China Tax Alert - Issue 7, March 2014
In a bid to address some key concerns among processing trade companies and related party importers, the General Administration of Customs recently released a raft of measures, which should lay the foundations for more transparent, standardized, and predictable means to appraise products for Customs purposes and in accordance with WTO principles. Processing trade or bonded zone enterprises and those involved in general trade between related parties are particularly affected.
The release of the new measures aim at reducing these previous uncertainties about the actual duty and VAT cost of general trade imports and bonded domestic sales. As such, these developments are expected to enhance the overall business atmosphere for China’s general trade, processing trade and bonded logistics enterprises. We expect these developments to greatly promote China’s cross border trade environment.