Cross-border e-commerce product classification and corporate responsibility analysis

Commodity classification refers to determining the corresponding tariff number by analyzing the use, structure and other factors of different commodities according to determined rules. Different tariff numbers correspond to the country’s control and regulation of import and export trade, as well as the tariff rates and preferential tariff policies that should be applied when importing and exporting. The main legal basis for the classification of goods in my country is the “Import and Export Tariffs of the People’s Republic of China”, “Import Tariff Schedule for Inbound Articles” and “Tariff Regulations” formulated by the State Council. The Customs Tariff Commission of the State Council, subject to approval by the State Council, involves adjustments and interpretations of tax items, tariff numbers and tax rates in the “Import and Export Tariffs of the People’s Republic of China” and the “Import Tax Rate Table of Imported Articles of the People’s Republic of China”, which also belong to the determination of commodity classification. important basis.

Customs is responsible for determining which classification of goods applies in the import and export process. The current commodity classification system of the customs department is based on the International Convention on the Harmonized System of Commodity Description and Coding, and is determined in accordance with laws and regulations and the requirements of administrative rulings and commodity classification decisions issued by the General Administration of Customs. Commodity code of export goods. When reviewing the commodity classification matters declared by the consignee or consignor or their agent, the customs may, in accordance with the provisions of the Customs Law and the Tariff Regulations, consult and copy relevant documents and information, and inspect necessary samples and related commodity information. Organize testing and inspection of imported and exported goods.

When signing a goods import contract and a customs declaration entrustment agreement, you can add a liability sharing clause for false declarations to transfer the risk of classification. If the goods are inconsistent due to foreign delivery, or the declaration is false due to the customs agent’s error, the contract can specifically indicate who will bear the loss. It should be noted that these stipulations in the contract will not have any impact on the administrative penalties imposed by the customs. The consignee and consignor of the imported and exported goods are still the parties to the administrative penalties. The civil stipulations will not be binding on the administrative handling of the customs. . However, after customs imposes a penalty, the enterprise can claim compensation from the responsible party through civil means with the “penalty decision letter” and fine receipt to make up for the economic losses suffered.

Regarding the obligation to determine commodity codes, customs regulations have clearly stipulated that taxpayers have the obligation to determine the commodity codes of imported and exported goods by themselves and declare them correctly. The customs’s responsibility in commodity classification is to tax payers. The obligor shall declare information on commodity classification for review, that is, the obligation to declare and determine commodity codes lies with the import and export enterprises, not the customs. Regarding the responsibilities of classification, companies often have the following misconceptions:

• One of the misconceptions: Enterprises only need to fill in the customs declaration form and submit information truly and completely in accordance with the requirements of the customs. It is the customs’ job to determine the commodity code.
• Misconception No. 2: If the classification of goods declared on-site can pass customs review, it means customs accepts it, and there should be no subsequent risks. In fact, the customs has a follow-up review after the customs clearance review. If a classification error is found in the follow-up review, the tax will still be recovered.

In order to effectively improve the accuracy and timeliness of customs classification and speed up customs clearance of goods, the General Administration of Customs issued the “Interim Measures for Pre-Classification of Imported and Exported Commodities by the Customs of the People’s Republic of China” in 2000 (now abolished), 2007 The “Regulations of the Customs of the People’s Republic of China on the Administration of Commodity Classification of Imported and Exported Goods” were promulgated in 2017, and the “Interim Measures of the Customs of the People’s Republic of China on the Administration of Advance Rulings” were promulgated in 2017. According to the provisions of the General Administration of Customs Announcement No. 138 of 2018 “Announcement of the General Administration of Customs on Matters Concerning the Follow-up of Customs Preliminary Classification Decisions”, starting from January 1, 2019, the “Customs of the People’s Republic of China” previously issued by all directly under the Customs “Commodity Pre-Classification Decision Letter” will be discontinued and the enterprise If you need to apply for an advance ruling on customs commodity classification, you can follow the “Interim Measures for the Administration of Advance Rulings by the Customs of the People’s Republic of China” and the General Administration of Customs Announcement No. 14 of 2018 on matters related to the implementation of the “Interim Measures for the Administration of Advance Rulings by the Customs of the People’s Republic of China”. The relevant provisions of the Announcement shall be handled.

The current pre-classification of imported goods before actual import includes two types, namely:

• Category 1: Administrative ruling. According to the “Customs Law” and “Interim Measures for the Administration of Advance Rulings of the Customs of the People’s Republic of China”, before the import or export of goods, foreign trade operators may apply in writing for an advance administrative ruling on commodity classification; such administrative rulings shall be made by the General Administration of Customs or the General Administration of Customs. Made by an agency authorized by the Customs and Excise Department, it is universally binding and has the same effect as customs regulations. Therefore, if the customs makes an administrative ruling on the classification of a certain type of goods, any foreign trade operator other than the applicant can cite the ruling as the basis for classifying imported and exported goods.
• Category 2: Preliminary ruling on classification. Starting from February 1, 2018, the customs shall be effective between the applicant and the customs within a certain period upon the applicant’s application.

For enterprises, the main purpose of commodity classification planning is to reduce uncertainty in the classification process, thereby controlling the cost of imported goods, and reducing customs clearance delays or post-clearance supplements caused by classification disputes. taxes.