GAC Eliminates Regional Customs Clearance

On August 22, the General Administration of Customs (GAC) released the Notice on Canceling the Regional Customs Clearance Integration Model (Notice 38, 2017). This move is stepping stone in China’s reform to shift from the regional customs clearance integration model to a national customs clearance integration model. 

The three points included in the notice are listed below. Various related notices dating back to 2006 are all void.

  1. The regional clearance integration model has been abolished. GAC will no longer accept related business.
  2. The scope of cross-border rapid customs clearance reform has been extended to Customs in Guangdong Province.
  3. Imports and exports, via water transport, air transport, rail, and highway, including domestic transport of the goods, that utilize Internet of Things (IOT) equipment such as secure smart locks, bayonet front-end equipment, satellite positioning devices, may implement paperless road transfer operations. 

China has been piloting the Regional Customs Clearance Integration program in selected areas since 2014. In 2015, regional clearance zones were expanded beyond the Beijing-Tianjin – Hebei integrated region and the Yangtze and Pearl River Deltas to include coverage in northeastern China and along the proposed route for the New Silk Road Economic Belt. In May, Xinhua News released an article citing GACDeputy Administrator ZOU Zhiwu as stating that China’s National Customs Clearance Integration would go into effect this year. On June 29, 2017, GAC released a notice on Advancing National Customs Clearance Integration Reform (Notice 25, 2017) with an effective date of July 1, 2017.