Facing difficulties during customs clearance inspection when exporting your product to China: a situation SMEs wish to prevent but should be prepared for at the same time.
This case study by DHH Law Firm describes a dispute that followed after the Chinese Customs formally required an enterprise to retroactively pay an enormous additional tax on imports. The case raises a series of issues commonly arising in customs inspection cases, including the custom’s dispute resolution process concerning commodity classifications and the validity of certificates of origin.
The case’s long and complicated process highlights some difficulties facing importing and exporting enterprises during customs clearance and in responding to inspections by the Chinese Customs.
The analysis concludes with a list of practical suggestions and recommendations for EU SMEs that export to China.
About the author
Jing Zhao, Lawyer at DHH Customs and Trade Compliance Legal Services
Jing Zhao once worked in Customs system for 7 years and subsequently served in a position up to Senior Manager in a consulting company with main business of customs affairs and taxation consultation. After joining in Beijing DHH Law Firm, Jing Zhao continues to provide services for import and export enterprises, which includes design of import and export process, draft and review of relevant business agreements, risk evaluation of customs affairs, negotiation on valuation and classification with customs, assistance on customs audit, customs administrative penalty, customs administrative reconsideration, criminal cases, international trade disputes and etc.