China's customs revenue hit a record high of 565.35 billion yuan by the end of November 2006, up 84.962 billion yuan or 17.7 percent over the previous year, said a source with the country's customs authorities. Of this amount, 105.436 billion yuan was tariffs and 459.899 billion yuan was import linkage value-added tax.

Since China joined the World Trade Organization (WTO), it has been a responsible trading partner, fulfilling all of its membership commitments. China has gradually reduced its tariff levels, opened the domestic market wider to overseas investors and adopted various methods to encourage international trade. In 2005, China's total trade volume climbed from sixth (before its entry into the WTO) to third place in the global market, realizing a shift in focus to trade balance from expanding exports. Imports have maintained a double-digit increase rate, bringing in more tax revenue sources. The record growth in investment, consumption and exports, three major driving forces of the national economy, also gives impetus to the growth of imports, resulting in a constant increase in customs revenue.

In the first 10 months of 2006, the total volume of imports stood at $645.66 billion, up 20.9 percent year on year, with the imports of general trade swelling to $273.34 billion, up 19.8 percent, much higher compared to the 11.8 percent of 2005.

Challenged by a lowered tariff level and WTO rules for value appraisal, Chinese customs agencies are about to build a unified taxation system available with improved service levels to maintain a steady increase in tax revenue. Since 2006, customs agencies at all levels have intensified tax collection. In the first 10 months of the year, 5,578 smuggling cases worth 12.54 billion yuan were investigated. Among the 6,200 companies receiving auditing, 1,318 of them paid tax they had previously evaded worth 3.16 billion yuan, up 11.8 percent year on year.

The total customs revenue is expected to top 600 billion yuan for the whole year of 2006.

(China.org.cn)