(Yicai Global) Jan. 18 -- China's customs authorities issued punishments for close to 20,000 companies last year including blacklisting, credit rating restrictions, enhanced audits and inspections.
The General Administration of Customs punished 19,180 firms following recommendations from the taxation, finance, environmental ministries among others, state-backed broadcaster CCTV reported. The authority lowered the credit rating of 188 companies and blocked customs-authorizations for 19,180 while carrying out risk controls and increased inspections on them.
Customs is one of the country's first functional departments with both joint incentive and punishment mechanisms. It is actively involved in the construction of China's social credit system and is committed to building a credit regulatory framework in which dishonest market participants "are restricted everywhere after violating the law in one place" to create a good business environment for imports and exports.
The authority implemented 39 joint punishment covering five categories including blacklisting, credit rating restrictions, enhanced audits and inspections, restrictive management and references for firms. It publishes a list of dishonest firms on the national credit information sharing platform every day, and the latter will then send the list to all ministries and provincial-level platforms, leading to joint punishment of these firms in various departments, fields and regions.
The GACC has inked 34 memorandums of joint punishment with the State Administration for Industry and Commerce, the State Administration of Taxation, the Supreme People's Court, the Ministry of Environment Protection and other departments, covering basically all key industries and areas as of the end of December last year.