Content:

1.New Customs Clearance Policy Needing Attention in March

2.Latest Progress in Optimizing Business Environment at Ports

3.New Policy in CIQ

4.Xinhai Dynamics

New Customs Clearance Policy Needing Attention in March

Announcement of the General Administration of Customs No.20 of 2019 (Announcement on Adding Customs Supervision Methods)

The addition of the customs supervision method ” Royalty Follow-up Tax” code 9500 is applicable to taxpayers who pay royalties after the goods are imported and declare and pay taxes to the customs within the prescribed time limit after the royalties are paid.

Two Customs Code Adjustment

From March 22, 2019, the ” Suzhou” and ” New Jian Zhen” export goods will be declared using 2226 customs code. From March 18, 2019, Pujiang Customs will accept the export goods that enter Yangshan Bonded Port Area via waterway, and Yangshan Customs will accept the export dangerous chemicals that need to be deleted and re-reported in case of abnormality in Luchao Dangerous Warehouse (Phase III), and the declaration formalities will be handled by 2201 customs code.

China and Chile Further Lower Taxes on 54 Commodities

China will gradually cancel some tariffs on wood products to Chile within 3 years. Chile will immediately cancel tariffs on textile and clothing, household appliances, sugar and other products to China. Products with zero tariffs between the two sides will reach about 98%. China-Chile FTA will become the FTA with the highest level of opening up of China’s goods trade to date.

Tax Reduction for Rare Disease Drugs

Starting from March 1, 2019, import value- added tax will be levied at a reduced rate of 3% on imported rare disease drugs. Taxpayers shall separately calculate the sales amount of rare disease drugs. Without separate accounting, the simple collection policy shall not apply.

Declaration Entry in Single Window

Log in to the national standard single window-drop- down list of goods declaration, select tax reduction or exemption-select annual report management application after entering-truthfully fill in enterprise self-examination content and self-examination situation-annual report content declaration-query declaration status.

Annual Report on Use Status of Tax-free and Tax-reduced Goods

The applicant for tax reduction or exemption shall report to the competent customs on the use of the imported tax reduction or exemption goods in the first quarter of each year (before March 31) from the date of release of the imported tax reduction or exemption goods. Enter the tax reduction and exemption follow- up declaration interface, select [Application for Annual Report Management], and truthfully fill in the self-examination content and self-examination situation of the enterprise.

Annual Report Management Interface

In the follow-up query interface for tax reduction and exemption, select ” annual report management” for the document type and fill in the query date to query the status of tax reduction and exemption annual reports.

The original Shanghai version of the single manual pre-recording function has been out of use since mid-March, but data can be imported in batches through the Shanghai version of the single client interface to meet the characteristics of large volume of business and high customs clearance timeliness requirements at Shanghai ports. The receipt channel is the same as that of the standard version, and the receipt of documents is obtained in the first time to ensure timeliness.

Latest Progress in Optimizing Business Environment at Ports

National [2018] No.37

Work Plan on Optimizing the Business Environment at Ports and Promoting Cross-border Trade Facilitation

Shanghai Office [2019] No.49

Implementation Plan for Shanghai to Further Optimize Business Environment

Shanghai Commodity Policy [2019] No.47

” Some Measures to Deepen the Reform of Cross-border Trade and Business Environment at Shanghai Ports”

Sea Transport Planning of China 〔2019〕No. 2

Notice of the National Development and Reform Commission of the Ministry of Transport on Amending and Issuing the ” Port Charges and Charges Measures”

Full implementation of ” Declare in Advance” and ” Change Orders in Advance”

1.Full promotion and application of imported goods ” declare in advance”

2.Full Implementation of ” Advance Bill Exchange” for imported container goods

3.Establishing ” Declare in Advance” fault tolerance mechanism for imported goods

4.Expand the application scope of ” declare in advance” mode for export goods

To Further Improve the Level of Customs Clearance Supervision

1.Accelerate the construction of big data platform for cross-border trade management

2.To improve the scientific and technological level of port supervision (to expand the scope of use of centralized examination images, to increase the application of new supervision equipment, and to improve the equipment allocation rate for individual operations)

3.Optimize the customs supervision mode (directly adopt CCC certification results for imported auto parts products, and strengthen business consultation and publicity on the basis of optimizing the inspection process.  Quarantine will be given priority to wooden packages of imported auto parts and components, which will be released immediately after passing the inspection, and quarantine will be given priority to unqualified ones).

To Further Simplify the Documents Processing Procedures

1.Simplify the documents attached to customs declaration

2.Fully promote independent printing by enterprises

3.Full implementation of paperless equipment interchange receipt

4.Speed up the implementation of paperless bill of lading (between ports and shipping companies, speed up the implementation of electronic bill of lading circulation, by the end of the year, the basic realization of paperless bill of lading.)

Further optimize port and waterway operation process

1.Actively promote online booking of containers entering and leaving ports

2.Improve the intelligent level of port facilities and equipment

3.Accelerating the improvement of application level of operation informatization in shipping companies

4.Public service commitment

Latest Progress in Optimizing Business Environment at Ports

Announcement of Shanghai Customs on Trial Implementation of ” Declare in Advance, Arrival Inspection and Release” Customs Clearance Mode in Waigaoqiao Port Area (Announcement No.1 of 2019 of Shanghai Customs of the People’s Republic of China)

Pilot Scope

The enterprise’s credit rating is the consignor of export goods with advanced certification. There is no restriction on the types of goods for the export of the pilot model.

Pilot Content

The consignor/declarant may go through the declaration formalities with the customs within 3 days before the goods arrive at the operation place under customs supervision after the goods have been prepared, the container goods have been packed and the electronic data of the preallocated manifest have been obtained. After the goods arrive at the work place under customs supervision, the customs shall go through the formalities of goods inspection and release.

Declaration

1.General Administration of Customs, Announcement No.74 of 2014 and Shanghai Customs Announcement No.1 of 2017

2.The declarant can choose Shanghai Pujiang Customs to go through the declaration formalities at the centralized declaration point of Shanghai Airlines Exchange or Shanghai Waigaoqiao Port Customs.

3.The declarant shall go through the inspection procedures at the customs of the place where the goods are located. If it is necessary to entrust an inspection agency, it shall be directly entrusted by the consignor of the exported goods.

Further standardize and reduce port charges

1.Implement the goal of reducing port charges (15% for port charges and 20% for security charges) and push port enterprises to further reduce transportation charges by 10%. The THC will be reduced accordingly and the surcharge for some documents will be reduced. )

2.Continue to push forward the reduction of fees in agency operations (operators in shipping agencies, freight forwarders, customs declaration agencies, land transportation, storage yards, etc. merge and reduce the relevant fees accordingly, and shall not take a ride fees, mark-ups fees.)

3.To strengthen price supervision and inspection, public list of fees

To further improve the level of port services

1.Improving the service function of China (Shanghai) international trade single window

2.Improve the feedback mechanism of enterprise opinions

3.Establish public service level ranking system

4.Implementation of joint punishment (illegal acts of various market entities in cross-border trade verified in customs clearance supervision, price supervision and inspection and complaint reporting shall be incorporated into Shanghai public credit information platform according to law and joint punishment shall be implemented).

New Policy in CIQ

Country of origin

On March 14, Shanghai Customs held a paperless declaration meeting for export origin. Enterprises applying for a certificate of origin will be exempted from providing application forms, invoices, packing slips and bills of lading (except for special circumstances such as change and reissue, and production of products in different places).

Food safety

Announcement No.44 of 2019 of the General Administration of Customs (Announcement on Inspection and Quarantine Requirements for Two-way Trade in Dairy Products between China and Russia) Regarding the scope of dairy products to be imported into China, it is a food processed with heat-treated milk or goat milk as the main raw material, excluding milk powder, cream powder and whey powder. Russian dairy enterprises exporting to China should be registered with the General Administration of Customs of China.

National standard

The General Administration of Market Supervision[ No.9 of 2019 ] (Announcement on Issuing the “ Determination of Rhodamine B in Food” and other three supplementary food inspection methods) This time, three supplementary food inspection methods have been published: the “ Determination of Rhodamine B in Food”, “ Determination of Benzene Residues in Edible Vegetable Oil” and “ Determination of Source Components in Cod and Its Products: Bare cap Fish, Oil Fish and Antarctic Canine Tooth Fish”.

Administrative approval

1.Since March 1, 2019, the General Office of the State Administration of Market Supervision will start using the ” Special Seal for Special Food Registration of the State Administration of Market Supervision (1)” for special food administrative licensing, ” Special Seal for Special Food Registration of the State Administration of Market Supervision (2)” for special food administrative licensing approval results issuance and ” Special Seal for Special Food Registration and Inspection Sampling of the State Administration of Market Supervision” for special food inspection and sampling.

2.Notice of the General Office of the Ministry of Agriculture and Rural Affairs on Implementing the Decision of the State Council on Canceling and Decentralizing a Batch of Administrative Licensing Matters. Adjust the three approval businesses, specifically: 1. Cancel the approval for the import of veterinary biological products that have obtained the registration certificate of imported veterinary drugs. 2. Feed additive premix feed, mixed feed additive product approval number issued, cancel the examination and approval, to record. 3. The new veterinary drug clinical trial approval, cancel the approval, to record.

Xinhai Dynamics

The signing ceremony of Xinhai’s exclusive general title International Trade Service Expo was held in Shanghai

On the morning of March 8, the signing ceremony of the exclusive title sponsor of the first international trade service fair was held at the headquarters of Shanghai Xinhai Customs Brokerage Co., Ltd. Ge Liancheng, Vice Chairman of China Customs Declaration Association, and Wang Min, Deputy Secretary General; Ge Jizhong, Chairman of Shanghai Xinhai Customs Brokerage Co., Ltd. and Zhou Xin, General Manager, attended the signing ceremony.

The service scope of of Shanghai Xinhai Customs Brokerage Co., Ltd. covers all major ports in the country and service outlets in the world. It mainly provides one- stop services such as freight forwarding business, customs clearance business (general trade, processing trade, customs transfer and return, exhibition business, private goods, etc.), inspection, foreign trade, commerce, transportation, storage, packaging and distribution. Shanghai has achieved full coverage of customs outlets.

The first International Trade Services Expo will be held from June 2 to June 4, 2019 at Guangzhou Poly World Trade Expo (No. 1000 Xingang East Road, Haizhu District, Guangzhou), with a scale of 11,000 square meters. Main visitors: foreign-related enterprises (manufacturing enterprises, trading companies, supply chain enterprises, etc.), foreign trade employees.

At the beginning of the meeting, Chairman Ge Jizhong said that as the exclusive general title sponsor of the first International Trade and Services Expo, we will give full support and cooperation to the event and add more bricks to the trade and services Expo. At the meeting, Vice President Ge Liancheng gave full recognition to Xinhai’s support and said that both sides would continue to strengthen cooperation to promote the healthy development of modern service industry and export-oriented economy, build a win- win cooperation service platform and contribute to Chinese strategy of becoming a powerful trading country.