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Import and Export Trade Statistics
In January and February 2023, Chinas total exports and imports reached 895.72 billion U.S. dollars, down 8.3% on a yearly basis. Exports were 506.3 billion U.S. dollars, down 6.8% year on year. Imports were 389.42 billion U.S. dollars, down 10.2% year on year. The trade surplus reached 116.89 billion U.S. dollars in January and February.
China imported 888.81 and exported 2,027.94 billion yuan in mechanical and electrical products in January and February 2023. The imports declined 19.8% from the same period a year earlier, while the exports increased 0.4%. In particular, 67.58 (37.26) billion units of integrated circuits, worth 329.07 (127.9) billion yuan, were imported (exported) in January and February, down 24.9% (20%) compared to the same period last year. Imports (Exports) of medical devices were 13.68 (17.69) billion yuan in January and February, up 0.6% (down 6.3%) from a year earlier.
1、GACC Announcement No. 14 of 2023 (Announcement on Adjusting the Declaration Requirements for the Customs Declaration Form for Import Goods)
Issuance Date: February 21, 2023
Effective Date: March 1, 2023
Following the relevant deployment of the Joint Prevention and Control Mechanism of the State Council in response to COVID-19, the General Administration of Customs (GACC) decided to adjust the requirements for filling out the relevant fields in the Customs Declaration Form for Import Goods of the People’s Republic of China and the Entry Goods Registration List of the Customs of the People’s Republic of China. The adjustments are as follows:
(1) The declaration field “preventive disinfection implemented” was canceled.
(2) The “starting shipping date” field is no longer mandatory when the date of actual inbound goods involves the COVID-19 epidemic prevention and control management. Follow the relevant provisions if they are otherwise provided.
This announcement shall come into force as of March 1, 2023, and the GACC Announcement No. 88 of 2022 shall be repealed simultaneously.
The above is hereby announced.
LINK:
http://www.customs.gov.cn/customs/302249/2480148/4852887/index.html
Policy Analysis:
The GACC Announcement No. 88 of 2022 specified adding the declaration field “preventive disinfection implemented,” a check field whose answer was either Yes or No, and that the “preventive disinfection implemented” and the “starting shipping date” fields were mandatory for actual inbound goods. The cancellation of the two mandatory fields simplified and facilitated the declaration process.
2、Announcement No. 1 of 2023 of the Working Mechanism of the Unreliable Entity List: Announcement on Adding Lockheed Martin Corporation and Raytheon Missiles & Defense to the Unreliable Entity List
Issuance Date: February 16, 2023
Effective Date: February 16, 2023
For the purposes of safeguarding China’s national sovereignty, security, and development interests, under the Foreign Trade Law of the People’s Republic of China, the National Security Law of the People’s Republic of China, and other relevant laws, following the provisions of Article II, VIII, and X of the Provisions on the Unreliable Entity List, the Working Mechanism of the Unreliable Entity List decided to add Lockheed Martin Corporation and Raytheon Missiles & Defense to the Unreliable Entity List in response to their involvement in arms sales to Taiwan and impose the following measures:
(1) The two companies are barred from engaging in China-related import or export activities;
(2) They are forbidden to make new investments in China;
(3) Senior executives of the two companies are prohibited from entering China;
(4) Their work permits will be revoked, along with their visitor and residential status, and the applications they submit will not be approved;
(5) The two enterprises will be fined. The fines are twice the value of their arms sale contracts with the Taiwan region since the implementation of the Provisions on the Unreliable Entity List. The two companies must pay the fines within 15 days after the promulgation of the Announcement following related laws and regulations. Otherwise, the Working Mechanism of the Unreliable Entity List will impose other measures on them by law, including an increase in fines.
Matters not covered in the Announcement will be implemented under the Provisions on the Unreliable Entity List.
This Announcement shall come into force as of the date of promulgation.
LINK:
http://www.mofcom.gov.cn/article/zcfb/zcblgg/202302/20230203391289.shtml
Policy Analysis:
The purpose of legislation of the Provisions on the Unreliable Entity List is to safeguard China’s national sovereignty, security, and development interests, maintain fair and free international economic and trade order, and protect the legitimate rights and interests of enterprises, other organizations, and individuals of China. The Unreliable Entity List Mechanism of the Ministry of Commerce just issued its first list. Compared to the United States and some other western countries that generalize the concept of national security and overuse the blacklist sanction, China designed its Unreliable Entity List System in a relatively restrained manner. It announced the plan to establish the system in May 2019 and issued the provisions formally in September 2020. However, not until February 16, 2023, did the Chinese government adopt the justifiable defense tool for the first time.
3、The GACC and the Macao Customs signed an AEO Mutual Recognition Arrangement.
Issuance Date: February 7, 2023
Effective Date: February 7, 2023
The GACC and the Macao Customs signed the Arrangement between the General Administration of Customs and the Macao Customs on Mutual Recognition of the Enterprise Credit Management System of China’s Mainland Customs and the Authorized Economic Operator (AEO) Program of the Macao Customs on February 7. The Mainland Customs became the Macao Customs first AEO mutual recognition partner.
LINK:
http://wuhan.customs.gov.cn/customs/xwfb34/302425/4834873/index.html
Policy Analysis:
This is the third AEO mutual recognition agreement (MRA) signed by the GACC this year following the signing of MRAs with the Philippines and Costa Rica. With its mutually-recognized “One Belt, One Road” countries and regions increasing to 35, China ranks first in the number of signed agreements and mutually-recognized countries and regions, continuously boosting the confidence of a wide range of foreign trade enterprises and facilitating 5,019 AEO enterprises tangibly.
As an AEO-certified enterprise, HMG can enjoy mutual recognition of certifications with mutually-recognized countries and regions and provide and receive facilitating measures, including advantages such as a lower goods inspection rate, priority inspection, designated customs contact service, and priority customs clearance after the global trade recovery following its suspension.
4、Announcement of the Customs Tariff Commission of the State Council (CTCSC) on the Tenth Extension of Tariffs Exclusion List of U.S. Products Subject to Additional Tariffs
Issuance Date: February 13, 2023
Effective Date: February 16, 2023
In accordance with the CTCSC Announcement on the Eighth Extension of the Tariff Exclusion List of U.S. Products Subject to Additional Tariffs (CTCSC Announcement No. 7 of 2022), the eighth exclusion list shall expire on February 15, 2023. CTCSC decided under procedures to extend the exclusion term of the relevant products. The relevant matters are now announced below: From February 16, 2023, to September 15, 2023, the products listed in the annex shall continue to be exempt from the additional tariffs imposed as retaliatory measures in response to the U.S. 301 measures. For the detailed list, please see the Announcement.
LINK:
http://www.mof.gov.cn/jrttts/202302/t20230215_3866800.htm
Policy Analysis:
The tenth extension of the tariff exclusion list of U.S. goods subject to additional tariffs announced by the CTCSC is to extend the exclusion period for the relevant commodities covered by the eighth extension. From February 16, 2023, to September 15, 2023, the relevant goods will continue to be exempt from the additional tariffs imposed as a countermeasure against the U.S. 301 measures to save enterprises’ costs, relieve their burdens, and contribute to the reduction of economic and trade frictions. For products subject to the additional tariffs but not on the list, applicants may fill out and submit their exclusion applications as required via the exclusion declaration system (https://gszx.mof.gov.cn). The application review will be relatively fast, and the commodities eligible for exclusion covers an enormous scope. Applicants can now apply for exclusion for all products subject to the additional tariffs imposed as a countermeasure against the U.S. 301 measures.
5、Notice of the General Office of the Ministry of Commerce on Further Improving the Export Control of Dual-use Items
Issuance Date: February 12, 2023
Effective Date: February 12, 2023
For the purpose of implementing the spirit of the 20th CPC National Congress in-depth, under the provisions of the Export Control Law of the People’s Republic of China and the relevant administrative laws and regulations, given the new circumstances found in current work, the General Office of the Ministry of Commerce now notifies the matters on the export control of dual-use items as follows:
We must pursue a holistic approach to national security and maintain China’s national security throughout the whole process and in all aspects of export control.
We must follow and implement export control laws and regulations thoughtfully and understand the export control scope correctly.
We must carry out the permit procedures strictly and abide by the regulations regarding end users and end usages.
We must establish a sound internal compliance system and effectively prevent and resolve trade risks.
It is necessary to implement facilitating measures such as general permits to facilitate and promote trades consistent with compliance requirements.
We must strengthen export control supervision and law enforcement and seriously investigate and deal with illegal activities.
We must improve the implementation of organizations and help resolve enterprises’ appeals in time.
LINK:
http://www.mofcom.gov.cn/article/zwgk/gkzcfb/202302/20230203384654.shtml
6、The National Medical Products Administration (NMPA) issued the 2022 annual report of the Medical Device Standards Management of China.
Issuance Date: February 8, 2023
Effective Date: February 8, 2023
The NMPA issued the 2022 annual report of the Medical Device Standards Management of China. For the detailed information, please see the announcement.
(1) Strengthening the construction of the standards organization system
By December 31, 2022, the number of technical organizations working on medical device standards had reached 37, including 13 general standardization technical committees (TCs), 13 subcommittees (SCs), one standards working group, and ten technical regulatory bodies.
(2) Optimizing and evaluating compulsory standards
In accordance with the requirements of the Work Plan to Optimize Medical Device Compulsory Standards, we organized and completed the optimization and evaluation of 396 medical device compulsory standards and 62 compulsory standards projects under research. The result came out like this: among the 458 medical device compulsory standards and projects under research, 125 suggestions were changed to recommendations; 23 were repealed; 136 were revised, and 174 stayed effective.
(3) Optimizing the technical system of medical device standards
In 2022, 42 project inception plans of national medical device standards and 117 formulation and revision projects of medical device industrial standards (including 23 compulsory projects and 94 recommendation projects) were issued; 40 national medical device standards, 114 medical device industrial standards, and 4 revisions of medical device industrial standards were promulgated. By December 31, 2022, there were 1,919 medical device standards, and the technical system of medical device standards had been undergoing continuous optimization.
(4) Regulating, managing, and improving the system and the mechanism
We implemented the Opinions of the National Medical Products Administration and the Standardization Administration of China on Further Promoting the High-quality Development of the Standardization Work of Medical Devices and further improved the formulation and revision of medical device standards, bettering the management system and exploring mechanism innovation from all links of the formulation and revision of medical device standards. Firstly, we explored and established the standardization work mechanism to encourage enterprises to participate. Secondly, we enhanced the coordinating management level for standards. Thirdly, we strengthened the refined management of the crucial links of standards.
(5) Contributing to the implementation of the new GB 9706 standards
To support the smooth implementation of GB 9706.1-2020 “Medical Electrical Equipment Part 1: General requirements for basic safety and essential performance,” we made an all-out effort to promote the formulation and revision of GB 9706 standards. We organized to establish regulations under the standards and compiled and published the interpretation of the standards and the inspection procedures. We also organized the formulation of the Comparison Table between New and Old GB 9706.1 Standards and the Reference List of GB 9706.1-2020 Tests and Test Equipment.
(6) Strengthening the implementation of the standards
We organized and conducted the evaluation of the medical device standard implementation of 2022, further improved the evaluation mechanism of their implementation, and strengthened the publicity and following of the standards.
(7) Improving the international standardization level
a. The three international standards formulated under the leadership of China were officially issued.
b. We actively promoted the formulation and revision of other countries’ advanced standards.
c. We actively participated in international standardization activities.
d. We continuously improved our consistency with international standards.
(8) Improving the service level of standards
To make the standards play their role as technical support, in 2022, we organized the formulation of the Medical Device Standard Catalog Compilation (2022 Edition) and the Medical Device Standard Catalog and the Scope of Application of China and publicized them. We sorted out and publicized the scope of application of effective medical device standards and information such as their level, efficacy, name, and technical regulatory body by technical area of medical devices, and publicized the texts of the standards and the whole process of their formulation and revision in time.
LINK:
https://www.nmpa.gov.cn/ylqx/ylqxjgdt/20230207102437178.html
7、The United States Trade Representative (USTR) temporarily extended tariff exclusions on 81 Chinese (mainland) import commodities.
Issuance Date: February 2, 2023
Effective Date: February 2, 2023
Given the local productive capacity of the U.S. and its ongoing efforts to combat COVID-19, the USTR decided to adopt an interim, 75-day extension of 81 healthcare products needed to address COVID-19. In other words, the temporary extension will extend the 81 product exclusions through May 15, 2023, to allow for consideration of public comments the USTR is requesting on extending particular exclusions further.
LINK:
https://ustr.gov/sites/default/files/2023-01/COVID%20Extensions%20Comments%20FRN.pdf
8、Announcement of Shanghai Customs on Promulgating Several Promoting Measures for the High-quality Development of Headquarter Enterprises
Issuance Date: February 2, 2023
Effective Date: February 2, 2023
For the purposes of implementing in-depth the decisions and deployments of the 20th CPC National Congress regarding “accelerating the efforts to foster a new development pattern and pursuing high-quality development,” increasing the support of customs policies, better serving the cluster operation and capacity enhancement of headquarter enterprises (organizations) in Shanghai, and advancing the high-quality development of Shanghai’s economy, Shanghai Customs formulated the Several Promoting Measures of Shanghai Customs for the High-quality Development of Headquarter Enterprises, whose content is now publicized and promulgated. The Measures are summarized as the following. For more detail, please refer to the Announcement.
(1) Providing one-stop customs clearance services
(2) Implementing integrated bonded supervision
(3) Providing a support package for tax administration
(4) Serving the large Chinese-made aircraft strategy
(5) Promoting the upgrade and efficiency enhancement of the cruise ship building industry
(6) Supporting the development and upgrade of the forms of bonded repairs
(7) Contributing to the good use of the two markets and the two resources (in China and outside China)
(8) Safeguarding the safety and stability of key industrial chains and supply chains
(9) Carrying out priority credit cultivation for enterprises
(10) Establishing an entry/exit “green passage” for technology and innovation talents
LINK:
http://xian.customs.gov.cn/shanghai_customs/423405/qtzhxx1/423461/423462/4873562/index.html
Policy Analysis:
(1) The measures apply to headquarter enterprises, whose recognition should be based on the Notice of Shanghai Municipal Commission of Commerce, Shanghai Development and Reform Commission, Shanghai Municipal Commission of Economy and Informatization, and Shanghai Association of Industry and Commerce on Issuing the Several Encouraging Measures of Shanghai for the Establishment of Private Headquarter Enterprises (No. 1 of Hu Shang Gui of 2019).
(2) As far as specific measures are concerned, the overall trend is positive. For example, Shanghai Customs plans to use information platforms to conduct supply chain safety evaluations of critical industries such as integrated circuits and explore corresponding facilitation measures based on the evaluation result. In addition, import and export materials for research and development purpose of headquarter enterprises will go through risk evaluations and classified management so that their import and export can be facilitated. However, there are no supporting regulations, meaning a certain level of flexibility and the lack of an implementation standard. As a result, enterprises or associations will have to communicate and negotiate with customs while implementing their action plan.
(3) With the GACC laws and regulations potentially involved in each rule taken into consideration, there is actually no considerable breakthrough. For instance, the facilitation measure for “approved exporters” is governed by the GACC provisions, which require the enterprise to be an AEO enterprise. In addition, the essential issue of inter-departmental review and approval for bonded repairs stays unaddressed, and the repair platform concept is not reflected.
9、GACC Announcement No. 12 of 2023 (Announcement on Repealing Five Announcements, including Announcement No. 13 of 2001)
Issuance Date: February 2, 2023
Effective Date: February 2, 2023
To further regulate the customs supervision system of the processing trade and advance the high-quality development of the processing trade, the GACC, based on practical supervision, decided to repeal five announcements whose content was covered by effective policies or no longer met the current work requirements, including Announcement No. 13 of 2001, Announcement No. 38 of 2005, Announcement No. 57 of 2005, Announcement No. 51 of 2009, and Announcement No. 51 of 2013.
LINK:
http://gdfs.customs.gov.cn/customs/302249/302266/302267/4852593/index.html
Policy Analysis:
The repeal of Announcement No. 13 of 2001 canceled customs supervision code 0200 (abandoning materials and parts) and 0400 (abandoning finished products).
After the repeal of Announcement No. 38 of 2005, matters such as applications for filing, modifying, and writing off processing trade contracts and bonded supervision are no longer in the scope of customs declaration.
The repeal of Announcement No. 57 of 2005 invalidated the filling method and fields regarding the Processing Trade Manual of the Customs of the People’s Republic of China.
The repeal of Announcement No. 51 of 2009 invalidated the management of outsourced processing businesses of the processing trade and the operations of H2000 Management System of Outsourced Processing.
The repeal of Announcement No. 51 of 2013 invalidated matters involving the customs bonded supervision business in the reform of the administrative review and approval system of Guangdong Province.
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