
On 12 November, 2019, The Huangpu Customs made an announcement regarding the relevant matters concerning the layout planning of bonded warehouses and export supervisory warehouses in its own customs area, clarified their scope of application and planning principles and set out specific requirements for the establishment of self-use bonded warehouses, strategic resource-dedicated bonded warehouses, public bonded warehouses and export supervisory warehouses.
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