Customs Policy Update – for the Period of July 2016
Customs Policy Update – for the Period of July 2016
Ministry of Commerce, Ministry of Finance, GAC Jointly Issued Guidance Catalogue of Key Development Domains of Service Outsourcing Industry
Ministry of Commerce (MOC) together with Ministry of Finance (MOF) and GAC issued the Guidance Catalogue of Key Development Domains of Service Outsourcing Industry (MOC, MOF and GAC joint Announcement  No.29). Among the total 24 key development domains specified in the Catalogue, 10 are of Information Technology Outsourcing (ITO) category, 6 are of Business Process Outsourcing (BPO) category, and 8 are of Knowledge Process Outsourcing (KPO) category. Moreover, the Catalogue clarifies the definition and scope, business type and application fields of each domain.
China Customs Issued the Announcement on the Declaration Requirements for Implementing Anti-dumping Measures against Acrylic Fibers Products of specific HS Codes
The General Administration of Customs (“GAC”) issued the Announcement on the Declaration Requirements for Implementing Anti-dumping Measures against Acrylic Fibers Products of specific HS Codes (GAC Announcement  No. 41) on 13 July 2016. The Announcement set forth GAC’s decision to impose anti-dumping duties on the acrylic fibers which are originated from Japan, South Korea and Turkey (HS code: 5501.3000, 5503.3000, 5506.3000) for a period of five years. HS codes should be changed to 55013000.10, 55033000.10 and 55063000.10 respectively when the importer declares the goods that are within the scope of anti-dumping measures mentioned above. The Announcement entered into effect on 14 July, 2016.
China Customs Specified the Special Tariff Threshold
GAC issued the Announcement on the Specification of Special Tariff Threshold (GAC Announcement  No. 37) on 13 July, 2016. According to the announcement, the tariff threshold of anti-dumping duties, countervailing duties, safeguard duties and retaliatory tariffs is RMB50 per shipment. The Announcement became effective on 13 July, 2016.
Customs of Pilot Free Trade Zones in Shanghai, Guangdong, Fujian and Tianjin to Achieve Integrated Reform
GAC organized a Pilot Free Trade Zone Customs cooperation conference in Shanghai on 8 July, 2016. Customs of Pilot Free Trade Zones in Shanghai, Tianjin, Guangdong and Fujian undertook to establish collaborative mechanisms to achieve an integrated reform. In addition, GAC required that the Customs of each Pilot Free Trade Zone should stay innovative, and revealed that the next step of reform shall focus on strengthening top-level design, promoting and coordinating innovation, and enhancing the value and effectiveness of the Customs reform of Pilot Free Trade Zones.
The Impact of Brexit on the Supply Chain
According to the referendum result on 24 June 2016, UK will exit EU. Although it may take around two year for UK and EU to complete the exit negotiation, it is necessary to evaluate the potential impact on supply chain arrangements and trade models and adjust the ERP system modules related to customs duty calculation, import and export declaration and country of origin determination now, as long as an enterprise’s supply chain arrangements are connected with UK and EU.
KPMG China published a China Tax Alert article to provide an introduction and analysis of the captioned matter. For details, please refer to the link below:
Updates on Local Customs Regulations
Nanjing Customs and Huangpu Customs among others Issued Announcement Requiring Voluntary Disclosure by Automobiles and Electronics Companies in Special Inspections on Automobile and Electronic Products
Nanjing Customs issued the Announcement on Matters Related to Voluntary Disclosure Trial (Nanjing Customs Announcement  No.8). Huangpu Customs issued the Announcement on the Requirements of Voluntary Disclosure of Automobile and Electronics companies in Special Inspections on Automobile and Electronic Products. According to the announcements, companies that import or manufacture automobiles and automobile spare parts and electronic product manufacturers shall voluntarily disclose non-compliance (if any) to the Customs upon the issuance of the announcement. If a company files voluntary disclosure to the Customs regarding potential undeclared taxable royalties and related supporting documents before customs uncovers such matter (or before the Customs issues the audit notice), the Customs may apply the lenient treatments, such as mitigated or exempted administrative penalties, and reduction or exemption of surcharge for overdue taxes in accordance with relevant rules and regulations, as long as he disclosure is verifiable with pertinent facts and related law and regulation.
Beijing Customs and Lanzhou Customs among others Decided to Engage Third Party Agents in 2016 to Assist the Customs in the Audit and Supervision of Processing Trade and Bonded Goods
Beijing Customs issued the Announcement on Engaging Third Party Agents in 2016 to Assist the Customs in the Supervision of Processing Trade and Bonded Goods (Beijing Customs Announcement  No. 5) on June 30. Beijing Customs decided to begin the accreditation of agents applying for assisting the Customs in the supervision of bonded goods in July, then determine the finalists based on the comprehensive assessment, and finally roll out the work plan for the year after completing the accreditation.
Lanzhou Customs issued the Announcement on Engaging Third Party Agents to Assist Customs Audit on 9 July 2016.Lanzhou Customs wished to attract more and better qualified third party agents to assist the customs audit work, and establish and improve a third party agent pool. Going forward, Lanzhou Customs will randomly choose third party agent from the pool to carry out paid audit services, so as to improve the efficiency of customs audit.
Fuzhou Customs launched bonded warehousing program for pilot parallel import of automobiles in special supervision area
Fuzhou Customs issued the Announcement on Bonded Warehousing Program for Pilot Parallel Import of Automobiles in Special Supervision Area (Fuzhou Customs Announcement  No.2) on 14 July, 2016, signifying the launch of pilot bonded warehousing program for parallel import of automobiles in special supervision area in Fuzhou district in Fujian Pilot Free Trade Zone. Companies engaging parallel import of automobiles and related warehousing companies shall complete import declaration or re-export declaration procedures for the parallel imported automobiles within the prescribed three-month period of bonded warehousing, and no extension is allowed.
Nanchang Customs carries out pilot work regarding exemption of lifting, shifting and warehousing costs incurred during customs inspection process for foreign trade enterprises that have passed Customs inspection
Nanchang Customs issued the Announcement on the Pilot Work regarding Exemption of Lifting, Shifting and Warehousing Costs of Foreign Trade Companies that have Passed Customs Inspection (Gan Kou Ban Lu Lu Zi  No. 4) on 30 June, 2016, to announce the exemption of shifting, lifting and warehousing fees incurred during customs inspection for cargo delivered by loaded containers and container trucks that have passed customs inspection. Where problems are found during customs inspection, the foreign trade enterprises shall bear corresponding inspection costs incurred based on current fee standards. The Announcement became effective from 1 July, 2016. Foreign trade enterprises that paid inspection fees for cargo that had passed customs inspection during the period from 1 April, 2016 to 30 June, 2016 can apply for refund by submitting relevant documents to SIPG Jiujiang Port Company Ltd. before 31 December, 2016.