The classified management

In June 1, 1999, the customs began to enforce the classified management policy in order to help the enterprises to obey the laws.

This policy applies to the enterprises or denominations, which have the direct connection with import and export, including the foreign invested enterprises, production enterprises, processing trade business denominations, the processing enterprises that accept the commission, the enterprises that do the free-tax storage business and enterprises that use or do business with free-tax import-export goods.

The customs enforce the changing classified management on enterprises. If the enterprises do things as C and D kinds, the customs will change the management. For the management of D kind, if the enterprises don’t do things that belong to D kind in 2 years, the customs will use management of C kind. For the management of C kind, if the enterprises don’t do things that belong to C and D kinds in 1 year, the customs will use management of B kind.

The investigation ways of classified management

The customs set four kinds of classified management according to the management situation, the declaration situation and observance of the customs laws.

The kinds of management that apply to enterprises are decided by their local customs, and the enterprises that belong to A and D kinds should apply accreditation in the customs. The B and C kinds should be managed by the managing customs in their areas, while the A and D kind should be managed by the customs in the whole country.

When the kind of management of the processing trade business enterprises is different from that of the production enterprises accepting commission, the customs will use the D kind to manage them.

The standards of the classified management

A kind: the foreign companies with more than 30 million dollars import and export sum per year or more than 20 million dollars export sum, and the production enterprises that manage the export with more than 10 million dollars export sum, will be firstly considered:

  Register for over 2 years and

no breaking law record in 2 years,

no owing taxations in 2 years

cancel the processing contract on time in 2 years

not declare untrue things about the inspected commercials in 2 years

 Provide full and effective document, certificates to the customs

 Do the normal import and export businesses

 The accounting system is completed: full accounting books, suitable items and believable business records.

Appoint the special people to be in charge of the customs affairs.

The ratio of mistakes in the declaration sheet is below 5 % in 2 years.

The management system of the warehouse for customs’ inspected goods is well conditioned. The detailed items of the stores are clear. The in-store sheets and out-store sheets are managed specially, and the accounts agree with the goods.

C kind of management

The enterprises break the law twice in 1 year (excepting that are punished to pay less than 1000 yuan), or they don’t pay the taxation more than 50 thousand yuan but less than 500 thousand yuan.

The enterprises don’t the taxation less than 1 million yuan.

The management of the accounting books is out of the order, and the data cannot reflect the true import-and-export business situation.

The enterprises loss important businesses documents or refuse to provide the relevant accounting books and data so that it is difficult for the customs to inspect them.

The enterprises don’t arrange the cancel procedures for the processing contract according to regulations.

The ratio of mistakes of the declaration sheets is more than 10% in 1 year.

The enterprises lend the names for other enterprises to arrange the declaration and payment of taxation for import-and-export goods.

The enterprises have been criticized and warned by the managing department foreign trade bureau when doing import-and-export businesses.

D kind of management

The enterprises smuggle and don’t pay taxation for more than 500 thousand in 2 years.

The enterprises counterfeit or amend the import-and-export license or documents.

The enterprises smuggle the goods that are prohibited to import or export.

The enterprises default on the customs taxation for more than 1 million.

The enterprises cheat to get the loans on processing taxation by false document, declaration sheets and permission documents.

The enterprises set small rooms in the transport tools when transporting the inspected goods.

The enterprises have been suspended or dismiss the business permits.

The enterprises have smuggling crimes and should commit the criminal liability.

B kind of management

The enterprise that don’t belong to the A kind and don’t have the situations of C and D kinds will be managed in B kind by the customs. When the enterprises arrange the declaration registration for the first time, they can be managed in B kind.

The differences of different kinds of management

A kind of management: the conveniences are as follows:

The enterprises  can set the special service in the customs place, and can arrange  the application, verification and allowance to import-and-export procedures. The customs will check the goods by door to door firstly according to the requirements of the enterprises.

For the goods that are guaranteed, the customs will check and allow to import and export by the provided guarantee and not ask the enterprises to pay the guarantee fund.

The imported commercials, which should be checked by the customs, will not be checked by the samples.

The customs will give the convenience of the networked declaration to the enterprises.

The production enterprises for doing import-and-export business by themselves and research institutions can apply to set up import-and-export enterprises to the foreign trade bureau. The customs will give priority to arrange the declaration registration procedures for them.

B kind of management:

The customs will manage the enterprises of ordinary management system. The processing enterprises except those that process the limited kinds of commercials will go on to use the empty transference system for the bank certificate fund accounts.

C kind of management

The customs will verify the following measures:

The enterprises should pay the certificate fund for the goods that are guaranteed.

The enterprises should pay the certificate fund with the same amount of import taxation and export VAT for the imported materials that are accredited of the processing contract.

The customs pay serious attention to the business activities.

The customs will not arrange the declaration accreditation in different places.

The customs will report relevant situations to the state trade committee and foreign trade department.

D kind of management

The customs will not arrange the accreditation for the new processing contract.

The enterprises shouldn’t commit this kind of processing enterprises to process their goods.

The import-and-export goods should be checked in every carton.

The customs will suspend the enterprises’ qualification of declaration, or repeal the qualifications of transporting the inspected goods and the free-of-taxation store.

The customs will report relevant situations to the state trade committee and foreign trade department. They will punish the enterprises according to the interim provisions of warning, suspending or repealing the business permission of foreign trade and international cargo representatives for enterprises that break the law and smuggle.

The customs verification procedures

The managing customs deal with the enterprises’ application sheets.

The management department of the enterprises will be in charge of the verification of the documents and data handed to the customs.

The department whose functions are investigation, survey, sake, verification, taxation, free of taxation, documents verification and statistics will provide the information and managing suggestions about the enterprises breaking-law activities, owing the taxation, canceling of the processing contract, the accounting system and the ratio of mistakes of store management, amount of import and export and the declaration sheets.

The management departments collect the information and suggestions provided by relevant departments, and inspect these firstly with the computer assessment procedures for classified management. Then they will hand over the inspection suggestion to the classified management committees to decide what should do.

The managing customs should provide the enterprises lists to the local foreign trade department, trade committee, taxation bureau, foreign capital management department and china bank in 7 working days, and get the suggestions from these departments.

When the customs collect the suggestions, they will organize the classified management to the enterprises with no different ideas. And they should assess again for the enterprises lists with different ideas.

The customs should notice the applied enterprises, which will use A kind of management in 30 days from the verification day.

The accounting system of the bank certificate fund

It means when the processing contracts are accredited in the customs, the processing organizations, including the enterprises that are permitted to do business of accepting materials for processing, apply to set up the certificate fund accounting of the imported materials to the trade managing department with the permitted documents of the permitted processing contract, and the verified procedures. The finished productions should be exported in the limited time. After being cancelled by the customs, the bank will cancel the certificate fund accounting.

The procedures of this system are as follows:

The excellent enterprises of A kind will not use the accounting system;

The most of commercials and enterprises of B kind will continue to enforce the free-of-taxation policy and empty transferring of certificate fund accounting.

The limited commercials, which are difficult to verify and whose prices are not very different both at home and abroad, and enterprises of C kind of management, which break the law before, will enforce the actual transferring of the certificate fund accounting.

The ways of the actual transferring

When arranging the accounting, the enterprises deposit the certificate fund whose amount is same with taxations and importing VAT of the imported materials to the appointed account set up by the china bank. After the enterprises process and export again and arrange the customs cancel in the limited time, the china bank will arrange the rebate of certificate fund procedures with the accounting cancel sheet opened by the customs, and count the interest of current deposit. For those that don’t export in the stated terms or that are permitted to sell in domestic market, the customs will notice the china bank to change the certificate fund and interest to taxation and interest of pulling taxation.

The customs will arrange the enterprises of D kind that had smuggled before, and the foreign trade-managing department will stop their business right. For foreign invested enterprises, the foreign trade-managing department will notice the customs to suspend their import-and-export business for 1 year.

The enterprises in the FTZ do the processing business will not use this system but the customs investigation measures in the FTZ.