China Customs to trial new import clearance procedures

8 April 2013

China Customs to trial new import clearance procedures for New Zealand goods

The General Administration of China Customs (China Customs) and the New Zealand Customs Service announced today a trial of new procedures that will allow for the clearing of New Zealand goods held in bonded storage (Special Customs Control Areas and Bonded Places) when they reach China.

The two customs administrations have been working together to establish a procedure that will now see importers in China receiving the full benefits of the China New Zealand Free Trade Agreement (FTA) on goods that are placed in bonded storage and declared for part release into the domestic market.

The Department of Duty Collection of China Customs says the Pilot will allow, on a trial basis, the ‘multiple use’ of a Certificate of Origin to clear goods under the China-NZ FTA when goods are declared in part for domestic consumption. This means importers in China will receive the same lower preferential tariff rate for the entire shipment regardless of multiple parts of the shipment being released into the domestic Chinese market.

New Zealand’s FTA with China allows goods of New Zealand origin to enter China at lower duty rates than those applicable to international competitors. Under the terms of the Agreement, duty rates will reduce to zero on most New Zealand goods exported to China by 2019.

NZ Customs Acting Group Manager Policy, Richard Bargh says “The FTA opens up economic opportunities for New Zealand business in China, and boosts commercial ties with a country that, on current trends will become New Zealand’s largest trading partner within the next two years. We are pleased with the changes in procedure that are being trialled.”

“The new procedures allow New Zealand exporters to realise the full benefits available to them under the FTA by enabling China importers to receive tariff preferences on entire shipments of qualifying goods and not just parts of them – a shipment of wine for example could save the importer up to 14 per cent duty across the whole consignment.”

The twelve month trial will commence during the second half of 2013 and involve the six ports of Guangzhou, Nanjing, Qingdao, Shenzhen, Shanghai and Tianjin.

Goods exported from all Chinese ports to New Zealand, that qualify as Chinese origin, will be granted the FTA preferential rate of duty.

The new procedures will be made available on the China Customs website www.customs.gov.cn, the New Zealand Customs website www.customs.govt.nz and the China New Zealand Free Trade Agreement website www.chinafta.govt.nz prior to the commencement of the pilot.

ENDS

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