New China Import/Export Compliance Procedures

China's General Administration of Customs will implement new regulations on April 1 that may impact the speed with which goods are released by Chinese Customs. Based on a company's compliance records, internal controls, business performance and other information, importers and exporters will be assigned different classification categories (AA, A, B, C and D).

Firms in Class A will be eligible for remote filing, rapid inspection and release, advance customs entry, release before the goods arrive at the port of entry, and inspection at the company facility if necessary. Class AA firms will receive all of the Class A benefits, plus a Customs account manager assigned to answer customs and trade questions, direct customs release after the entry passes electronic review, and no cargo inspections under normal circumstances. Class B firms will experience routine inspections, audits, and customs release of their goods, while those in classes C and D will be subject to increased inspections and audits.

China Customs is now working on the rules, standards, systems, and processes that will be used to implement the new regulations, including an importer compliance assessment system and internal control standards that incorporate best practices from the Importer Self-Assessment program used by the United States.

-- Stanley Pfrang