Imported Science: How much do you know about classification pre-rulings?

What should I do if I don’t know how to classify imported goods? It is recommended to make a classification pre-rule!

Classification pre-ruling refers to the act of the incoming and exporting goods being submitted to the customs in the form of customs regulations before the actual import and export of goods, and the customs makes a classification pre-ruling decision in accordance with relevant regulations, and issue the 'Customs Pre-ruling Decision of the People's Republic of China (Classification of Commodities)' (hereinafter referred to as the 'Pre-ruling Decision'). Since the official implementation of the 'Interim Measures for the Management of Customs Pre-Rules of the People's Republic of China' (General Administration of Customs Order No. 236) in 2018, the classification pre-ruling business has attracted much attention from enterprises. Making good use of classification pre-ruling can not only simplify the customs clearance process of enterprises and improve customs clearance efficiency, but also help enterprises accurately understand tariff policies and tax-related elements in advance, effectively evaluate transaction costs, reduce the risk of non-compliance declarations, and further enhance the predictability of enterprises for import and export trade activities.

2. How to apply for classification pre-rule

(I) Conditions for applying for classification pre-ruling. Applicant: It should be the consignee of imported goods or the consignee of export goods. Application time: An application for pre-rule ruling shall be submitted 3 months before the intended import and export of goods. In special circumstances, if the applicant has a legitimate reason, he may submit an application for pre-ruling within 3 months before the goods are intended to be imported and exported. Applicant: The applicant for pre-ruling shall apply for pre-ruling from the customs directly under the place of registration. Application content: A 'Application for Customs Pre-Rationality of the People's Republic of China' (hereinafter referred to as the 'Application for Pre-Rationality') shall only include one type of customs affairs.

(II) Materials required to apply for classification pre-ruling. If an applicant applies for a classification pre-ruling, he shall submit an 'Application for Pre-ruling', an import and export order (contract) or an import and export intent, a confidentiality statement, and introduce relevant materials for import and export commodities. If the materials are in foreign languages, the applicant shall submit a Chinese translation that meets the customs requirements at the same time.

(III) Application channels for classification pre-ruling. Method 1: The applicant will apply through the 'Internet + Customs' integrated online service platform (website: http://online.customs.gov.cn), and select 'Tax and Fee Business-Commodity Classification Pre-Ranking' in turn to submit an application for classification pre-routing. Method 2: The applicant enters the business application-port law enforcement declaration through the China International Trade Single Window (website: http://www.singlewindow.cn/), selects the relevant modules of the 'Customs Affairs Contact Form' column, and submits the classification pre-ruling application.

(IV) Processing of classification pre-ruling. The basic process for classification of pre-rulings is application - acceptance (not accepted) - making a decision - issuing a pre-ruling decision. If the Customs reviews and decides whether to accept the application within 10 days from the date of receiving the 'Application for Pre-Rational' and relevant materials, and issues the 'Ap-Rational Decision' within 60 days from the date of acceptance. If the relevant situation needs to be determined through laboratory tests, testing, appraisal, expert demonstration or other means, the required time will not be included in this period.

3. How to use classification pre-ruling

(I) Inquiry of the 'Pre-ruling Decision'. Enterprises can check the processing status of classification pre-ruling applications through China's single window for international trade, 'Internet + Customs' and 'China Electronic Port'.

(II) Use of the 'Pre-ruling Decision'. When the applicant imports and exports goods in the same situation as those listed in the 'Advanced Decision', he shall declare in accordance with the 'Advanced Decision' and fill in the 'Advanced Decision' note column: 'Advanced Decision + 'Advanced Decision' number' in the customs declaration form remarks column.

(III) The application time limit of the 'Advanced Decision'. The pre-ruling decision shall be valid within 3 years from the date of the pre-ruling decision. If the laws, administrative regulations, customs regulations, and relevant provisions of the General Administration of Customs’ announcements change and affects their effectiveness, the pre-ruling decision will automatically expire. The pre-ruling decision has no retroactive effect on goods that have been actually imported and exported before it takes effect.

4. Classification pre-ruling extension

According to the 'Announcement on Implementing the Extension of Customs Pre-Rule and other Related Matters' (Announcement No. 32 of the General Administration of Customs 2024), within 30 to 90 days before the expiration of the validity period of the Pre-Rule Decision, if the application content (applicant name, enterprise code, unified social credit code, product name, specification model, structural principle, specific use, component distribution ratio, etc.) remains unchanged, and the original Pre-Rule Decision has not expired or has not been revoked, a customs application for extension of the validity period of the Pre-Rule Decision can be issued to the Customs for issuing the extension application for the validity period of the Decision. The extension application procedures are simplified and there is no need to resubmit relevant information about the product. The specific operation method is: you can query the 'Pre-ruling Decision' that meets the conditions in the 'Customs Affairs Contact Form'—'Commodity Classification' column in the single window of China International Trade. Click the 'Extension Application' button to submit the extension application.

5. Customs reminder

(1) The product description must be accurate and complete. The product description column of the pre-ruling application should accurately and completely reflect the specifications, model, structural principles, performance indicators, functions, uses, compositions, processing methods, analysis methods, etc. of the product in the verification state. It should not be simply filled in 'see attachments for details' etc.

(2) The contact information must be detailed and complete. The application form should accurately fill in the phone number of the contact person who is familiar with the product information so that the customs can communicate information with the applicant in a timely manner during the pre-ruling review process and improve work efficiency.

(III) The materials provided must be authentic and reliable. If the applicant provides false materials or conceals relevant circumstances, the customs shall give a warning and may impose a fine of not less than RMB 10,000.