War on Smuggling Brings Revenue

A huge surge in tariff revenues is significant proof of China's progress in stemming the once-high tide of illegal imports, a key customs official said.

"The great achievements we have made are reflected in soaring tariff revenues, improvements in the operational environment for major domestic industries and the restoration of reasonable market prices,'' said Sheng Guangzu, deputy director of the General Administration of Customs in East China's Fujian Province.

As proof, Sheng noted the nation's tariff revenue in 1999 exceeded 100 billion yuan (US$12 billion) for the first time and hit 220 billion yuan (US$26.6 billion) in 2000.

The pace also is up 24 per cent for the first half of 2001 year-on-year to 122.8 billion yuan (US$14.8 billion), customs officials said.

Tariff revenue is a good indication of the success of anti-smuggling efforts because it indicates the level of legally declared goods entering the country. No tariffs are paid on smuggled goods.

The result of the crackdown is evident in improved performances for domestic companies involved with crude oil, petrochemicals, information technology, textiles and metallurgy, Sheng said.

Another good indication is the reduction in the gap between imports and exports between Hong Kong and the mainland.

The mainland's statistics on imports of good from the special administrative region was 9 per cent higher than that of Hong Kong, far lower than in previous years.

That means smuggling through Hong Kong has all but stopped, Sheng said.

Another indicator for the achievements is the declining number of exposed cases.

In 1998, Chinese customs investigated cases worth 13.7 billion yuan (US$1.7 billion) in unpaid tariffs. The figure dropped to 5.4 billion yuan (US$655 million) in 1999 and to 4.8 billion yuan (US$581 million) in 2000, Sheng said.



Sources: China Daily


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