China is arguably the most dynamic economy in the world today. Companies are attracted by China’s vast market, relatively low costs of production and huge labor pool, and have been and continue to see China as a critical link in their global business network. However, companies often fail to “do their homework”, resulting in the inability to optimize their business set-ups, and in the worst case scenario, face administrative and criminal charges for violations of China’s laws and regulations.

Bryan Cave International Consulting has extensive customs, trade and investment expertise in China. Our consultants include former China Customs officials and customs and trade practitioners with years of experience working on China matters. Together with lawyers in Bryan Cave LLP’s Shanghai office, Bryan Cave International Consulting advises clients on their business strategies and operations in China, compliance with China’s laws and regulations governing exports, imports, in-bound investments, special Customs areas, and the general conduct of business in China. We also represent clients in dealing with investigations and enforcement actions initiated by China authorities.

Customs Compliance & Advisory

The rapid growth and development in China has resulted in constant evolution and improvement of the rules and regulations governed by China Customs and other regulatory authorities. Bryan Cave International Consulting’s strength lies in its team of customs specialists with vast experience dealing with China Customs matters and other regulatory matters. We have advised clients on matters involving local Customs authorities in, among others, Beijing, Huangpu, Ningbo, Shanghai, Shekou, Suzhou, Tianjin and Wuxi.

Bryan Cave International Consulting works with clients to:

• Review importations to ensure that information provided to China Customs is accurate, as well as to identify risk areas and cost saving opportunities. This includes a review of goods and document flows, correspondences, internal controls and systems, contracts and agreements, and transfer pricing policies;

• Determine the declared value of imports for customs purposes. This includes advice relating to dutiable elements not included in the invoice price, as well as possible exclusion of certain costs, partially or wholly, from the transaction value resulting in lower customs value and thus, reduced payable duty/tax;

• Review and update transfer pricing policies from the perspective of indirect tax planning, assisting in risk analysis and business planning;

• Review the tariff classification of their products, ensuring compliance with China-specific classification rules;

• Identify regulatory requirements affecting importation into China, such as licensing and notification requirements, and labeling requirements;

• Develop a reliable and practical internal system to ensure customs compliance; and

• Train relevant personnel, ensuring that they understand the customs issues and know how to manage them effectively.
   

Some clients may face China Customs investigations on customs valuation which could lead to charges of tax evasion and smuggling, a criminal offence under China’s laws. Bryan Cave International Consulting has successfully represented such clients in engaging China Customs to defend against Customs actions and to reduce the charges and the penalties imposed.

Strategic Business Advisory

Bryan Cave International Consulting works with clients to develop the most optimal solution for their investment and business strategies with regard to China. We advise clients on:

• Structuring their operations to capitalize on certain special schemes, such as bonded zones, bonded warehouse schemes, special economic zones, free trade zones, export processing zones. In particular, we have been highly successful in exploring indirect tax, warehousing and transfer pricing strategies for clients establishing their facilities in the Waigaoqiao free trade zone;

• Reviewing transaction, documentation, supply chain and financial flows, identifying the cost-savings opportunities as well as assessing the risks;

• Examining the current pricing practices and determine whether they meet with China’s transfer pricing policy; and

• Integrating their China operations into their global business network.

Anti-Illicit Trade Strategy

China is known as the “factory of the world”; it is also the most prolific factory of counterfeit goods. Products ranging from automotive parts, batteries, mobile phones and software to luxury goods, consumer products, cigarettes and medicines are churned out in huge volumes in China and exported to markets in the Middle East, Southeast Asia, the EU and the U.S., among others.

Bryan Cave International Consulting is tapped into an extensive investigative network in China. We assist clients in:

• Mapping out the supply chain network for illicit goods, from retailer to wholesaler to warehouse through covert surveillance of persons involved in the transportation of contraband in order to identify the storage facilities and their distribution and export network;

• Tracing and identifying factories producing various types of counterfeit products and brands, as well as determine the size and product scale of the factories identified;

• Identifying the weak link in their product integrity;

• Developing detailed countermeasures, including raids, targeting manufacturers and other players identified;

• Identifying the best approach to take when engaging the relevant authorities;

• Sharing the intelligence gathered with the relevant authorities; and

• Engaging and supporting the relevant authorities in their conduct of anti-illicit trade investigations within the constraints of domestic laws.