Global

Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 5/16/2014

China - Customs rules for Shanghai pilot free trade zone 

May 16: Shanghai Customs released the first batch of 14 new rules on supervision in the China (Shanghai) pilot free trade zone (FTZ).

The first seven rules issued by Shanghai Customs include: rules on goods entering the FTZ before declaration, self-transport in the FTZ, write-off based on work orders, exhibition of bonded goods, maintenance for domestic and overseas customers, bonded delivery of futures, and finance leasing. The provisions in this first batch of rules have an effective date of 21 April 2014 or 1 May 2014.


The remaining rules will successively enter into force by the end of June. Those rules are expected to include provisions on centralised declaration of incoming and outgoing batches, simplified procedures and documents for customs clearance, unification of lists for records, selective levying for domestic sales, centralised tax payment, monitoring the logistics of bonded goods, and intelligent permission for entering and exiting the zone.

KPMG observation

These 14 rules are based on previous pilot implementation, and also take into account internationally accepted standards and focus on the requirement for simplified, convenient, safe, and efficient procedures.


Observers believe that these new rules will greatly improve the efficiency of customs clearance, and have a positive effect on import and export business.


Read a May 2014 report prepared by the KPMG member firm in China: Pilot Free Trade Zone Series — 14 new supervisory rules issued by Shanghai Customs to facilitate foreign trade in China (Shanghai) Pilot Free Trade Zone




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