Category: News

China Implements Revised Requirements for Food Importers and Exporters

On 13 April 2021, the General Administration of Customs of China (GACC) issued No. 248 and No. 249 orders, which deal with “Administrative Regulations on the Registration of Overseas Manufacturers of imported Food of the People’s Republic of China” and “Administrative Measures on import and Export Food Safety of the People’s Republic of China” respectively.

Order No. 248 stipulates that all overseas production enterprises of imported food need to be registered and it changes the registration method and the application materials, as well as imposing new packing and labeling requirements.

Order No. 249 stipulates requirements for overseas facilities registration, record filing by importers and exporters, quarantine and inspection, and product labeling, among others. It also introduces the concept of a conformity assessment, which covers the evaluation of foreign food safety management systems, the registration of overseas food export facilities, and required record filing by importers and exporters.

The two regulations were implemented on 1st January 2022 and are very important for overseas manufacturers wishing to export foods to China.

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SAT Details Repair of Taxpayer Credit

China’s State Taxation Administration recently released the Announcement [2021] No.31 on “Matters Relating to the Evaluation and Repair of Taxpayer Credit”, implemented on 1 January 2022.

According to the announcement, there are five circumstances under which a taxpayer may apply to the tax authorities in charge for the “restoration/repairing” of its taxpayer credit, namely after it has corrected dishonest behaviour, performed its legal tax liabilities, is waived from the release of its major tax violating information, and has recorded no dishonest tax payment behaviour for six or 12 months.

After completing the repair, the taxpayer can apply the corresponding tax policies and management services based on the repaired tax credit.

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Trademark Certificates Go Paperless

Starting from January 2022 China’s National Intellectual Property Administration will no longer provide paper trademark registration certificates. Applicants will receive the “Notice of obtaining trademark registration certificate” and can download online the electronic trademark certificate according to the website and password in the notice.

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China Reduces Import Tariffs on 954 Commodities in 2022

According to the circular released by the Customs Tariff Commission of the State Council, from 1st January 2022 import tariffs on certain medical products such as intracranial embolization stents and artificial joints will be reduced and zero tariffs will be imposed on the new anti-cancer drug radium chloride.

Reductions also apply to ski gear and equipment, artworks, auto parts that help reduce greenhouse gas emissions, high-voltage cables for high-speed trains, fuel-cell components, infant clothing, dishwashers, and high-quality aquatic products such as salmon and cod.

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Shanghai Simplifies Application Procedures for Foreign Investors

In an effort to further facilitate foreign investment, Shanghai municipality has issued new measures on the approval and filing of foreign investment projects. Under simplified procedures, applicants will no longer be required to provide duplicate documents that can be obtained by mutual recognition and sharing of data via the Government Online-Offline Shanghai.

The new procedures apply to newly established or acquired projects of foreign investors and foreign-invested enterprises involving fixed-asset investment in Shanghai, and will be launched in several strategic functional areas, including Pudong New Area, the Lingang Special Area of China (Shanghai) Pilot Free Trade Zone, and the Hongqiao International Open Hub. They will go into effect from 1st March 2022 and remain valid until 28 February 2027.

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Preferential ITT Policy for Expatriates Extended to End of 2023

On 31 December 2021, China’s Ministry of Commerce and State Taxation Administration released the Announcement on the Continuation of Implementation of Individual Income Tax Preferential Policies for Foreign Nationals’ Benefits (MOFCOM STA Announcement [2021] No.43). According to the Circular, foreigners working in China will continue to enjoy tax exemption on housing rental, children’s education costs, and language training costs for another two years till 31 December 2023. The government has also extended its preferential treatment for annual one-time bonuses until the end of 2023. The bonus will continue to be taxed separately, rather than being combined and taxed together with regular income.

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The Year of the Tiger

Where is China’s economy heading in 2022, the Year of the Tiger? Most economists expect China’s central bank, the People’s Bank of China, to continue to cut interest rates in order to reduce borrowing costs and support increased lending. In other words its goal is to use monetary tools to prop up growth in the wake of the slowing real estate sector and the possibility of sluggish consumer spending amid the uncertainties of the Covid pandemic. We may also see a weakening of the yuan to boost exports.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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2022 Calendar

 

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Maternity Leave Extended

Several regions in China have extended maternity leave in order to encourage family planning and increase the country’s low birth-rate.

In Shanghai women are being given an extra 60 days of paid maternity leave, in addition to the 96 days stipulated by the China’s Provision on the Labour Protection of female employees.

Beijing has implemented the same increase of days and adopted a new rule that grants couples five days of “parenting leave” every year before their children turn three.

In the eastern province of Zhejiang, women are now entitled to 188 days of paid leave for a second or third child.

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Online Customs Registration for Imported Food Manufacturers

China has introduced online customs registration for overseas manufacturers of food imported into the country. The General Administration of Customs in China (GACC) released Circular 248 concerning Registration Administration of Overseas Manufacturers of Imported Foods. According to the regulation, Companies must obtain registration approval with the GACC before importing to China. The registration procedure can be done through the registration system website (https://cifer.singlewindow.cn) by the company itself or by the importer.

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