Export-Drawback Policy to be Adjusted, Shanghai Customs Introducing 5 Measures

On June 22, 2010, the Ministry of Finance of P. R. China and the State Administration of Taxation of P. R. China jointly issued the Notice on the Cancellation of Export Drawback on Some Commodities, indicating that as of July 15, 2010, export drawback on commodities under 406 HS Codes including part of steels and nonferrous metal building materials shall be cancelled.

The products subject to the cancellation of export drawback previously enjoyed the export drawback rates ranging from 5% to 17%.

To ensure the smooth transition during the adjustment phase of the export drawback policy, Shanghai Customs of P. R. China introduced 5 measures, and also reminded relevant enterprises to get prepared ahead of time.

Shanghai Customs reminded relevant enterprises to understand the policy in advance and try to stagger the time of declaration so as to avoid the "jam" in customs clearance during the adjustment phase of the export drawback policy and ensure an orderly operation of customs clearance at Shanghai port during the World Exposition.

Meanwhile, Shanghai Customs introduced 5 measures to guarantee the smooth transition during the adjustment phase of such policy, such as timely formulating supervision plans for customs clearance and various measures for emergency safeguard; and applying flexible working system when necessary to ensure "documents are cleared on the very day of declaration".