Solutions

New China Trade Ruling Effective June 1, 2018

As you are aware trade between the U.S. and CHINA is very much in the news.  There is one area that we expect you may not have heard much about, and we at OCEANAIR want to make sure you are kept as informed as possible.

The People’s Republic of China’s General Administration of Customs China (“GACC”) has issued a new rule, effective June 1, 2018, requiring the provision of new data elements related to goods being imported and exported from China.  One of the new data elements required is the Employer Identification Number (“EIN”) or Central Index Key (CIK) (or the comparable government identification for shippers or forwarders in other countries) of U.S.-based shippers and forwarders.  This information must be declared on shipping documents, which means that the EINs will be disclosed to both the carrier and GACC.  U.S.-based companies will be required to report their EIN number.

This rule advances the China Customs Advance Manifest (CCAM) by requiring additional information to be filed with them before shipments are exported from any country to China or any shipments that are exported from China to other countries.

China acted on this rule late in 2017, but it has only come to the surface very recently to be effective June 1, 2018.

How does this rule change the import and export processes?

Exports to China:  The export forwarder (OCEANAIR) in the U.S. must provide the shipper’s full name, physical address, contact telephone number, individual named contact person and the shipper’s EIN number to the carrier.  This information is noted on the documentation and is also transmitted electronically to China Customs.  It is advanced information for screening purposes and serves to assist in China’s import security program.

Imports from China:  The export forwarder in China will obtain the Chinese shipper’s information and, in addition, they must obtain the U.S.-based consignee’s full name, physical address, contact telephone number, individual named contact person, and the consignee’s EIN number to the carrier.  OCEANAIR will provide the U.S. consignee’s information to our counterparts in China as necessary.  This information is noted on the documentation and is also transmitted electronically to China Customs for export formalities.  It is advanced information for screening purposes and serves to assist in China’s export security program.

As the exporter or importer, at this time there are no additional requirements for you to fulfill.  As your transportation partner, we will be providing the required information to help make this as seamless and transparent as possible.  This program is just being rolled out and there are many questions being raised about the process by all parties that are affected, especially the air and ocean carriers who must file the electronic manifests with the information.  OCEANAIR, Inc. is working closely with our agents and carriers to insure a smooth flow of information to keep your products moving.

As a new process, this is subject to change.  OCEANAIR will keep you informed as changes are made.  If you have any questions or concerns, they may be directed to our compliance group at Compliance@Oceanair.net.

As always, OCEANAIR thanks you for your continued support.  Your business is appreciated.