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SpezialSeminarChina: Customs Practices and Export Control Regulations

Customs Law Amendment and how may your business with China be affected by China export control scheme?

Customs Practices 

The automated clearance program launched by China Customs since 2016 has significantly improved the efficiency of clearance with China customs. However, such efficiency is conditional upon whether the trader can be trusted by the customs. China customs not often review the declarations and goods upon clearance. However, the Risk Control Centers and Tax Collection Centers are monitoring all importers and exporters of record and all shipments cleared through different ports all over China and will easily identify inconsistencies in clearing the same goods at different ports or by different traders, and instances of non-compliance with customs regulations as well. Such inconsistencies or non-compliance would trigger more intensified or wider the post-clearance queries, audits and investigations.

China Customs is a centralized power subject to little influence by the local governments. It is the only administrative authority with both administrative and criminal investigation powers. The Anti-smuggling Bureau (ASB) is such a division within China Customs. Any instance of system error or human mistake, if resulting in short payment of duties reaching a few thousands RMB, will be likely to be transferred to ASB for further investigation. If for instance ASB imposes RMB 1 million as penalty on a trader, the customs in charge of the trader may discredit the trader who will lose the declaration and clearance efficiency benefits. Accordingly, the foreign company’s subsidiaries in China are under great pressure in ensuring compliance with China customs laws and regulations, otherwise, the subsidiaries will face the inherent, deferred, accumulative and eventually explosive legal liabilities, administrative or criminal.

In 2019, the transfer pricing of goods of import into China may face more customs queries, challenges or investigations.

Therefore, establishing and maintain efficient internal trade compliance programs is important to maintain the clearance efficiency treatment, to avoid severe administrative or criminal liabilities and to retain competitive advantage over those competitors implicated in non-compliance sandals.

Export Control Regulations

China does have a set of export control regulations in place now and occasionally companies are being investigated for failure to comply with such regulations, which sometimes jeopardizes the business operations of foreign investment in China. The Draft China Export Control Law, possibly to be passed in 2019, has caused attention mainly for two reasons:

(a) the potential huge penalties for non-compliance, e. g. 5 - 10 times of the amount of illegal export business;
(b) its extra-territorial impact on foreign companies.

Compliance with China export control regulations can be a complex matter because China does not control  export through ECCN, but by description of the controlled items and the HS codes of the given items as well. Besides the burden to ascertain controlled items by description, the trader has also to ensure correctness of the HS codes declared to China customs. Accordingly, compliance with China export control regulations largely depends on:

(a) sound legal determination of HS codes;
(b) thorough understanding of various controlled and listed items and
(c) ability to prepare in advance the legal defense to disprove the „Should-Have-Known“ knowledge of inappropriate end use of exported items.

Lastly, the export control scheme may also have an impact on intercompany development and transfer of technology.

Seminar aims

1. Understand China customs automated clearance reform
2. Be aware of merger of AQSIQ into China Customs and centralized supervision
3. Identify HS code, valuation, transfer pricing and other risks
4. Gain insight on significance of regular legal audit on trade compliance
5. Resolve prior non-compliance problems through possible self-disclosure to the customs
6. Learn how to tackle customs audits and investigations
7. Familiarize oneself with the existing China Export Control structure
8. Understand supervision operation by enforcing authorities of export control regulations
9. Be aware of the business or personal exposures of export control non-compliance
10. Realize potential changes the draft export control law makes and its extra-territorial impact
11. Develop export control compliance scheme for business with or operations in China

Seminar subjects

  • Overview on Chinese Customs Law and its potential amendment
  • Obligations and duties of EU-based Exporters with respect to imports in China
  • Strategies in tackling Chinese customs post-clearance survey, query, audit or investigation
  • Practical issues with tariff classification, valuation, transfer pricing, royalties and assists and country of origin
  • Internal audit to ensure future compliance and voluntary disclosure to resolve historical non-compliance
  • Extra-territorial and other impacts on EU companies and their liability borderlines
  • Significance of HS code classification on the control lists
  • Legal obligations and liabilities off the control lists
  • Export control program and consulting procedure for customs and companies
  • Legal liabilities for non-compliance and possible defenses

Target group

This seminar is intended for export and import, export control, supply chain, finance and tax management and trade compliance officers and employees who need a detailed overview course in China customs enforcement practices and major risk and liability exposures under China‘s Customs Law and export control regulations, management and compliance. 

Language

The seminar will be held in English!

Other details

The part „China Customs Practices & Customs Law Amendment” is not a basic level training on Chinese Customs Practices, and is more helpful to those companies with business operations in China.

Themengebiete

  • Zoll
  • Exportkontrolle
  • Compliance
  • Internationales Business

Bewertung

Teilnahmegebühr

Ab€ 690,00zzgl. 19% MwSt.

darin enthalten:

  • umfangreiche Seminarunterlagen
  • Erfrischungsgetränke und Pausenverpflegung
  • Mittagessen
  • AWA Zertifikat