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<p>HM Revenue & Customs (HMRC) have increased their engagement with China Customs
through the Fiscal Crime Liaison Officer in Beijing. The engagement is designed to
tackle undervaluation fraud, including online VAT fraud, with the help of the Chinese
authorities. This has included a memorandum of understanding, set up in 2018, leading
to a joint working group and a series of commodity-focused exercises.</p><p> </p><p>In
addition, HMRC’s primary focus in tackling the VAT issue has been with the online
marketplaces through which those sellers operate, as this has proven to be an effective
way of improving their compliance. The Fulfilment House Due Diligence Scheme supports
this compliance activity by regulating the sites where overseas sellers store imported
goods prior to their sale.</p>
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