I. General requirements for internal control of enterprises
For enterprises engaging in import and export business in a standard manner with good faith and in compliance with the law, having sound and perfect internal control, management on financial books, management on documents and warehousing, and high-quality practitioners are essential. As to the occurrence of events in violation of regulations and disciplines and even the occurrence of illegal smuggling activities in enterprises, one of the reasons is that the enterprises have poor management, unclear powers and responsibilities, incomplete books, ineffective systems and measures, and low awareness of regulation. As to such enterprises, the Customs will put them as the key targets under supervision in light of the customs risk management mechanism. Therefore, to conduct import and export business in proper order, enterprises shall actively establish and improve the internal control system and the internal management mechanism, strengthen internal regulation, create financial books as per the provisions, and properly keep the documents and files for import and export in accordance with the relevant provisions of the Company Law of the People's Republic of China, the Accounting Law of the People's Republic of China, the Customs Law of the People's Republic of China, and the Regulations of the People's Republic of China on Customs Inspections, and in combination with the specific conditions of the enterprise scale and the industries to which they belong.
II. Contents of the internal control system of enterprises
A sound internal control system of an enterprise shall include the following contents. These contents can be defined separately or in combination, and if there are relevant businesses, such businesses shall be covered. Specifically, the enterprise shall establish a complete organization and a system for job responsibilities. In such system, the duties and authority of the supreme management, departmental management, business personnel at grassroots level, and all departments shall be clearly defined. A mature management system for import and export business (including various management systems relating to customs declaration, foreign exchange verification and cancellation, export tax refund, and the exclusive rights for import and export such as document approval and quota allocation) and a financial management system shall be established. In such systems, there shall be clear-cut divisions of import and export business as well as complete regulations on operation procedures, which are in effective operation. In addition, sound systems and regulations for management of seals, warehousing, contracts, bills, receipt and payment concerning the documents, and documents and files of import and export business shall be established. In such systems and regulations, there shall be designated personnel to have custody of the special seal for declaration, handbooks, declaration forms, lists, materials for transfer for further processing, and the relevant import and export materials, as well as specific systems and formalities for custody, hand-over, and filing.
III. Requirements for internal coordination, communication, contact and cooperation
Enterprises engaging in import and export business in a standard manner shall establish a sound mechanism for internal coordination, communication, contact and cooperation, maintain close relationships between different departments, strengthen the collaboration and cooperation between them, and effectively coordinate the import and export business, in order to ensure the orderly linkage between import and export business as well as the proper hand-over and custody of relevant import and export materials including handbooks, declaration forms and materials for transfer for further processing, and to avoid the occurrence of cases like loss of important business documents or failure to provide relevant books or materials. Enterprises shall set up perfect departments and a system for job responsibilities of personnel in such departments. In such system, the responsibilities of each person shall be clearly defined, and thorough operation procedures and working standards for import and export business shall be formulated, and every effort shall be exerted to implement the aforesaid items. An integrative system with coordinated and uniform management on import and export business shall be formed to ensure the effective customs inspection.
IV. Requirements on practitioners in terms of law compliance, credibility and quality
The relevant practitioners of import and export enterprises should have good moral character and credibility, have knowledge and educational background relevant to the engagement in import and export business, be familiar with relevant national import and export laws, regulations and policies as well as the relevant operating conditions of their respective enterprises, and receive regular customs training, so that they have knowledge of and abide by law and master customs operation procedures. In particular, practitioners who are directly engaged in the business of customs declaration or the managers of the department in charge of the declaration business should have received systematic customs trainings and passed the examinations by the Customs.