China’s Tariff Law Amendment to Take Effect in December!

On December 1, 2024, China will officially implement the Customs Tariff Law of the People’s Republic of China (hereinafter referred to as the “Tariff Law”). The newly added provisions allow China to impose retaliatory tariffs on countries that take unilateral actions such as prohibiting, restricting, or imposing additional tariffs on Chinese goods, thereby affecting trade measures.

This amendment highlights five key points:

  1. Strengthening the Foundation of Tax Collection and Administration:
    Tax authorities are authorized to verify the amount of taxes payable within three years from the date taxpayers or withholding agents pay taxes or when goods are released.
  2. Enhancing the Predictability of Tax-Related Elements:
    China’s customs authorities will issue advance rulings on customs matters related to actual import and export activities upon applicants’ requests.
  3. Increasing Benefits for Voluntary Disclosure:
    Measures such as expanding the scope of non-penalty cases are introduced to encourage businesses to voluntarily disclose issues.
  4. Reinforcing Penalties for Violations:
    Clear penalty standards are set for tax-related violations, with serious offenses subject to fines of up to RMB 30,000.
  5. Strengthening Corporate Compliance Management Responsibilities:
    The amendment provides a legal framework and requirements for customs duties in import and export activities, urging companies to enhance compliance management in their daily operations.

In light of the new regulations, businesses must reassess their import and export compliance strategies, improve management practices, establish internal compliance systems, prioritize customs advance rulings, and optimize supply chain planning.

Source: Chinese Government Website / Watchinese Magazine