On April 30th, 20021,the National Development and Reform Commission issued Announcement No.202 1, about issuing import quotas at preferential tariff rates other than 202 1. The quota of cotton imported from sliding duties this time is 700,000 tons, all of which are non-state-owned trade quotas. Among them, 400,000 tons are limited to import by processing trade; 300,000 tons does not restrict the mode of trade, and enterprises with quotas can choose and determine the mode of trade by themselves when applying for quota certificates. Enterprises can apply for processing trade quotas separately, or apply for quotas that do not restrict trade methods, or at the same time.
Last year, Announcement No.6 of the National Development and Reform Commission in 2020 issued on September 14, 2020 stipulated that the total import tariff quota of cotton in 20021year was 894,000 tons, of which 33% was state-owned trade quota. This quota application and allocation does not distinguish between general trade and processing trade. When the National Development and Reform Commission entrusts institutions to issue the Certificate of Import Tariff Quota of Agricultural Products to enterprises that have obtained quotas, the enterprises shall independently choose and determine the mode of trade.
What is the essential difference between the two? In this regard, Wu Guoxiong, a senior lawyer specializing in customs law, analyzed:
The tariff rate is 1, and the tariff quota rate is 1%. In recent years, the number has been fixed at 894,000 tons. It is China's commitment to the WTO that the tariff rate of cotton entering the China market within these quantities should not be higher than 1%. Some people think that if tariff quotas are processing trade, domestic sales must provide proof of general trade quotas, which is actually against WTO commitments and is not desirable; In order to eliminate this difference, the National Development and Reform Commission explicitly gave enterprises the choice of cotton tariff quota trade mode (general trade or processing trade), which better fulfilled China's commitment to WTO.
2. Preferential tax rate import quotas other than tariff quotas, that is, sliding duties quotas are the tax rates and quantities independently formulated by China, and China has complete autonomy, which can be issued or not; More or less hair, completely determined by the relevant functional departments in China. The same is true of the mode of trade, which can be decided by the government. Therefore, the above two announcements are different in the prescribed trading methods.
3. Looking back on the past cases of smuggling cotton in processing trade, it is undoubtedly wrong to claim that the tariff rate of 40% should be applied to cotton within the tariff quota to calculate tax evasion because its trade mode is processing trade, which artificially increases the criminal responsibility of the enterprises and personnel involved and should be corrected.
Senior lawyer of Wu Guoxiong Customs Law, specializing in customs dispute settlement, smuggling crime defense and import and export legal risk prevention. Living in Shenzhen.
Welcome to reprint and share, please indicate the source and author. Infringement must be investigated.
Editor: Hu Qingning
Source: Customs Legal Affairs Review/Policy Analysis
The picture comes from the internet and the copyright belongs to the original author.