Customs Update Asia. William Marshall Hong Kong Baker & McKenzie LLP

Transcription

1 Customs Update Asia William Marshall Hong Kong

2 Overview Paperless Customs Filing Pilot Reform CIQ Mandatory Inspection 2013 Tariff Implentation Plan Mutual Recognition Arrangement Catalogue of Dual-Use Rare Earth Export Quota Processing Trade Management System Catalogue of Commodities subject to Export License Administration Commercial Encryption Control 2

3 ASEAN 2012 Baker & McKenzie 3

4 ASEAN Economic Community AEC to be achieved by Single Market and Production Base - Achieve free flow of goods, services, investment, capital and skilled labour. Accelerated integration in 12 identified prioritized integration sectors. Harmonize AEC commitments with those in FTAs with key trading partners to enhance ASEAN s role in global supply networks by adopting international best practices and standards. 4

5 ASEAN Economic Community (Cont d). Membership: Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei Darussalam, Vietnam, Lao PDR, Myanmar and Cambodia. Priority Integration Sectors: Agro-based goods, air transport, automotive products, e-asean, electronic goods, fisheries, health care products, rubber-based goods, textiles and clothing, tourism, wood-based products, and logistics. ASEAN s FTA partners: China, India, South Korea, Japan, Australia, New Zealand. 5

6 Singapore 2012 Baker & McKenzie

7 Customs 2015 PLUS 7

8 China 2012 Baker & McKenzie 8

9 Paperless Customs Filing Pilot Reform Announcement [2012] No. 38 of GAC On 31 July 2012, GAC launched a paperless customs filing reform through Announcement [2012] No. 38 Expanded by issuing Announcement on Deepening Paperless Customs Clearance (GAC) [2013] Enterprises included in the reform will be able to, as part of the direct customs filing process, receive approval, inspection, and release of the goods through the submission of an electronic declaration form and attached documents at a China Electronic Port 9

10 Paperless Customs Filing Pilot Reform (Cont d) Coverage of the paperless filing pilot reform Customs Beijing Tianjin Shanghai Nanjing Hangzhou and Ningbo Fuzhou Qingdao Guangzhou Shenzhen Gongbei Huangpu 10

11 Paperless Customs Filing Pilot Reform (Cont d) Scope was recently expanded to include class B enterprises in addition to the Class A and AA enterprises inlcuded in the initial pilot Pilot enterprises must obtain prior approval from Chinese Customs: Pilot enterprises obtain prior approval from Customs houses directly under the GAC at the place where the declaration is made; and Applicants must sign an electronic application agreement with a Customs house directly under the GAC and a 3 rd party certification body (China Export Data Centre). Customs-approved pilot enterprises may choose paper-based customs filing or paperless customs filing 11

12 Intepretation Regarding Mis-classification of Imported and Exported Goods The GAC issued the Interpretation Regarding Mis-classification of Imported and Exported Goods [2012] No. 495 ShuFaFa ( Interpretation No. 495 )which came into effect on 1 February 2013 Under Interpretation No. 495, the improper classification of HS code for Customs declaration purposes is subject to administrative penalties if: The product is expressly listed in the headings/subheadings or annotations of the PRC Customs Import and Export Tariff Schedule; The product falls into the commodities categories or annotations on domestic sub-categories of the PRC Import and Export Tariff Schedule; and The product classification has been announced in classification rulings or decisions by GAC. 12

13 Intepretation Regarding Mis-classification of Imported and Exported Goods (Cont d) However, mis-classification would not result in administrative penalties if: Misclassification is due to a wrong pre-classification decision issued by the Customs authorities; or The product is difficult to be properly classified and, as a result, GAC directed the classification issue to the relevant authorities for a final decision. 13

14 Processing Trade Simplicfication GAC circular (2012) No. 51, effective 2 Sept Guangdong Customs will now approve processing trade arrangements and the related domestic sale of bonded materials without the need for prior approval from the local Ministry of Commerce ( MOFCOM ). Pursuant to the State Council s circular Guohan (2013) No. 9, removing MOFCOM s authority or certain processing trade activities and the domestic sale of bonded materials. This reform may soon be extended nationwide. 14

15 Customs Implements Processing Trade Management System On 7 January 2013, GAC issued Announcement [2013] No. 2 to implement the deep-processing transfer management system Enterprises must declare all deep-processing transfer related data to the Customs through a Deep-Processing Transfer Pre-Entry System ( Transfer System ) From 1 June 2013, all enterprises must use the Transfer System for deep processing transfer work within local Customs districts From 1 October 2013, usage of Transfer system will expand to deep-processing transfer work across all Customs districts 15

16 China Free Trade Agreements Concluded FTAs ASEAN Chile Hong Kong CEPA Macau CEPA New Zealand Pakistan Peru Iceland Switzerland Singapore Costa Rica Asia Pacific Trade Agreement Preferential market access currently available India China Potential preferential market access in the medium to long term FTAs Under Consideration South Korea Preferential market access likely to be available in the short term Japan/ Korea FTAs Under Negotiation Australia Gulf Co-operation Council Norway South African Customs Union ASEAN: Singapore, Malaysia, Thailand, Indonesia, Brunei, Gulf Co-operation Council: Saudi Arabia, Kuwait, Bahrain, Philippines, Myanmar, Cambodia, Laos, Vietnam United Arab Emirates, Oman, Qatar Asia Pacific Trade Agreement: China, South Korea, India, South African Customs Union: South Africa, Botswana, Bangladesh, Sri Lanka Namibia, Lesotho and Swaziland 16

17 Mandatory Commodity Inspection Reform Goods added to the List of Imported and Exported Goods Subject to Mandatory Inspection: Imported and exported dangerous chemicals listed in the Catalogue of Dangerous Chemicals and their packaging pursuant to Announcement [2012] No. 30 issued by the General Administration of Quality Supervision, Inspection and Quarantine ( AQSIQ ) and effective 29 February 2012 Imported and exported raw milk, dairy products and colostrum pursuant to Announcement [2013] No. 152 issued by AQSIQ and effective 1 May

18 Mandatory Commodity Inspection Reform (Cont d) Pursuant to Announcement [2012] No. 39 issued by AQSIQ and effective 1 February 2012, CIQ labels for imported cosmetics are no longer required, provided the products have already passed CIQ inspection Pursuant to Announcement [2012] No. 113 issued by AQSIQ and effective 1 August 2012, the List of Imported and Exported Goods Subject to Mandatory Inspection has been revised and 235 commodities relating to textile, chemicals and minerals are no longer subject to mandatory inspection 18

19 Shanghai Free Trade Pilot Zone Transforming government functions (from prior verification to more enforcement on activities). Further opening of service industries, in particular financial services. Reforming foreign investment administration. Developing a headquarters economy. RMB convertibility on the capital account. Creating a new model for customs supervision of goods. Implementing a suitable tax policy. Creating a new support system for investment and these new policies. 19

20 Shanghai Free Trade Pilot Zone (Cont d) No prior verification or approval is required unless the proposed activity is on the negative list. Simple application form and certification with the SHPFTZ Administrative Commission; no supporting documents are required. After filing, post incorporation certificates and licenses can be obtained from the local Administration for Industry and Commerce ( AIC ). All certificates and licences may be obtained within four business days from filing the initial application. 20

21 Shanghai Free Trade Pilot Zone (Cont d) The negative list sets out the industries where foreign investment is still restricted or prohibited. The negative list uses the National Economy Industry Classification s division of economic activity, identifying 18 broad categories ( 门类 ) (labelled A to T). For many industries on the negative list, the foreign investment restrictions in the Foreign Investment Industry Guidance Catalogue are carried over. In other cases, the negative list is less restrictive than the Catalogue. 21

22 Mandatory Commodity Inspection Reform (Cont d) With effect from 15 August, GAC ( 海关总署 ) and AQSIQ ( 质检总局 ) jointly issued a circular cancelling mandatory export commodity inspection on 1507 types of manufactured products. The list comprises predominantly wearing apparel o longer subject to export CIQ inspection. Should benefit retailers who previously had trouble reexporting excess inventory out of China. 22

23 2013 Tariff Implementation Plan The Customs Tariff Commission of the State Council issued the 2013 Tariff Implementation Plan effective 1 January 2013: Import Customs Duties adjustments Most Preferred Nation tariffs Provisional tariffs Conventional tariffs Special preferential tariffs Export Customs Duties adjustments Customs Duties category adjustments 23

24 Mutual Recognition Arrangement Effective 15 March 2013, China Customs will implement the China-Singapore Mutual Recognition Arrangement Program China Customs recognize all STP Plus enterprises accredited by Singapore Customs as authorized economic operators ( AEOs ) Singapore Customs recognize all AA enterprises accredited by China Customs as AEOs. Simplified Customs clearance for AEOs Priority clearance Preferential measures 24

25 Catalogue of Dual-Use Catalogue of Dual-use Items and Technologies Updated Effective 1 January 2013 Total number of items subject to import and export license increased from 934 to 940 Precursor chemical, dual-use nuclear items 25

26 Adjustment to the Catalogue relating to Import Duties for Major Technical Equipment The Ministry of Finance, the State Administration of Taxation, the Ministry of Industry and Information Technology; and GAC issued the Circular on Adjusting the Catalogue Relating to Import Duties for Major Technical Equipment [2013] No. 14 Caiguanshui ( Circular No. 14 ) effective 1 April 2013 According to Circular No. 14, eligible domestic enterprises that import key components or raw materials required for the manufacturing of the following items will be exempt from import duties and import-related VATs: Direct current equipment High-speed railway signalling systems; Complete sets of waste sorting systems and equipment Lifting fire engines Dyeing machines 26

27 Adjustment to the Catalogue relating to Import Duties for Major Technical Equipment (Cont d) New agriculture machines Solar cell equipment Lithium ion battery equipment Key equipment for integrated circuits Equipment for manufacturing new flat panel displays Equipment for manufacturing electrical components Eligible enterprises must register with the Customs and taxation authorites for a tariff exemption review between 1 April 2013 to 30 April 2013 Furthermore, Circular No. 14 re-imposed import duties on certain goods including component and raw materials for hydraulic supporting equipments 27

28 Rare Earth Export Quota On 27 December 2012, MOFCOM released: List of rare earth export enterprises for 2013; and First batch of export quota of rare earth for 2013 (accounting for 50% of total export quota of rare earth 2012) 2013 Rare Earth Export Quota Application Procedure Environmental protection treatment facilities corresponding to production sale, pollutant emissions standards and certification requirements no longer required 28

29 Catalogue of Commodities subject to Export License Administration GAC and the Ministry of Commerce ( MOFCOM ) issued Announcement [2012] No. 97 effective on 1 January 2013 in relation to the catalogue of commodities subject to export license administration in 2013 (the Catalogue ) The Catalogue outlines 48 categories of goods subject to export licensing administration (export quota licenses, export quota tenders and export licenses) Enterprises must apply for Export Permits at the specified agencies and can only conduct Customs clearance at specified Customs houses 29

30 Commercial Encryption Control Announcement [2012] No.64 of SEMB and the General Administration of Customs ( GAC ) Announcement No. 64, jointly issued by SEMB and GAC provides that an Online Verification System Regarding Import License for Encryption Products ( Online Verification System ) will be put into operation on a trial basis in the Customs Houses in Beijing, Shanghai, Shenzhen and Nanjing from 11 January 2013 and 31 March 2013 Online Verification System SEMB transmit to Customs electronically all data relating to the permits issued by the SEMB for the import of Encryption Products ( Import Permits ); and Customs will send SEMB feedback reports regarding the Import Permits that have been used by the importers. 30

31 Commercial Encryption Control (Cont d) From 1 April 2013, the Online Verification System will commence operation at Customs Houses nationwide Once the system matures, the authorities intend the issuance and submission of the Import Permits to be paperless Announcement No. 64 sets out an online-based verification procedure between Customs and SEMB to monitor the use of issued Import Permits. It does not change the existing commercial encryption regime such as the import requirements, the application of the core function test and the application procedures for importers to obtain an Import Permit for encryption products that are listed on the Catalogue for the Administration of Encryption Products and Equipment Containing Encryption Technology (first batch) 31

32 Customs Update Asia