Study On Customs Valuation Management In China

Customs valuation is a customs procedure applied to determine the customs value of imported goods, also called the value for duty. Valuation methods vary from country to country. Some determine the value for duty based on the transaction value of the goods, while others use minimum or reference price. The WTO Agreement on Customs Valuation is a set of unified standards put in place by the World Trade Organization (WTO) after the Uruguay Round with a view to regulating stakeholders in international trade. After its accession into the WTO, China not only abides by all the rules provided in this international legal document, but also has already incorporated it into its own customs legislations.With its current system of customs legislations, China's laws governing customs valuation basically embody all the principles and purposes of the WTO Agreement on Customs Valuation. However, they are far from being perfect, which may affect customs duty collection, and even result in loopholes in price monitoring. This paper attempts to make in-depth analysis of inadequacies, both in terms of practices and procedures, of China's customs valuation management system based on case studies. It also makes proposals on improvement aimed at promoting the sound development of foreign trade and maximizing China's economic benefits.In the first two chapters, the paper gives a brief introduction of customs valuation, which includes valuation rules, legal systems, historical development and organizational structures in China and also some major foreign countries. The next chapter is devoted to existing problems and their causes in China's current legislations governing customs valuation and its management mechanism. In the forth chapter, readers may find valuation management rules and mechanisms adopted by the United States of America and Japan, the world's two major economies, with a focus on how their success can serve as examples for China. The last chapter stresses reform on China's customs valuation management, and tries to answer such questions as where should the reform start, what are the core issues, and how to make sure the reform can be carried out smoothly. In the end, the paper gives its proposals on addressing existing problems both in terms of legislation and management, and on how to make improvements.