TradeLane

How China Is Improving the Speed to Market with the Two-Step Declaration Program

Posted by Cindy Chen

9/3/19 2:38 PM

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According to Announcement of GACC [2019] 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:

  1. Reduced clearance time at the port
  2. Improved clearance efficiency of customs clearance
  3. 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.

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Topics: China

Written by Cindy Chen

Cindy Chen leads Tradewin China team and is responsible for overall management and leadership of China operations. Cindy possesses a wealth of knowledge and 18 years practical experience on all manner of China Customs and trade matter. She maintains close relationships with Customs, CIQ and other authorizations in China. In addition to technical knowledge of China trade regulations and policies, Cindy understands how those policies are implemented on the ground in real life. Prior to joining Tradewin, Cindy worked for General Electric (GE) for 12 years in a range of China and Asia Customs and trade compliance management roles including: Customs Strategic Initiatives Leader – APAC & China; Customs Integration and Processes Project Manager – APAC; and Customs and Trade Compliance Leader – Greater China. Prior to GE, Cindy worked for Emerson responsible for Asia Pacific logistics. She is a graduate of East China University of Science and Technology, and also holding the PMP certification from the Project Management Institute.