How to Apply for Credit Repair and What Are the Standards for Advanced Certification?

The newly revised "Credit MAnagement Measures for Enterprises Registered and Filing by the Customs of the People's Republic of China" (hereinafter referred to as the "New Version of the Credit Measures") will be implemented from November 1, 2021. This article provides answers to questions that companies are more concerned about.

What is the applicable enterprise scope of the new version of the "Credit Measures"?

A

The new version of the "Credit Measures" applies to enterprises registered and filed with the customs.

How are the credit grades classified in the new version of the "Credit Measures"?

A

The new version of the "Credit Measures" divides the credit rating of enterprises into three types: advanced certified enterprises, other enterprises registered and filed with the customs, and untrustworthy enterprises. The new version of the "Credit Measures" optimizes credit ratings and highlights the management principle of "grasping both ends and promoting the middle". At the same time, it is clarified that high-level certified enterprises are "authorized economic operators" (AEO) of China Customs to better benchmark against international rules.

How does the new version of the "Credit Measures" classify and manage enterprises?

A

The new version of the "Credit Measures" stipulates that the customs implements hierarchical and classified management of enterprises according to their credit status. Advanced certified enterprises have the highest credit rating certified by the customs and enjoy the most convenient treatment and joint incentives for trustworthiness; untrustworthy enterprises have the lowest credit rating recognized by the customs and are subject to the strictest management measures; other intermediate enterprises do not need to be certified or recognized and will be implemented by the customs Routine management measures. The credit rating of customs enterprises has been simplified, and inclusive measures have been applied to a wider range of enterprises.

What preferential management measures does the new version of the "Credit Measures" have for advanced certified enterprises?

A

The new version of the "Credit Measures" integrates preferential policies in inspection-related business fields such as a lower inspection and quarantine sampling ratio, a lower origin spot inspection ratio, priority for external recommendation and registration, and provides up to 12 preferential and convenient measures to advanced certification companies, covering Customs management links such as registration and filing, import and export customs clearance, follow-up supervision, and external recommendations provide more comprehensive preferential treatment to advanced certification companies.

What management measures does the new version of the "Credit Measures" have for dishonest enterprises?

A

In order to better adapt to the requirements of the construction of the national social credit system under the new situation and further protect the legitimate rights and interests of enterprises, the new version of the "Credit Measures" reduces the management measures for untrustworthy enterprises from 8 to 4, including the inspection rate of import and export goods above 80%, and the operation Full guarantee will be provided for processing trade business, the frequency of enterprise inspections and verifications will be increased, and other management measures prescribed by the General Administration of Customs will be provided.

What are the certification standards for advanced certification companies in the new version of the "Credit Measures"?

A

The new version of the "Credit Measures" clarifies the "1N" working model of customs certification, dividing the certification standards of advanced certification enterprises into general standards and individual standards. Advanced certification enterprises should comply with both general standards and corresponding individual standards.

The new version of the "Credit Measures" stipulates that when applying to become a high-level certified enterprise, you need to submit relevant information. What does the relevant information include?

A

Relevant information includes: enterprise system documents, execution records, self-declaration, etc. corresponding to the customs advanced certification enterprise standards.

Will advanced certification companies need to re-certify in the future?

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The new version of the "Credit Measures" adjusts the "re-certification" implemented for advanced certification enterprises to "review". The review procedures and requirements are appropriately simplified and optimized, and the review cycle is 5 years. At the same time, in order to effectively prevent risks, the customs dynamically monitors the credit status of enterprises and conducts occasional reviews of high-level certified enterprises with risks. After review, if it no longer meets the standards for advanced certified enterprises, the customs will issue a failure-to-review decision and withdraw the advanced certified enterprise certificate.

What are the new changes in the standards for identifying untrustworthy enterprises in the new version of the "Credit Measures"?

A

The identification of untrustworthy enterprises in the new version of the "Credit Measures" fully reflects the principle of compliance with laws and regulations, and further protects the legitimate rights and interests of untrustworthy enterprises. There are four main changes: criminal offenses are limited to customs investigation of smuggling crimes, public security agencies open cases for investigation, and judicial organs Circumstances in which criminal liability shall be investigated in accordance with the law; "due to being listed in the list of enterprises with abnormal credit information by the customs for more than 90 days" and "obtaining improper benefits in the name of the customs or other enterprises" are deleted. Concealing the true situation or providing false information to the customs, affecting the enterprise's credit management. Clauses on breach of trust that are no longer in line with the actual work conditions of the customs but not suitable for current work requirements; clarify the amount of fines in arrears to exceed 10,000 yuan; and in accordance with the provisions of the Customs Law of the People's Republic of China, increase the number of breaches of trust caused by bribery to customs staff.

Is the list of seriously untrustworthy entities added in the new version of the "Credit Measures" a new level of credit management?

A

The customs list of seriously untrustworthy entities is not a separate credit management level, but a management tool. We will further strengthen disciplinary management for untrustworthy enterprises that have violated the regulations on import and export food safety management, the regulations on the supervision and management of import and export cosmetics, or have been held criminally responsible for smuggling solid waste in accordance with the law, or have been subject to administrative penalties of more than 2.5 million yuan by the customs for illegally imported solid waste. And implement cross-department joint punishment.

Which companies in the new version of the "Credit Measures" can apply for credit repair, and what are the conditions for repair?

A

Dishonest enterprises that have not been included in the list of seriously untrustworthy entities by the Customs may apply in writing to the Customs for credit restoration after correcting the untrustworthy behavior and eliminating the adverse effects, and if they meet relevant conditions.

The customs has set three repair conditions for untrustworthy enterprises based on the degree of harm caused by untrustworthy conduct: Those who are administratively punished by the customs for constituting smuggling and resisting or obstructing customs staff from performing their duties in accordance with the law and are determined to be untrustworthy enterprises shall be subject to the untrustworthy enterprise management for one year. An application for restoration can be made to the customs; if an enterprise is administratively punished for violating customs supervision regulations and is determined to be a dishonest enterprise, it shall be subject to the administration of dishonest enterprises for 6 months before filing an application for restoration to the customs; if there is an enterprise that has not paid taxes beyond the prescribed period, If a company is deemed a dishonest enterprise due to the amount of money or related fines and confiscations, it shall be subject to the dishonest enterprise management for 3 months before filing an application for restoration with the customs.

In the new version of the "Credit Measures", which untrustworthy enterprises will the customs implement proactive repairs?

A

The dishonest enterprise has not breached its trust again for two consecutive years, and the customs has taken the initiative to make a credit repair decision for the dishonest enterprise. For those who have been included in the list of seriously untrustworthy entities, they will be removed from the list of seriously untrustworthy entities and the relevant departments will be notified.