China Market Regulatory Updates – February 2017

Steve WongChina market regulatory updates – February 2017

by Dr. Steve Wong

The General Administration of Customs of China (GAC) convened a meeting in Beijing on February 7 and decided to launch a one-year campaign “国门利剑2017 “ this year. Aiming at crackdown of smuggling on five focused areas which also include plastic waste, the campaign is named “Border-gate Sword 2017” (translated by some as “National Sword 2017”). “Border-gate Sword” is more reflective of the task ownership which is GAC and can also tide in with the Chinese meaning.

As compared with “Operation Green Fence”, the market is less panic this time due to the fact that market players are more disciplined then years ago. Nevertheless, impacts are anticipated as more Customs check would be exercised which means time and cost.

The following translation is made with the extracts of news release from GAC

“Border-gate Sword 2017”

On 7 February, the General Administration of Customs of China (GAC), Beijing held a national anti-smuggling meeting in Beijing in preparation for a one-year action plan named “Border-gate Sword 2017”. It is a cross-department joint action with focus on the smuggling crackdown of foreign waste, agricultural products, resource products, tax related goods, drugs and guns, etc. It is understood that GAC’s anti-smuggling work scored increased numbers in 2016 vs. 2015

1.   Investigation cases set up – 2633 (+ 17%)

2.   Tariff evasion cases – 1446 (+ 16.1% cases inclusive under 1. above) with total goods value of RMB48.79 billion (+11.9%)

3.   Cases other than tariff evasion – 1187 (+18.1%).

Riding on the momentum of last year’s scores, GAC made preparation for this year with the “Border-gate Sword 2017” joint action which is focused on five areas of smuggling problems with crackdown and remedial actions to be taken out, including

A.  unrelenting crackdown on “foreign waste” smuggling;

B.   focused crackdown for smuggling and illicit activities on solid waste including industrial waste, E-waste, household waste and plastic waste;

C.   active cooperation with the Environmental Protection Department and relevant departments to intercept “foreign waste” from border-gates in order to maintain the ecology safety and public health;

D.  unrelenting crackdown on the smuggling of agricultural products by carrying out the crackdown and remedial forces on rice, corn, sugar, frozen beef and mutton so as to maintain the strategic safeguards on the produce industry and food safety of people;

E.   unrelenting crackdown on the smuggling of resources goods by fostering the supervision on coal and other mineral products with focus on gangs and chains. The crackdown measures are to be taken out in a timely manner to ensure the smooth implementation of supply-side reform on important commodities;

F.    unrelenting crackdown on the smuggling of tax related goods. Apart from keeping watch of traditional smuggling channels, the crackdown will also strengthen the study on the smuggling risks of new channels of trade. In addition, it will also enforce the smuggling crackdown on industry and gang targets to strictly prevent the loss of state tax income and put in order the import and export disciplines;

G.  unrelenting crackdown on smuggling of guns and drugs by intercepting the supply-end and strengthening the supervision of delivery streams such as courier and forwarding channels in collaboration with police to maintain the safety and stability of the society.

 During the course of action, the GAC at different points will work closely with the localities and relevant departments as well as industry associations to enhance the total enforcement efforts of anti-smuggling. They will also push for the implementation of full crackdown and remedy of the entire smuggling stream including purchase, transport, storage and sales.

By Dr. Steve Wong
Executive President, CSPA
Chairman, Fukutomi Company Limited
Committee Member, Plastics Committee of BIR
Committee Member, WEEE Committee of BIR

February 2017


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