Finance Ministry Relaxes Conditions for
Reduced Random Inspection Ratio for Customs Brokers
The Directorate General of Customs, a unit of the
Ministry of Finance (MOF), recently revised the ˇ§Rules for Customs Broker
Application for Reduced Ratio of Random Goods Inspectionˇ¨ to reduce random
inspection for Type I customs brokers who were among the top 65% in their
customs districts in terms of number of customs declarations during the year
prior to the application for reduced inspection.
The ˇ§Rules for Customs Broker Application for Reduced Ratio of Random Goods
Inspectionˇ¨ lay out 13 conditions for reduced random inspection ratios. For
Type I brokersˇXthose that meet all of the conditions--the range of reduction
is 26% to 50%. Customs brokers who meet conditions No. 1 through No. 9, and any
three of the conditions from No. 10 through No. 13, are Type II brokers eligible
for a reduction of up to 25%. For those export customs declarations that are
required by Customs to be inspected, however, the inspection ratio may not be
reduced.
The MOF points out that the revision of the rules relaxes the requirement that
applicants for reduced inspection ratios must be among the top 50% in their
districts during the year prior to application, to top 65%. In addition, the
minimum number of employees required in condition No. 11 is lowered from eight
to six.
Customs brokers who meet the requirements for reduced inspection ratio may
apply, with the necessary documentation, to their local customs bureaus for type
categorization before the end of February each year. The local customs bureau
will complete the examination of applications and announce the results by the
end of March. The period of validity for reduced inspection ratio is one year,
from April 1 to March 31 the following year.