Online Interview
Topic: By Streamlining Administration, Delegating Power to Lower Levels and Transforming Functions, What has China Customs Transformed?
Time:02:30 PM (Thu) April 03, 2014
Special Guests:Chen Xudong, Press Spokesman of the GACC, Director of the GACC Department of Policy and Legal Affairs, and Director General of the GACC Office of Reform; Ms. Qiu Yueling, Director General of National Education and Training Center of the GACC
Online Interview Photos
By Streamlining Administration, Delegating Power to Lower Levels and Transforming Functions, What has China Customs Transformed?
[Chen Xudong]: Let’s talk about outward processing first. As we know, outward processing occurs frequently during the production process of enterprises. For example, in the ornament processing business, because of the restrictions set by the access requirements of the electroplating industry, the enterprises can’t do the electroplating by themselves and usually have to transport the products to be processed to the qualified electroplating enterprises for electroplating and then transport the products back for further processing and export. 04/03/2014 15:03:47
[Chen Xudong]: Before this reform, for each business carried out, the enterprises were required to file application with the Customs and conducted the business upon approval of the Customs. After this reform, the previous contract-based management mode by the Customs is changed to the enterprise-based mode, and the management focus of the Customs has shifted from prior approval to ex post examination on physical goods, which increase the management efficiency of the Customs and decrease the operation costs of the enterprises. The enterprise can do the outward processing first and then register with the Customs, which reduces the human resources and time dramatically, and thus significantly increasing the benefits and reducing the costs for the enterprises. 04/03/2014, 15:04:15
[Chen Xudong]: Then transfer for further processing refers to the activity that an enterprise engaging in processing trade transfers the products processed with bonded imported materials to another similar enterprise for further processing and re-export. For instance, Enterprise A, a cell phone LCD processing enterprise, after processing the imported raw materials into the LCDs under the processing trade, it transfers the LCDs to Enterprise B, another cell phone processing enterprise. Enterprise B uses the LCDs to produce finished cell phones, and then re-exports the finished products. 04/03/2014 15:04:28
[Chen Xudong]: Before this reform, both enterprises transferring out and receiving materials need to apply to their respective competent customs houses for approval. The process lasts about 1-2 days. After this reform, both enterprises can complete the declaration and record formalities for the transfer for further processing at their own offices in only a few minutes. This reform measure can help enterprise save a lot of costs in human resources, transportation and expresses delivery. 04/03/2014 15:04:56
[Chen Xudong]: Presently, there are 26,000 enterprises in total engaging in transfer for further processing in China. According to our rough estimation, enterprises can save over RMB 1 billion in the costs for those formalities alone. Plus the time saved and efficiency promoted, enterprises can generate much more economic benefits. See the figure below:
[Wang Hua]: That saves lots of time, human resources, travel expenses and invisible fees, representing costs of RMB several billions. It has indeed benefited enterprises and individuals a lot. 04/03/2014 15:05:49
[Chen Xudong]: Yes. The cancellation of those items requiring administrative examination and approval can bring convenience to enterprises, and by the power delegation in the relevant regards, enterprises can go through customs formalities in their neighborhood, and thus save lots of costs and time. 04/03/2014 15:06:02
[Chen Xudong]: In addition, based on the cancellation and delegation of the 7 items previously subject to administrative examination and approval, the Customs further specifies the standards for the retained items and simplifies the relevant procedures. For example, we support the reform of registration system for registered capital, revising the Provisions of the Customs of the People's Republic of China for the Administration of Registration of Declaration Entities, simplifying the registration formalities for declaring enterprises, optimizing the operating process, and reducing the registration materials. All those measures help further reduce the operation cost of customs brokers, facilitate the clearance of import and export enterprises, and stimulate the creativity and vitality of market players. 04/03/2014 15:06:14
[Wang Hua]: It seems that customs brokers also benefit much from this reform. So what are the specific changes in their registration procedures? 04/03/2014 15:06:31