China Forgiving More Trade-Related Violations Amid Coronavirus

As the coronavirus outbreak continues, Chinese authorities have approached companies committing trade violations with more leniency than in the past, according to a March 17 report from Reuters. China has rolled out several measures to forgive violations, including a reduction of penalties for delayed import declarations (see 2003120019), and has relaxed other regulations, such as waiving import duties on emergency vehicles and medical supplies (see 2002140028). Reuters said the relaxed penalties have also applied to forged value-added tax invoices, where China has only issued warnings instead of more severe punishments. China has told its authorities to avoid detaining or arresting business operators who are “not dangerous to society and who show remorse after giving themselves up,” Reuters said.

China's Commerce Ministry has held press conferences and issued notices urging companies to resume business while vouching for the country’s supply chains (see 2003120017 and 2003110011). In a March 17 notice, the ministry said the State Council has directed agencies to do “everything possible to overcome the impact of the epidemic” and support foreign trade, according to an unofficial translation. The ministry said China’s next step is to focus on the “return to production of the entire industrial chain.”