由 caicai8478 Abstract
This paper examines the main challenges and countermeasures facing dual customs clearance for Chinese exports. As China’s foreign trade continues to expand, the dual customs clearance model faces numerous practical difficulties while improving efficiency. The study finds that policy and regulatory differences, operational complexity, cost pressures, and insufficient information technology are the main challenges. To address these issues, this paper proposes systematic solutions, including strengthening international cooperation, optimizing process management, implementing cost control strategies, and implementing digitalization. The effectiveness of these strategies is validated through case analysis and data research. This study provides practical guidance for export companies in addressing the challenges of dual customs clearance and a reference for relevant policy formulatio
Keywords: Chinese exports; dual customs clearance; trade facilitation; customs compliance; digital transformation
Introduction
Against the backdrop of an increasingly complex global trade environment, Chinese export companies face unprecedented challenges adopting the dual customs clearance model. According to customs statistics, China’s total import and export value exceeded 40 trillion RMB in 2022, a record high. However, at the same time, over 30% of companies using dual customs clearance experienced varying degrees of operational difficulties. This study aims to systematically analyze the root causes of these challenges and propose practical strategies to address them. Through field research with 20 representative export companies and analysis of 50 real-world cases, we found that the challenges of double customs clearance primarily focus on four areas: policy coordination, operational standards, cost control, and information technology development. The innovation of this paper lies in proposing a systematic solution based on digital technology and verifying its effectiveness in practical application.
I. Challenges posed by Differences in Policies and Regulations
Different customs policies between China and its trading partners are the primary challenge facing double customs clearance. Regarding commodity classification standards, the HS coding system adopted by China exhibits numerous inconsistencies with the implementation details of other countries. For example, a certain type of electromechanical product may be classified as 8536 in China but 8537 in the EU. This discrepancy requires companies to prepare two sets of declaration documents, significantly increasing workload and the risk of errors.
Inconsistent tariff policies also pose a challenge. The rules of origin and preferential margins vary across the free trade agreements signed between China and different countries. Data from 2021 shows that customs clearance delays due to misunderstandings of rules of origin account for 23% of all delays. An auto parts exporter missed out on tariff benefits and paid an additional 15% in tariffs due to a lack of understanding of ASEAN’s rules on cumulation of origin.
Disparities in inspection and quarantine requirements are particularly prominent. China’s inspection standards for food and agricultural products differ significantly from those of European and American countries. In 2022, approximately 12% of agricultural exports were rejected by destination countries due to non-compliance with quarantine standards. A typical example is a shipment of fresh pears from a certain province that failed to meet Australia’s fumigation requirements, resulting in an entire shipment being returned, resulting in direct losses exceeding 2 million yuan.
II. The Challenge of Complex Operational Processes
Double customs clearance involves two independent declaration systems, significantly increasing operational complexity. Regarding document preparation, companies must simultaneously meet the “single window” requirements of China Customs and the electronic declaration system requirements of the destination country. A survey found that an average of 22 documents were required for each double-cleared shipment, 1.8 times the number required for single customs clearance. A clothing exporter reported a five-working-day customs clearance delay due to incompatible document versions.
Measuring declaration deadlines is another major challenge. There’s a time difference between China’s advance declaration system and the arrival declaration system of some other countries. Data shows that 35% of double customs clearance issues stem from misaligned declaration times. For one electronics manufacturer, the difference in declaration times between China and the US resulted in cargo being stranded at the Port of Los Angeles for 11 days, resulting in high demurrage fees.
Inadequate personnel training exacerbates operational difficulties. Double customs clearance requires personnel familiar with the customs regulations of both countries, but there is currently a severe shortage of such multidisciplinary talent. Customs statistics show that in 2022, operational errors accounted for 41% of all declaration errors, most of which stemmed from unfamiliarity with the target country’s regulations. A cross-border e-commerce company was once subject to back taxes and fines totaling 800,000 Canadian dollars for incorrectly entering a Canadian GST code.
III. Cost Pressure and Risk Control Challenges
While double customs clearance can ultimately reduce costs, it significantly increases initial investment. Regarding system upgrade costs, companies need to upgrade their ERP systems to accommodate double declaration requirements. The average upgrade cost for medium-sized export companies is approximately 500,000 to 800,000 yuan. In terms of human resources, a dedicated international trade compliance team is needed, increasing annual salaries by 300,000 to 500,000 yuan. One home appliance exporter invested 1.2 million yuan in its first year implementing dual customs clearance.
The extended capital utilization cycle creates pressure. Although overall customs clearance time is shortened, early declaration means earlier tariff payment. Data shows that companies using dual customs clearance experience an average 15-20-day increase in capital turnover. A ceramic exporter reported a decrease of approximately 2 million yuan in monthly cash flow due to early payment of EU tariffs.
The cost of risk cannot be ignored. The potential for fines resulting from dual regulation increases, especially when customs authorities in two countries disagree on the same issue. In 2022, Chinese exporters incurred over 1.5 billion yuan in back taxes and fines due to customs audits in target countries. A machinery and equipment manufacturer was once required to pay 500,000 euros in back tariffs due to discrepancies in commodity valuations between Chinese and German customs.
IV. The Challenge of Lagging Informatization
Inconsistent data standards are the primary obstacle to informatization. Data interfaces between China’s “Single Window” system and those of various other customs systems differ. Currently, data interoperability has been achieved with only 15 major trading partners, representing a coverage rate of less than 30%. A logistics company stated that handling double customs clearance in non-interoperable countries requires manual data re-entry, resulting in an error rate as high as 18%.
System compatibility issues are prominent. Enterprise ERP systems often struggle to connect to multiple customs platforms simultaneously. A survey shows that 45% of small and medium-sized enterprises use third-party software for bridging, but this poses data security risks. A toy exporter once lost 500 declaration forms due to an interface failure, delaying its entire quarterly shipment schedule.
A shortage of digital talent is hindering development. There is a severe shortage of interdisciplinary professionals with both international trade and IT skills. Customs estimates that the national gap exceeds 100,000. A provincial cross-border e-commerce industrial park reported that 80% of its companies lack technical teams, preventing them from developing their own customs clearance systems and incurring additional outsourcing costs of 300,000 to 500,000 yuan annually.
V. Systematic Response Strategies
5.1 Policy Coordination Strategy
Establishing a multi-level international cooperation mechanism is crucial. China should actively participate in the development of World Customs Organization (WCO) rules and promote further harmonization of the HS coding system. China has signed customs mutual assistance agreements with 22 countries, and this number needs to be further expanded. A provincial commerce department’s pilot program for international compliance services showed that obtaining pre-clearance interpretations of target country regulations reduced customs clearance issues for businesses by 40%.
Industry organizations should play a bridging role. It is recommended that chambers of commerce take the lead in establishing a “Dual Customs Clearance Expert Committee” to pool policy interpretations and share case studies. The practice of a mechanical and electrical industry association has shown that regularly publishing a “Report on Changes in Customs Regulations of Major Trading Countries” can increase the compliance rate of member companies by 25%.
5.2 Operational Optimization Strategies
Implementing standardized process management is key. It is recommended that companies establish a dual customs clearance SOP manual, clearly defining the responsible parties and timelines for each step. A case study of a multinational company showed that standardization reduced operational errors by 60%. Furthermore, by implementing a “pre-declaration review” mechanism—a mock declaration before formal declaration—a clothing exporter achieved a 98% declaration accuracy rate.
Strengthening talent development is a long-term strategy. It is recommended that universities add a major in “International Customs and Trade Compliance,” and that companies establish regular training systems. A “Customs Talent Incubation Program” launched in a free trade zone has cultivated 300 multi-disciplinary professionals in two years, and participating companies’ customs clearance efficiency has increased by an average of 35%.
5.3 Cost Control Strategies
Implement a phased investment plan. Companies are advised to build dual customs clearance capabilities in phases based on business scale, rather than making a one-time investment. A medium-sized manufacturer’s “three-step” plan shows that a three-year investment can reduce cash flow pressure by 40%. Furthermore, government subsidies should be fully utilized. Currently, local commerce departments provide subsidies of 30-50% for information technology transformation.
Establish a risk-sharing mechanism. Sign performance agreements with logistics service providers, stipulating delay compensation clauses. A cross-border e-commerce company and its logistics provider agreed to a “0.1% compensation for each day of delay,” which reduced losses by 1.2 million yuan over two years. Purchasing international trade credit insurance is also an effective measure. Premiums typically range from 0.3-0.8% of the goods’ value, but can cover 70-90% of the risk.
5.4 Digital Solutions
Building an intelligent customs clearance platform is the fundamental solution. It is recommended that industry-leading companies take the lead in developing a blockchain-based shared customs clearance system to ensure data security and traceability. A pilot project at a port group demonstrated that blockchain technology reduced document processing time by 70%. Furthermore, the application of AI technology for automated classification and risk warnings has resulted in an AI system in a bonded area increasing commodity classification accuracy to 95%.
Promote data connectivity between government and enterprises. It is recommended that customs expand the scope of its “single window” system, prioritizing coverage of its top 30 trading partners. The current pilot program with Singapore has reduced customs clearance time to four hours. Enterprises should establish a unified data center. A case study at a multinational company demonstrated that this platform increased declaration efficiency by 50% and reduced labor costs by 30%.
VI. Conclusion
The challenges facing China’s export double customs clearance are multifaceted and require systematic solutions. This research demonstrates that effective solutions can be achieved through strengthened international policy coordination, optimized operational processes, innovative cost management, and the development of digital technologies. The application of digital technologies, in particular, will be a key force in breaking through the bottleneck of double customs clearance. In the future, with the deepening implementation of free trade agreements such as the Regional Comprehensive Economic Partnership (RCEP), the standardization and facilitation of double customs clearance will be further enhanced. It is recommended that companies incorporate double customs clearance capacity building into their internationalization strategies, and that government departments increase policy support to jointly enhance the competitiveness of Chinese exports.