China: Readjusted scope of voluntary disclosures of customs adjustments
Announcement No. 54 has readjusted the scope of application and handling principles of voluntary disclosure of tax-related violations.
China Customs in June 2022 issued guidance known in English as the “Announcement on handling matters concerning active disclosure of tax-related violations” (Announcement No. 54), valid from 1 July 2023 to 31 December 2023.
With the issuance of Announcement No. 54, prior guidance (Announcement No. 161 of 2019) was withdrawn.
The “active disclosure” system of Customs is a management model in which import and export enterprises and units pass self-inspection and report their violations of customs supervision regulations to Customs in writing, and Customs will deal with them “leniently” in accordance with the law after verification. This system is in line with the common practice of international customs, and is the implementation of the management concept of “facilitation of integrity and punishment for untrustworthiness” of Customs for enterprises at the legal level.
Based on the standards under Announcement No. 161, Announcement No. 54 has readjusted the scope of application and handling principles of voluntary disclosure of tax-related violations.
For more information, contact a professional with KPMG’s Trade & Customs services:
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