China and Japan will implement the mutual recognition arrangement for Authorized Economic Operator programs on June 1, the China General Administration of Customs said in a notice, according to an unofficial translation. The countries signed the MRA in October last year. The MRA allows for China to recognize companies certified by Japan's AEO program as certified by China's program and vice versa. The programs give AEO-certified companies expedited customs clearance and reduced inspections, among other benefits. China AEO companies exporting to Japan will need to notify the importer of the AEO company code so the Japanese importer can fill in the required information for the country's customs requirements, according to the translation. "After confirming the identity of China's AEO company, relevant convenience measures will be given," China said. Chinese importers will similarly need to provide a Japanese company's AEO code to receive the benefits, it said.
Four Chinese nationals were arrested in Singapore after they concealed alcohol shipments from China as soy sauce and did not pay tariffs, according to an April 23 notice from Singapore Customs. The men were involved in a scheme that imported more than 9,000 bottles of “duty-unpaid liquor” packed in more than 600 boxes, the notice said. The importers stored the boxes in an industrial building before Customs officers checked the goods and discovered the smuggling scheme, according to the notice. Singapore Customs said the men evaded about $186,000 worth of duties and about $17,000 worth of the country’s Goods and Services Tax. Importers who fail to pay taxes and duties can be fined “up to 40 times the amount” evaded and face a maximum six-year prison sentence, the notice said. “We will spare no effort in going after sellers as well as buyers of duty-unpaid liquor,” Assistant Director-General of Customs Yeo Sew Meng said in a statement.
Japan’s Cabinet on April 9 strengthened export controls against South Sudan in response to the United Nations Security Council’s 2018 arms embargoes and sanctions against the country, according to a notice from Japan’s Ministry of Economy, Trade and Industry. Japan added the country “to the list of the areas subject to strict export control” in its Export Trade Control Order, the notice said.
China is now allowing applicants and their authorized agents to print out certificates of origin at several ports, including Beijing, Tianjin, Shanghai, Jiangsu, Guangdong and Chongqing, via its online single window and online customs platforms, the Chinese General Administration of Customs said in a recent notice, according to an unofficial translation. Applicants will need to upload the company’s electronic chop and the handler’s electronic signature, the Hong Kong Trade and Development Council said in a report on the announcement. The printable certificates are available for China’s free trade agreements with Australia, New Zealand, Pakistan, Chile, Switzerland, Iceland, Georgia, Singapore and South Korea, as well as the cross-straits agreement and the Asia-Pacific trade agreement (for exports to South Korea). They can also be printed for non-preferential certificates of origin, tobacco authenticity certificates, re-export certificates and processing and assembly certificates. The pilot program which began March 25, is intended to “further reduce the cost of customs clearance,” China GAC said.
Vietnam is adding more agricultural import procedures to its National Single Window, in pursuit of the country’s goal to complete its electronic filing system in 2019, according to a report from the General Department of Vietnam Customs’ mouthpiece CustomsNews. The newly available Ministry of Agriculture and Rural Development functionalities include granting import permits for plant protection drugs, as well as import and export permits for plant genetic resources. The new additions bring the agriculture ministry up to 18 out of 35 of its procedures now available in the single window. A major initiative that remains to be completed is programming for quarantine and quality control for food, animal feed materials and aquatic products with animal and plant origins, the report said.
Chinese Customs will impose late tax payment charges for failure to declare dutiable royalties on Customs forms as part of broader customs changes taking effect May 1, according to a report from PricewaterhouseCoopers. The broader changes, announced by China’s General Administration of Customs on March 27, relate to requirements for filers to notify Customs if a buyer is paying dutiable royalties on the imported goods, includng payments after importation (see 1904100029).
The U.S. and China are aiming to reach a trade agreement by early May and sign it later that month, according to an April 17 report by Bloomberg. U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are expected to travel to Beijing in late April, according to the report, followed by a Washington visit from Chinese Vice Premier Liu He the next week. During that visit, officials hope to announce a trade agreement, Bloomberg reported.
China’s recent decision to reduce certain customs fees will have a substantial impact on making procedures easier at the country's various ports, according to Alexander Chipman Koty, a China-based associate managing editor for business intelligence reports at Dezan Shira & Associates. The changes -- part of a larger decision made by China’s State Council on April 9 to lower taxes on certain imported goods (see 1904100013) -- underpin an “ambitious program to improve its business environment,” Koty said in an email. Most of the changes involve “eliminating or consolidating different fees and forms,” he said, adding that “together … these small reforms have had the cumulative effect of making day-to-day business easier and more straight forward.” But Koty said they also may help China reach its larger goal: expanding its ports, the Shanghai Free Trade Zone and the Hainan Free Trade Zone. “[The changes] mark another small step in making China’s business environment easier to deal with -- including its ports and customs procedures -- which is significant for importers and exporters,” Koty said.
Companies and individuals who violate New Zealand customs requirements can now be issued a range of instant fines, according to a list of infringement offenses from New Zealand Customs. The list was mentioned in an April 17 notice from Baker McKenzie. The changes were introduced in October as part of the country’s Customs and Excise Act of 2018 but were not implemented until after a six-month “education phase,” according to the notice. They became effective April 1, 2019.
Vietnam customs is considering an overhaul of its regulations on valuation, according to a report from the agency’s website CustomsNews. The current 2015 regulation brought Vietnam in line with the World Trade Organization agreement on valuation of goods, but it also did not define some concepts, making it difficult to implement for traders, the report said. Upcoming changes include the order and conditions under which valuation methods should be apply, as well a rewrite of regulations governing those methods, including transaction value, transaction value of similar goods and deductive value.