GAC Announcement on 2018 Tariff Adjustment Plan (Announcement [2017] No.65)

Upon the approval of the State Council, the 2018 Tariff Adjustment Plan (Shui Wei Hui [2017] No.27) will take effect on 1 January 2018. The Plan makes adjustment against import tariff rates, export tariff rates and tax items. For more details, please click the link.

On 7 February 2018, KPMG China published China Tax Alert to introduce and assess the Announcement, for more detail please click “Understanding on the 2018 Tariff Adjustment Plan, Study on the Tariff Policy” (Chinese version).

GAC Announcement on the Imposition of Special Safeguard Measures on the Imports of Selected Agricultural Products Originating in New Zealand in 2018 (Announcement [2018] No.1, 2, 3)

The General Administration of Customs issued an Announcement on the Imposition of Special Safeguard Measures on the Imports of Cheese Originating in New Zealand in 2018 (GAC Announcement [2018] No.1) on 3 January, 2018, an Announcement on the Imposition of Special Safeguard Measures on the Imports of Butter and Other Fat and Oil Originating in New Zealand in 2018 (GAC Announcement [2018] No.2) on 4 January, 2018 and an Announcement on the Imposition of Special Safeguard Measures on the Imports of Solid and Concentrated Non-solid Milk and Cream Originating in New Zealand in 2018 (GAC Announcement [2018] No.3) on 5 January, 2018. The quantity of declared imports of cheese (H.S. Code: 04061000, 04063000, 04069000), butter and other fat and oil (H.S. Code: 04051000, 04059000), solid milk and non-solid condensed milk and cream (H.S. Code: 04021000, 04022100, 04022900, 04029100), which are subject to the Special Safeguard Measures under the China - New Zealand Free Trade Agreement, has exceeded the trigger level under Special Safeguard Measures in 2018. Therefore, import tariffs are levied at the most-favoured-nation rates on the aforesaid agricultural products.

For more details, please click on the links below:

http://www.customs.gov.cn/customs/302249/302266/302267/1415378/index.html
http://www.customs.gov.cn/customs/302249/302266/302267/1415382/index.html
http://www.customs.gov.cn/customs/302249/302266/302267/1415386/index.html

GAC Announcement on the Release of Formats of Legal Instruments and Checklists Used under Relevant Rules and Regulations on Bonded Supervision Areas (Announcement [2018] No.4)

On 9 January, 2018, The General Administration of Customs issued the Formats of Legal Instruments and Checklists Used under Relevant Rules and Regulations on Bonded Supervision Areas. These rules and regulations include “the Administrative Regulations of the PRC Customs on Bonded Warehouses and Stored Goods”, “the Provisional Administrative Measures of the PRC Customs on Bonded Logistics Centres (Type A)”, “the Provisional Administrative Measures of the PRC Customs on Bonded Logistics Centres (Type B)”, “the Administrative Measures of the PRC Customs on Export Supervised Warehouses and Stored Goods”, etc. This announcement will come into force from 1 February, 2018, and at the same time the 3rd Article and its appendix in GAC Announcement [2004] No.14 will no longer be enforced.

For more details, please click on the link.

GAC Announcement on the Quantity of Two Categories of Agricultural Products Imported from Australia in 2017 and the Import Trigger Levels for 2018 (Announcement [2018] No.5)

The General Administration of Customs issued an Announcement on the Quantity of Two Categories of Agricultural Products Imported from Australia in 2017 and the Import Trigger Levels in 2018 (GAC Announcement [2018] No.5) on 10 January, 2018. For two categories of agricultural products imported from Australia (beef and milk powder) under eight H.S. code which are subject to Special Safeguard Measures under the China-Australia Free Trade Agreement, the GAC published the total quantity of imports subject to the conventional tariffs in 2017 and the import trigger levels for 2018.

For more details, please click on the link.

GAC Announcement on Matters Concerning Declaration of Origin under Certain Preferential Trade Arrangements (Announcement [2018] No.6)

On 12 January, 2018, The General Administration of Customs issued an Announcement on Matters Concerning Declaration of Origin under Certain Preferential Trade Arrangements. According to this Announcement, if the Customs have issued advance rulings stating that the country of origin of the goods is in line with the “the Administrative Measures of the PRC Customs on the Country of Origin of Goods Imported and Exported under the Free Trade Agreement between the Government of the People's Republic of China and the Government of New Zealand” (GAC Decree No.175), “Administrative Measures of the PRC Customs on the Country of Origin of Imports and Exports under the Free Trade Agreement between the Government of the People's Republic of China and the Government of Australia” (GAC Decree No.228) and “the Administrative Measures of the PRC Customs on the Country of Origin of Imports from Least Developed Countries Entitled to Special Preferential Tariff Treatments” (GAC Decree No.231), the consignee of the imported goods (or its import agent) can apply for applicable conventional tariffs or preferential tariffs by providing the Declaration of Origin to the customs. This Announcement will come into force from 1 February, 2018.

For more details, please click on the link.

GAC Announcement on Matters Concerning Automatic Tax Calculation for Customs Declaration Forms for Imports subject to Trade Relief Measures (Announcement [2018] No.7)

On 15 January 2018, The General Administration of Customs issued an Announcement on Matters Concerning Automatic Tax Calculation for Customs Declaration Forms for Imports subject to Trade Relief Measures. GAC has optimised its clearance system and the customs pre-declaration system, and has implemented an automatic tax calculation process for the customs declaration forms for imports that are subject to trade relief measures (anti-dumping, countervailing and protection measures), with a view to further promote customs clearance integration nationwide, and lower the rate of customs inspections before customs clearance, which are implemented as a result of trade relief measures.

For more details, please click on the link.

GAC Announcement on the Promotion of Paperless Customs Price Verification Process (Announcement [2018] No.9)

On 15 January, 2018, the General Administration of Customs issued an Announcement on Promotion of Paperless Customs Price Verification Process. This announcement is published to coordinate with the customs clearance integration efforts nationwide and to further improve customs clearance efficiency.

For more details, please click on the link.

The General Administration of Customs and State Administration of Taxation of PRC Announcement on the Printing Reform Pilot for the Customs Special-purpose Invoice (GAC Announcement [2018] No.10)

The General Administration of Customs and State Administration of Taxation have jointly decided to implement the reform pilot program for printing Customs Special-purpose Invoice in Shanghai Customs and Nanjing Customs from 19 January, 2018. This is to further promote the “Single Window” and “Internet + Government Administration Service” initiatives in international trade, and to realize paperless customs clearance and complete online processes.

For more details, please click on the link.

GAC Announcement on Standard Documents under “Administrative Measures of the Customs of the People’s Republic of China on Temporary Imports and Exports” and Specifications for Filling in Customs Declaration Forms (Announcement [2018] No.12)

On 20 January, 2018, the General Administration of Customs formulated the “Application Form for Temporary Imports and Exports Confirmation”, “the Examination Confirmation for Temporary Imports and Exports” and “the Extension Application From for Temporary Imports / Exports” based on the “the Administrative Measures of the PRC Customs on Temporary Imports and Exports” (GAC Decree No.233).  Meanwhile, the Customs also issue specifications on how to fill in relevant customs declaration forms. This Announcement will come into force from 1 February, 2018.

For more details, please click on the link.

GAC Announcement on Matters Concerning the Implementation of the Provisional Measures on Administration of PRC Customs Advance Ruling (Announcement [2018] No.14) 

On 31 January, 2018, the General Administration of Customs issued an Announcement on Matters concerning the Implementation of the Provisional Measures on Administration of PRC Customs Advance Ruling (Announcement [2018] No.14). It clarifies practical matters relating to the implementation of the Provisional Measures on Administration of PRC Customs Advance Ruling. This announcement will come into force from 1 February, 2018.

For more details, please click on the link.

KPMG China published China Tax Alert to introduce and assess the Announcement, for more detail please click China Customs issued an Announcement on Matters concerning the Implementation of the Provisional Measures on Administration of PRC Customs Advance Ruling (Chinese version).

The State Administration of Taxation of PRC, Ministry of Finance, and the General Administration of Customs Announcement on the Pilot of Granting Ordinary VAT Payer Eligibility to Companies in Customs Special Supervision Areas (The State Administration of Taxation of PRC Announcement [2018] No.5)

On 25 January, 2018, the State Administration of Taxation of PRC, Ministry of Finance, and the General Administration of Customs jointly made an announcement on expanding the pilot program regarding granting ordinary VAT payer eligibility to companies in customs special supervision areas. The announcement will expand the pilot program to 17 customs special supervision areas, including Ningbo export processing zone in Zhejiang, Chengdu Hi-tech Comprehensive Bonded Zone.  In addition, it has established the exit mechanism of the ordinary VAT payers under the pilot program, and 36 months is the minimum duration if an ordinary VAT payer would like to exit or re-apply for the pilot program. This announcement will come into force from 1 February, 2018.

For more details, please click on the link.

Chengdu Customs Issued an Announcement to Adjust the Administration Jurisdictions for Processing Trade Business in Non-Customs Special Supervision Areas in Chengdu (Chengdu Customs Announcement 〔2018〕No.1)

In order to implement the general requirements for Customs clearance integration nationwide and functional transformation of subordinate customs , Chengdu Customs adjusts the administration jurisdictions for processing trade and relevant bonded business in non-customs special area within Chengdu, and Tianfu New Area Customs (which was affiliated to Chengdu Customs) will be responsible for such business.  The referred scope of business includes: 1) New processing trade business and related bonded business; 2) processing trade handbook that have not been settled with Qingbaijiang customs office, Longquanyi customs office and customs office in the Comprehensive Bonded Zone of Chengdu; and 3) bonded warehousing business of AVIC Chengfei Commercial Aircraft Co., Ltd., which was previously handled by the customs office in the Comprehensive bonded zone of Chengdu. This announcement will come into force from 31 January, 2018.

For more details, please click on the link.

Nanjing Customs Announcement on the “Customs Declaration after Goods Exit” Operating Model (Nanjing Customs Announcement 〔2018〕No.2)

On 8 January, 2018, Nanjing Customs clarified matters related to the operating model of “customs declaration after goods exit” in customs special supervision areas and bonded logistics centres (Type B) within Jiangsu province for exports. The Announcement will be implemented from the date of announcement.

For more details, please click on the link.

 

Northern China

Eric Zhou
Partner 
Email: ec.zhou@kpmg.com
Tel: +86 (10) 8508 7610

Helen Han  
Partner  
Email: h.han@kpmg.com
Tel:  +86 (10) 8508 7627    

 

Central and Eastern 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

Daniel Hui  
Partner  
Email: daniel.hui@kpmg.com
Tel: +852 2522 7815