In view of the highly specialized nature of tariff classification, the Ministry of Finance (MOF) has relaxed the handling of cases in which a post-clearance audit of mainland Chinese goods discovers an error in the reporting of the tariff code. If the importer in such cases has not violated the law and, before the notice of goods return has been received, submits the import permit, or if the opening of imports of the goods in question has been announced, then the importer can avoid returning the shipment or paying the value of the goods.

Customs has already implemented automation in order to speed up customs clearance for imported goods, and, for goods that are “exempted for examination and inspection,” carries out post-clearance audit with random inspections within two years following the release of the goods. Under current regulations, if the tariff code of imported mainland Chinese goods is inappropriately reported, and if a Customs post-clearance audit results in the reclassification of the goods into a category for which imports are not yet allowed, then the entire amount of the goods must either be returned or the value of the goods must be paid.

The MOF indicates that in the past, if the incorrect tariff code was reported for imported mainland Chinese goods that were undergoing customs clearance, the importer could submit import permit documentation prior to receiving the notice of goods return and Customs could release the goods. The new ruling expands application of the rule to cases where the goods have been released by Customs and then are reclassified as a result of a subsequent post-clearance audit. This helps to lighten the cost burden on importers.