Bee On Trade

Ten Checks for China Trade Compliance


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Managing Trade Compliance in China

Why is managing trade compliance in China challenging?

Managing trade compliance in different countries, especially in China, can be challenging due to various government agencies and constantly changing local regulations.

What steps should companies take to manage compliance effectively?

  • Establish policies and procedures for compliance management.
  • Consider hiring a third party to assist with compliance oversight.

What are the challenging government agencies in China for importers?

  • Customs Commerce (MOFCOM)
  • Agriculture (AQSIQ)
  • China Food & Drug Administration (CFDA)
  • Foreign Exchange Bureau (SAFE)
  • Administration of Taxation (SAT)

How can companies self-assess their internal trade compliance?

  1. Know their facilities and how they operate.
  2. Know the number and value of import declarations they have filed.
  3. Ensure accurate calculation and timely payment of duties.
  4. Monitor price declaration history for fluctuations indicating problems.
  5. Develop a management policy for supply chain to ensure correct classifications.
  6. Check the status and accuracy of compliance documents.
  7. Resolve issues with classification, valuation, and missing documents.
  8. Evaluate freight forwarders or customs brokers for legitimacy.
  9. Maintain a written handbook for trade compliance policies.

How can companies gauge their compliance readiness for Customs audits?

Companies should assess how quickly they can respond to a Customs audit and provide values of regularly imported items with corresponding customs declarations from the last three years. If it would take more than six months, they should adjust their compliance goals.

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