The General Administration of Customs Further Improves Administration on Place of Origin of Imported Goods from Least Developed Countries Entitled to Special Preferential Tariff Treatment

The General Administration of Customs (GAC) has issued Administrative Measures for the Place of Origin of Imported Goods from Least Developed Countries Entitled to Special Preferential Tariff Treatment (GAC Decree [2017] No.231) to further clarify the determination method for the place of origin of the above mentioned goods. The Decree takes effect on 1 April 2017, but for the goods imported from least developed countries which have diplomatic relations with China and have met the standards of place of origin stipulated in the Decree, they may, from the date of promulgation, declare to customs and complete the customs formalities according to the Decree and enjoy a special preferential tariff treatment. Subsequently, GAC has released Announcement of the List of Regional Group Countries that is Applicable for Administrative Measures for the Place of Origin of Imported Goods from Least Developed Countries Entitled to Special Preferential Tariff Treatment (GAC Announcement [2017] No.11), which has provided a detailed list of the regional group countries that is specified in the article 7 of the Decree. 

For more information about the policy update, you may refer to our KPMG China Tax Alert through the following link:

China Customs Released the Rules of Origin of Imported Goods from the Least Developed Countries

 

13th Five-Year Plan on Developing Trade in Services

Thirteen authorities, including Ministry of Commerce (MOFCOM), General Administration of Customs (GAC) have jointly issued the 13th Five-Year Plan on Developing Trade of Services (Shangfumaofa[2017] No.76) on 2 March 2017, providing improving tax policy for trade in services and innovating policy for facilitation of trade of services, which has encourages export of services from the tax collection perspective and provides well established customs clearance and customs supervision mechanism.

 

China and Australia Signed an Action Plan on Authorized Economic Operator (AEO) Mutual Recognition

General Administration of Customs (GAC) and Customs of Australia signed Action Plan on AEO Mutual Recognition for the Enterprise Credit Management System of the Customs of the People’s Republic of China and the AEO of the Australian Government’s Department of Immigration and Border Protection on 7 March, 2017, to promote the process of AEO mutual recognition. The negotiation of AEO mutual recognition is expected to be completed at the end of 2017 and AEO mutual recognition between GAC and Customs of Australia may be signed thereafter.

 

Further Expansion of the Pilot Reform Scope for Tax Collection and Administration  

General Administration of Customs (GAC) has promulgated Announcement on Further Expanding the Pilot Reform Scope for Tax Collection and Administration (GAC Announcement [2017] No. 12), deciding to expand the pilot reform scope for paperless filing of imported goods under Chapter 72 to 85, and Chapter 90 in Import and Export Tariff of the PRC which are imported by sea, land and air on countrywide ports. However, imported goods concerning formula pricing, special cases (including the implementation of anti-dumping countervailing measures and safeguard measures) or certificate of origin or origin declaration for preferential treatment under free trade agreements and have not yet been implemented in the electronic network, are not covered in the reform scope. This announcement shall come into force from April 1, 2017. 

 

Amendment of Specifications on Completion of the PRC Customs Declaration Form for Imports and Exports

To further regulate the declaration by consignees and consignors of imported and exported goods, standardise the requirements for filling in customs declaration forms, General Administration of Customs (GAC) has issued the Announcement on Amending Specifications on Completion of the PRC Customs Declaration Form for Imports and Exports (GAC Announcement [2017] No.13) on 17 March, 2017. The announcement will be effective from 29 March, 2017 and at the same time the original Specifications on Completion of the PRC Customs Declaration Form for Imports and Exports (GAC Announcement [2016] No.20) will be annulled. 

 

Announcement on Implementation of Catalogue of Priority Industries for Foreign Investment in Central and Western China (Revision 2017) 

General Administration of Customs (GAC) has promulgated Announcement on Implementation of Catalogue of Priority Industries for Foreign Investment in Central and Western China (Revision 2017) (GAC [2017] No.14) to illuminate issues related to the customs implementation mentioned in Catalogue of Priority Industries for Foreign Investment in Central and Western China. The announcement further clarifies the duty exemption policy for self-use imported equipments covered in total investment of foreign investment project in the catalogue, and stipulates clearly on the transition measures from the version 2013 to version 2017 catalogue to ensure the continuity of the tax exemption policy.

 

China and New Zealand Signed an Agreement of AEO Mutual Recognition

On 27 March, 2017, China and New Zealand signed Agreement on AEO Mutual Recognition for the Enterprise Credit Management System of Customs of the People’s Republic of China and the Secure Export Scheme of the Customs of New Zealand, which actively promote the trade facilitation for China and New Zealand. This is the first AEO mutual recognition agreement signed between China and Oceania countries. At present, the customs of both countries are actively discussing the timing to implement the measures of AEO Mutual Recognition.

Guangzhou Customs issued an Announcement on the Implementation of Market Procurement Supervision

To regulate the administration on market procurement trade, Guangzhou Customs has promulgated an announcement on Customs supervision related issues under the direction of General Administration of Customs Announcement on the Pilot Scope Expansion of Market Procurement Trade, which has stipulated that Guangzhou Customs will implement market procurement supervision mode with code 1039, starting from March 6^th, 2017.