As part of its Customs Modernization and Tariff Act, the Philippines’ Department of Finance has created post clearance audit functions for the country's Bureau of Customs and announced a new prior disclosure program, which allows companies to minimize their penalties for errors and omissions on import documentation, according to a recent PricewaterhouseCoopers alert. Post-clearance audits can include audits of importers, customs brokers, agents and “all other parties engaged in the customs clearance and processing functions,” according to the notice. Auditors can also review all export- and import-related records “required to be kept by law,” the notice said. The prior disclosure program, the notice said, allows the Philippines’ Bureau of Customs commissioner to consider previous disclosures of errors and omissions in goods declarations by importers “as a potential mitigating factor in determining penalties.” All disclosures must contain "the errors and payment of deficient amounts of duties, taxes and penalties."

China will lower its value-added-tax rates on certain goods and services from 16 percent to 13 percent and from 10 percent to 9 percent, China's Premier Li Keqiang said during the opening of the county's annual meeting of its National People's Congress on March 5, according to multiple reports. While Li said the new 13 percent VAT will apply to manufacturing and the 9 percent will apply to transportation and construction, KPMG projects the scope of the rate changes to broad, with the 13 percent rate applying to all Chinese imports. Li did not announce when the new rates will take effect, although they are expected this year.

Hong Kong’s Trade and Industry Department issued updated procedures for applying for a Delivery Verification Certificate, the department said March 4. DVCs, provided to exporters as proof that their product has arrived in Hong Kong, are issued by the department after a request from the Hong Kong importer who receives the good, the department said. Along with a specific “SC011” or “TID 85” form, DVC applications must include a “bill of lading/master air waybill” and a “commercial invoice,” the department said, and can be submitted by paper or electronically as long as the applicant includes an original signed copy of the DVC application. The applicant is also required to declare that the product being shipped has arrived in Hong Kong and that the description of the product is accurate, the department said, adding that false or misleading statements can lead to “prosecution and/or administrative actions.” DVCs are usually approved within 15 business days after receipt of the application and supporting documents, the department said.