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Agreement on Paperless Clearance
08/26/2005


Format of the Agreement as follows:

No._________

Party A:           XXX Customs, the People’s Republic of China

Address:          


Party B:           XXX Company

Address: 


Party C: China E-port Data Center

Address:


In order to simplify customs declaration formalities for inbound/outbound goods, speed up the customs clearance, facilitate the legitimate entry and exit of enterprises, and strengthen the customs supervision, and in accordance with the Customs Law of the People's Republic of China and relevant laws and regulations, Party A has examined Party B’s compliance, credit standing and other information and allows Party B to declare the imported and exported goods to Party A within its administrative area by using the paperless customs clearance system upon Party B’s request. Party C provides Party A and Party B with the paperless customs clearance services, including the service platform, technical support, the storage, verification and offer of evidence in respect of the electronic data (e-data), and other intermediary services.

 

For the purpose of the Agreement, the term “paperless customs clearance” refers to the practice that Party B makes declaration for the import/export declaration form in standard format of electronic message to Party A via the network transmission through Party C. Party A’s computer system automatically handles the electronic data, and sends the electronic receipt on the examination result to Party B through Party C by means of the network transmission. Party B goes through customs clearance procedures based on the information on the receipt.

 

In order to solve the issues, such as the mutual recognition by Party A and Party B of the process of e-data transmission and the recorded data via the electronic network system of Party C, Party A, Party B and Party C have entered into the following agreements through consultation.

 

Article 1 Party A agrees that Party B uses Party C’s electronic network system to declare the imported and exported goods in the form of e-declaration form.

Party B makes the declaration to Party A in the form of e-declaration form. Party A may verify the declaration act and fact by comparing the same with the written documents as it deems necessary.

 

Article 2 Party B shall present the e-declaration form in the format as required, with complete, accurate, and true contents identical to those set out in paper documents.

 

Article 3 For the e-declaration form sent by Party B to Party A through Party C, if Party A delivers a reply of rejection to Party B after the examination thereof, Party B’s declaration will be deemed invalid. If Party A sends other replies to Party B, Party B’s declaration will be deemed valid.

 

Article 4 Once Party A accepts the declaration by Party B, the content of the e-declaration form shall not be modified or cancelled; where any justified cause exists, Party A will make the modification or deletion after Party A examines and approves a written application filed by Party B.

 

Article 5 Party C shall record the exact process and time of the e-data transmission by Party A and Party B, and ensure that any person may not change or lose the stored data. The e-data backed up and stored by Party C includes:

 (1) the e-data related to the declaration form submitted by Party B to Party A;

 (2) the e-data concerning the reply, contact list and other instructions fed back by Party A to Party B.

The e-data will be kept for 20 years.

 

Article 6 Party C shall take the network safety measures prevailing internationally to ensure the safety, authenticity and completeness of the e-data stored in its system, and shall not delete, modify or alter the e-data.

Party C is not liable for any loss or change of the e-data stored arising from the force majeure.

 

Article 7 Party A and Party B recognize that Party C is capable of judging the authenticity of the digital signature and seal used in the e-data, and of providing safe, reliable and fair service and technical authentication mechanism.

In case of any dispute between Party A and Party B over the ownership or primitiveness of the e-data, the e-data backed up or stored by Party C shall be regarded as the original data.

 

Article 8 The paper declaration form printed by Party B shall be in consistency with the e-declaration form stored by Party C in terms of the data. Party B shall bear the relevant legal responsibilities arising from any discrepancy between the paper declaration form and the electronic one.

 

Article 9 Party B may go through the customs clearance formalities by itself with Party A through Party C, or may entrust an eligible customs broker to do the same.

Where Party B entrusts a customs broker to conduct paperless customs clearance, Party B shall entrust the customs broker through the network system of Party C to make a customs declaration, and shall bear the relevant legal responsibilities arising therefrom.

 

Article 10 Party C shall keep party A’s work-related secrets and Party B’s business secrets confidential, and shall not provide the e-data stored to others without authorization or approval.

Party B has the right to get the e-data directly relating to its import and export activities from Party C.

Party C shall provide relevant documentary evidence in such a manner that meets the requirements for evidence at the request of Party A or Party C, to present the situation of the backup and storage of the original data.

 

Article 11 Party B may adopt other ways prevailing currently to make the declaration to Party A in the case of the network system default or other reasons of Party C, provided that it complies with the administrative provisions of Party A.

 

Article 12 Party B shall, in accordance with the law, set, prepare and keep the accounting books, accounting documents, accounting statements and other accounting information, and ensure that the aforesaid materials record and reflect the true, accurate and complete information of import and export of goods, and shall properly keep the declaration documents, import and export licenses, contracts, invoices and other information directly relating to the import and export of goods for Party A’s investigation.


 

Where Party B uses the computer for bookkeeping, the bookkeeping software, operation instruction and the relevant information shall be provided to Party A as required, and the computer bookkeeping system shall be available to Party A for its investigation.

 

Article 13 Party A may suspend the paperless customs clearance process determined herein applicable to Party B if Party B:

(1) fails to set, prepare or keep the relevant bookkeeping and materials in accordance with the law, or makes false record or suffers from disordered management;

(2) fails to submit relevant documents to go through the formalities with the Customs within the time limit prescribed by Party A;

(3) lends the special IC Card for customs declaration, or has such card falsely used by others;

 (4) fails to make a timely report to Party A on the loss of the special IC Card for the customs declaration;

 (5) has outstanding tax, or does not perform the administrative penalty decision made by the Customs;

 (6) is subject to disordered internal management, resulting in several misuses of the special IC Card for customs declaration, or many errors in the customs declaration;

 (7) has aggravated credit or financial position;

 (8) has done the act in breach of the provisions on the customs supervision to the less serious extent; or

 (9) has done other acts affecting the normal supervision of the Customs.

Where Party B corrects the aforementioned acts conducted within the time limit prescribed by Party A, Party A may allow Party B to re-apply the paperless customs clearance process set out herein.

 

Article 14 Party A has the right to cancel Party B’s qualification to apply the paperless customs clearance process determined herein if Party B:

(1) has committed the smuggling crime or has done any act of smuggling;

(2) has seriously breached the provisions on the customs supervision; or

(3) fails to correct the act within the time limit prescribed by Party A after Party A suspends the paperless customs clearance process determined herein.

Within one year after Parry A cancels Party B’s qualification to apply the paperless customs clearance process determined herein, Party A will not accept the application filed by Party B for the paperless customs clearance.

 

Article 15 The performance hereof does not exempt Party B from its other obligations and responsibilities stipulated in laws, administrative regulations, customs rules and normative documents.

Within the term hereof, any change in the laws, administrative regulations, customs rules and normative documents directly affecting the performance hereof, if any, shall govern. Party A, Party B and Party C shall timely revise the Agreement through consultation in accordance with the aforementioned provisions.

 

Article 16 The Agreement takes effect as of the date when Party A, Party B and Party C attach their signatures and seals hereon, with a validity term of one year. Where any party hereto proposes to terminate the Agreement within 30 days prior to the expiry hereof, the Agreement will be terminated automatically; otherwise, the Agreement shall be automatically extended for one year.

 

Article 17 Any matter uncovered herein shall be settled by Party A, Party B and Party C through signing a supplementary agreement after consultation.

 

Article 18 The Agreement is made in triplicate with the same legal force, one for each party.

Party A:                          Customs of the People’s Republic of China (seal)

Representative:                (signature)  

Date:  Month     Day      Year

 


Party B:                               Company (seal)

Representative:                     (signature)   

Date:  Month     Day      Year


Party C:  China E-port Data Center

Representative:                     (signature)

Date: Month     Day      Year



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STATEMENT

General Administration of Customs of the People's Republic of China

Address: No.6. Jianguomennei Avenue, Dongcheng District, Beijing, China        Postcode: 100730