Announcement of Beijing Customs District, the People's Republic of China [2020] No. 7

To carry out the guiding principles of the State Council on improving the business environment and promoting cross-border trade facilitation, further improve the level of cross-border trade facilitation in Beijing, deepen the reform of the tax guarantee system, and expand the scope of enterprises subject to exemption from guarantee, Beijing Customs District has decided to expand the scope of the pilot program for authorized economic operators (AEOs) to apply for exemption from guarantee within Beijing customs area in accordance with the Regulations of the People's Republic of China on Customs Affairs-Related Guarantee, the Customs Administrative Measures of the People's Republic of China on Enterprise Credit, and the Customs Administrative Measures of the People's Republic of China on Application for Guarantee of Imported and Exported Goods. The relevant matters are hereby announced as follows:

1. Seventy AEOs (see the Appendix for the list) involved in the pilot program, including BorgWarner Auto Parts (Beijing) Co., Ltd., may file an application with Beijing Customs District for exemption from guarantee. The enterprises which pass the examination can handle specific customs-related affairs by presenting a letter of guarantee.

2. The business scope which can be exempted from guarantee under the pilot program include: differential tax guarantee for temporary exit or entry goods, entry goods for repair, goods to be deducted or exempted from duty, leased imported goods, and imported formula priced goods.

3. If an enterprise under the pilot program is found credit rate adjustment, failure to handle the guaranteed business within the time limit, suspicion of smuggling or violation of rules, tax in arrears or others, the customs will terminate its qualification for exemption from guarantee under the pilot program.

4. After the pilot program of guarantee exemption starts for one year, Beijing Customs District will conduct evaluation of the pilot program to further improve the work concerning the exemption of AEOs from guarantee.

Appendix:List of AEOs under On-going Pilot Program of Exemption from Guarantee in Beijing Customs District

Beijing Customs District

February 14, 2020