New model to cut time and cost for customs clearance in FTZ

Shanghai Customs published on 21 April 2014 the Notice for the Implementation of an Operating Model for the Delivery and Customs Clearance of Foreign Goods in the China (Shanghai) Pilot Free Trade Zone (document 6), which came into force on 1 May 2014.

Positive attempt

The so called “customs clearance after delivery of goods” model (the new operating model) is a positive attempt to facilitate the customs declaration process within Shanghai Customs’ “first-tier deregulated” regulatory regime under the Overall Planning for the China (Shanghai) Pilot Free Trade Zone, published by the State Council on 18 September 2013.

Prior to the publication of document 6, Shanghai Customs established in early October 2013 the new operating model for the first group of six companies registered in the Shanghai Pilot Free Trade Zone (FTZ) under a pilot scheme. The number of companies under this pilot scheme had increased to 47 by December 2013, mostly comprising business entities and warehousing companies under Category AA – a management category provided by customs to certain companies – as well as some qualified manufacturers under Category A. The publication of document 6 aims to expand the innovative regulatory approach to cover qualified companies across the FTZ.

Based on document 6, the concept, requirements and operation procedures for the new operating model are briefly summarised below.