The Costly Classification and Valuation Mistakes MNCs Make in China and How to Prevent Them

December 4, 2014 3:30pm

Yan Hai
Senior Partner
Guangsheng & Partners

Flora Sun
Managing Director, Greater China
Mayer Brown Consulting

Yong Zhou
International Trade Counsel
Jun He Law Offices

As multinational companies expand their business operations into emerging markets, customs compliance professional must stay on top critical import requirements and prepare for the current enforcement trends. Non-compliance risks in these countries are high due to evolving legal regimes, lack of transparency and often burdensome import processes. Whether you are new to the field or are a seasoned veteran with substantial experience, this practical and interactive working group will provide you with hands-on guidance on how to avoid the most common valuation and classification missteps when importing good into China. Discussion will include:

  • Classifying the item with same item name but used in the different field and with different function in the same classification
  • Classifying the item for avoiding the license requirement
  • Classifying the full function device as a component
  • Classifying all the parts of an equipment which are loaded in one shipment separately
  • Classifying the item incorrectly due to the inaccurate Chinese translation of the item name
  • How to prevent to using incorrect HS Code
  • Valuation when Incoterm used is not CIF
  • Valuation when bonded zones are used
  • Valuation when processing trade (bonded manufacturing) is applied
  • Duty exposure when having “non-trade” overseas payment such as royalties
  • Valuation in case of related party transactions
  • How to mitigate valuation related exposure