Dual Agency Audit Harmonization Procedures for Cross Border Related Party Customs Valuations
Cross-border related-party imports require locking transfer pricing unit formulas into contracts prior to export to align customs value and tax audits.
Entry Amendment Filing
Meaning
A formal application submitted to customs authorities requests a correction of errors made in an already completed customs declaration for imported or exported goods. In Chinese trade practice, an entry amendment filing is used to adjust declared values, product classifications, or quantities before or after the release of goods. This mechanism allows businesses to maintain accurate compliance records and correct honest administrative mistakes.
Amendment Ground
A range of legitimate reasons justifies the submission of a request to alter a declaration. For an entry amendment filing to be approved, the applicant must demonstrate that the error was non-willful and resulted from clerical mistakes, changes in trade terms, or updated transaction documents. The application must be accompanied by supporting contracts, commercial invoices, and bank payment slips to prove the validity of the correction.
Customs officials assess these documents to ensure that the amendment is not a cover for deliberate duty evasion.
Filing Procedure
A structured submission must be routed through the online customs portal to initiate the correction process. This entry amendment filing requires the importer to specify the fields being changed and provide a clear written explanation for the modifications. Once submitted, the local customs house reviews the request and decides whether to approve the change directly, request additional documentation, or initiate a focused audit of the transaction.
Financial Penalty
The approval of a correction does not automatically exempt the company from liabilities. Under the rules of entry amendment filing, if the correction results in an increased duty liability, the firm must pay the difference immediately. Administrative fines are often avoided if the filing is made before customs detects the error.