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Common Issues



Companies in China often encounter the following issues relating to customs:

Entry time varies significantly sometimes. It is often affected by some very minor mistakes in tariff classification or customs valuation or affected by customs audits which are selected on a random basis.
   
Although China generally follows the WTO principles on customs valuation, there are some different local interpretations, e.g., on royalties. It creates some difficulties to replicate the existing contractual models in WTO countries directly to China.
   
There are still many grey areas in the PRC customs rules, e.g., in lease importations, which leads to difficult to implement some well developed business/financial models in the western world.
   
Importation of used equipments is difficult.
   
The rules of origin is much more complex today.
   
Lack of ownership on customs function. Usually, customs is a matter that everyone (logistics, legal, tax, finance) cares but no one owns.
 
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