On July 4, Nanjing Customs finished transmission and registration of China’s first batch of electronic guarantees for Centralized Aggregate Taxation (CAT). That day, the first 18 pieces of CAT e-guarantees were issued and registered with the Customs in Jiangsu Province, with the guarantee value totaling 163.52 million Yuan, accounting for 80% of such total across China.

On June 27, the GACC decided to launch online transmission of CAT guarantee data from July 1, 2018. Compared with traditional guarantee for tax payment, the CAT guarantee is advantageous in five aspects: (1) Release on the guarantee basis, helping substantially reduce the time spent on customs clearance; (2) Payment in an aggregate manner, helping save enterprise cost of funds; (3) Applicability across the country, meeting the demand for customs clearance at multiple districts; (4) Revolving line of guarantee, thus simplifying the guarantee procedures; (5) Facilitation of tax payment, enabling one-off centralized payment in each month.   

The CAT e-guarantee means online transmission of CAT guarantee data through the online systems interconnecting among China Customs, commercial banks and the People’s Bank of China, so as to speed up customs clearance and prevent the risk of false guarantee.