Monday, June 6, 2016

Customs Valuation Issues for Imports into China

by WTC Guest Blogger Ted Murphy, Partner, Baker & McKenzie LLP


China recently amended its customs declaration requirements to capture new information that may make it easier for the General Administration of Customs to target potential customs valuation issues.  Specifically, importers are now required to identify whether the buyer and the seller are related; whether that relationship influenced the price charged; and whether the importer is making any royalty payments.  A client alert my colleagues in China prepared on these changes may be found here.


Given the increased scrutiny China Customs has paid to related party transactions and the payment of royalties in recent years, we expect that the new declaration requirements will only intensify this trend.  If you are importing into China, you need to be aware of these issues and be sure they are adequately addressed (e.g., have you confirmed whether royalties are being paid and, if so, whether they are dutiable for customs purposes?).

Ted Murphy
Partner
Baker & McKenzie LLP
815 Connecticut Avenue, N.W.
Washington, D.C. 20006
Tel:  +1 202 452 7069
ted.murphy@bakermckenzie.com

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