China: measures of the People of China Customs risk management (Customs Decree No. 271)
Date of publication: August 15th, 2024
On July 30, 2024, the General Administration of Customs of the People’s Republic of China announced Customs Decree No. 271, effective December 1, 2024. These measures are established under various national laws and international treaties to standardize customs risk management and promote foreign trade facilitation.
They apply to risk management activities such as information collection, assessment, and disposal to prevent security risks related to transportation, public health, biological and food safety, commodity quality, tax security, and intellectual property.Key principles include a focus on national security, a people-centered approach, and coordinated governance.
The measures emphasize the use of modern technologies like big data and AI, confidentiality obligations for customs staff, and the collection of risk information through various channels. Customs can implement risk monitoring, assess risks using scientific methods, and make management decisions based on these assessments. They can adopt various risk management measures, issue risk warnings, and require evidence to prove risk levels.
Customs are also tasked with formulating emergency response plans for major security risks and continuously improving the risk management system. The General Administration of Customs is responsible for interpreting these measures, which will replace the previous provisions on risk warning and rapid response management for entry-exit inspection and quarantine.
What does this decree include?
This Customs Decree consists of 21 Articles and here is the summary of those:
- Purpose and legal basis:
- Formulated in accordance with multiple Chinese laws and international treaties.
- Aim to standardize customs risk management, ensure national security, and facilitate foreign trade.
- Scope:
- Applies to customs risk management activities: information collection, risk assessment, and risk disposal.
- Covers inbound and outbound transport, public health, biological security, food safety, commodity quality, tax security, intellectual property, and other security risks.
- Principles:
- Adheres to national security, a people-centered approach, prevention and control, grading and classification, and coordinated governance.
- Technological application:
- Utilizes big data, AI, and information systems for intelligent risk management.
- Confidentiality:
- Customs staff must keep state, commercial, and work secrets, personal privacy, and information confidential.
- Risk information collection:
- Through risk monitoring, government information sharing, public channels, third-party services, international cooperation, and other legal methods.
- Risk monitoring:
- Continuous and systematic collection of risk information via monitoring plans and points.
- Cooperation requirement:
- Entities and individuals must provide relevant information and cooperate with Customs.
- Obligation to report risks:
- Entities and individuals must report and manage identified risks promptly.
- Risk assessment:
- Establishes a risk assessment indicator system and uses scientific methods to evaluate risks.
- Can involve internal or external experts, who must maintain confidentiality.
- Risk management decisions:
- Based on risk assessment conclusions, considering credit status and activity characteristics.
- Measures include adjusting supervision, conformity procedures, qualifications, entry/exit permissions, customs formalities, risk warnings, and other legal measures.
- Risk warnings:
- Customs can issue risk warnings within the system, to relevant units, the public, or international entities.
- Evidence requirement:
- Customs may require proof from entities/individuals to show that risks do not exist or are low.
- Emergency response:
- Customs can activate emergency plans and take necessary measures for major security risks.
- Reassessment and improvement:
- Customs can reassess and adjust measures if risk levels change significantly.
- Continuously evaluates and improves the risk management system.
- Joint mechanism:
- Establishes a joint risk prevention and control mechanism with relevant departments.
- Interpretation and implementation:
- The General Administration of Customs is responsible for interpreting these Measures.