On 8 July 2021, China’s General Administration of Customs (GAC) specified the tariff exemption measure in the Hainan Yangpu Bonded Zone (the Zone). Goods containing imported materials with over 30% value-added processing in the Zone are exempt from customs duty when they are sold to other areas in China (domestic sales). Import VAT and consumption tax will still have to be paid. The said preferential measure applies to enterprises listed in ”encouraged sectors” – which means their income from ”encouraged sectors” businesses should account for at least 60% of their total income.
GAC has revised the procedures for handling the administrative penalty, effective from 15 July 2021. The major revisions to the procedures are as follows:
A new guideline was released on 15 July 2021 to support a high-level reform of the Pudong New Area in Shanghai. The guideline has outlined 27 measures for future policy roadmaps to meet the area’s development target. Along with these incentive measures, the guideline has provided a high-level view of relevant customs-related policies to be issued:
New rules of formula pricing
The new rules of formula pricing took effect from 1 September 2021. The new rules expanded the application of formula pricing to a broad extent. Under the new rules, imported goods with a price contingent on the content percentage or import quantity are included in the scope of formula pricing. In addition, bonded goods whose price cannot be determined during domestic sales are also included in the scope of formula pricing.
For the customs declaration, importers are required to complete the new added columns of “formula pricing confirmation” and “provision price confirmation” in the customs declaration form
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