Measures of the Customs of the People's Republic of China for the Collection of Duties on Imported and Exported Goods

Chapter I General Provisions

Article 1 These Measures are developed for the purposes of guaranteeing the implementation of the tax policies of the state, strengthening the collection and administration of customs duties, guaranteeing collection of taxes according to law, guaranteeing tax revenues of the state and protecting the legitimate rights and interests of taxpayers in accordance with the Customs Law of the People's Republic of China (hereinafter referred to as the “Customs Law”), the Tariff Law of the People's Republic of China (hereinafter referred to as the “Tariff Law”), as well as other relevant laws and regulations.

Article 2 The collection of customs tax revenues shall be administered under the principles of collection administration according to law, calculation and collection at the applicable tariff rates, and refunding and recovering by strict standards.

Article 3 These Measures shall apply to the collection and administration of import and export duties and import link duties collected by the Customs on behalf of other authorities.

Import link duties collected by the Customs on behalf of other authorities include import link value-added duties (“VAT”) and import link consumption tax.

Article 4 The consignee of imported goods is the taxpayer of import and export duties and import link duties collected by the Customs on behalf of other authorities. The consignor of exported goods is the taxpayer of export duties.

E-commerce platform operators, logistics enterprises and customs declaration enterprises carrying out cross-border e-commerce retail import, as well as entities and individuals who are obligated under laws and administrative regulations to withhold and pay duties, and collect and pay duties and import link duties collected by the Customs on behalf of other authorities on a commission basis are withholding agents for customs duties and import link duties collected by the Customs on behalf of other authorities.

Article 5 The General Administration of Customs (“GAC”) shall, according to the actual needs of the administration of duty collection, establish a work coordination mechanism for the leading group for comprehensive duty administration to guide the Customs offices across the country in the collection of export duties.

Article 6 The Customs and its staff members shall keep to themselves the business secrets, personal privacy and personal information of taxpayers and withholding agents they have access to in the course of performing duties, and shall not disclose them or illegally provide them to anyone else.

A duty payer or withholding agent may make written confidentiality requirements to the Customs with respect to their trade secrets, and specify the contents that need to be kept confidential, and shall not refuse to provide the relevant materials for the Customs on the grounds of trade secrets.

Chapter II Calculation and Collection of Duties

Section 1 Declaration of Duties

Article 7 When importing or exporting goods, a duty payer or withholding agent shall undergo the declaration formalities with the Customs in accordance with the law and provide relevant certificates and documents according to the provisions. Where the Customs deems it necessary, a duty payer or withholding agent shall provide relevant materials required for determining the taxable price, commodity classification, and place of origin. Where any of the materials provided is in a foreign language, the duty payer or withholding agent shall provide a Chinese translation and be responsible for the integrity and accuracy of the translated content, when it is so required by the Customs.

Article 8 A taxpayer or withholding agent shall, according to the laws, administrative regulations and relevant provisions, declare the taxable price, commodity number, commodity name, specification and model, origin, quantity and other information of the imported and exported goods in a faithful and standardized manner, conduct calculation and truthfully declare the amount of duties to the Customs.

Article 9 To determine the amount of tax payable on imported and exported goods, the Customs may require taxpayers and withholding agents to make supplementary declarations in accordance with relevant provisions. Where a taxpayer or withholding agent deems it necessary, it may also take the initiative to request supplementary declaration.

Article 10 Before the actual import and export of goods, upon application, the Customs may, in accordance with the relevant provisions, make a pre-ruling on the relevant elements or valuation methods of the dutiable price of the imported goods, as well as the commodity classification and the origin of the imported and exported goods.

A taxpayer or withholding agent that imports or exports goods under the circumstances as specified in a decision on pre-ruling within the validity period of the decision shall conduct declaration according to the decision on pre-ruling, and the Customs shall grant approval thereto.

Section 2 Duty Amount Payable

Article 11 The amount of duty payable on imported and exported goods shall be determined according to the assessable price, commodity classification, origin, quantity, applicable duty rate and assessable exchange rate.

Article 12 The duty rates applicable to imported and exported goods shall be determined based on the most favored nation tariff rate, conventional tariff rate, concessionary duty rate, general duty rate, export duty rate, tariff quota rate or provisional duty rate, as provided for in the Tariff Law.

The VAT and consumption duty rates applicable to imported goods shall be determined in accordance with relevant laws, administrative regulations and relevant provisions.

The tariff rates on imported goods subject to anti-dumping measures, anti-subsidy measures, guarantee measures, corresponding measures taken under the reciprocity principle shall be implemented in accordance with relevant laws, administrative regulations and relevant provisions.

Article 13 Where the prices of imported and exported goods and related expenses are priced in a foreign currency, they shall be converted into RMB according to the assessed exchange rate, and be rounded to the fen.

The central parity rate of RMB published by the People's Bank of China on the third Wednesday of the previous month shall be the assessed exchange rate used by the Customs each month. Where the third Wednesday is not a trading day in the inter-bank foreign exchange market, the central parity rate of RMB published on the following trading day shall be adopted. In the event of a major fluctuation to any of the aforesaid exchange rate, the exchange rate applicable to the calculation and collection of duties may be otherwise prescribed by the Customs upon its discretion and announced to the public, where necessary.

Article 14 Imported and exported goods shall be subject to the duty rate and assessed exchange rate implemented on the day when the taxpayer or withholding agent completes the declaration.

Where the declaration of imported goods is approved by the Customs before their arrival, the duty rate applied on the day of entry declared by the means of transport carrying the goods shall apply, and the assessed exchange rate implemented on the day when the declaration is completed shall apply.

For imported goods transported through Customs, the duty rate and assessed exchange rate implemented on the day of declaration by the Customs of the place of reporting for transshipped import cargo shall apply. Where a declaration is approved by the Customs before the entry of the goods, the duty rate applied on the day of entry declared by the means of transport carrying the goods shall apply, and the assessed exchange rate implemented on the day of declaration shall apply; and where a declaration is approved by the Customs prior to the arrival of the goods at the destination after entry into China, the duty rate applied on the day of arrival of the means of transport carrying the goods at the destination shall apply, and the assessed exchange rate applied on the day of declaration shall apply.

For exported goods in transit, the duty rate and assessed exchange rate applied on the day when the taxpayer completes declaration at the Customs at the place of designation shall apply.

For imported or exported goods as declared collectively, with approval of the Customs, the duty rate and assessed applicable rate applied on the day when the declaration is completed at the time of each import or export of such goods shall apply.

For imported goods subject to “two-step declaration,” the duty rate and assessed exchange rate applied on the day when the summary declaration is completed shall apply.

For goods redeclared after cancellation of the Customs declaration in accordance with the relevant provisions, the duty rate and assessed exchange rate applicable to the initial Customs declaration shall apply.

For any imported goods that are sold by the Customs in accordance with the law, as a result of failure of a taxpayer to conduct declaration within the prescribed time limit, the duty rate and assessed exchange rate implemented on the day when an entry declaration is filed for the means of transport that carries the goods shall apply to the calculation and collection of duties.

Article 15 Under any of the following circumstances, the duty rate and assessed exchange rate implemented on the date a taxpayer or withholding agent undergoes the formalities for duty payment shall apply:

(1) The bonded goods are no longer transported out of China and are sold domestically.

(2) The transfer, diversion or other disposal of goods subject to duty reduction or exemption has been approved.

(3) Goods temporarily entering the country are no longer transported out of China or goods temporarily exiting the country are no longer transported back into China.

(4) Imported goods leased are retained or duties thereon are paid in installments.

Article 16 Where any duties on imported or exported goods are to be recovered or refunded, the applicable duty rate and assessed exchange rate shall be determined in accordance with Articles 14 or 15 of these Measures.

Where a taxpayer or withholding agent violates the provisions and needs to recover duties, the duty rate and assessed exchange rate implemented on the date of violation of the provisions shall apply; and where the date of occurrence of the act cannot be determined, the duty rate and assessed exchange rate implemented on the date of discovery of the act by the Customs shall apply.

Article 17 Customs duties shall be calculated in accordance with the provisions of the Tariff Law using an ad valorem, specific or compound method.

The import link duties collected by the Customs on behalf of other authorities shall be calculated in accordance with the applicable duty categories, duty items, duty rates and calculation formulas specified in the relevant laws and administrative regulations.

Except as otherwise prescribed, the amount payable of duties and import link duties collected by the Customs on behalf of other authorities shall be calculated according to the following formula:

ad valorem duty payable = taxable value × proportional duty rate

Specific duty payable = quantity of goods × fixed duty rate

Compound duty amount payable = taxable value × proportional duty rate + quantity of goods × fixed duty rate

ad valorem import link consumption duty payable = [(taxable value + duty amount)/ (1- proportional consumption duty rate)] × proportional consumption duty rate

Specific import link consumption duty payable = quantity of goods × fixed consumption duty rate

Compound import link consumption duty amount payable = [(assessed price + customs duty + quantity of goods × fixed consumption duty rate)/ (1- proportional consumption duty rate)] × proportional consumption duty rate + quantity of goods × fixed consumption duty rate

Import link VAT amount payable = (taxable value + duty amount + import link consumption duty amount) × VAT rate

Article 18 In the case of overages or shortages of bulk import and export goods, the following provisions shall apply:

(1) Where the overage is less than 3% of the quantity indicated in the contract or invoice, or in the case of shortage, the duties shall be calculated and collected according to the quantity indicated in the contract or invoice.

(2) Where the overage exceeds 3% of the quantity indicated in the contract or invoice, the duties shall be calculated and collected according to the actual quantity of import and export.

Article 19 The customs duties, import link duties collected by the Customs on behalf of other authorities, late fees, interests, etc. shall be calculated in RMB and rounded off to the fen.

The exemption quota of one batch of goods as stipulated by the State Council shall apply to the threshold of customs duties, import link duties collected by the Customs on behalf of other authorities, and late fees.

Section 3 Duty Payment

Article 20 A taxpayer or withholding agent shall pay duties within 15 days from the day when declaration is completed, except under special circumstances of tax risk management.

Where the mode of aggregate taxation is selected, a taxpayer shall pay duties in an aggregate manner within 15 days from the date of completion of the declaration or before the end of the fifth working day of the following month.

Any taxpayer that fails to make the payment within such time limit shall pay a late fee of 0.05% of the amount of the outstanding duties per day from the day when the time limit expires until the day when the outstanding duties are paid.

In case the day when the time limit expires falls on a rest day, such as Saturday or Sunday or any statutory holiday of the state, the first office day after the rest day or the statutory holiday shall be the alternate due date. If the rest and office days are adjusted on a temporary basis by the State Council, the Customs shall calculate the adjusted time limit for payment.

Article 21 A taxpayer or withholding agent may pay duties by electronic payment or payment over bank counters.

Article 22 The day when the bank receives the duties shall be the day when a taxpayer or withholding agent settles their duties.

A taxpayer or withholding agent may print payment vouchers by themselves after paying duties and late fees.

Article 23 Where a taxpayer or withholding agent cannot pay duties on time due to force majeure or the adjustment to the national duty policy, he may postpone the payment of duties after applying to the Customs and provide duty guarantee, for up to six months.

Chapter III Collection of Duties under Special Circumstances

Section 1 Goods Compensated at No Cost

Article 24 For the import of goods provided as a compensation with no cost, no import duties or import link duties shall be collected by the Customs on behalf of other authorities; and for the export of goods provided as a compensation with no cost, no export duties shall be collected.

The term “goods provided as a compensation with no cost” as cited in the preceding paragraph refers to the goods identical with the original goods or conforming to the contract, which are, after the originally imported or exported goods are cleared with the Customs, compensated or replaced by the consigner, carrier or insurer free of charge, due to such reasons as damage, shortage, inferior quality, or incompatible specification, of the original goods.

Article 25 A taxpayer shall, within the time limit for claiming compensation stipulated in the original import and export contract and no more than three years from the date of release of the originally imported and exported goods, declare to the Customs for undergoing the import and export formalities for goods provided as a compensation with no cost.

Article 26 A taxpayer declaring the import and export of goods provided as a compensation with no cost shall submit the compensation agreement signed by the buyer and the seller.

Where the Customs deems it necessary, the duty payer shall also submit the testing certificate confirming the damage, shortage, inferior quality, or incompatible specification of the originally imported and exported goods issued by a qualified commodities inspection institution.

Article 27 Where the goods provided as a compensation with no cost as declared by a taxpayer for import or export are not identical with the goods returned to a foreign country or returned to China and replaced free of charge, or are not in complete conformity with the contract, the taxpayer shall explain to the Customs.

Where there is no change in the list of tariff codes of the goods subject to free replacement for import and export and goods, the taxpayer shall, in accordance with the relevant provisions on determining the taxable value of the imported and exported goods and the tax rate and assessable exchange rate applicable to the import and export of the goods replaced free of charge, determine the taxable value, and calculate and declare the taxes. Where the tax amount payable is higher than the tax already paid on the goods replaced free of charge, the taxpayer shall make a supplementary payment of the duty difference. Where the amount of duty payable is less than the duty already paid on the goods replaced free of charge, and the consignor, carrier or insurance company of the goods replaced free of charge concurrently compensates for the payment for goods, the Customs shall refund the corresponding duties on the part of the compensated goods; and where the goods payment is not refunded, the duty difference shall not be refunded.

Where the list of tax codes of the goods for free replacement declared by the taxpayer for import and export do not match those of the goods replaced free of charge, the relevant provisions on goods provided as a compensation with no cost shall not apply, and the Customs shall collect duties in accordance with the provisions on the collection of general imported and exported goods.

Article 28 For any goods provided as a compensation with no cost or imported goods replaced free of charge as declared by a taxpayer for import or export are not shipped out of the country nor abandoned to the Customs for disposal, or exported goods replaced free of charge are not shipped back into the country, the Customs shall reassess the value of the goods and collect duties accordingly, on the basis of the tariff rate, assessed exchange rate and the relevant provisions applicable on the day when the declaration for goods provided as a compensation with no cost is completed.

Article 29 No export duties shall be collected on the goods replaced free of charge when they are shipped out of China.

No import duties or import link duties collected by the Customs on behalf of other authorities shall be collected on the goods replaced free of charge when they are shipped back to China.

Section 2 Leased Goods

Article 30 To declare import of leased goods, a taxpayer shall submit the lease contract and other relevant materials to the Customs.

A guarantee shall be provided for imported goods under lease in accordance with the relevant provisions.

Article 31 Where the rent of imported goods under lease is paid in a lump sum, a taxpayer shall pay duties when declaring import of the leased goods.

Where the rent for imported goods under lease is paid in installments, a taxpayer shall, when declaring import of the leased goods, undergo the duty payment formalities in accordance with the rent payable in the first phase and pay the corresponding duties; and in the case of payment of rent in subsequent installments, a taxpayer shall declare to the Customs and undergo the duty payment formalities no later than the 15th day after each payment of rent. Where a taxpayer fails to declare duty payment within the prescribed time limit, the Customs shall collect corresponding duties on the goods according to the tax rate and assessed exchange rate applicable to the goods on the 15th day from the date on which the taxpayer pays the rent each time, and additionally collect a late fee of 0.05% of the amount of duty payable on a daily basis from the day when the time limit for declaring and handling duty payment formalities as provided for in this paragraph to the day when the taxpayer declares duty payment.

Article 32 A taxpayer shall, within 30 days from the day when the lease period of the imported goods expires, apply to the Customs for closing the regulatory formalities, and ship the goods out of China. Where it is necessary to retain or renew the lease of imported goods, the taxpayer shall undergo the relevant formalities with the Customs not later than the 30th day after the expiration of the lease term.

Where the imported goods under lease are retained for purchase, a taxpayer shall, in accordance with the relevant provisions on determining the taxable value of the imported goods and the tax rate and assessed exchange rate applicable to the goods on the date of tax payment, determine the taxable value, and calculate and declare the duties.

For the renewal of lease of imported goods, a taxpayer shall submit the lease renewal contract to the Customs, and undergo the duty payment formalities in accordance with Articles 30 and 31 of these Measures.

Article 33 Where a taxpayer fails to undergo the relevant formalities for retaining imported goods under lease within the time limit specified in paragraph 1 of Article 32 of these Measures, the Customs shall, besides determining the taxable value and calculating and collecting duties payable according to the relevant provisions on the taxable value of imported goods and the tax rate and assessed exchange rate applicable to the goods on the 30th day after the expiration of the lease term, collect an additional late fee of 0.05% of the amount of duty payable from the day of expiration of the time limit for undergoing the formalities for retention for purchase as provided for in paragraph 1 of Article 32 to the day when the taxpayer declares duties.

Where a taxpayer fails to undergo the relevant formalities for renewing the lease of the imported goods under lease within the time limit as prescribed in paragraph 1 of Article 32 of these Measures, the Customs shall, besides collecting the duties payable on imported goods under lease in accordance with the provisions of Article 31 of these Measures, also collect a late fee of 0.05% of the amount of duty payable per day from the day of expiration of the time limit for undergoing the formalities for renewal as provided for in paragraph 1 of Article 32 to the day when the taxpayer declares duties.

Article 34 Where the lease term of imported goods under lease terminates prior to its expiration, the day when the lease period expires shall be regarded as the day when the lease terminates.

Section 3 Temporarily Inbound and Outbound Goods

Article 35 For the short-term inbound and outbound goods as listed in paragraph 1 of Article 37 of the Tariff Law, a taxpayer is not required to pay duties within the prescribed time limit as prescribed by the Customs.

Where the short-term inbound and outbound goods mentioned in the preceding paragraph are no longer transported out of China or into China after the expiration of the prescribed time limit, the taxpayer shall declare to the Customs before the expiration of the prescribed time limit for handling import, export and tax payment formalities, and the Customs shall collect duties in accordance with the relevant provisions.

Article 36 For other temporarily inbound and outbound goods other than those listed in paragraph 1 of Article 37 of the Tariff Law, a taxpayer shall, in accordance with the relevant provisions on determining the taxable value of imported and exported goods and the tax rate and assessed exchange rate implemented on the day of declaration of the goods, determine the taxable value and pay duties on a monthly basis, or pay duties when the goods are transported out of China or into China within the prescribed time limit.

The duty period shall be 60 months. Where the period is less than one month but exceeds 15 days, duties shall be collected on a monthly basis; and where the period does not exceed 15 days, duty shall be exempted. Such time limit shall be counted from the day when the goods are cleared with the Customs.

The calculation formula for monthly duty payable is:

Monthly amount of duties = Total amount of duty × (1/60)

Monthly amount of the import link duties collected by the Customs on behalf of other authorities = Total amount of the import link duties collected by the Customs on behalf of other authorities × (1/60)

Where short-term inbound and outbound goods as mentioned in paragraph 1 of this article are no longer transported out of China or into China after the expiration of the prescribed time limit, the taxpayer shall declare to the Customs before the expiration of the prescribed time limit for handling import, export and duty payment formalities, and pay the balance duties.

Article 37 Where temporarily inbound and outbound goods are not transported out of China or into China within the prescribed time limit, and the taxpayer fails to declare to the Customs for handling import, export and duty payment formalities before the expiration of the prescribed time limit, the Customs shall, besides collecting the duties payable in accordance with the provisions, collect an additional late fee of 0.05% of the duty payable on a daily basis from the day of expiration of the prescribed time limit to the day of duty declaration by the taxpayer.

Article 38 The time limit as prescribed from Articles 35 to 37 of these Measures shall cover the time limit which has been extended for the temporarily inbound and outbound goods to be shipped out of or back to China.

Section 4 Inbound and Outbound Repair and Outbound Goods for Processing

Article 39 When undergoing import declaration formalities for inbound goods for maintenance, a taxpayer shall submit the goods maintenance contract (or the original export contract containing a maintenance article) to the Customs, and provide a guarantee or be subject to Customs administration as bonded goods. Inbound goods for maintenance shall be shipped out of China within the time limit as prescribed by the Customs.

Where raw materials or spare parts need to be imported for the goods imported for repair, the taxpayer shall provide a guarantee for the Customs when undergoing formalities for the import of raw materials or spare parts, or the Customs shall administer the goods as bonded goods. The imported raw materials and spare parts may only be used for repair of the inbound goods for repair, and the remaining raw materials and spare parts shall be transported out of China together with the goods entering China for repair.

Article 40 Where inbound goods for repair and the remaining inbound raw materials and spare parts are transported out of China, the Customs shall return the guarantee provided by a taxpayer when inbound goods for repair, raw materials and spare parts enter the country; and where administration as bonded goods is carried out by the Customs, it shall be handled in accordance with the relevant regulations on the administration of bonded goods.

Where the inbound goods for repair cannot be transported out of China within the time limit prescribed by the Customs for justifiable reasons, the taxpayer shall, before the expiration of the time limit prescribed, explain to the Customs and apply for an extension of the time limit for transportation out of China.

Article 41 Where inbound goods for repair are not transported out of China within the time limit prescribed by the Customs (including the extension period), the Customs shall conduct administration in accordance with the regulations on administration of taxation of generally imported and exported goods, and convert the guarantee provided by a taxpayer at the time of entry into China into duties.

Article 42 When undergoing the export declaration formalities for outbound goods for maintenance, a taxpayer shall submit the goods maintenance contract (or the original import contract containing a maintenance article) to the Customs. Outbound goods for maintenance shall be shipped back to China within the time limit as prescribed by the Customs.

Article 43 A taxpayer shall submit to the Customs the maintenance invoice of the goods and other relevant materials when undergoing the import declaration formalities for the outbound goods for repair to be transported back to China.

For outbound goods for repair, the taxable value shall be determined and the import duties shall be calculated in accordance with the relevant provisions on determining the taxable value of imported goods and the tax rate and assessed exchange rate implemented on the day of the declaration of the goods transported back into China.

Where, due to legitimate reasons, outbound goods for repair cannot be transported back into China within the time limit prescribed by the Customs, the taxpayer shall explain to the Customs before the expiration of the time limit and apply for an extension of the time limit for transporting the goods back into China.

Article 44 Where outbound goods for repair are transported back into China after the time limit prescribed by the Customs, the Customs shall collect duties on them in accordance with the regulations on the administration of taxation of general imported goods.

Article 45 A taxpayer shall, when undergoing the formalities for the export declaration of the outbound goods for processing, submit to the Customs the relevant documents, such as the outbound processing contract of the goods, in accordance with the relevant provisions. The outbound goods for processing shall be transported back into China within the time limit prescribed by the Customs.

Article 46 A taxpayer shall, when undergoing the import declaration formalities for outbound goods for processing transported back into China, submit to the Customs the invoice of processing fee, invoice of material fee and other relevant materials of the goods, and shall, in accordance with the relevant provisions on determining the taxable value of imported goods and the tax rate and assessed exchange rate implemented on the day of the declaration of the goods transported back into China, determine the taxable value, and calculate and declare the duties.

Where outbound goods for processing cannot be transported back into China within the time limit prescribed by the Customs for justifiable reasons, the taxpayer shall, before the expiration of the time limit prescribed by the Customs, explain to the Customs and apply for an extension of time limit for transporting the goods back into China.

Article 47 Where outbound goods for processing are not transported back into China within the time limit prescribed by the Customs, the Customs shall administer them in accordance with the regulations on taxation of general imported and exported goods.

Article 48 The time limit specified by the Customs as mentioned from Articles 39 to 47 of these Measures shall be determined by the Customs in accordance with the relevant contract agreement on inbound goods for repair and outbound goods for processing, and specific actual circumstances.

Section 5 Returned and Damaged Goods

Article 49 Where, due to quality, specification or force majeure, any exported goods are shipped in their original shape back to China within one year from the day when they are cleared with the Customs, a taxpayer shall, when undergoing the import declaration formalities, submit the relevant papers and certificates in accordance with the provisions. No import duties or import link duties shall be collected by the Customs on behalf of other authorities on the originally exported goods that are shipped back into China upon confirmation of the Customs.

Where, due to quality, specification or force majeure, any imported goods are shipped in their original shape out of China within one year from the day when they are cleared with the Customs, a taxpayer shall, when undergoing the export declaration formalities, submit the relevant documents and certificates in accordance with the provisions. No export duties shall be collected on the originally imported goods that are shipped out of China upon confirmation of the Customs.

Article 50 Under special circumstances, with approval of the Customs offices directly under the General Administration of Customs, the time limit stipulated in Articles 49 of these Measures may be extended appropriately for up to three years. Where the goods are transported into or out of the country after the prescribed time limit, the Customs shall collect duties on them in accordance with the provisions on the administration of taxation of generally imported and exported goods.

Article 51 For any goods as listed in item (4) of Article 32 and item (1) of Article 33 of the Tariff Law, a taxpayer shall explain to the Customs within 15 days when the goods are declared or cleared with the Customs, and provide relevant supporting materials. Where the Customs deems it necessary, it may request the taxpayer to provide the testing certificate on the degree to which the goods are damaged as issued by a qualified commodities inspection institution. The Customs shall reduce or exempt duties according to the actual degree of damage.

Chapter IV Tax Amount Confirmation

Article 52 The Customs may, upon request or in accordance with its authority, determine the taxable value, commodity classification and origin of imported and exported goods according to law.

If necessary, the Customs may organize laboratory tests and inspections, and take the results of laboratory tests and inspections certified by the Customs as the basis for determining the taxable value, commodity classification and origin.

Article 53 The Customs shall implement risk management of the taxable value, commodity classification, origin and amount of duties payable of imported and exported goods, carry out random inspections and examinations according to the risk level, and carry out assessments, inspections, verifications and audits, if necessary.

For the purpose of the preceding paragraph, “inspection and assessment” refers to the Customs' acts of checking the relevant documents and information on the imported and exported goods or the status of application for inspection, determining the taxable value, commodity classification and origin according to law, and verifying, assessing and handling the duty risks in the administration of tax collection according to the needs of research and judgment, as well as prevention and control of duty risks.

Article 54 Where the Customs finds that the price of imported and exported goods declared by a taxpayer or withholding agent does not meet the requirements for closing a transaction, or the transaction price cannot be determined, the Customs shall make a separate valuation in accordance with the relevant provisions on determining the taxable value of imported and exported goods.

Where the Customs finds that the list of tariff codes for imported and exported goods declared by a taxpayer or its withholding agent is wrong, it shall be re-determined in accordance with the relevant rules and provisions on commodity classification.

Where the Customs finds that the origin of the imported and exported goods declared by a taxpayer or its withholding agent is wrong, it shall, by examining the certificate of origin provided by the taxpayer or withholding agent, inspecting the goods or examining other relevant documents, determine it in accordance with the relevant rules of the Customs on the administration of origin.

Where the Customs finds that the application for tax reduction or exemption submitted by a taxpayer or withholding agent or the contents declared are not in conformity with the relevant provisions on duty reduction or exemption, the Customs shall calculate and collect duties in accordance with the relevant provisions.

Taxpayers and withholding agents who violate the regulations of the Customs and are suspected of making false or concealing reports shall be handled in accordance with the relevant provisions.

Article 55 The Customs shall have the authority to confirm the amount of duty payable by a taxpayer or withholding agent within three years from the day when the taxpayer or withholding agent pays the duty or the goods are cleared.

Where the amount of duty payable confirmed by the Customs is the same as the amount of duty declared by the taxpayer, a Written Confirmation of Duty Amount shall be issued to the taxpayer or withholding agent.

Article 56 When the Customs confirms the amount of duty payable, it shall deduct the time of inspection, investigation, criminal investigation, overseas assistance in duty verification.

Chapter V Refund, Supplement and Recovery of Duties

Section 1 Refund of Duties

Article 57 Where the Customs finds any excess tax, it shall issue a tax confirmation letter to notify the taxpayer in a timely manner.

Where a refund of duties is required, the taxpayer may claim refund within three months from the date of receipt of the confirmation of tax amount.

Article 58 A taxpayer who finds that he has overpaid duties may, within three years from the date of payment of duties, apply to the Customs in writing for refunding the overpaid tax, including but not limited to following circumstances:

(1) The shipment of imported and exported goods in bulk is short and has been released after payment of duties, and the consignor, carrier or insurance company of the goods has partially refunded or compensated for corresponding payment for the shipment.

(2) The consignor, carrier or insurance company of the imported and exported goods shall compensate for the payment for the goods for damage, poor quality, and non-conformity with specifications of imported and exported goods, or shortage of goods other than those provided for in paragraph 1 of this article.

(3) Goods for which duties have been paid are ordered to be returned by the Customs or destroyed under supervision.

Article 59 Under any of the following circumstances, a taxpayer may, within one year from the date of payment of duties, apply in writing to the Customs for tax refund:

(1) The imported goods for which duties have been paid are shipped out of China in their original state within one year due to reasons of quality, specifications or force majeure.

(2) The exported goods for which export duties have been paid are shipped back into China in their original state within one year due to reasons of quality, specifications or force majeure, and the domestic related duties refunded for export have been paid again.

(3) The exported goods for which export duties have been paid have not been shipped for export for any reason and the customs declaration has been canceled.

Article 60 Where a taxpayer applies to the Customs for tax refund, the Customs shall examine the taxpayer's refund application after receipt. Where the application materials submitted by a taxpayer are complete and conform to the prescribed form, the Customs shall accept them, and the date of receipt of the application materials by the Customs shall be regarded as the date of acceptance. And where the application materials submitted by the taxpayer are incomplete or do not conform to the prescribed form, the Customs shall notify the taxpayer of all the contents to be supplemented and corrected within five working days from the date of receipt of the application materials in a one-time manner, and the date of receipt of all the application materials shall be regarded as the date of receipt of the application for duty refund by the Customs.

Where a taxpayer files an application for duty refund in accordance with Article 58 of these Measures, and the Customs deems it necessary, it may request the taxpayer to provide the testing certificate as issued by a qualified commodities testing institution confirming inferior quality, incompatible specification or damage and shortage of the originally imported or exported goods, or any other relevant certifications.

The Customs shall, within 30 days from the date of accepting an application for tax refund, conduct verification and issue a confirmation of the amount of duty to notify the taxpayer claim refund or make a decision not to refund the tax. A taxpayer shall claim the refund within three months from the date of receipt of the confirmation of duty amount.

Where a taxpayer waives the refund of tax or interest, it shall issue a written request to the Customs.

Article 61 When claiming a refund, the Customs shall issue a payment refund certificate and apply the following provisions:

(1) When refunding duties, the interests arising from the excess duties shall be refunded concurrently, and the interests to be refunded shall be calculated according to the interest rate of demand deposits published by the People's Bank of China for the same period on the date when the Customs issues the payment refund certificate. The time limit for calculating the interests refundable shall commence from the date of payment of duty by the taxpayer or withholding agent to the date of issuance of the payment refund certificate by the Customs.

(2) Any import link duties collected by the Customs on behalf of other authorities that have already been deducted or refunded shall be nonrefundable, unless otherwise prescribed by the state.

(3) Any late fee that has already been collected shall be nonrefundable.

Where the refund of duties or interests involves refund from the Treasury, the specific implementation measures provided for by laws and administrative regulations on the administration of the Treasury and relevant rules shall apply.

Section 2 Supplement and Recovery of Duties

Article 62 After the imported and exported goods are cleared, the Customs shall, within three years from the date of payment of duties, collect supplement of duties from the taxpayer or withholding agent if it finds that the duties are undertaxed; and where the Customs finds that duties are evaded, it shall, within three years from the day when the goods are cleared, collect the underpaid duties.

Article 63 Where a taxpayer or withholding agent underpays duties due to disconformity with provisions, the Customs shall, within three years from the day when the duties are paid, recover the underpaid duties; and where a taxpayer or withholding agent evades its duties due to any violation of the provisions, the Customs shall, within three years from the day when the goods are cleared, recover the duties evaded. The Customs shall, besides recovering duties in accordance with the law, collect an additional late fee of 0.05% of the underpaid duties or duties evaded on a daily basis from the day of payment of duties or clearing of goods to the day when the Customs finds the violation.

Where the duties on any goods under Customs regulation are underpaid or evaded due to violation of the provisions by the taxpayer or withholding agent, the Customs shall, within three years from the day when the duties are payable by the taxpayer or withholding agent, recover the underpaid or evaded duties and collect late fees of 0.05% of the amount of underpaid or evaded duties per day from the day when the duties are payable to the day when Customs detects the violation.

The term “the day when the duties are payable” as mentioned in the preceding paragraph means the day when the violation of the taxpayer or withholding agent occurs; and where the day when the violation occurs is unable be determined, the day when the Customs detects the violation shall be the day when the duties are payable.

Article 64 For the recovery of the duties underpaid or evaded, the Customs shall issue the confirmation of duty amount. The taxpayer or withholding agent shall, within 15 days from the day when the confirmation of duty amount is received, pay the duties.

Where a taxpayer or withholding agent fails to make duty supplements within the time limit prescribed in the preceding paragraph, a late fee of 0.05% of the overdue duty shall be collected on a daily basis from the day of expiration of the prescribed time limit.

Article 65 In accordance with the relevant provisions of Articles 31, 33, 37 and 63 of these Measures, where a taxpayer or its withholding agent needs to pay additional late fees while paying duties due to violation of provisions, but the taxpayer or withholding agent fails to pay its duties within the prescribed 15-day payment period, the Customs shall, in accordance with Article 20 of these Measures, separately collect an additional late fee on the overdue duties from the date of expiration of the payment period to the date of payment of duties.

Chapter VI Duty Guarantee

Article 66 Where, under any of the following circumstances, a taxpayer or its withholding agent requests the Customs to clear the goods in advance, it shall provide a full-amount duty guarantee for the Customs according to the payable duties as determined on a preliminary basis.

(1) The taxable price, classification of commodities and origin, among others, of imported and exported goods have not been determined.

(2) The customs declaration documents related to determining the amount of duty payable of goods have not been provided.

(3) Provisional anti-dumping measures and provisional countervailing measures have been taken for goods.

(4) The circumstances for application of retaliatory tariffs, reciprocal tariff measures, etc., have not been determined.

(5) The conditions for duty guarantee for goods subject to reduction or exemption are met.

(6) The formalities for deferring duty payment have been undergone.

(7) It is subject to aggregate duty collection.

(8) Where the taxpayer or its withholding agent files a declaration for the import or export of the goods provided as a compensation with no cost, due to damage, inferior quality, or incompatible specification of goods, the originally imported goods have yet to be shipped out of China or abandoned to the Customs, or the originally exported goods have yet to be shipped backed to China.

Article 67 Unless otherwise provided for, generally the period of duty guarantee shall not exceed six months, and where an extension is needed under special circumstances, it shall be approved by the Customs.

A duty guarantee shall generally, except as otherwise prescribed, take the form of deposit or a letter of guarantee issued by a bank or a non-banking financial institution.

The guarantee form of a letter of guarantee from a bank or non-banking financial institution and a duty guarantee insurance policy shall be joint and several liability guarantee, and the guarantee period shall not be shorter than the guarantee period verified and approved by the Customs.

Article 68 The Customs shall, within five working days from the date of receipt of the application of a taxpayer or its withholding agent for duty guarantee or amendment to the guarantee, examine the contents of the application and decide whether to accept the guarantee.

The tax guarantee in conformity with the provisions shall come into force as of the date on which the Customs accepts it. In case of non-compliance with the provisions, the Customs shall notify the taxpayer or withholding agent in writing of rejection and explain the reasons.

Article 69 Where a taxpayer or withholding agent fulfills its duty payment obligation within the period of duty guarantee, the Customs shall, within five days from the day when such obligation is fulfilled by the taxpayer or withholding agent, terminate and remove the guarantee.

Where a taxpayer or withholding agent fails to fulfill its obligations to pay duties within the guarantee period, the Customs shall convert the guarantee into duties in accordance with the law. Where it is handled with deposit, the Customs shall complete the relevant formalities for converting the deposit into duty within five working days from the expiration of the guarantee period. Where it is provided in the form of a letter of guarantee of a bank or non-banking financial institution or duty guarantee insurance policy, the Customs shall require the guarantor to fulfill the duty payment obligation within six months from the date of expiration of the guarantee period and not exceeding the guarantee period of the letter of guarantee or insurance policy. Where a guarantor fulfills obligations to pay duties on a commission basis, the taxpayer or withholding agent shall cooperate with the Customs in undergoing the relevant formalities in a timely manner.

Article 70 An application for specific Customs business guarantee listed in Article 5 of the Regulation of the People's Republic of China on Guarantee for Customs Affairs shall be handled, mutatis mutandis to, these Measures, where guarantee is provided for the Customs according to the amount of tax that may be assumed.

Chapter VII Duty Enforcement

Article 71 Where a taxpayer is evidently transferring or hiding his taxable goods and other property within the prescribed time limit for duty payment, or there are other risks that may lead to failure to pay duties, the Customs may order the taxpayer to provide a guarantee. Where a taxpayer fails to provide a guarantee as required by the Customs, the Customs may implement the following compulsory measures, subject to approval of the director of the Customs house directly under the General Administration of Customs or the director of a subordinate Customs house authorized by the Customs house directly under the General Administration of Customs:

(1) Notifying the banking financial institution in writing of freezing the taxpayer's deposits and remittances equivalent to the amount of duty payable.

(2) Sealing up or detaining the taxpayer's goods or other property whose value is equivalent to the amount of duty payable.

Where a taxpayer pays duties within the prescribed time limit, the Customs shall immediately cancel the compulsory measures.

Article 72 The Customs may announce the circumstances of duty arrears of taxpayers and withholding agents.

Where a taxpayer fails to pay duties or late fees and fails to provide a guarantee for the Customs, the Customs may, with approval of the director of the Customs house directly under the General Administration of Customs or the director of a subordinate Customs house authorized by the Customs house directly under the General Administration of Customs and according to the provisions, notify the immigration administration to take exit restriction measures against the taxpayer or his legal representative according to law.

Article 73 Where a taxpayer or withholding agent fails to pay or remit duties within the prescribed time limit for paying duties, the Customs shall order the taxpayer or withholding agent to pay taxes within three months from the expiration of the time limit for paying taxes; and where the duties are still not paid within three months, the Customs shall issue a notice to the taxpayer or withholding agent. Where a taxpayer or withholding agent fails to pay duties and late fees within 10 days from the date of service of the notice without justifiable reasons, the Customs may implement the following compulsory enforcement measures with approval of the director of the Customs house directly under the General Administration of Customs or the director of a subordinate Customs house authorized by the Customs house directly under the General Administration of Customs:

(1) Notifying the banking financial institution in writing of transferring the taxpayer's deposits and remittances equivalent to the amount of duty payable.

(2) Sealing up or detaining the taxpayer or withholding agent's goods or other property whose value is equivalent to the amount of duty payable. Auctioning or selling the goods or other property sealed up or detailed according to the law, using the proceeds from the auction or sale to offset duties, and returning the remaining part to the taxpayer or withholding agent.

When the Customs implements compulsory duty enforcement measures, the unpaid late fees shall be enforced at the same time, and the deadline for calculating the late fees shall be the date on which the Customs makes the duty enforcement decision.

Article 74 The Customs shall suspend the duty enforcement under any of the following circumstances:

(1) A taxpayer or withholding agent has difficulties in paying duties or is unable to pay duties for the time being.

(2) A third party claims a right to the subject matter of tax enforcement, and there are real reasons.

(3) The enforcement may cause irreparable losses, and the suspension of duty enforcement does not harm the public interest.

(4) Other circumstances under which the Customs deems it necessary to suspend enforcement.

The Customs shall resume duty enforcement after the circumstances for suspension of duty enforcement disappear. Where there is no obvious social harm, the taxpayer or withholding agent is really unable to pay duties, and the enforcement has been suspended for three years and has not been resumed, the Customs shall no longer enforce it.

Article 75 The Customs shall conclude the duty enforcement under any of the following circumstances:

(1) In the event of death or termination of a taxpayer or withholding agent, there is no legacy or property for enforcement, and there is no obligee.

(2) The object of enforcement is lost.

(3) The Administrative Decision on which the enforcement is based has been revoked.

(4) Other circumstances deemed necessary by the Customs to terminate enforcement.

Article 76 The duty enforcement measures and compulsory duty enforcement measures not prescribed in these Measures shall be governed by the Administrative Compulsion Law of the People's Republic of China, and relevant laws and administrative regulations.

Chapter VIII Supplementary Provisions

Article 77 The administration of collection of ship tonnage tax, import and export tax, anti-dumping duty, countervailing duty and safeguard tariffs in Hainan Free Trade Port shall be governed by the relevant laws, administrative regulations and relevant provisions. In the absence of such provisions, these Measures shall apply.

The administration of collection of cross-border e-commerce retail import duty and duties on returned cross-border e-commerce exports shall be governed by the relevant provisions. In the absence of such provisions, these Measures shall apply.

Article 78 The administration of duties on bonded goods, goods entering and leaving areas under special customs supervision and bonded places under customs supervision, goods subject to reduction and exemption of import and export duties shall be governed by these Measures. In the absence of such provisions in these Measures, it shall be governed by the relevant laws, administrative regulations and relevant provisions.

Article 79 Where taxable royalties are involved in imported goods, the collection of import duties shall be governed by the relevant laws, administrative regulations and relevant provisions.

Article 80 The Customs shall establish a territorial taxpayer management system, strengthen the management of duty sources, optimize duty payment services, and establish a harmonious and co-governance relationship between the Customs and enterprises.

Article 81 Where a violation of these Measures constitutes a violation of customs regulation or an act of smuggling, penalties shall be given in accordance with the Customs Law, the Tariff Law, the Regulation of the Customs of the People's Republic of China on the Implementation of Administrative Penalties, as well as other relevant laws and administrative regulations. Where a crime is constituted, the violator shall be held criminally liable.

Article 82 The documents prescribed in these Measures shall be developed and issued by the General Administration of Customs separately.

Article 83 The power to interpret these Measures shall remain with the General Administration of Customs.

Article 84 These Measures shall come into force on December 1, 2024, upon which the Measures of the Customs of the People's Republic of China for the Administration of the Collection of Duties on Imported and Exported Goods issued by Order No. 124 of the General Administration of Customs on January 4, 2005 and amended according to Order No. 198 of the General Administration of Customs on November 26, 2010, Order 218 of the General Administration of Customs on March 13, 2014, Order No. 235 of the General Administration of Customs on December 20, 2017, and Order No. 240 of the General Administration of Customs on May 29, 2018, and the Interim Measures for the Tax Preservative and Enforcement Measures of the Customs of the People's Republic of China (Order No. 184, General Administration of Customs) issued on August 19, 2009 shall be repealed.