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  • Changed China’s Laws Strengthen Environmental Regulations Ease Some Customs Clearance
    2018-02-06

    Changed China’s Laws Strengthen Environmental Regulations Ease Some Customs Clearance

    -KITA Analyzes ‘2018 China's economic and trade related laws’ -

     

    2018 China's economic and trade related laws are to enforce environmental regulations internally, while some external restrictions on customs clearance are eased.

     

    The Beijing Center of the Korea International Trade Association (Chairman, Kim Young-joo) and China’s King & Capital Law Firm jointly issued a report titled Changes in China's Economic and Trade Regulations in 2018 which contains the regulatory commentary regarding 27 new economic and trade regulations that are newly enacted and amended this year.  

     

    According to the report, the Chinese government has newly enacted or extensively amended the environmental protection tax, water pollution prevention law, and ecological environmental damage compensation system in the environmental sector. The Environmental Protection Tax Act will be enacted from January 1 this year and the environmental tax will be imposed on the companies and other production managers who directly discharge pollutants in Chinese territories. Also, solid waste, noise, etc. are the subjects to the tax.

     

    The Water Pollution Prevention Act also strengthens the management of drinking water and created more stringent punishments for unauthorized discharge of sewage. If the sewage is discharged without a sewage discharge permit, the local government can order the company to restrict or suspend the production, and can impose a fine of up to 1 million yuan (about 170 million Korean won) or force to close the business. 

     

    In import customs clearance sector, some regulations were relaxed. The Chinese government decided to re-extend the exemption period for foreign direct import products, which was supposed to be ended by the end of 2017, to the end of 2018. Therefore, Korean companies dealing with health food, cosmetics and medical equipments have saved time to obtain CFDA certification to officially export the items to China.

     

    According to the China’s Customs Adjustment Scheme, 948 items out of 8,549 items, based on HS 8 code, are subject to the provisional import tariff rate lower than the most-favored-nation rate. Of these, tariffs on 27 information technology will be applied until June 30, 2018, and the further reduction will be greatly extended from July 1.

     

    Kim Byung-yoo, head of the Beijing Center of the Korea International Trade Association said, "Korean companies who are doing business in China have to closely monitor the changes in Chinese laws and regulations related to corporate management, such as strengthened environmental standards. He also added "It is necessary to make good use of changes in China's tariff rates, including tariff cuts for the fourth year of the Korea-China FTA, which will be applied from this year."

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