Expert Interpretation in March 2019


Announcement of the General Administration of Customs No.20 of 2019 (Announcement on Adding Customs Supervision Methods)

The addition of the customs supervision method ” Royalty Follow-up Tax” code 9500 is applicable to taxpayers who pay royalties after the goods are imported and declare and pay taxes to the customs within the prescribed time limit after the royalties are paid.

Two Customs Code Adjustment

From March 22, 2019, the ” Suzhou” and ” New Jian Zhen” export goods will be declared using 2226 customs code. From March 18, 2019, Pujiang Customs will accept the export goods that enter Yangshan Bonded Port Area via waterway, and Yangshan Customs will accept the export dangerous chemicals that need to be deleted and re-reported in case of abnormality in Luchao Dangerous Warehouse (Phase III), and the declaration formalities will be handled by 2201 customs code.

China and Chile Further Lower Taxes on 54 Commodities

China will gradually cancel some tariffs on wood products to Chile within 3 years. Chile will immediately cancel tariffs on textile and clothing, household appliances, sugar and other products to China. Products with zero tariffs between the two sides will reach about 98%. China-Chile FTA will become the FTA with the highest level of opening up of China’s goods trade to date.

Tax Reduction for Rare Disease Drugs

Starting from March 1, 2019, import value- added tax will be levied at a reduced rate of 3% on imported rare disease drugs. Taxpayers shall separately calculate the sales amount of rare disease drugs. Without separate accounting, the simple collection policy shall not apply.

Declaration Entry in Single Window

Log in to the national standard single window-drop- down list of goods declaration, select tax reduction or exemption-select annual report management application after entering-truthfully fill in enterprise self-examination content and self-examination situation-annual report content declaration-query declaration status.

Annual Report on Use Status of Tax-free and Tax-reduced Goods

The applicant for tax reduction or exemption shall report to the competent customs on the use of the imported tax reduction or exemption goods in the first quarter of each year (before March 31) from the date of release of the imported tax reduction or exemption goods. Enter the tax reduction and exemption follow- up declaration interface, select [Application for Annual Report Management], and truthfully fill in the self-examination content and self-examination situation of the enterprise.

Annual Report Management Interface

In the follow-up query interface for tax reduction and exemption, select ” annual report management” for the document type and fill in the query date to query the status of tax reduction and exemption annual reports.

The original Shanghai version of the single manual pre-recording function has been out of use since mid-March, but data can be imported in batches through the Shanghai version of the single client interface to meet the characteristics of large volume of business and high customs clearance timeliness requirements at Shanghai ports. The receipt channel is the same as that of the standard version, and the receipt of documents is obtained in the first time to ensure timeliness.