According to Announcement of GACC  No.127, to promote trade facilitation, China Customs decided to implement a “two-step declaration” pilot program in some Customs houses under Manzhouli Customs, Hangzhou Customs, Ningbo Customs, Qingdao Customs, Shenzhen Customs, and Huangpu Customs since Aug. 24th.
Under “two-step declaration”, the speed to market for goods being imported to China will be considerably improved.
In simple and practical terms, the “two-step declaration” involves a simplified “General Declaration” after goods arrival, followed by a more “Complete Declaration” within specified time after the release of goods.
General Declaration refers to when the IOR/EOR submits relevant basic B/L information for Safety Access at the port. It is a simplified declaration to facilitate a prompt customs release.
Complete Declaration would follow within 14 days after the release of goods and include the other necessary information and documents for Customs duty collection, quality assessment, and Customs statistics purpose. Dutiable goods can also be released after duty guarantees are provided.
This new beneficial policy will bring additional benefits to the importers who are certified with AEO, including both General AEO (“GCE”) and Advanced AEO (“ACE”) enterprises.
The three (3) main benefits of this new declaration mode to importers are:
- Reduced clearance time at the port
- Improved clearance efficiency of customs clearance
- Increase in internal verification time for the enterprises in order to make the compliant declaration.
In addition, this will also improve the data quality for China Customs statistics fundamentally. There is a great possibility that China Customs will implement it nationwide in 2020 according to the results of the pilot.
Meanwhile, as Customs provides trade facilitation benefits with onus on data quality and declaration compliance, it is expected that Customs will increase the intensity of post importation audit and verification.
Enterprises are therefore expected to manage customs rating (AEO certification) and strengthen the process of reviewing declaration specifications.
If you want to understand more, please reach out to our team in China.