Declaration Mismatch! No Penalty?

Logistics News

2-Apr-2025

Recently, a technology company in Guangzhou declared a batch of imported goods to the Huangpu Customs under the bonded maintenance trade mode. The declared packaging type was "Other packaging/paper or fiberboard boxes." However, upon inspection, customs officers discovered that the actual packaging was natural wooden pallets, which did not match the company’s declaration.


Further investigation by customs revealed that although the wooden packaging was not declared for inspection as required, it bore the valid International Plant Protection Convention (IPPC) logo and had been inspected with no abnormalities. Based on the "First-time Offense No Penalty" clause in the Customs Administrative Penalty Discretionary Standards (II) implemented on March 1, Huangpu Customs decided not to impose an administrative penalty on the company. Instead, they opted for education and rectification as a substitute for traditional penalties, making it the first case nationwide under the new regulations.


The new rule clarifies that if a company has no previous violations in the same field within 24 months, the violation does not cause substantial harm, and the issue is promptly rectified, customs may waive penalties for 10 types of minor violations, such as packaging declaration errors and document content omissions, which are common issues.


This policy adjustment reflects a deeper shift in customs supervision thinking. The goal is not punishment but to guide companies through education to establish long-term compliance mechanisms, achieving both legal and social effects. The responsible person from the involved company stated that the flexible handling avoided the impact of fines on cash flow, while also compelling the company to enhance its compliance awareness and build a sustainable compliance system for healthy development. This "tolerance-correction-improvement" closed-loop mechanism not only reduces the burden on foreign trade enterprises but also strengthens compliance awareness through root cause management.

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