Home|Login|Sign up|中文站
g-nav-pf
Regulations of the People’s Republic of China on Implementing Customs Administrative Penalty


(Adopted at the 62nd Executive Meeting of the State Council on September 1, 2004, promulgated by Decree No. 420 of the State Council of the People’s Republic of China on September 19, 2004, and effective as of November 1, 2004)



Chapter I General Provisions


Article 1 These implementing Regulations are formulated in accordance with the provisions of the Customs Law of the People’s Republic of China (hereinafter referred to as the Customs Law) and other related laws for the purposes of standardizing Customs administrative penalty, safeguarding the lawful exercise by the Customs of its functions and powers and protecting the lawful rights and interests of citizens, legal persons and other organizations.


Article 2 These implementing Regulations shall be applicable to the disposition of the smuggling acts which are not investigated for criminal liability in accordance with the law, the acts which violate regulations on Customs control, as well as the acts for which administrative penalty is imposed by the Customs as prescribed by laws and administrative regulations.


Article 3 Customs administrative penalty shall be under the jurisdiction of the Customs office discovering the illegal act, and may also be under the jurisdiction of the Customs office in the place where the illegal act is committed.


Where two or more Customs offices have jurisdiction over a case, the Customs office which first discovers the illegal act shall have jurisdiction.


Where jurisdiction over a case is not clear, the Customs offices concerned shall make a determination thereon through consultation. If consultation fails, they shall report the matter to their common superior Customs office for the designation of jurisdiction.


For a grave and complicated case, the General Administration of Customs may designate a Customs office to exercise jurisdiction.


Article 4 On discovering an illegal act which shall be dealt with by another administrative department in accordance with the law, a Customs office shall refer the case to the relevant administrative department for disposition; where the illegal act is suspected of involving a crime, the case shall be referred to the Customs police department responsible for the investigation of smuggling crimes or the local public security organ for disposition according to law.


Article 5 Where such an administrative penalty as a warning or a fine is imposed in accordance with these implementing Regulations but no inward or outward goods, articles or means of transport are confiscated subsequently, the party concerned shall not be exempted from the obligations to pay Customs duties, submit the import or export licensing documents or complete relevant Customs formalities as specified by the law.


Article 6 Where anyone resists or obstructs the Customs police department responsible for the investigation of smuggling crimes from carrying out its duty according to law, the Customs police department responsible for the investigation of smuggling crimes set up in a regional Customs office or subordinate Customs office shall impose penalty in accordance with the relevant provisions on administrative penalties for public security.


Where anyone resists or obstructs other Customs officers from carrying out their duty according to law, the case shall be reported to the local public security organ for disposition according to law.


Chapter II Smuggling Acts and the Penalties


Article 7 Under any of the following circumstances, anyone who, in violation of the Customs Law, other relevant laws or administrative regulations, evades Customs control, duties payable, or prohibitive or restrictive entry or exit administration of the State is committing smuggling:


(1) without approval of the State Council or the department empowered by the State Council, to transport or carry goods or articles the entry or exit of which is prohibited or restricted by the State or goods or articles for which duties are payable according to law into or out of the territory at a place where there is no Customs office;


(2) by concealment, disguise, incomplete or fraudulent declaration or other means aiming at evading Customs control, to transport, carry or mail goods or articles the entry or exit of which is prohibited or restricted by the State or goods or articles for which duties are payable according to law into or out of the territory at a place where there is a Customs office;


(3) to sell within the territory goods, articles or inward foreign means of transport under Customs control by using any counterfeited or adulterated handbook, documents, seal, account book, electronic data or other means of evading Customs control;


(4) to let goods or articles which should be under Customs control get out of such control by using any counterfeited or adulterated handbook, documents, seal, account book or electronic data or by means of fraudulent declaration on the material consumption per finished product for processing trade;


(5) to transport goods or articles which should be under Customs control in a bonded area, export processing area or other special Customs controlling area out of such an area, by concealment, disguise, incomplete or fraudulent declaration or other means of evading Customs control; or


(6) to commit other acts of evading Customs control that constitute smuggling.


Article 8 Any of the following acts shall be dealt with as smuggling:


(1) to purchase the goods or articles directly and illegally from the smugglers while knowing well that the goods or articles are imported by smuggling; or


(2) for any vessels or persons aboard, without lawful documents, to transport, purchase or sell goods or articles the entry or exit of which is prohibited or restricted by the State, or to transport, purchase or sell goods for which duties should be paid according to law, on inland seas, territorial waters, boundary rivers or boundary lakes.


Article 9 Anyone who commits any of the acts listed in Articles 7 and 8 of these implementing Regulations shall be punished in accordance with the following provisions:


(1) where anyone smuggles goods the importation or exportation of which is prohibited by the State, the Customs shall confiscate the smuggled goods and illegal gains and may, in addition, impose a fine of not more than 1,000,000 yuan; where anyone smuggles articles the entry or exit of which is prohibited by the State, the Customs shall confiscate the smuggled articles and illegal gains and may, in addition, impose a fine of not more than 100,000 yuan;


(2) where anyone smuggles goods or articles the entry or exit of which is restricted by the State by failing to submit the licensing documents as required, but he has not evaded duties payable, the Customs shall confiscate the smuggled goods or articles and illegal gains and may, in addition, impose a fine not exceeding the value of the smuggled goods or articles; or


(3) where anyone smuggles goods or articles for which duties should be paid according to law by evading duties payable, but he has not evaded licensing administration, the Customs shall confiscate the smuggled goods or articles and illegal gains and may, in addition, impose a fine of not more than three times the amount of duties payable but evaded.


Means of transport specially used for smuggling or goods or articles specially used for shielding smuggling, as well as means of transport used for smuggling or goods or articles used for shielding smuggling three times or more in two years shall be confiscated. Equipment, interlayers and hidden layers specially made for concealing smuggled goods or articles shall be confiscated or demolished. Anyone who uses such specially made equipment, interlayers or hidden layers in smuggling shall be given a heavier penalty.


Article 10 Anyone who conspires with smugglers and provides them with loans, funds, account numbers, invoices, certificates or Customs documents, or conspires with smugglers and provides them with such conveniences as picking up, forwarding, transporting, storing and mailing smuggled goods or articles or other conveniences shall be dealt with as a co-party of the smugglers. The illegal gains obtained therefrom shall be confiscated, and a penalty shall be imposed according to the provisions of Article 9 of these implementing Regulations.


Article 11 Where a Customs clearing enterprise or individual, or an enterprise permitted by the Customs to engage in such businesses as transportation, storage, processing, assembling, consignment sale and exhibition of the goods under Customs control has committed a crime of smuggling or committed smuggling twice or more in one year, the Customs may revoke its registration or his qualifications for declaration.


Chapter III Acts Violating Regulations on Customs Control and the Penalties


Article 12 Acts which violate the Customs Law or other related laws, administrative regulations or rules but do not constitute acts of smuggling shall be acts violating regulations on Customs control.


Article 13 Anyone who, in violation of the provisions of the State on import and export administration, imports or exports goods the importation or exportation of which is prohibited by the State shall be ordered to take the goods out of the territory and shall be fined not more than 1,000,000 yuan.


Article 14 Where anyone, in violation of the provisions of the State on import and export administration, imports or exports goods the importation or exportation of which is restricted by the State, and the consignee of import goods or the consigner of export goods cannot submit the licensing documents when making the declaration to the Customs, such import or export goods shall not be released and a fine of not more than 30% of the value of the goods shall be imposed.


Where anyone, in violation of the provisions of the State on import and export administration, imports or exports goods which are subject to automatic import and export licensing administration, and the consignee of import goods or the consigner of export goods cannot submit the automatic licensing documents when making the declaration to the Customs, such import or export goods shall not be released.


Article 15 Failure to declare or to truthfully declare to the Customs the commodity name, tariff headings, quantity, specifications, prices, term of trade, origin, place of dispatch, place of arrival, final destination or other items of the import or export goods which should be so declared shall be punished respectively in accordance with the following provisions and the illegal gains, if any, shall be confiscated:


(1) where it has an effect on the accuracy of Customs statistics, a warning shall be given or a fine of not less than 1,000 yuan but not more than 10,000 yuan shall be imposed;


(2) where it has an effect on the order of Customs control, a warning shall be given or a fine of not less than 1,000 yuan but not more than 30,000 yuan shall be imposed;


(3) where it has an effect on licensing administration of the State, a fine of not less than 5% but not more than 30% of the value of the goods shall be imposed;


(4) where it has an effect on collection of duties by the State, a fine of not less than 30% but not more than twice of the amount of the unpaid duties shall be imposed; or


(5) where it has an effect on administration of the State on foreign exchange or tax refund for exports, a fine of not less than 10% but not more than 50% of the price declared shall be imposed.


Article 16 Where the consignee of import goods or the consigner of export goods fails to, according to the provisions, provide the Customs clearing enterprise with true information regarding the items it entrusts such an enterprise to declare to the Customs and brings about any of the circumstances prescribed in Article 15 of these implementing Regulations, the principal shall be punished according to the provisions of Article 15 of these implementing Regulations.


Article 17 Where a Customs clearing enterprise or individual fails to verify, as appropriate, the authenticity of the information provided by the principal or is negligent in its or his work, and thereby brings about any of the circumstances prescribed in Article 15 of these implementing Regulations, the Customs clearing enterprise may be fined not more than 10% of the value of the goods, and its declaration business or his practice as a Customs clearing agent shall be suspended for a period of not more than six months; if the circumstances are serious, its declaration registration or his qualifications for declaration shall be revoked.


Article 18 Anyone who commits any of the following acts shall be fined not less than 5% but not more than 30% of the value of the goods and the illegal gains, if any, shall be confiscated:


(1) without Customs permission, to open, pick up, deliver, forward, transpose, repack, mortgage, pledge, hold as a lien, transfer the ownership of or replace the labels of the goods under Customs control, to use them for other purposes, or to dispose of them by other means;


(2) without Customs permission, to store goods under Customs control at a place outside a Customs surveillance zone;


(3) for an entity or individual engaged in such businesses as transportation, storage, processing, assembling, consignment sale and exhibition of goods under Customs control, to fail to produce justifiable reasons for the irrecoverable loss or shortage of related goods or the untruthfulness of the related records;


(4) for an entity or individual engaged in such businesses as transportation, storage, processing, assembling, consignment sale and exhibition of bonded goods, to fail to complete the formalities for receipt, delivery, carrying forward and cancellation after verification in accordance with the provisions or to fail to complete Customs formalities in accordance with the provisions for suspension, extension, modification or transfer of related contracts;


(5) to fail to declare truthfully to the Customs the material consumption per finished product for the processing trade;


(6) to fail to ship the transit, transshipment or through goods out of the territory within the specified time limit and leave the said goods in the territory without permission;


(7) to fail to export or import temporarily imported or exported goods within the specified time limit and leave the said goods inside or outside the territory without permission; or


(8) to commit other acts violating regulations on Customs control which result in inability of the Customs to exercise control over the import or export goods or discontinuation of such control.


Where the goods involved as specified in the preceding paragraph are those the importation or exportation of which is restricted by the State and for which the licensing documents are required, but the party cannot submit the licensing documents within the specified time limit, a fine of not more than 30% of the value of the goods shall be imposed in addition; where the duties are unpaid, a fine of not more than the value of the unpaid duties may be imposed in addition.


Article 19 Anyone who commits any of the following acts shall be given a warning and may be fined not more than 20% of the value of the articles and the illegal gains, if any, shall be confiscated:


(1) without Customs permission, to open, deliver or post inward or outward articles which have not yet been released by the Customs, to shift them to other places or to dispose of them by other means;


(2) for an individual transporting, carrying or mailing articles for personal use into or out of the territory exceeding the reasonable quantity, to fail to declare them to the Customs;


(3) for an individual transporting, carrying or mailing articles the entry or exit of which is restricted by the State into or out of the territory exceeding the specified quantity but for personal use, to fail to declare them to the Customs without evading Customs control by concealment, disguise or other means;


(4) for an individual transporting, carrying or mailing articles into or out of the territory, to fail to declare them truthfully to the Customs;


(5) to fail to take out of or bring into the territory in accordance with the provisions the articles registered with the Customs and permitted by it to temporarily enter or leave the territory duty-free; or


(6) for persons passing through the territory, to leave in the territory without Customs approval the articles they bring in.


Article 20 Where anyone, when transporting, carrying or mailing articles the entry or exit of which is prohibited by the State into or out of the territory, fails to declare them to the Customs but does not evade Customs control by concealment, disguise or other means, such articles shall be confiscated, or be ordered to be returned, or be destroyed or undergo technical treatment under Customs control.


Article 21 Anyone who commits any of the following acts shall be given a warning and may be fined not more than 100,000 yuan and the illegal gains, if any, shall be confiscated:


(1) for a means of transport, to enter or leave the territory at a place without a Customs office;


(2) for an inward or outward means of transport staying within a Customs surveillance zone, to leave without Customs approval;


(3) for an inward or outward means of transport moving from one place with a Customs office to another place also with a Customs office, to change en route to move out of the territory or to a place in the territory where there is no Customs office, without completing the Customs formalities and obtaining Customs approval; or


(4) for an inward or outward means of transport arriving at or departing from a place where there is a Customs office, to fail to make a declaration to the Customs and submit the relevant papers for examination in accordance with the provisions, or to submit untruthful papers for examination.


Article 22 Anyone who commits any of the following acts shall be given a warning and may be fined not more than 50,000 yuan and the illegal gains, if any, shall be confiscated:


(1) for an inward or outward means of transport, to load or unload inward or outward goods or articles or to let passengers embark or disembark without Customs approval;


(2) for an inward or outward means of transport, to concurrently engage in transportation of goods and passengers within the territory or to be used for services other than inbound and outbound transportation without Customs approval;


(3) for an inward or outward means of transport, to change to transport services within the territory without completing Customs formalities in accordance with the provisions;


(4) to fail to transmit shipping bills or other electronic data to the Customs within the specified time limit, to transmit electronic data inaccurately or to fail to keep relevant electronic data within the specified time limit, which has an effect on Customs control;


(5) for an inward means of transport which has entered the territory but has not made its declaration to the Customs, or for an outward means of transport which has cleared the Customs but has not left the territory, to fail to move along the routes designated by the competent communications department or by the Customs;


(6) for vessels or vehicles carrying goods under Customs control, to fail to move along the routes designated by the Customs;


(7) for an inward or outward vessel or aircraft which, due to force majeure, anchors or lands at a place without a Customs office, or jettisons or discharges goods or articles in the territory, to fail to report to the Customs office nearby without justifiable reasons;


(8) to fail to inform the Customs in advance of the time of arrival of an inward or outward vessel, train or aircraft, the place of its stay or any change in such a time or place without special reasons; or


(9) to fail to accept in accordance with the relevant provisions the checking and inspection by the Customs of the inward or outward means of transport, goods or articles.


Article 23 Anyone who commits any of the following acts shall be given a warning and may be fined not more than 30,000 yuan:


(1) without permission, to open or break the seals affixed by the Customs;


(2) to lose documents for supervision and control, handbooks or other papers instituted by the Customs and thereby to obstruct Customs control; or


(3) to commit other acts violating regulations on Customs control which result in inability of the Customs to exercise control over inward or outward means of transport or articles or discontinuation of such control.


Article 24 Anyone who counterfeits, adulterates, purchases or sells Customs documents shall be fined not less than 50,000 yuan but not more than 500,000 yuan, and the illegal gains, if any, shall be confiscated; where a crime is constituted, criminal liability shall be investigated according to law.


Article 25 Where anyone imports or exports goods, which constitutes an infringement on the intellectual property rights protected by laws and administrative regulations of the People’s Republic of China, the infringing goods shall be confiscated and in addition a fine of not more than 30% of the value of the goods shall be imposed; where a crime is constituted, criminal liability shall be investigated according to law.


Where it is necessary to declare to the Customs the status of intellectual property right, the consignee of import goods or the consigner of export goods or his agent who fails to, according to the provisions, truthfully declare to the Customs the status of related intellectual property right or produce supporting documents for the lawful use of such right may be fined not more than 50,000 yuan.


Article 26 Where a Customs clearing enterprise or individual or an enterprise permitted by the Customs to engage in such businesses as transportation, storage, processing, assembling, consignment sale and exhibition of goods under Customs control is involved in any of the following circumstances, it shall be ordered to rectify and be given a warning, and may be suspended from engaging in related business or practice as a Customs clearing agent for a period of not more than six months:


(1) to default on payment of duties or to fail to perform the obligation of paying duties;


(2) for a Customs clearing enterprise, to permit others to use its name for completing the formalities for declaration of import or export goods and payment of duties on them;


(3) to fail to offer justifiable reasons for damaging or losing goods under Customs control; or


(4) to commit other illegal acts which demand to suspend it from engaging in related business or practice.


Article 27 Where a Customs clearing enterprise or individual or an enterprise permitted by the Customs to engage in such businesses as transportation, storage, processing, assembling, consignment sale and exhibition of goods under Customs control is involved in any of the following circumstances, the Customs may revoke its registration or his qualifications for declaration:


(1) to be suspended by the Customs from engaging in practice for three person-times or more in one year;


(2) to be involved again in any one of the circumstances stipulated in Article 26 of these implementing Regulations within one year since the engagement in related business or practice is resumed after being suspended by the Customs; or


(3) to commit other illegal acts which demand to revoke its registration or his qualifications for declaration.


Article 28 Any Customs clearing enterprise or individual that illegally declares to the Customs on behalf of others or conducts declaration beyond the scope of its or his businesses permitted by the Customs shall be ordered to rectify, be fined not more than 50,000 yuan and be suspended from engaging in related business or practice as a Customs clearing agent for a period of not more than six months; if the circumstances are serious, its registration or his qualifications for declaration shall be revoked.


Article 29 Where a consignee of import goods or consigner of export goods, or a Customs clearing enterprise or individual bribes the staff members of the Customs, its declaration registration or his qualifications for declaration shall be revoked and in addition a fine of not more than 100,000 yuan shall be imposed; if a crime is constituted, criminal liability shall be investigated according to law and it or he shall not be re-registered as a clearing enterprise or obtain the qualifications for declaration.


Article 30 Any entity or individual that engages in declaration business without Customs registration or without obtaining the qualifications for such declaration shall be banned, the illegal gains shall be confiscated and in addition a fine of not more than 100,000 yuan may be imposed.


Article 31 Where an entity or individual practises fraud in obtaining Customs registration or the qualifications for declaration by providing false documents, its registration or his qualifications for declaration shall be revoked and in addition a fine of not more than 300,000 yuan be imposed.


Article 32 Where a legal person or other organization commits an act violating the Customs Law, in addition to penalties imposed upon the legal person or organization, the persons who are directly in charge and the other persons who are directly responsible shall be given a warning and may be fined not more than 50,000 yuan, and the illegal gains, if any, shall be confiscated.


Chapter IV Investigation on Acts Violating the Customs Law


Article 33 When discovering that a citizen, legal person or other organization commits an act for which the Customs should impose administrative penalty in accordance with the law, the Customs shall put the case on file for investigation.


Article 34 After putting a case on file, the Customs shall conduct investigations and collect evidence in a comprehensive, objective, impartial and prompt way.


When conducting investigations and collecting evidence, the Customs shall be compliant with the requirements of laws, administrative regulations and other related provisions.


In conducting investigations or collecting evidence, there shall be at least two Customs officers, who shall produce their identity certificates to persons under investigation.


Where evidence under investigation or being collected involves State secrets, commercial secrets or personal privacy, the Customs shall keep it confidential.


Article 35 When the Customs searches the body of a person suspected of smuggling in accordance with the law, it shall be conducted at a concealed place or a place beyond the sight of persons other than the searchers and by not less than two Customs officers of the same gender as the person being searched.


A person suspected of smuggling shall be subject to the search and shall not obstruct such search.


Article 36 When searching means of transport or a place or examining goods or articles in accordance with the law, the Customs shall make a record of the search or examination.


Article 37 When detaining according to law a person suspected of being guilty of smuggling, the Customs shall issue a writ for detention of a smuggling crime suspect. The length of time for detention of a person suspected of being guilty of smuggling shall not exceed 24 hours, which may be extended to 48 hours under special circumstances.


The Customs shall examine the detainee within the time limit of detention specified by law. In the case where suspicion of a crime is removed or the time limit of detention specified by law expires, the detention shall be lifted forthwith and a writ for lifting of such detention shall be issued.


Article 38 The Customs may detain according to law the following goods, articles, means of transport and related materials such as account books and bills:


(1) goods, articles and means of transport suspected of being involved in smuggling;


(2) goods, articles and means of transport violating the Customs Law or other related laws or administrative regulations;


(3) materials such as account books and bills which are involved with goods, articles or means of transport violating the Customs Law or other related laws or administrative regulations; or


(4) other goods, articles, means of transport and related materials such as account books and bills which may be detained as provided for by laws or administrative regulations.


Article 39 Where the goods, articles or means of transport suspected of violating the law cannot be detained or are not suitable for detention, the party or the person in charge of the means of transport shall provide to the Customs a bond of the equivalent value, and if such a bond fails to be provided, the Customs may detain the party’s other property of the equivalent value.


Article 40 The time limit of the Customs detaining goods, articles, means of transport and related materials such as account books and bills shall not exceed one year. If it is necessary for investigation of a case, the time limit may be extended on approval of the director of a regional Customs office or the director of a subordinate Customs office authorized by the former, but the extended time shall not exceed one year. However, the period of administrative reconsideration and legal proceedings shall not be counted.


Article 41 If there is one of the following circumstances, the Customs shall lift the detention promptly:


(1) suspicion of violating the law is removed;


(2) the time limit of detention or the extended period expires;


(3) the decision on Customs administrative penalty has already been fulfilled; or


(4) other circumstances in which the detention shall be lifted as provided for by laws or administrative regulations.


Article 42 When detaining goods, articles, means of transport, other property or materials such as account books and bills in accordance with law, the Customs shall produce a Customs detention ticket, to which the Customs officers, the party or his agent, the keeper and the eyewitness shall affix their signatures or seals, and in addition, may affix Customs seals. If a Customs seal has been affixed, the party or his agent and the keeper shall keep it appropriately.


When lifting the detention of goods, articles, means of transport, other property or materials such as account books and bills, or returning a bond of the equivalent value, the Customs shall produce a notification of the Customs for lifting the detention or a notification of the Customs for releasing the bond, to which the Customs officers, the party or his agent, the keeper and the eyewitness shall affix their signatures or seals.


Article 43 When interrogating the persons suspected of violating the law or questioning the witnesses, the Customs shall do this separately and individually, and shall inform them of their rights and the legal responsibility which shall be incurred for committing perjury. The persons suspected of violating the law and the witnesses shall present statements and evidence truthfully.


When interrogating a person suspected of violating the law or questioning a witness, the Customs shall take a record thereof and show him such record on the spot for him to identify. If there is no dissent, such record shall be confirmed with signature; if any dissent arises, such record shall be corrected and confirmed with signature.


It shall be strictly forbidden to extort confessions by torture or to collect evidence by threat, enticement, deceit or other unlawful means.


When interrogating a person suspected of violating the law, the Customs may do this at his working place or residence, and may also require him to go to the Customs office or a place designated by the Customs for interrogation.


Article 44 Physical evidence and documentary evidence collected by the Customs shall be the original. If it is truly difficult to collect the original thing or document, photographs or reproductions may be made, and the units or individuals concerned may be designated or entrusted to properly keep the original thing or document.


When collecting physical evidence or documentary evidence, the Customs shall make a detailed list, on which the date of collection shall be indicated and the units or individuals concerned shall sign their names or affix their seals for confirmation.


When collecting electronic data or audio-visual material such as sound recordings and video recordings, the Customs shall collect the original media. If it is truly difficult to collect the original media, reproductions may be collected, on which the method and time of making and the names of the makers shall be indicated, and the units or individuals c