General Regulations of P. R. China Ⅸ

Promulgated by the State Council of the People's Republic of China on March 7, 1985, amended and promulgated by the State Council of the People's Republic of China on September 12 9 1987, amended and promulgated a second time on March 18, 1992 according to a Decision by the State Council of the People's Republic of China on Amending the Regulations on Import and Export Tariff of the People's Republic of China

Chapter I General Provisions

Article 1 With a view to implementing the policy of opening up to the outside world, to promoting foreign economic relations and trade, and to developing the national economy, the present Regulations were formulated in accordance with "Customs Law of the People's Republic of China".

Article 2 All goods permitted to be imported into or exported out of the Customs territory of the People's Republic of China shall be subject to the levy of Customs Duties on imports or exports according to "Customs Import and Export Tariff of the People's Republic of China" (hereinafter referred to as Customs Import and Export Tariff) except as otherwise provided for by State Council.

Goods purchased outside Customs territory and imported into the territory which were originally produced or manufactured in China shall be subject to the levy of import Duty according to Customs Import and Export Tariff.

Customs Import and Export Tariff is an integral part of the present Regulations.

Article 3 The Tariff Commission established by State council is charged with the responsibility of formulating the guidelines , policies and principles for drawing up or amending " Regulations on Import and Export Tariff of the People's Republic of China and Customs Import and Export Tariff", of examining the draft of amendments to tariffs, of setting temporary tariff rates and of examining and approving the partial adjustment to the tariff rates.

The organization of the Tariff Commission is prescribed by State Council.

Article 4 Both the consignee of imports and the consignor of exports are persons obligated to pay Customs Duties.

The agent entrusted to go through the related Customs procedures shall abide by all provisions of the present Regulations pertaining to his client.

Article 5 Regulations regarding the Duties on incoming passenger's luggage or belongings and on personal postal matters shall be formulated by the Tariff Commission.

Chapter II Applying Tariff Rates

Article 6 Tariff rates on imports fall into two categories: general rates and preferential rates. The general rates shall, for the purpose of taxation, apply to goods imported from and produced or manufactured in countries or regions with which the People's Republic of China has concluded no agreement for reciprocal tariff concessions; the preferential rates shall apply to goods imported from and produced or manufactured in countries or regions with which the People's Republic of China has concluded such agreements.

Subject to special approval by the Tariff Commission under State Council, the preferential rates may, for the purpose of taxation, be applied to import goods to which the general rates are otherwise applicable as provided in the preceding paragraph.

A special Duty may be imposed on goods originating in any country or region which imposes a discriminating Duty or which effects other forms of discriminating treatment on imported goods originating in the People's Republic of China. The selection of goods subject to imposition of the special Duty, the level of the rates, and the date of their inception and discontinuance shall be determined and enforced by the Tariff Commission.

Article 7 Import and export goods shall be classified under an appropriate heading or subheading in accordance with the classification principles set forth in Customs Import and Export Tariff and, for the purpose of taxation, the tariff rates applicable shall be applied accordingly.

Article 8 Customs Duties shall be levied at the tariff rates in effect on the date of declaration of the imports or exports by the consignee or consignor or his agent.

Imports which are permitted by Customs to be declared prior to their entry, shall be subject to the levy of import Duties at the tariff rates in effect on the date of registration for entry of the means of transport involved into the Customs territory.

Article 9 The tariff rates in effect on the date when the import or export goods are first declared for import or export shall apply in the recovery or refund of the import or export Duties. Specific provisions in respect thereof shall be formulated by Customs General Administration.
Chapter III Verification of the Dutiable Value

Article 10 The dutiable value of the goods to be imported shall be assessed according to the GIF price based on the transaction value verified by Customs. The GIF price shall include the price of the goods, packing charges, freight , insurance premiums and other service charges incurred prior to the unloading of the goods at the point of destination in Customs territory of the People's Republic of China.

Article 11 Where the GIF price of the import goods cannot be ascertained after examination by Customs, it shall, for the purpose of payment of Duty, be assessed by Customs on the basis of the following prices, in order of precedence:

A. the transaction price of identical or similar goods imported from the same country or area;

B. the transaction price of identical or similar goods on the international market;

C. the wholesale price of identical or similar goods on the domestic market, less the import Duties levied and other taxes collected in the process of importation, the charges on transportation and storage after importation, business expenses and profit;

D. the value assessed by Customs by other appropriate methods.

Article 12 The dutiable value of mechanical appliances, means of transport or any other goods, which are to be shipped out of Customs territory for the purpose of repairs, with the declaration for exports made in advance, and shipped back into Customs territory within the time limit set by Customs, shall be identical with the charges for repairs and the cost of materials and spare parts used for the repairs, both of which shall be subject to examination and approval by Customs.

Article 13 The dutiable value of the goods which are shipped out of Customs territory for processing, with the declaration for exports made to Customs in advance, and shipped back into Customs territory within the time limit set by Customs, shall be identical with the difference between the GIF price of the processed goods at the time of entry and the GIF price of the original goods shipped out of Customs territory or of identical or similar goods at the time of entry.

The description of the goods referred to in the preceding paragraph and the specific measures for their regulation shall be separately provided by the Customs General Administration.

Article 14 The dutiable value of the goods to be imported on lease (including borrowed) shall be the rental for the goods, which is subject to examination and approval by Customs.
Article 15 The dutiable value of goods imported shall include payment of charges or fees made to parties outside Customs territory covering the patents, trademarks, copyright, know-how, computer software and information relating to the goods imported for their production, use, publication or circulation in Customs territory.

Article 16 The dutiable value of goods to be exported for sale shall be identical with the FOB price of the goods after export Duties are deducted. The above FOB price shall be subject to examination and approval by Customs. Where the FOB price cannot be ascertained, the dutiable value shall be assessed by Customs.

Article 17 The consignors or consignees of import or export goods or their agents shall declare to Customs the true transaction value of the import or export goods. If such declared value proves clearly lower or higher than the transaction value of identical or similar goods, the dutiable value shall be determined by Customs in accordance with relevant provisions of the present Regulations.

Article 18 The consignee of imports or consignor of exports or his agent shall, when declaring the imports or exports, present to Customs the invoices indicating the true price, freight, insurance premiums and other expenses incurred for the goods (with manufacturers' invoices, if any), packing lists and other relevant documents for examination and approval by Customs.

All the above invoices and documents shall be signed and stamped by the consignee or consignor or his agent as true and correct.

Article 19 The consignee or consignor or his agent shall present the invoices and other documents to Customs to assess the dutiable value of the goods to be imported or exported. If necessary, Customs may examine the relevant contracts, accounts, bills and other documents of both the buyers and the sellers or make any further investigations. Customs may also check the above documents and papers even after the levy of Customs Duties and the release of the goods in question.

Article 20 Where the consignee or consignor or his agent fails to present the relevant documents stipulated in Article 18 for examination by Customs at the time of declaring imports or exports , payment shall be made according to the dutiable price set by Customs, and Customs Duties already collected will not be adjusted, even though the relevant documents and papers are subsequently presented.

Article 21 If the GIF price of imports, the FOB price of exports, the rental for imported or exported goods, the charges for repairs or the cost of materials and spare parts are in foreign currency, they shall be converted into RMB at the median price in the schedule of RMB exchange rate quotations published by the State Foreign Exchange Authority on the date of issuance of the Duty Memo. Where the exchange rate of any foreign currency is not available in the schedule, Customs may apply the exchange rate set by the above Foreign Exchange Authority.

Chapter IV Payments, Drawbacks and Recovery of Customs Duties

Article 22 The consignee or consignor or his agent shall pay Customs Duties at the designated bank within seven days (excluding Sundays and national holidays) after the date of issuance of the Duty Memo by Customs. In case of any payment arrears, Customs may order the fulfillment of the payment, and 1%0 of the total amount of Customs Duties overdue shall be charged per day for delayed payment, from the eighth day to the date of fulfillment of the payment.

Article 23 Customs shall levy Customs Duties and penalties for delayed payment in RMB, except as otherwise provided for.

Article 24 Customs shall issue a receipt for any Customs Duties collected or any fees charged for delayed payment. The form of the receipt shall be prescribed by the Customs General Administration.

Article 25 In any of the following cases, the consignee or consignor or his agent may, within one year from the date of payment of Customs Duties, claim a refund from Customs by submitting to Customs a written application with supporting reasons supplied and the receipt for the paid Customs Duties attached:

A. any amount of Customs Duties overpaid as a result of inappropriate assessment by Customs;

B. any Duty- paid goods imported exempt from examination by Customs, which are discovered by Customs to be short-landed ;

C. any Duty-paid goods to be exported which are not shipped for some reason and are to be withdrawn from Customs after examination by Customs.

Customs shall reply in writing within 30 days from the date of receipt of the application for refund of Duty paid and shall notify the applicant of their decision.

Article 26 Where Customs Duties are short-levied or not levied on imports or exports, Customs may, within one year after the date of payment of Customs Duties or the date of release of the goods, recover the amount of Customs Duties short-levied or not levied. If any imports or exports are short-levied or not levied owing to an act in violation of Customs regulations by the consignee or consignor or his agent, Customs may recover from him within a period of three years the Duties short-levied or not levied.

Chapter V Reduction or Exemption of Customs Duties and Procedures for Examination and Approval
Article 27 Goods falling into any of the following categories may be exempt from the levy of Duty, after verification by Customs:

A. a consignment of goods, on which Customs Duties are estimated below RMB 10 yuan;

B. advertising matter and samples which are of no commercial value;

C. goods and materials, which are provided free of charge by international organizations or foreign governments;

D. fuel, stores, beverages and provisions for use enroute loaded on any means of transport which is in transit across the border.

Where any goods exported are shipped back into Customs territory for some reason and need to be exempt from import Duties, the original consignor or his agent shall submit a declaration for entry with the original documents attached and verified by Customs. However, the export Duties already collected shall not be refunded.

Where any goods imported are shipped back out of Customs territory for some reason and need to be exempt from export Duties, the original consignee or his agent shall submit an exit declaration with the original documents attached and verified by Customs. However, the import Duties already collected shall not be refunded.

Article 28 Customs may in consideration of specific circumstances, grant reduction or exemption of Customs Duties on any goods falling into any of the following categories:

A. goods damaged, destroyed or lost enroute to Customs territory or at-the time of unloading;

B. goods damaged, destroyed or lost through force majeure after unloading but prior to release;

C. goods found already leaking, damaged or rotten at the time of the examination by Customs, provided that the cause is other than improper storage.

Article 29 Customs Duties shall be reduced or exempt on goods and Articles in accordance with the relevant provisions of international treaties to which the People's Republic of China is a contracting or acceding party.

Article 30 Customs Duties may be exempt temporarily on samples, exhibits, engineering equipment and vehicles for construction, instruments and tools for installation, cinematographic and television apparatus, containers of goods, and theatrical costumes and paraphernalia, which are permitted by Customs to be temporarily shipped into or out of Customs territory and reshipped out of or into Customs territory within six months, provided that a deposit of an amount equal to the Customs Duties or an equivalent guarantee is provided to Customs by the consignee or consignor.

The time limit stipulated in the preceding paragraph may be extended at the discretion of Customs.

Machinery for construction, engineering vehicles and vessels and the like which are temporarily admitted for import with a time limit that is subsequently extended upon approval by Customs, shall be subject to the levy of import Duties during the period of extension according to the time of their use. Specific measures for the levy shall be separately stipulated by the Customs General Administration.

Article 31 Import Duties on raw materials, subsidiary materials , spare parts, accessories, components and packing materials imported for processing or assembling on behalf of manufacturers or traders outside Customs territory, or for the manufacture of goods to be exported, may be exempt according to the quantity of the finished product actually exported; alternatively, the import duties may first be collected upon importation and then refunded in accordance with the quantity of the finished products actually exported.

Article 32 Regulations on the levy or exemption of Customs Duties on free replacement goods imported or exported, shall be separately formulated by the Customs General Administration.

Article 33 Customs Duties shall be reduced or exempt in accordance with the provisions set out in relevant regulations on goods imported into or exported out of designated areas such as special economic zones and by special designated enterprises, such as Chinese-foreign equity joint ventures, Chinese-foreign contractual joint ventures and wholly foreign-funded enterprises, and also on goods given preferential treatment by laws and regulations.

Article 34 Where the consignee or consignor or his agent applies for ad hoc reduction or exemption of Customs Duties on imports or exports, a written application with supporting reasons stated and necessary documentary evidence provided shall be submitted to Customs for examination prior to the import or export of the goods. Customs shall transfer the verified application to the Customs General Administration, who may, in accordance with relevant regulations formulated by State Council, examine and approve it with or without consulting the Ministry of Finance.

Article 35 Import goods which are given tariff preferences by reducing or exempting specified Duties, in accordance with laws and regulations of the State shall, if they are sold, transferred, or devoted to other uses, after approval by Customs within the period of its supervision, be subject to recovery of import Duties based on the assessment value of the goods, taking into account depreciation for the period of use. The period of supervision shall be separately stipulated by the Customs General Administration.

Chapter VI Procedures for Appealal

Article 36 Taxpayers who do not agree with a decision of Customs on the collection, reduction, recovery or refund of Duties shall first pay the Duties determined by Customs and then, within 30 days from the date of issuance of the Duty Memo, submit an application in writing to Customs for a reconsideration of the case. Applications submitted beyond the time limit prescribed shall not be considered.

Article 37 Customs shall make its decision on the appeal within 15 days from the date of receipt of the appeal.

Should the person obligated to pay Customs Duties refuse to accept the decision, he may appeal to the Customs General Administration for reassessment within 15 days from the date of receipt of the note of decision.

Article 38 The Customs General Administration shall make its decision on the appeal within 30 days after the date of receipt of the appeal and notify the person obligated to pay Customs Duties of the decision accordingly.

Should the person obligated to pay Customs Duties find the decision made by the Customs General Administration unacceptable, he may bring the case to the People's Court within 15 days from the date of receipt of the decision.

Chapter VII Penalties

Article 39 Any act in violation of the present Regulations which is an act of smuggling, or in violation of the regulations on Customs supervision and control shall be dealt with in accordance with "Customs Law of the People's Republic of China ", " Detailed Rules for Implementation of Administrative Penalties under the Customs Law of the People's Republic of China" and other relevant laws and regulations.

Chapter VIII Supplementary Provisions

Article 40 Customs shall, in accordance with the relevant regulations, reward individuals or units who provide information or assistance which leads to the uncovering of evasion of Customs Duties in violation of the present Regulations and shall keep the identities of such individuals or units strictly confidential.

Article 41 The Customs General Administration of the People's Republic of China is responsible for the interpretation of the present Regulations.

Article 42 The present Regulations shall come into force on April 1, 1992.

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