On November 22, the General Administration of Customs (GAC) published the Identification Standards for Standardized Declaration of Tax-related Elements under the Standards for Advanced Customs-Certified Enterprises (the "Standards").

The Standards specify that the customs will identify whether the declaration of tax-related elements by an enterprise applying for becoming an advanced customs-certified enterprise is standardized based on the following circumstances: (1) where the customs finds that the enterprise has no circumstance of "having an irregularity upon identification" in the items under the Standards, and the enterprise will be deemed as qualifying the standards for declaration of tax-related elements; (2) where the customs finds that the enterprise has any circumstance of "having an irregularity upon identification" in the items under the Standards, which is identified according to the standards of tax underpayment, the relevant indicator will be deemed as unqualified; however, if the enterprise does not cause any tax underpayment, or the tax in shortage in less than CNY100,000 cumulatively, relevant indicator will be deemed as qualified; (3) where the customs finds that the enterprise has any circumstance of "having an irregularity upon identification" in the items under the Standards, which is identified outside the standards of tax underpayment, relevant indicator will be deemed as unqualified.

(Source: China General Administration of Customs)