GAC Releases Ten Measures to Accelerate Customs Clearance

On July 3rd, the State Council Information Office publicized new GAC policies during a routine press briefing^[1] together with vice GAC minister, Hu Wei, etc.

According to the Ease of Doing Business Report 2019 ^[2] issued by World Bank, China ranked 46 in 2019, up from 78 in 2018 and was one of the top 3 economies when ranked by outstanding improvements made to facilititating business activities.In order to further facilitate foreign investment in China, GAC together with other nine government departments formulated ten measures to optimize the business environment. Here are the details.

Ten Measures to facilitate

To reduce the number of credentials needed during importation and exportation process (Measure 1 & 2)

In 2018, China reduced the number of credentials needed during the importation and exportation process from 86 to 46 credentials. Among the 46 credentials, 4 of them shall be verified offline due to confidentiality issues and the others can be verified online automatically.

Now exemptions from mandatory submission of two more credentials during the port inspection process will be implemented before September 30th, 2019. They are regulatory documents for new food ingredient and food products without a national food safety standard. Instead, during the customs clearance process, GAC system will verify the imported food with corresponding national food safety standards or official notices and will release the goods if they have met the requirements.

Prior to December 31st, 2019, five regulatory documents can be declared online to further improve customs clearance efficiency. They are Customs Clearance of Imported Drugs, Gold and Its Products Import and Export Permit, RMB Cash Entry and Exit Permit, Legitimate Fishing Product Customs Clearance Proof, and Approval Document for Fossils Exiting From China.

Up to the end of 2019 (except for issues which pertain to confidentiality) all the other regulatory documents needed during the importation and exportation process are expected to be declared and dealt with online.

To streamline procedures and improve clearance efficiency (Measure 3-6)

Before August 31st, 2019, GAC will implement a trial of "two-step declaration" customs clearance mode in Huangpu, Shenzhen and Qingdao Customs.

Explanation of "two-step" declaration:
Under this customs clearance mode, there's no need for enterprises to submit the materials all at once, but in two steps.

Step one:
Enterprises can conduct "Summary Declaration" to submit entry declaration information based on the bill of lading. In this case, goods can be passed quickly without further inspection. Where necesseassy an enterprise must also provide tax guarantee materials.
Step two:
Enterprises can supplement materials and document within 14 days after the customs release of goods to lower the cost and also speed up market entry.

*This mode will be first on trial in Huangpu, Shenzhen and Qingdao Customs and will be gradually promoted to national wide.

Further propel the multiple taxation guarantee system reform. Prior to August 31st, 2019, China Banking and Insurance Regulatory Commission and GAC will expand the scope of relevant insurance companies.
Prior to December 31st, 2019, ports administered by the provinces, autonomous regions and municipalities shall formulate and disclose the time limit standards for in-site transit, container movement, unpacking and picking up of containers by the receiving party etc.
Before December 31st, 2019, GAC together with relevant authorities and local governments will open two "fast passage" for Kazakhstan and Russia respectively.

Further improve the digitization at ports (Measure 7 & 8)

GAC will accelerate the cooperation with civil aviation, ports, railways, etc. to deepen the construction of "single window" (one-stop) international trade and offer integrated logistics service system for market entities.
Ports and transportation departments administered by the provinces, autonomous regions and municipalities shall accelerate the implementation of the paper-free system during all processes. By the end of 2019, ports along the coast will implement online declaration for container management and procedures like cost settlement, etc.

To lower the charges at ports (Measure 9 & 10)

Before September 30th, 2019, MOFCOM will urge major international liner shipping companies and forwarder companies to lower charges.

Before September 30th, 2019, SAMR will supervise the charges during the importation and exportation process, crack down on illegal charges and investigate suspected anti-competitive behaviors.

Huang Guansheng, director of National Port Management Office gave an example that since March 20th, 2019, 62 carriers such as China COSCO Shipping Corporation Limited and Maersk have reduced their dock operation fees, etc by 5% to 10%.