GAC Releases Specific Implementation Methods for CBEC Supervision

Takehome: GAC released a regulation on CBEC supervision detailing the customs clearance management protocols and compliance deadlines.

Following on from the earlier release of four official files about the CBEC policy by MOFOM and MOF, on December 10th GAC released Notice No. 194, regulating specific implementation methods on CBEC supervision in accordance with the four files. It mainly includes:

Enterprise management

CBEC enterprises, platforms, CBEC agents, logistics companies, payment enterprises, etc. shall finish registration in the customs of their location.

Customs clearance management

Mode	Commodity scope	37 pilot cities	Non-pilot cities
Bonded Mode	All the commodities (1321 commodities) in the positive list	Supervision code 1210 Managed by personal use products Import permit license for the first time is not needed No registration/filing is needed	Supervision code 1239 Import permit license for the first time is not needed When products entered from abroad to the bonded area (refer to the "customs supervision area"), they are supervised as goods (products like infant formula, health food and FSMP need registration/filing) When products delivered from the bonded area to consumers, they are supervised as products for personal use
Direct Mail Mode	1245 Commodities in the positive list except the products noted "Only limited to commodities imported via CBEC under the bonded warehouse model"	Supervision code 9610 Supervised as personal use products Import permit license for the first time is not needed No registration/filing is needed
General Trade	All the products	Need the import license for the first time Need to finish registration/filing

Tax collection management

Consumers who order CBEC retail commodities are tax obligors. But CBEC platform enterprises, logistics enterprises or declaration enterprises shall collect and remit the tax to GAC for consumers (in RMB).

If products are not returned or the order is not revised or withdrawn, these enterprises shall inform GAC of all tax issues no sooner than 31 days after customs clearance and no later than 45 days.

Product return management

Under the mode of CBEC retail import, it is allowed for CBEC agent in China or the entrusted enterprises that conduct customs clearance to apply for product return. The returned product shall meet the sales demands for a second sale and shall be delivered to the original supervision site in the original status within 30 days after passing the customs clearance. The tax won't be levied. The total annual transaction amount will be adjusted.

Others

For domestic CBEC companies who signed sales contracts with abroad companies, their import business can be extended to March 31th, 2019.

Besides these, this notice also mentioned specific management of site, quarantine, inspection and logistics, etc..