China Updates Voluntary Disclosure Rules for Customs Violations
China's customs agency recently updated its voluntary disclosure policies for reporting certain customs violations, according to an unofficial translation.
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The agency said companies that "proactively disclose violations of customs regulations will not be subject to administrative penalties" if the duty violation "is disclosed to the customs on its own initiative within one year from the date of occurrence" or if the violation is disclosed more than one year "but less than two years after the date of occurrence, and the amount of unpaid or underpaid tax accounts for less than 30% of the tax payable, or the amount of unpaid or underpaid tax is less than" 1 million Chinese yuan (about $140,000).
The notice also includes other conditions under which it will exempt companies from penalties, including firms that disclose a violation of "customs inspection and quarantine regulations, complete customs formalities in a timely manner, and do not cause harmful consequences," if the value of the goods is below a certain threshold. The penalty exemption doesn't apply to all quarantine regulations, including quarantines and inspections related to safety, environmental protection and hygiene matters, China said.
However, the agency said it won't exempt companies from penalties if they submit two voluntary disclosures for the same violation within a 12-month period.