Expert Interpretation in June 2019

List of US Tariff Rates on China and Summary of Time of Imposition

01- US $34 billion of the first batch of $50 billion, Starting from July 6, 2018, the tariff rate will be increased by 25%

02- US $16 billion of the first batch of $50 billion, Starting from August 23, 2018, the tariff rate will be increased by 25%

03- the second batch of US $200 billion (phase 1), Starting from September 24, 2018 to May 9, 2019, the tariff rate will be increased by 10%

List of US Tariff Rates on China and Summary of Time of Imposition

04- the second batch of US $200 billion (phase 2), Starting from May 10, 2019, the tariff rate will be increased by 25%

05- the third batch of US $300 billion, The starting date of the levy is yet to be determined. The US Trade Representative Office (USTR) will hold a public hearing on June 17 to solicit opinions on the US 300 billion tariff list. The speech at the hearing included the commodities to be excluded, U.S. tax numbers and reasons. U.S. importers, customers and relevant associations can submit applications for participation and written comments (www.regulations.gov) The tariff rate will be increased by 25%

Latest Progress in Sino-US Trade War- List of Excluded Products Included in US Tariff Increase on China

Up to now, the United States has released five batches of catalogues of products subject to tariff increases | and exclusions. In other words, as long as the goods exported from China to the United States are included in these “excluded products list’, even if they are included in the US $34 billion tariff increase list, the United States will not impose any tariff on them. It should be noted that the exclusion period is valid for 1 year from the date of the announcement of the exclusion. You can claim the refund of the tax increase already paid.

The date of the announcement 2018.12.21

The first batch of excluded products catalogue (984 items) in US $34 billion tariff increase list.

The date of the announcement 2019.3.25

The second batch of excluded products catalogue (87 items) in US $34 billion tariff increase list.

The date of the announcement 2019.4.15

The third batch if excluded products catalogue (348 items) in US $34 billion tariff increase list.

The date of the announcement, 2019.5.14

The fourth batch of excluded products catalogue (515 items) in US $34 billion tariff increase list.

The date of the announcement 2019.5.30

The fifth batch of excluded products catalogue (464 items) in US $34 billion tariff increase list.

Latest Progress in Sino-US Trade War- China’s Imposition of Tariff on the United States and Its Starting Exclusion Procedure

Tax Committee No.13 (2018), Implemented from April 2, 2018.

Notice of the Tariff Commission of the State Council on Suspending Duty Concession Obligations for Some Imported Goods Originating in the United States.

For 120 imported commodities such as fruits and products originating in the United States, the duty concession obligation shall be suspended, and duties shall be levied on the basis of the current applicable tariff rate, with an additional tariff rate of 15%For 8 items of imported goods, such as pork and products originating in the United States, the duty concession obligation shall be suspended, and duties shall be levied on the basis of the current applicable tariff rate, with the additional tariff rate being 25%.

Tax Committee No.55, Implemented from July 6, 2018

Announcement of the Tariff Commission of the State Council on Imposing Tariffs on US $50 Billion of Imports Originating in the United States

A 25% tariff will be imposed on 545 commodities such as agricultural products, automobile and aquatic products starting from July 6, 2018 (Annex I to the Announcement)

Tax Committee No.7 (2018), Implemented from 12:01 on August 23, 2018

Announcement of the Tariff Commission of the State Council on Imposing Tariff on Imports Originating in the US with a Value of about 16 Billion US Dollars.

For the goods listed in the second list of goods subject to customs duties imposed on the US (the annex to this announcement shall prevail), a customs duty of 25% shall be imposed.

Tax Committee No.3 (2019), Implemented from 00:00 on June 1, 2019

Announcement of the Tariff Commission of the State Council on Raising the Tariff Rate of Some Imported Commodities Originating in the United States

In accordance with the tax rate announced by the tax Committee announcement No.6 (2018). Impose a 25% tariff will be imposed on Annex 3. Impose a 5% tariff Annex 4.

Publication of exclusion lists Imposing Commodities

The Tariff Commission of the State Council will organize the review of valid applications one by one, carry out investigations and Studies, listen to the opinions of relevant experts, associations and departments, and formulate and publish exclusion lists according to procedures.

Excluding validity period

For the commodities in the exclusion list, no more duties will be levied within one year from the date of implementation of the exclusion list; For refunding the duties and taxes already collected, the import enterprise shall apply to the customs within 6 months from the date of publication of the exclusion list.

Trial Measures for Excluding US Tariff-Imposing Commodities

The applicant should fill in and submit the exclusion application according to the requirements through the website of the Customs Policy Research Center of the Ministry of Finance, https://gszx.mof.gov.cn.

-The first batch of commodities eligible for exclusion will be accepted from June 3, 2019, and the deadline is July 5, 2019. The second batch of commodities eligible for exclusion will be accepted from September 2, 2019, with the deadline of October 18, 2019.

Latest Trends of AEO Signing in China

1.AEO Mutual Recognition between China and Japan, Implemented on June 1

2.Progress in Signing AEO Mutual Recognition Arrangements with Several Countries

Latest Trends of AEO Signing in Chin—AEO Mutual Recognition between China and Japan Implemented on June 1

Announcement No.71 of 2019 of the General Administration of Customs

Implementation Date

In October 2018, China and Japan customs formally signed the “Arrangement Impleme between the Customs of the People’s Republic of China and the Japanese Customs ntation on Mutual Recognition of the Credit Management System for Chinese Customs date Enterprises and the” Certified Operator “System of the Japanese Customs”. It will be officially implemented from June 1, 2019.

Export to Japan

When Chinese AEO enterprises export goods to Japan, they need to notify the Japanese importer of the AEO enterprise code (AEOCN+ 10 enterprises codes registered with the Chinese customs, such as AEON0123456789).

Import from Japan

When a Chinese enterprise imports goods from an AEO enterprise in Japan, it is required to fill in the AEO code of the Japanese shipper in the column of “overseas shipper” in the import declaration form and the column of “shipper AEO enterprise code” in the water and air cargo manifest respectively. Format: “Country (Region) Code +AEO Enterprise Code (17 digits)”

Latest Trends of AEO Signing in China—Progress in Signing AEO Mutual Recognition Arrangements with Several Countries

Countries Joining One Belt One Road Initiative

Uruguay joined the “One Belt One Road” and signed the “China- Uruguay AEO Mutual Recognition Arrangement” with China on April 29.

China and Countries Along One 0 1 Belt One Road Initiative Sign AEO Mutual Recognition Arrangement and Action Plan

On April 24, China and Belarus signed the China-Belarus AEO Mutual Recognition Arrangement, which will be formally implemented on July 24. On April 25, China and Mongolia signed the China-Mongolia AEO Mutual Recognition Arrangement and China and Russia signed the Sino-Russian AEO Mutual Recognition Action Plan. On April 26, China and Kazakhstan signed the China-Kazakhstan AEO Mutual Recognition Arrangement

AEO Mutual Recognition Cooperation Countries in Progress in China

Malaysia, UAE, Iran, Turkey, Thailand, Indonesia, Egypt, Jordan, Saudi Arabia, Serbia, Macedonia, O04 Moldova, Mexico, Chile, Uganda, Brazil

Other Countries and Regions that have Signed AEO Mutual Recognition

Singapore, South Korea, Hong Kong, China, Taiwan, 28 EU member states (France, Italy, Netherlands, Belgium, Luxembourg, Germany, Ireland, Denmark, UK, Greece, Portugal, Spain, Austria, Finland, Sweden, Poland, Latvia, Lithuania, Estonia, Hungary, Czech Republic, Slovakia, Slovenia, Malta, Cyprus, Bulgaria, Romania, Croatia), Switzerland, New Zealand, Israel, Japan

Summary of CIQ Policies - Compilation and Analysis CIQ Policies from May to June

Animal and plant products access category

1.Announcement No.100 of 2019 of the Agricultural and Rural Department of the General Administration of Customs: From June 12, 2019, it is prohibited to import pigs, wild boar and their products directly or indirectly from North Korea. Once discovered, they will be returned or destroyed.

2.Announcement No.99 of 2019 of the General Administration of Customs: From May 30, 2019, 48 regions (states, border areas and republics) including Russia’s Arkhangelsk, Bergorod and Bryansk regions will be allowed to export cloven-hoofed animals and related products that meet the requirements of Chinese laws and regulations to China.

3.Announcement No.97 of 2019 of the Agricultural and Rural Department of the General Administration of Customs: From May 24, 2019, direct or indirect import of sheep, goats and their products from Kazakhstan is prohibited. Once discovered, they will be returned or destroyed.

4.General Administration of Customs Announcement No.98 of 2019: Permits Frozen Avocados from Kenya’s Avocado Producing Areas to Export to China. Frozen avocados refer to avocados that have been frozen at -30°C or below for not less than 30min and stored and transported at -18°C or below after the inedible peel and kernel are removed.

5.Announcement No.96 of 2019 of the General Administration of Customs: Fresh cherries produced in five Cherry producing areas of Uzbekistan, namely Tashkent, Samarkand, Namangan, Andijan and Falgana, are allowed to be imported into China after being tested to meet the requirements of relevant agreements.

6.Announcement No.95 of 2019 of the Agricultural and Rural Department of the General Administration of Customs: Frozen Durian, scientific name Durio zibethinus, produced in durian producing areas in Malaysia is allowed to be transported to China after the durian pulp and puree (without shell) frozen for 30 minutes at-30 C or below or the whole durian fruit (with shell) frozen for not less than 1 hour at-80 C to-110 C are tested to meet the requirements of relevant agreements before storage and transportation.

7.Announcement No.94 of 2019 of the General Administration of Customs: Mangosteen, a scientific name Garcinia Mangostin L., is allowed to be produced in Indonesia’s mangosteen producing area. The English ame Mangosteen can be imported into China after being tested to meet the requirements of relevan agreements.

8.General Administration of Customs Announcement No.88 of 2019: Chile’s Fresh Pears Allowed to Import into China, Scientific Name Pyrus Communis L., English Name Pear. The limited production areas are rom the fourth region of Coquimbo in Chile to the ninth region of Araucania, including the Metropolitan Region (MR). Products must meet the “Quarantine Requirements for Imported Fresh Pear Plants from Chile”.


Post time: Dec-19-2019