International Trade and Customs Affairs Newsletter,February, 2021
Release time：2021-04-26 15:15
China Customs revises administrative measures for the tax reductions and emptions for goods
On December 21, 2020, the General Administration of Customs of the People’s Republic of China announced the newly revised Administrative Measures of the Customs of the People's Republic of China for the Tax Reductions and Exemptions for Imported and Exported Goods, which will be formally implemented on March 1, 2021.
Compared with the original administrative measures (Order No. 179 of the General Administration of Customs), the following major changes have been made:
1. The two-step administrative mode of "filing + approval" before the import of tax-deducted goods is simplified to one-step administrative mode of "review and confirmation"
2. Incorporating the follow-up administration of goods with tax-reduction or exemption into the corporate credit administrative record;
3.Deleting the illegal liability clause, while adding special penalty clauses;
4.Deleting the relevant provisions on the "pledge" of goods with tax-reduction or exemption. The above-mentioned amendments are consistent with the customs' reform concepts in recent years in enhancing the facilitation of customs clearance, optimizing the business environment, and enhancing credit administration.
Implementation of the new Customs Import and Export Tariff in 2021
The 2021 Customs Import and Export Tariff includes 8580 tax items with 8 digits. Compared with last year, 58 new items were added, 27 items were deleted, and 44 items were revised. Provisional import tax rates lower than the most-favored-nation tax rate were set for 883 items.
The tariff rate on raw materials of medicines for rare diseases and food for special child patients is reduced to zero; the tariff rates on imports of certain equipments, components, raw materials and other commodities required by new infrastructure or high-tech industries such as fuel cell circulating pumps, aluminum silicon carbide substrates, and arsine alkane, etc. have also been reduced.
Tax policy investigation will begin in 2021
Customs investigations of tax policy refer to the activities of the Customs system to report problems to the State Council and propose tax policy adjustments after conducting investigations into industries, enterprises and products.
In January of each year, the Customs begins to collect proposals for tariff adjustment from import and export enterprises. Enterprises can propose to reduce the import tariff rate of a certain product, adjust the name of the product, increase or decrease the tariff code, adjust the regulatory conditions, reduce the import tariff rate, and cancel or reduce exports, increase export tax rebate rate, and adjust the provisional tax rate. In 2020, the General Administration of Customs has collected more than 2,000 tax policy proposals.
Announcement No. 58 [2020] of the MOFCOM: Preliminary Determination on Anti-subsidy Investigation against Imported Wines Originating in Australia
On December 10, 2020, Ministry of Commerce of the People’s Republic of China (the “MOFCOM”) issued Announcement No. 58 of 2020, making public the preliminary determination on anti-subsidy investigation against imported wines originating in Australia.
On August 31, 2020, the MOFCOM issued Announcement No. 35 of 2020, making public its decision to initiate an anti-subsidy investigation against imported wines originating in Australia.
The MOFCOM preliminarily determined that subsidy existed for the subject merchandise originating in Australia, domestic wine industry suffered material injury and there is a casual link between the subsidy and injury. The subsidy rate of respondents is as below:
Announcement No. 59 [2020] of the MOFCOM: Preliminary Determination on Anti-dumping Investigation against Imported Wines Originating in Australia
On November 27, 2020, the “MOFCOM issued Announcement No. 59 of 2020, making public the preliminary determination on anti-dumping investigation against imported wines originating in Australia.
On August 18, 2020, the MOFCOM issued Announcement No. 34 of 2020, making public its decision to initiate an anti-dumping investigation against imported wines originating in Australia.
The MOFCOM preliminarily determined that the subject merchandise originating in Australia dumped in China, domestic wine industry suffered material injury and there is a casual link between the dumping and injury. The dumping margin of respondents is as below:
Announcement No. 60 [2020] of the MOFCOM: Final Determination on Anti-dumping Investigation against Imported Ethylene-Propylene-non-conjugated Diene Rubber Originating in the United States, Korea and the European Union
On December 18, 2020, the “MOFCOM issued Announcement No. 60 of 2020, making public the final determination on anti-dumping investigation against imported Ethylene-Propylene-non-conjugated Diene Rubber originating in the United States, Korea and the European Union.
On June 19, 2019, the MOFCOM issued Announcement No. 29 of 2019, making public its decision to initiate an anti-dumping investigation against imported Ethylene-Propylene-non-conjugated Diene Rubber originating in the United States, Korea and the European Union.
On October 23, 2020, the MOFCOM preliminarily determined that the subject merchandise originating in the United States, Korea and the European Union dumped in China, related domestic Ethylene-Propylene-non-conjugated Diene Rubber industry suffered material injury and there is a casual link between the dumping and injury.
After the preliminary determination, the MOFCOM continued the investigation into dumping and dumping margins, injury and the extent of injury, and the causal relationship between the dumping and injury. The MOFCOM finally determined that the subject merchandise originating in the United States, Korea and the European Union dumped in China, related domestic Ethylene-Propylene-non-conjugated Diene Rubber industry suffered material injury and there is casual link between the dumping and injury.
The dumping margin of respondents is as below:
This is legal information provided by DHH to clients and other lawyers. The information contained in this letter shall not be regarded as a legal opinion of DHH or its attorneys. If you are interested in learning more about the content of this newsletter, please contact an attorney practicing in this field.
On December 21, 2020, the General Administration of Customs of the People’s Republic of China announced the newly revised Administrative Measures of the Customs of the People's Republic of China for the Tax Reductions and Exemptions for Imported and Exported Goods, which will be formally implemented on March 1, 2021.
Compared with the original administrative measures (Order No. 179 of the General Administration of Customs), the following major changes have been made:
1. The two-step administrative mode of "filing + approval" before the import of tax-deducted goods is simplified to one-step administrative mode of "review and confirmation"
2. Incorporating the follow-up administration of goods with tax-reduction or exemption into the corporate credit administrative record;
3.Deleting the illegal liability clause, while adding special penalty clauses;
4.Deleting the relevant provisions on the "pledge" of goods with tax-reduction or exemption. The above-mentioned amendments are consistent with the customs' reform concepts in recent years in enhancing the facilitation of customs clearance, optimizing the business environment, and enhancing credit administration.
Implementation of the new Customs Import and Export Tariff in 2021
The 2021 Customs Import and Export Tariff includes 8580 tax items with 8 digits. Compared with last year, 58 new items were added, 27 items were deleted, and 44 items were revised. Provisional import tax rates lower than the most-favored-nation tax rate were set for 883 items.
The tariff rate on raw materials of medicines for rare diseases and food for special child patients is reduced to zero; the tariff rates on imports of certain equipments, components, raw materials and other commodities required by new infrastructure or high-tech industries such as fuel cell circulating pumps, aluminum silicon carbide substrates, and arsine alkane, etc. have also been reduced.
Tax policy investigation will begin in 2021
Customs investigations of tax policy refer to the activities of the Customs system to report problems to the State Council and propose tax policy adjustments after conducting investigations into industries, enterprises and products.
In January of each year, the Customs begins to collect proposals for tariff adjustment from import and export enterprises. Enterprises can propose to reduce the import tariff rate of a certain product, adjust the name of the product, increase or decrease the tariff code, adjust the regulatory conditions, reduce the import tariff rate, and cancel or reduce exports, increase export tax rebate rate, and adjust the provisional tax rate. In 2020, the General Administration of Customs has collected more than 2,000 tax policy proposals.
Announcement No. 58 [2020] of the MOFCOM: Preliminary Determination on Anti-subsidy Investigation against Imported Wines Originating in Australia
On December 10, 2020, Ministry of Commerce of the People’s Republic of China (the “MOFCOM”) issued Announcement No. 58 of 2020, making public the preliminary determination on anti-subsidy investigation against imported wines originating in Australia.
On August 31, 2020, the MOFCOM issued Announcement No. 35 of 2020, making public its decision to initiate an anti-subsidy investigation against imported wines originating in Australia.
The MOFCOM preliminarily determined that subsidy existed for the subject merchandise originating in Australia, domestic wine industry suffered material injury and there is a casual link between the subsidy and injury. The subsidy rate of respondents is as below:
| Name of Company | Subsidy Rate |
| Samples Companies | |
| Treasury Wine Estates Vintners Limited | 6.3% |
| Casella Wines Pty. Limited | 6.3% |
| Australia Swan Vintage Pty Ltd | 6.3% |
| Pernod Ricard Winemakers Pty Ltd | 6.4% |
| Other Companies Cooperated with the Investigation | |
| AUSTRALIA FARM AND LAND INVESTMENT PTY LTD | 6.3% |
| Accolade Wines Australia Limited | 6.3% |
| OCTTAVA WINES PTY LTD | 6.3% |
| Australian Vintage Limited | 6.3% |
| Bogdan Investments Pty Ltd | 6.3% |
| BROWN BROTHERS MILAWA VINEYARD PTY. LIMITED | 6.3% |
| AGREEN PTY LTD | 6.3% |
| Dorrien Estate Winery Pty Ltd | 6.3% |
| FERNGROVE VINEYARDS LTD | 6.3% |
| FOWLES WINE PTY LTD | 6.3% |
| FURUNDE WINE CO. PTY LTD | 6.3% |
| Kilikanoon Wines Pty Ltd | 6.4% |
| THE RED KANGAROO WINE COMPANY PTY. LTD | 6.3% |
| Chapel Hill Winery Pty Ltd | 6.3% |
| Portia Valley Wines Pty Ltd | 6.3% |
| ZILZIE WINES PTY LTD | 6.3% |
| S. SMITH & SON PTY. LIMITED | 6.3% |
| TERRA FELIX PTY. LTD. | 6.3% |
| AUSTRALIAN FOOD & BEVERAGE GROUP PTY LTD | 6.3% |
| WINGARA WINE GROUP PTY. LTD. | 6.3% |
| All Other Australian Companies | 6.4% |
Announcement No. 59 [2020] of the MOFCOM: Preliminary Determination on Anti-dumping Investigation against Imported Wines Originating in Australia
On November 27, 2020, the “MOFCOM issued Announcement No. 59 of 2020, making public the preliminary determination on anti-dumping investigation against imported wines originating in Australia.
On August 18, 2020, the MOFCOM issued Announcement No. 34 of 2020, making public its decision to initiate an anti-dumping investigation against imported wines originating in Australia.
The MOFCOM preliminarily determined that the subject merchandise originating in Australia dumped in China, domestic wine industry suffered material injury and there is a casual link between the dumping and injury. The dumping margin of respondents is as below:
| Name of Company | Dumping Margin |
| Sampled Companies | |
| Treasury Wine Estates Vintners Limited | 169.3% |
| Casella Wines Pty Limited | 160.2% |
| Australia Swan Vintage Pty Ltd | 107.1% |
| Other Companies Cooperated with the Investigation | |
| Australia Farm and Land Investment PTY Ltd | 160.6% |
| Accolade Wines Australia Limited | 160.6% |
| Octtava Wines Pty Ltd | 160.6% |
| Australian Vintage Limited | 160.6% |
| Pernod Ricard Winemakers Pty Ltd | 160.6% |
| Bogdan Investments Pty Ltd | 160.6% |
| Brown Brothers Milawa Vineyard Pty Limited | 160.6% |
| Agreen Pty Ltd | 160.6% |
| Dorrien Estate Winery Pty Ltd | 160.6% |
| Ferngrove Vineyards Ltd | 160.6% |
| Fowles Wine Pty Ltd | 160.6% |
| Furunde Wine Co. Pty Ltd | 160.6% |
| Kilikanoon Wines Pty Ltd | 160.6% |
| The Red Kangaroo Wine Company Pty. Ltd | 160.6% |
| Chapel Hill Winery Pty Ltd | 160.6% |
| Portia Valley Wines Pty Ltd | 160.6% |
| Zilzie Wines Pty Ltd | 160.6% |
| S. Smith & Son Pty. Limited | 160.6% |
| Terra Felix Pty. Ltd | 160.6% |
| Australian Food & Beverage Group Pty Ltd | 160.6% |
| Wingara Wine Group Pty. Ltd | 160.6% |
| All Other Australian Companies | 212.1% |
Announcement No. 60 [2020] of the MOFCOM: Final Determination on Anti-dumping Investigation against Imported Ethylene-Propylene-non-conjugated Diene Rubber Originating in the United States, Korea and the European Union
On December 18, 2020, the “MOFCOM issued Announcement No. 60 of 2020, making public the final determination on anti-dumping investigation against imported Ethylene-Propylene-non-conjugated Diene Rubber originating in the United States, Korea and the European Union.
On June 19, 2019, the MOFCOM issued Announcement No. 29 of 2019, making public its decision to initiate an anti-dumping investigation against imported Ethylene-Propylene-non-conjugated Diene Rubber originating in the United States, Korea and the European Union.
On October 23, 2020, the MOFCOM preliminarily determined that the subject merchandise originating in the United States, Korea and the European Union dumped in China, related domestic Ethylene-Propylene-non-conjugated Diene Rubber industry suffered material injury and there is a casual link between the dumping and injury.
After the preliminary determination, the MOFCOM continued the investigation into dumping and dumping margins, injury and the extent of injury, and the causal relationship between the dumping and injury. The MOFCOM finally determined that the subject merchandise originating in the United States, Korea and the European Union dumped in China, related domestic Ethylene-Propylene-non-conjugated Diene Rubber industry suffered material injury and there is casual link between the dumping and injury.
The dumping margin of respondents is as below:
| Name of Company | Dumping Margin |
| Companies of the United States | |
| The Dow Chemical Company | 222.0% |
| Exxon Mobil Corporation | 214.9% |
| ARLANXEO USA LLC | 219.8% |
| Lion Copolymer Geismar, LLC | 219.8% |
| All Others | 222.0% |
| Companies of Korean | |
| KUMHO POLYCHEM Co.,Ltd. | 12.5% |
| Lotte Versalis Elastomers Co.,Ltd. | 21.1% |
| All Others | 24.5% |
| Companies of the European Union | |
| ARLANXEO Netherlands B.V. | 18.1% |
| ExxonMobil Chemical France (ExxonMobil Chemical France Société par Actions Simplifiée) | 14.7% |
| Versalis S.p.A. | 16.5% |
| All Others | 31.7% |
|
Contact |
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|
Lawyer: Zhao Jing Mobile: 13911906253 E-mail: zhaojing@deheng.com |
Lawyer: Ma Ronghua Mobile: 13717655052 E-mail: maronghua@deheng.com |
Lawyer: Zu Jiapei Mobile: 13810779581 E-mail: zujiapei@deheng.com |
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Edited ： Wang Yuqing Jin Lu |
This is legal information provided by DHH to clients and other lawyers. The information contained in this letter shall not be regarded as a legal opinion of DHH or its attorneys. If you are interested in learning more about the content of this newsletter, please contact an attorney practicing in this field.
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