101556 Resource 94086 93210 94146 1125538545313 1201208683637 Controlled Challenges of the China E-Port System

China E Port System Needs Improvement Before Large-scale Roll-out

Important challenges with the E System include the fact that difficulties can arise if you need to mix bonded and non-bonded materials. Technically speaking, the mixing of Raw Materials purchased from the domestic market with materials from abroad is not allowed. Under the perfect model for bonded materials management idealized by Customs, all bonded import Raw Materials should only be used for Finished Goods that will be exported. The E- System makes this more of a possibility since it helps clear book records against physical stock. Bonded materials from other factories and for transfers to different Customs zones are more easily controlled and monitored since all of the Customs zones are connected to the system. Yet, in some industries it is unavoidable to mix bonded and non-bonded materials and Customs may loosen their control as long as the company does not abuse the practice by attempting to avoid tax & VAT. Other challenges include: <ul><li>Possible raw material build-up at the beginning stage of implementation</li><li>Communication becomes closer and more thorough with transparency in data for both Customs and company </li><li>Risk of double duty & VAT</li><li>Heavy data input & output Possible fine & penalties due to inventory discrepancy against bookings </li><li>Process amendments </li><li>Close coordination needed between purchasing, production, distribution, warehousing, and materials management </li><li>Roll-out of industry-wide E-system difficult, currently no standards to meet particular industry specifications </li><li>SAIQ (State Administration for Entry-Exit Inspection and Quarantine of the PR China) is moving in a different direction from E-Port, they want their own separate system.Currently they are not connected to E-port. </li><li>Customs is playing a less important role as tariff barriers are being removed </li><li>Delays to foreign goods flows will increase from non-tariff barrier sources such as SAIQ, 3C Certification, and CEPA </li></ul> 10 application/xml false china import china logistics china materials management china sourcing china supply chain E clearance E port E-port E-System SAIQ Mozilla/5.0 (Windows; U; Windows NT 6.0; en-US; rv:1.8.1.11) Gecko/20071127 Firefox/2.0.0.11 127.0.0.1 127.0.0.1 Establish 208.105.4.154 false true false false true 187565 false false true false false false true 94086 blog blogsite/ChinaSupplyChain/web