Transfer pricing is a major enforcement priority of China Customs in 2020. In April 2020, China Customs launched a national enforcement action to investigate and audit import transactions between related companies. More than 1000 multinational companies have received notices from China Customs requesting information on their transfer pricing policies and activities.

  1. Who will be impacted?

On May 12, 2020, the China State Tariff Commission of the State Council issued a new round of tariff exemptions on China’s Batch 2 of $60 billion worth of US imports. China implemented retaliatory tariffs following the Trump administration’s imposition of Section 301 tariffs on Chinese imported goods. This is the second instance of exclusions

Chinese law requires companies to accurately classify and declare goods imported into or exported out of China under its version of the Harmonized System (HS). Importers and exporters who fail to properly classify products may be e subject to criminal or civil penalties. Tariff misclassification in China has become a flashpoint for multinational companies due