Jinan Customs District - P. R. China’s Youngest Customs District
[Netizen: anonymity]: From last year, many places in Shandong started applying for building a compressive bonded area. The known places include Dongying, Linyi, Weihai, Rizhao, Jining, Dezhou, and Liaocheng, and some places are preparing for the application. It’s said online that 17 cities in Shandong Province will likely to have their own Comprehensive Free Trade Zones. Well, Ms. Liu, can you give us some information on the matters related to review, approval, and preparation for construction of a Comprehensive Free Trade Zone, and is it necessary to build such bonded zones in 17 cities in Shandong? Thank you! 05/09/2014 10:26:04
[Liu Weiwei]: Well, first I’d like to thank you for your attention to the processing trade business of Customs. The Comprehensive Free Trade Zone is the special customs-controlled area at the highest level and with the most preferential policy and the most complete functions in China at present, and it serves as a key platform for the development of local open economy. Jinan Customs District has always paid great attention to supporting application and establishment concerning Comprehensive Free Trade Zone by local governments. Last year, we helped Jinan Comprehensive Free Trade Zone and Weifang Comprehensive Free Trade Zone pass the official acceptance and start the closed operation. However, to establish a Comprehensive Free Trade Zone is not an effective economic measure for all the places, and there are special requirements for local export-oriented economic structure and development. It does not mean every city is appropriate for the building of a Comprehensive Free Trade Zone. Meanwhile, the State has strict procedures, standards and requirements on review and approval of Comprehensive Free Trade Zones. For establishment of the Comprehensive Free Trade Zone, the opinions of ten ministries and commissions, the official approval of the State Council, as well as joint inspection and acceptance conducted by the said ten ministries and commissions are required . Recently, GACC issued the Measures for Review on Special Customs-controlled Areas. You can refer to the document via customs website. 05/09/2014 11:30:21
[Netizen: Guang Tou Bu Pa Shai]: I’m the export director of a private company in Jinan, and often contact with the Inspection Department of Customs. I don’t have much contact with the Anti-smuggling Department. But recently, a batch of our goods was found to under false declaration. It’s said that we shall receive customs administrative penalty. So I wonder whether there is any time limit for Customs to handle administrative penalty cases. Could the Customs tell us the progress of the handling of relevant case? April 17, 2014 10:09:36
[Liu Weiwei]: It is a very typical situation our anti-smuggling department often meets when handling administrative cases. We handle administrative penalty cases in strict compliance with the provisions of the Law of the People’s Republic of China on Administrative Penalty and the principle of openness and impartiality. For the specific time limit of handling, although there are no clear regulations, we regard efficiency as a basic requirement when handling a case, and spend more efforts to accelerate the examination and enhance supervision, so as to conclude the case as soon as possible and maintain the legal rights and interests of the parties concerned. According to the provisions of the Regulations of the General Administration of Customs of the People's Republic of on Implementing Administrative Penalties, goods, articles, means of transport and account books, or vouchers which are involved in a case and closely related to their relative person(s) subject to the administration shall not be detained for more than one year, and in case of any need of investigation, can be detained for one more year after the approval of Director General of the Customs district directly under GACC or that of the authorized local subordinate Customs. When a case is under investigation, any information on handling of the case shall not be provided to the party concerned. However, according to laws and regulations, before deciding to give administrative penalty, Customs shall inform the party concerned of facts, reasons and basis for decision of the administrative penalty, and of the party’s right for statement, defense and hearing. 05/09/2014 11:31:04
[Netizen: Di Lu]: Recently, after several foreign customers visited our company, we gave each of them a box of trilobite fossils as gifts. Well, can our customers leave China with the gifts? April 17, 2014 10:08:59
[Liu Weiwei]: The trilobite fossils, also known as the swallow stones, are widely distributed in Shandong Province, especially in Tai'an, Laiwu and other nearby areas. They are made into gifts for sale. There may be no restrictions on citizens to buy them and give them to their relatives and friends in China. However, there are strict restrictions on passengers carrying them to leave China. AS of January 1, 2011, the Regulation on the Protection of Fossils took effect in China. According to Article 33 of the Regulation, where any person transports, mails or carries fossils to outside China, he shall truthfully declare the fossils to the customs, and submit the approval document for exiting China issued by the competent department in charge of land resources under the State Council or under the people’s government of a province, autonomous region or municipality to the Customs. So please remember to obtain the approval document from the competent department of land resources before you leave China with the fossils. In case of failing to submit the relevant approval documents and declare to the Customs, the Customs will return the fossils in accordance with the provisions of relevant laws and administrative regulations. 05/09/2014 11:32:01
[Netizen: Zai Ji Ning]: We are a company specialized in electronic products, and we heard that there are many preferential policies in Jinan Comprehensive Free Trade Zone. So we want to settle down in the Zone. Well, I want to know if there are some policies to support the development of electronic information enterprises. April 17, 2014 10:07:52
[Liu Weiwei]: Thanks for your questions. As I said earlier, the Comprehensive Free Trade Zone has preferential tax policies such as "two exemptions, one security, tax rebates first and levy later”. "Levy later" refers to that the goods leaving the zone for domestic sale shall be subject to the customs clearance in accordance with relevant provisions, and the Customers levy taxes according to the actual status of the goods; many internationally well-known companies make use of the zero-tariff policy for IT products leaving the zone, and assemble the IT products with high tax rate within the zone into the whole IT products that can enjoy the zero tariff policy, so as to make full use of such policy and build the Comprehensive Free Trade Zone into an a "special economic zone" for IT industry. 05/09/2014 11:33:01
[Liu Weiwei]: Specifically, in the Comprehensive Free Trade Zone, three preferential policies are implemented to boost the development of the electronics industry represented by IT products. First, no tax is imposed on the production within the zone. The enterprises there can enjoy complete exemption from import duties and taxes for introducing equipment into the zone. So they can bring in advanced production equipment with high values from abroad to increase the technical content and stamina of enterprises in production. Second, no tariff is imposed on the finished products for domestic sale. Currently, the rate of duty of IT products is 0, which is lower than that of the imported material. The electronic information enterprises can make full use of this preferential policy to build a platform for IT industrial agglomeration to connect the home and overseas markets. Third, the bonded logistics business is conducted. Enterprises can set up large IT bonded logistics distribution warehouse, and establish the R&D institutes, software base and settlement center within the area under special supervision, so as to continuously extend the industrial chain of IT product manufacturing. 05/09/2014 11:33:31
[Netizen: Mei Shi He Yi Hu]: May I ask how the Customs deal with things such as the ivory and pangolin seized? Can we buy them? April 17, 2014 10:07:22