Customs inspection issues in china

Part 1. Factors Affecting Customs Inspection

Environmental Factors

1.1 Comprehensive Inspection Rate

When the customs declaration data enters the customs system, it will be controlled and inspected manually or systematically. The inspection rate in this mode is what we often call the comprehensive inspection rate.

In order to increase the seizure rate, the General Administration of Customs has put forward the quantitative indicators for the inspection rate of imported and exported goods: that is, the inspection rate of imported goods is not less than 10%, the inspection rate of exported goods is not less than 5%, and the random inspection rate should account for 50% of the inspection rate. In terms of specific values, the random check rate of the system should be above 3% for parts other than manual command deployment. Actually, it’s not low anymore.

1.2 Increased Inspection Rate for Special Events

Usually during major events, in order to ensure the accuracy of imports, some customs will increase the inspection rate.

In special customs operations, the inspection rate of designated categories of products may be increased throughout the country, such as the inspection of imported waste in the Green Shield operation.

In addition, when special events occur, the inspection rate for designated categories of products may also increase, such as after an explosion in a certain port.

Of course, there are other situations, such as the regional situation, I will not list them one by one.

1.3 Increased Inspection Rate for a Certain Industry

Wittingly or unwittingly, some companies will violate regulations, such as with high export prices, wrong import classification, etc. Maybe everyone has declared that there is no problem. In this case, once an enterprise in the industry is found by the Customs for violations, the Customs can use the risk control system to cross-check the enterprises that have the import and export records of similar products in the customs area during the same period. In addition to inspections, this type of product will increase the inspection rate in the customs area during this period. It’s not your fault, but an unreliable colleague. Once, a certain customs district held a meeting specifically to preach the classification of goods for major companies in an industry because they had common classification errors.

1.4 Trade Methods

For example, under the temporary approval of import and export, returned goods and other trade methods, the customs often approves inspections in order to strictly control

and verify the implementation of “re-shipment in the original state”. For such goods, time must be reserved for inspection. There is also processing trade. The import and export declarations under the first manual of the new factory for general processing trade are all focused on control.

Enterprise Factors

1.1 Price Declaration Issues

From the perspective of an enterprise, it would be better to declare prices honestly, but there are often people who make a fuss about prices in order to pay less or get more tax refunds. But you may not know that there are three levels of price libraries in the customs system, namely, the General Administration, the Directly Affiliated Customs, and the Subordinate Customs. If your price is lower than the price library when importing (or higher than exporting) under the same brand, same model and other factors, it will automatically trigger manual review and even control inspection. Therefore, it is best to declare truthfully, otherwise it is a good choice to apply for price verification in advance. Sometimes, the company’s own products and prices are okay, but it is also because of the incorrect declaration of the elements that triggers the price risk.

1.2 Commodity Classification Issues

Many customs declarers do not understand the significance of the declaration elements and the requirements for filing, so they will fill in the declaration elements incorrectly. They do not realize that because of this, the probability of inspection and control is increased. For example, in Chapter 84 of the import and export tariffs, machinery and equipment should follow the principle of “function prior to use”, but when an enterprise declares elements, the functions and principles are all filled in “food processing”, in which document examination personnel cannot judge whether the classification is correct or not, thus being inspected.

1.Declaration of Origin Issues

For example, for bananas imported from a country in Southeast Asia, one declares less than 50 tons of grade B, and the other declares more than 300 tons of grade C. It is understood that only 10% of bananas exported to China from Southeast Asian countries are Grade C, the remaining 60% are Grade B, and 30% are Grade A. It is unlikely that more than 300 tons of bananas imported into a single-ticket declaration form are Grade C.

1.Declaration of Permits Issues

In customs declaration work, occasional errors in the accompanying documents provided by the entrusting unit may be encountered, such as customs clearance forms and tax exemption certificates that have specifications and models that are inconsistent with the documents. In this case, it is possible that the company’s customs officers have not reviewed it, or it may be a filing error but want to pass the customs. In fact, not every item of the customs declaration form and the customs clearance form collide with each other. Although the logical relationship sounds reasonable, these obvious mistakes are hard to ignore during manual review.

1.5 Declaring the Split Order Issues

According to relevant regulations, under the supervision of sample advertising products, each batch of imported goods with a value of not more than 5,000 yuan can be exempt from automatic import license, and each batch of export goods with a value of less than 30,000 yuan can be exempt from export license. certificate.

Therefore, some companies that were supposed to import and export according to the general trade method, in order to avoid the application of the license, they would use the method of splitting the bills into separate declarations. However, the customs review system can not only see the information of this declaration, but also retrieve the recent declaration records of the company. If you split the declaration, the risk is very high.

For another example, some large-scale complete sets of equipment for import and export can be classified into 1-2 tax numbers according to the definition of functional units. However, because the corporate customs officers are not sure about the classification, a device is declared for dozens of items, because the tax rate of each product is different, and the supervision conditions are different, which further increases the inspection probability.

1.6 Declaring Seasonal Characteristics

Sometimes, product characteristics and the month of declaration will also lead to inspection risks. For example, imported Taiwan-produced mullet roe from the United States in June and July. You should know that the main products of mullet roe are in Yunlin, Kaohsiung and other places in Taiwan, and the mullet fishing season in Taiwan is generally in the fourth quarter. The logistics flow of this shipment was not normal at first. It was not directly imported from Taiwan to the mainland, but went to the United States for a circle. In addition, June and July are not the main production months for mullet roe, and the possibility of large-scale imports is very small. So focus on inspection doubts is reasonable.

1.7 Enterprise Operation Ability

As the saying goes, don’t bite off more than one can chew. The import and export business carried out by normal enterprises is often related to their strength. For example, an import and export enterprise with a registered capital of only 5 million yuan(Chinese currency, RMB) carries out the execution of a contract of about 8 million yuan, and the legal representative is only a 20-year-old young man… the household registration of the legal representative and the attributes of the company’s office premises (lease or own), will more or less affect the trade background check.

Part 2. Ways to Reduce Customs Inspection Risks

I believe that new customs declaration friends will have a preliminary understanding of customs inspection through the previous analysis. This is to hope that everyone will pay more attention to details in the process of document review. Once you have doubts about the content, you should check and confirm with the cargo owner as soon as possible to avoid trouble.

In fact, the reason for being inspected by the customs is mostly the irregular declaration of enterprises, and the irregular declaration is more caused by the imperfect internal management system of the enterprise and the weak legal consciousness. As a consignor of import and export goods, one should work from two aspects to further reduce the probability of being inspected by the customs, and to reduce the various derivative problems caused by the customs inspection.

2.1. Effectively Carry Out Document Review

I believe that most of the customs personnel of import and export companies work independently, and the document preparation and review are done by the same person, which is a source of risk. Therefore, a double-post check process of document preparation and review should be adopted, which will further reduce the error rate.

The wrongly declared documents shall be adjusted and changed in time, especially the filling of declaration elements. Submitting declarations with fluke will increase the risk. Even if it is successfully released, the standardized declaration rate and error rate of past documents will be verified by the customs as an important indicator during subsequent customs inspections.

2.2 Actively Apply For Customs AEO Certification

After standardizing the various customs systems and procedures within the enterprise, the enterprise should apply to the customs for AEO certification in a timely manner. According to customs policies, the inspection rate of companies that have obtained AEO advanced certification can be reduced to below 0.9% during import and export declarations; the inspection rate of companies that have obtained AEO general certification can be reduced to less than 3%. If the general credit rating continues to be maintained, the inspection rate is too high and inevitable.

Of course, the application for customs AEO advanced certification depends on the company’s own situation. If the financial situation is not good or the declaration error rate is higher than the national average, then I am afraid that it will not be able to apply. At this time, you might as well make a comprehensive assessment of the company from agencies and get the most reasonable solution. While the system is perfect, you can get the high-level credit rating of the customs, the inspection rate is lower naturally and the cost of customs clearance is lower too.

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