The General Administration of Customs (GAC) has issued Announcement No. 15 on 26 March 2012 to promulgate the Classification Table of Imported Articles and the revised Dutiable Value Table of Imported Articles. Both came into force on 15 April.
According to the announcement, the following principles must be applied in sequential order to classify imported articles:
- where an article is listed in the Classification Table, it must be classified into the relevant category accordingly;
- where an article is not yet listed in the Classification Table, it must be classified in the corresponding category based on its main function (i.e. usage);
- and where an article cannot be classified into a corresponding category according to the above principles, it shall be classified as an “other article”.
The dutiable value of imported articles shall be determined by customs according to the following principles:
- where the dutiable value of an article is listed in the Dutiable Value Table, it shall be determined accordingly;
- where the dutiable value of an article is not listed in the Dutiable Value Table, it shall be determined according to the current retail market price of same articles from the same source; and
- where the actual purchase price of an article is more than two times the dutiable value listed in the Dutiable Value Table, or is less than half of the duty-paid price listed in the table, the owner of the imported article should present to customs the purchasing invoice or receipts legally issued by the selling party. Customs may, in light of the above invoice or receipts provided by the owner, determine the dutiable value of the article in accordance with the law.
The dutiable value of special goods required by national minority groups in border areas must be determined pursuant to dutiable value tables that are separately announced by the GAC. Finally, taxpayers that disagree with the classification or determination of dutiable value with respect to an imported article may file for an administrative review in accordance with the law.
Business Law Digest is compiled with the assistance of Baker & McKenzie. Readers should not act on this information without seeking professional legal advice. You can contact Zhang Danian (Shanghai) at Baker & McKenzie by e-mail at: [email protected]