May 15, 2018

New Customs Credit System to help companies expand into overseas markets

The Pudong New Area recently held a meeting on promotion of the Customs Credit System in order to upgrade the level of the Authorized Economic Operators, which can benefit from simplified procedures.

Spreadtrum Communication (Shanghai) Inc., a communication equipment producer who supplies 260 mobile phone companies worldwide with its chips, is an AEO firm. Its main raw wafer material comes from an overseas original equipment manufacturer, and its sales are mainly in the overseas markets, too.

With the AEO certificate, the company now enjoys faster declaration, simpler declaring processes and prioritized customs clearance.

In countries such as Korea and Singapore, where the AEO certificate is also valid, the importing and exporting shipments can also enjoy less inspection and risk evaluation and prioritized customs clearance.

The recently-introduced Measures for Enterprise Credit Management by the Customs Administration of China has become effective since May 1. Compared to its old version, the new regulation has broader application scope, improved information collection and information publicity, especially the content regarding companies’ credit evaluation and punishments.

Jian Danian, inspector of Shanghai Free Trade Zone Administration, said the establishment of the Shanghai Customs Credit Management System will help the companies in the zone to expand into the overseas markets and promote the healthy development of the Pudong New Area’s open economy.

Next, Pudong Customs and the Pudong New Area Government will build a companies’ credit management platform and explore new management mechanisms to be introduced into other parts of the country.