To further optimize the business environment, enhance trade facilitation, and encourage enterprises to adopt self-regulated management and lawful operations, GACC has, since March 5 this year, rolled out the nationwide implementation of the "Recognition Model of Enterprise Self-inspection Results" for customs inspections. This model's introduction is set to significantly boost the efficiency of customs inspections while fostering better self-regulated management among enterprises.
Q: What exactly is the "Recognition Model of Enterprise Self-inspection Results" in customs verification?
The "Recognition Model of Enterprise Self-inspection Results" for customs verification is an operational approach where, during customs verification department inspections, the entity under verification independently carries out verification based on specific requirements, ensures the authenticity and compliance of their production and business activities, provides self-inspection feedback to customs authorities, and the customs agency subsequently reviews and approves these results.
Q: What benefits does the "Recognition Model of Enterprise Self-inspection Results" bring to enterprises?
The introduction of the "Recognition Model of Enterprise Self-inspection Results" is expected to provide significant advantages for enterprises, especially the authorized economic operator (AEO), by reducing the costs associated with inspection preparations. Moreover, the integration of this model with the active disclosure mechanism ensures that businesses can still benefit from the perks of active disclosure, even under active customs supervision.
Q: Which enterprises fall under the scope of the "Recognition Model of Enterprise Self-inspection Results"?
The "Recognition Model of Enterprise Self-inspection Results" can be applied for three types of businesses: AEOs; customs-registered and filed enterprises subject to regular credit management policies with a credit score of 75 or higher in the customs' "Multi-dimensional Enterprise Portrait System" as of the previous quarter's end; and Class I outbound manufacturers of bamboo, wood, and grass products that lack a credit score within the customs' system and are not classified as dishonest businesses.
Q: What are the applicable areas of the "Recognition Model of Enterprise Self-inspection Results"?
Customs has delineated the verification types applicable to AEOs and other eligible companies. AEOs are subject to all management and risk verification matters, covering a total of 45 categories, while other eligible companies are only subject to management verification, with a total of 24 categories. The specific details are outlined in Annex 2 of the Notice by the Inspection Department of GACC on Promoting the Implementation of the "Recognition Model of Enterprise Self-inspection Results" for Customs Verification.
The "Recognition Model of Enterprise Self-inspection Results" does not apply in scenarios such as verification tasks linked to special customs operations, cases specified in formal documents or requiring explicit direct or on-site verification in instructions, verification involving export goods returned or flagged by foreign entities, AEOs downgraded in credit rating within the past two years, or cases deemed inapplicable based on customs risk assessments.
Q: If the entity under verification believes they are eligible for the "Recognition Model of Enterprise Self-inspection Results," can they proactively apply?
No. The applicability of the "Recognition Model of Enterprise Self-inspection Results" should be assessed by the customs verification department. Once deemed suitable, the entity under verification has the option to adopt the "Recognition Model of Enterprise Self-inspection Results". While the model cannot be applied voluntarily, the entity under verification retains the right to decline the application of "Enterprise Self-Inspection Result Recognition Model". Should the entity refuse, the verification department will carry out on-site inspections of the enterprise.
Q: What steps are involved in implementing the "Recognition Model of Enterprise Self-inspection Results"?
Step 1: Customs conducts research and judgment to determine whether the enterprise is suitable for the Enterprise Self-Inspection Result Recognition Model. Step 2: The customs sends a verification notice, which will notify the enterprise within 3 working days from the date of generation of the verification operation and send an "Enterprise Self-Inspection Status Form" (if the enterprise does not agree to carry out the Recognition Model of Enterprise Self-inspection Results, the verification will be carried out on site). Step 3: The enterprise shall complete the self-inspection and submit the results to the customs within the specified time (if it cannot be completed within the time limit, the enterprise needs to apply for an extension from the customs). Step 4: Customs reviews the self-inspection results. The customs will review the self-inspection results submitted by the enterprise based on whether the enterprise has conducted self-inspection in accordance with the provisions of the "Enterprise Self-Inspection Status Form" and whether the accompanying materials meet the requirements of the verification item. Step 5: The customs shall issue verification and disposal opinions. If the customs considers that it needs to be supplemented or modified after review, it will inform the enterprise to further supplement the materials. If it believes that there are problems in the self-inspection, it will guide the entity under verification to handle it according to the active disclosure process.
Q: After initiating the "Recognition Model of Enterprise Self-inspection Results", does this mean the entity under verification will no longer be subject to on-site inspections?
No. Upon initiating the "Recognition Model of Enterprise Self-inspection Results", customs will not automatically accept the self-inspection results submitted by the entity under verification. In situations where the entity under verification abandons the use of the "Recognition Model of Enterprise Self-inspection Results" during the self-inspection process, fails to complete the inspection within the customs-specified deadline, is downgraded in credit rating or has relevant qualifications suspended/canceled by customs during the model's application period, or where the submitted "Enterprise Self-Inspection Status Form" and accompanying documents fail to meet customs' inspection requirements even after supplementation, the case will proceed to on-site inspection. This also applies if customs, after reviewing the self-inspection results, deems an on-site inspection necessary or if, during the model's application period, one or more instances of the entity under verification's export goods are reported or returned by foreign entities. Such cases will be converted to on-site inspections.
Additionally, if customs discontinues the application of the "Recognition Model of Enterprise Self-inspection Results" to the entity under verification due to the aforementioned situations, the model cannot be reapplied for a period of 2 years.
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