International Trade and Customs Affairs Newsletter, September, 2020

Provisions on the Reduction or Exemption of Taxes on 20 Commodities have resumed
 

In 1994, the State Council of China issued an announcement implementing the provisions on ceasing the reduction or exemption of taxes on 20 commodities, including televisions, video cameras, video recorders, video players, audio equipment, air conditioners, refrigerators and freezers, washing machines, cameras, photocopiers, program- controlled telephone switches, and microcomputers. And peripherals, telephones, wireless paging systems, fax machines, electronic calculators, typewriters and word processors, furniture, lamps, meals (referring to condiments, meat, poultry, eggs, vegetables, aquatic products, fruits, beverages, wine, Dairy products). After a lapse of 26 years, on August 5, 2020, the Ministry of Finance, General Administration of Customs and State Taxation Administration issued the Announcement on No Longer Implementing the Provisions on Ceasing the Reduction or Exemption of Taxes on 20 Commodities, clearly resuming the tax reductions and exemptions for the above- mentioned 20 commodities from the date of the announcement. The main effects of this announcement are as follows:
 

--Baggage and articles carried by inbound passengers
 

Inbound passengers carrying luggage and articles within the range of 20 commodities will also be subject to the 5,000-yuan tax-free limit for personal purchases.
 

When an enterprise imports self-use equipment that meets the tax reduction or exemption policy, 20 kinds of commodities will no longer be excluded.
 

--Special supervision area
 

Enterprises in special supervision areas can enjoy the tax reduction and exemption for importing 20 kinds of commodities.
 

The General Administration of Customs Announces Arrangements for Random Inspections of Imported and Exported Commodities Other than Those Subject to Statutory Inspection in 2020
 

On August 21, 2020, the General Administration of Customs issued the Announcement No. 95 [2020] on Conducting Random Inspections of Imported and Exported Commodities Other than Those Subject to Statutory Inspection in 2020. General Administration of Customs has decided to conduct random inspections of some imported and exported commodities other than those subject to statutory inspection from the date of issuance of this Announcement. The scope of commodities subject to random inspections are in the followings:
 

Imported commodities:
 

Children's clothes, stationery, ties, scarves, toilets, dishwashers, air purifiers, printers, electric water heaters, microcomputers, televisions, monitors, junk food processors, induction cookers, motor vehicle horns, motor vehicle response reflectors, motor vehicle brake hoses, car interior accessories, dyes, pigments, etc.
 

--Imported equipment
 

Export commodities:
 

Simulation accessories, children's bicycles, children's scooters, electric strollers, plush toys, electric faucets, etc.
 

Comparing with the 2019 random inspection catalog, it can be found that the scope of random inspection of imported goods by China Customs has been greatly expanded, while the scope of random inspection of export commodities has been significantly reduced, which means that China Customs has stricter control on the quality of imported goods.
 

Shanghai launches new policies for the Lingang New Area of the Pilot Free Trade Zone
 

On August 20, 2019, the Lingang New Area of Shanghai Pilot Free Trade Zone was inaugurated and established. The Shanghai Municipal Government released the latest construction action plan on August 20, 2020. The main contents include:
 

1. For qualified R&D enterprises in key areas such as integrated circuits, artificial intelligence, biomedicine, and civil aviation in Lingang New Area, implement the corporate income tax policy at a reduced rate of 15% within 5 years from the date of establishment.
 

2. Accelerate the planning and construction of specialized parks for integrated circuits, biomedicine, smart cars, and civil aviation.
 

3. Promote the integration of intellectual property government services and other functions into the Intellectual Property Center of Lingang New Area. Establish overseas intellectual property risk early warning and rapid response mechanisms. Introduce professional judicial institutions for intellectual property rights and foreign law verification mechanisms.
 

4. Improve the existing functional business formats such as bulk trade, shipping logistics, transit consolidation, and import distribution in the Yangshan Special Comprehensive Bonded Zone, and expand new business formats such as bonded research and development, bonded manufacturing, and bonded maintenance. Increase the actualized operation ratio of trading enterprises in the Yangshan Special Comprehensive Bonded Zone, cultivate and strengthen the global maintenance and testing business system at most levels, expand the scope and scale of the pilot business of marine engine cross-port maintenance, and support the development of "two ends" aviation equipment subcontracting area Circulation business, to encourage aircraft maintenance companies to contract overseas aviation equipment repair subcontracted repair business.
 

5. Establish a rapid external transportation network and upgrade the function of a regional hub city in the Yangtze River Delta in the new Lingang area.
 

6. Increase environmental protection and rectification efforts.
 

7. Establish a legal protection mechanism, establish a one-stop international commercial dispute resolution mechanism and an international legal service center in Lingang New Area. Encourage overseas arbitration institutions to establish business institutions in the Lingang New Area.
 

Announce No. 36 [2020] of the Ministry of Commerce: Initiation of the Anti- dumping Investigation on Imported Certain Monoalkyl Ethers of Ethylene Glycoland Propylene Glycol originating in the US
 

On August 31, 2020, Ministry of Commerce of the People's Republic of China (the "MOFCOM") issued Announcement No. 36 of 2020, making public its decision to initiate the anti-dumping investigation on imported certain monoalkyl ethers of ethylene glycol and propylene glycol originating in the US.
 

On July 17, 2020, the MOFCOM received a petition for an anti-dumping investigation submitted by Jiangsu Yida Chemical Co., Ltd., Jilin Yida Chemical Co., Ltd. and Zhuhai Yida Chemical Co., Ltd. (hereinafter referred to as “the petitioners”) on behalf of the domestic certain monoalkyl ethers of ethylene glycol and propylene glycol industry. The petitioners requested the MOFCOM to conduct an anti-dumping investigation into the imported certain monoalkyl ethers of ethylene glycol and propylene glycol originating in the US. Pursuant to the Anti-Dumping Regulations of the People’s Republic of China, the MOFCOM examined the standing of the petitioners, the relevant information of the subject merchandise in the petition, the information of the domestic like products in Mainland China, the impact of the subject merchandise in the petition on the domestic industry, the relevant situation of the subject country, etc. and then decided to initiate the anti-dumping investigation on imported certain monoalkyl ethers of ethylene glycol and propylene glycol from the US since August 31, 2020.
 

The product is classified under29094400 and 29094990 in the Customs Import and Export Tariff of the People’s Republic of China. The dumping period of this investigation is from January 1, 2019 to December 31, 2019 and the injury period of the investigation is from January 1, 2016 to December 31, 2019.
 

Announce No. 35 [2020] of the Ministry of Commerce: Initiation of the Countervailing Investigation on Imported Wines originating in Australia
 

On August 31, 2020, Ministry of Commerce of the People's Republic of China (the "MOFCOM") issued Announcement No. 35 of 2020, making public its decision to initiate the countervailing investigation on imported wines in containers holding 2 liters or less originating in Australia.
 

On July 6, 2020, the MOFCOM received a petition for countervailing investigation submitted by China Alcoholic Drinks Association (hereinafter referred to as “the petitioner”) on behalf of the domestic wine industry. The petitioners requested the MOFCOM to conduct a countervailing investigation into the imported wines in containers holding 2 liters or less from Australia. According to Article 16 of the Countervailing Regulations of the People’s Republic of China, the MOFCOM conducted consultation with the government of Australia on August 27, 2020. In addition, pursuant to the Countervailing Regulations of the People’s Republic of China, the MOFCOM examined the standing of the petitioners, the relevant information of the subject merchandise in the petition, the information of the domestic like products in Mainland China, the impact of the subject merchandise on the domestic industry, the relevant situation of the subject country, etc. and then decided to initiate the countervailing investigation on wines in containers holding 2 liters or less from Australia.
 

The product is classified under 22042100 in the Customs Import and Export Tariff of the People’s Republic of China. The dumping period of this investigation is from January 1, 2019 to December 31, 2019 and the injury period of the investigation is from January 1, 2015 to December 31, 2019.
 

Announce No. 34 [2020] of the Ministry of Commerce: Initiation of the Anti- dumping Investigation on Imported Wines originating in Australia
 

On August 18, 2020, Ministry of Commerce of the People's Republic of China (the "MOFCOM") issued Announcement No. 34 of 2020, making public its decision to initiate the anti-dumping investigation on imported wines in containers holding 2 liters or less originating in Australia.
 

On July 6, 2020, the MOFCOM received a petition for anti-dumping investigation submitted by China Alcoholic Drinks Association (hereinafter referred to as “the petitioner”) on behalf of the domestic wine industry. The petitioners requested the MOFCOM to conduct an anti-dumping investigation into the imported wines in containers holding 2 liters or less from Australia. According to the provisions of the Anti-dumping Regulations of the People’s Republic of China, the MOFCOM examined the standing of the petitioners, the relevant information of the subject merchandise in the petition, the information of the domestic like products in Mainland China, the impact of the subject merchandise on the domestic industry, the relevant situation of the subject country, etc. and then decided to initiate the anti-dumping investigation on wines in containers holding 2 liters or less from Australia.
 

The product is classified under 22042100 in the Customs Import and Export Tariff of the People’s Republic of China. The dumping period of this investigation is from January 1, 2019 to December 31, 2019 and the injury period of the investigation is from January 1, 2015 to December 31, 2019.
 

Announce No. 32 [2020] of the Ministry of Commerce: Initiation of the Countervailing Investigation on Imported Polyphenylene Ether originating in the US
 

On August 14, 2020, the MOFCOM issued Announcement No. 32 of 2020, making public its decision to initiate the countervailing investigation on imported polyphenylene ethers originating in the US.
 

On June 23, 2020, the MOFCOM received a petition for countervailing investigation submitted by Nantong Xingchen Synthetic Material Co., Ltd. (hereinafter referred to as the “Petitioner”) on behalf of the domestic industry of polyphenylene ether. The petitioners requested the MOFCOM to conduct a countervailing investigation into the imported polyphenylene ether from the US. According to Article 16 of the Countervailing Regulations of the People’s Republic of China, the MOFCOM conducted consultation with the government of the United States on August 11, 2020. In addition, pursuant to the Countervailing Regulations of the People’s Republic of China, the MOFCOM examined the standing of the petitioners, the relevant information of the subject merchandise in the petition, the information of the domestic like products in Mainland China, the impact of the subject merchandise on the domestic industry, the relevant situation of the subject country, etc. and then decided to initiate the countervailing investigation on wines in containers holding 2 liters or less from Australia.
 

The product is classified under 39072090 in the Customs Import and Export Tariff of the People’s Republic of China. The dumping period of this investigation is from January 1, 2019 to December 31, 2019 and the injury period of the investigation is from January 1, 2017 to December 31, 2019.
 

Announcement No.29 [2020] of the Ministry of Commerce: Announcement on Final Determination of Sunset Review on Single-mode Optical Fiber from India
 

On August 13, 2020, the MOFCOM issued Announcement No. 29 of 2020, making the final determination of the sunset review on single-mode optical fiber from India.
 

On August 13, 2014, the MOFCOM issued Announcement No. 56 of 2014, deciding to impose anti-dumping duty on single-mode optical fiber from India for 5 years. On August 13, 2019, upon the request of domestic industry, the MOFCOM decided to initiate sunset review on the anti- dumping measures against single-mode optical fiber from India. After review, the MOFCOM determined that, if the anti-dumping measures are terminated, the dumping of single-mode optical fiber will continue or re-occur and the injury to domestic industry will continue or re-occur. Therefore, the MOFCOM decided to impose the anti-dumping duties on single-mode optical fiber from India for another five years.
 

The dumping duties are as below:

DHH International Trade and Customs Affairs Team ("DHH Customs Team") is composed of lawyers with extensive experience in the international trade and customs fields. Areas of expertise include anti-dumping, countervailing duties, anti-smuggling, Customs legal system regulations, customs inspections, trade in value-added -manufacturing products, enterprise management, and customs supervision and control. We are devoted to maintaining our position as one of the top international trade and customs affairs teams in China. Our scope of services include: representing clients in administrative and criminal cases; duty disputes resolution; advising concerning customs clearance; protection of intellectual property rights during the customs process; review of and advising on company customs compliance and risk management policies and procedures; advising concerning AEO applications; as well as servicing all other legal needs arising in the customs and international trade areas.
 

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