Imagine a world where customs authorities could more accurately assess the value of imported goods—global trade would become fairer and more efficient. This vision would not only combat tax evasion but also generate much-needed revenue for developing nations. The World Customs Organization (WCO) is working toward this goal, with China's customs administration playing an active role by contributing valuable expertise.
The WCO's Revenue Package program, designed to help customs administrations improve tax collection capabilities while ensuring fairness and efficiency, recently conducted an in-depth review of China's customs valuation control system. The assessment revealed that China has developed a mature system with extensive practical experience that could serve as a valuable reference for other nations.
WCO Revenue Package: Strengthening Global Tax Administration
Launched in 2009, the WCO Revenue Package aims to enhance the efficiency and fairness of customs revenue collection worldwide. The program provides practical tools and diagnostic methods focusing on key areas including commodity classification, valuation, origin determination, and post-clearance audits. These measures help customs authorities better identify and prevent tax evasion, thereby increasing fiscal revenue.
Implemented in phases with different focuses, the program's third phase emphasizes case studies analyzing various countries' practical experiences in customs valuation control to identify best practices. These studies will offer crucial references for other nations, particularly developing countries, to improve their own valuation systems.
China's Contribution: A Case Study in Valuation Control
China Customs has actively responded to the WCO initiative by proposing to share its valuation control system as a case study. This move demonstrates China's professional commitment to global trade governance. The case study will cover all aspects of China's system, including risk assessment, database applications, and interdepartmental coordination—elements that hold significant reference value for other countries.
To better understand China's system, a WCO delegation visited customs offices in Beijing and Guangzhou, engaging in detailed discussions with key officials. Chinese representatives thoroughly explained their valuation control processes and demonstrated risk assessment techniques using their valuation database, leaving the WCO team impressed with China's capabilities.
Key Features of China's Valuation Control System
China's system stands as a model for several reasons:
- Comprehensive legal framework: China has established a complete set of customs laws and regulations that provide a solid legal foundation for valuation control, ensuring fairness and transparency.
- Advanced risk management: The administration employs sophisticated risk assessment techniques that analyze product categories, origins, and prices to identify high-risk goods and implement appropriate inspection measures.
- Powerful valuation database: An extensive database collects import price information, serving as both a reference for customs officers to verify declared values and a tool for identifying price anomalies.
- Effective interagency cooperation: Close collaboration with tax and foreign exchange authorities enhances efforts to combat tax evasion through information sharing and joint operations.
- Professional workforce: A specialized valuation team with extensive expertise receives regular training to maintain high professional standards.
Significance of the Case Study
China's case study provides other nations with a concrete, actionable model for developing their own valuation control systems. By adopting lessons from China's experience, countries can improve revenue collection efficiency while promoting fairer international trade practices.
The third phase of the WCO Revenue Package is scheduled for completion in June 2018, when a series of case studies will be published for global reference. The WCO remains committed to enhancing customs administrations' capabilities worldwide, contributing to healthier global trade development.
Through its active participation and knowledge sharing, China Customs plays a significant role in the WCO program. This collaboration represents a collective effort to establish fairer, more efficient global tax administration systems that can power economic growth worldwide.