Measures of Customs of the People's Republic of China for Assessing and Determining the Duty-paid Value of Imported and Exported Goods
Measures of Customs of the People's Republic of China for Assessing and Determining the Duty-paid Value of Imported and Exported Goods
[Lexis China Comments]
According to the Decision of the General Administration of Customs on Amending Certain Regulations (Order of the General Administration of Customs No. 273), this document has been amended.
Measures of Customs of the People's Republic of China for Assessing and Determining the Duty-paid Value of Imported and Exported Goods
Order of the General Administration of Customs No.213
December 25, 2013
The Measures of Customs of the People's Republic of China for Assessing and Determining the Duty-paid Value of Imported and Exported Goods (hereinafter referred to as the "Measures"), which have been deliberated and adopted during the executive meeting of the General Administration of Customs (hereinafter referred to as the "GACC") on December 9, 2013, are hereby promulgated for implementation as of February 1, 2014.
Measures of Customs of the People's Republic of China for Assessing and Determining the Duty-paid Value of Imported and Exported Goods
Chapter I General Provisions
Article 1 The Measures are formulated, in accordance with the Customs Law of the People's Republic of China (hereinafter referred to as the "Customs Law") and the Regulations of the People's Republic of China on Import and Export Duties, for the purpose of correctly assessing and determining the duty-paid value of imported and exported goods.
Article 2 Customs houses shall observe the principles of objectiveness, fairness and unification when assessing and determining the duty-paid value of imported and exported goods.
Article 3 Customs houses shall be governed by the Measures when assessing and determining the duty-paid value of imported and exported goods.
The Measures shall not apply to the determination of the duty-paid value of bonded goods sold in the domestic market, the luggage of passengers who enter China, personal postal items and other articles for personal use that are permitted to be imported or the assessment of taxable value of goods and/or articles suspected of having been smuggled into or outside of China.
Article 4 Customs houses, in accordance with relevant provisions of the State, shall properly maintain materials that involve business secrets as provided by taxpayers, and the customs houses shall not provide such materials to outside sources unless otherwise prescribed by laws and/or administrative regulations.
A taxpayer may request the customs house to keep business secrets in written form and specifically mention the contents that must be kept confidential, but the taxpayer must not refuse to provide relevant materials to the customs house under the pretext of maintaining business secrets.
Chapter II Duty-paid Value of Imported Goods
Section 1 Methods for Determining the Duty-paid Value of Imported Goods
Article 5 The duty-paid value of imported goods shall be assessed and determined by the customs house on the basis of the transaction value of the goods, and shall include the freight, relevant expenses and insurance premiums before the goods are transported to and unloaded at the entry spot within the territory of the People's Republic of China.
Article 6 When the transaction value of the imported goods does not meet the provisions in Section 2 of the Chapter, or when the transaction value cannot be determined, the transaction value of the goods shall be determined by the following methods, in succession, after the customs house has determined the relevant conditions and conducted price consultation with the taxpayer:
1. the assessment method for the transaction value of identical goods;
2. the assessment method for the transaction value of similar goods;
3. the subtractive method;
4. the computed method; and
5. the method of rational assessment.
The taxpayer, after providing relevant materials, may file an application to reverse the order for applying Item 3 and Item 4 of the preceding paragraph.
Section 2 Method for Assessing Transaction Value
Article 7 The transaction value of imported goods refers to the total amount of the paid-in or payable value that the buyer must pay to the seller for the goods when the goods are sold within the territory of the People's Republic of China, and which has been adjusted, in accordance with the provisions in Section 3 of the Chapter, and includes the price that is directly or indirectly paid.
Article 8 The transaction value of imported goods shall meet the following conditions:
1. the buyer shall not be restricted with respect to the use and/or disposal of the imported goods, with the exception of restrictions provided for by laws or administrative regulations, the restrictions on areas where the goods will be sold, and the restrictions that have no substantial impact on the value of the goods;
2. the value of imported goods shall not be affected by the conditions or factors that make it impossible to determine the transaction value of the goods;
3. the seller may not directly or indirectly acquire any proceeds from the buyer's selling or the use or disposal of the imported goods, unless the adjustment can be made in accordance with Item 4 of Paragraph 1, Article 11 of the Measures; and
4. there is no special relation between the buyer and the seller, unless the special relation will not affect the transaction value, in accordance with Article 17 and Article 18 of the Measures.
Article 9 Under the following circumstances, the buyer shall be restricted with respect to the use and/or disposal of imported goods:
1. the imported goods can only be used for exhibitions or as gifts;
2. the imported goods can only be sold to a designated third party;
3. the imported goods can only be sold to the seller or designated third party after they have been processed into finished products; or
4. any other circumstance under which the buyer is regarded as being restricted with respect to the use and/or disposal of imported goods, upon examination by the customs house.
Article 10 Under any of the following circumstances, it shall be deemed that the value of the imported goods has been affected by conditions and/or factors that make it impossible to determine the transaction value of the goods:
1. the value of imported goods is determined on the condition that the buyer purchases a certain amount of other goods from the seller;
2. the value of imported goods is determined on the condition that the buyer sells other goods to the seller; or
3. any other circumstance under which the value of the imported goods has been affected by conditions and/or factors that make it impossible to determine the transaction value of the goods, upon examination by the customs house.
Section 3 Adjustment Items for the Transaction Value
Article 11 When the duty-paid value of imported goods is assessed and determined on the basis of transaction price, the following expenses or values, which are excluded from the paid-in or payable value of the goods, shall be included in the duty-paid value:
1. The following expenses borne by the buyer:
(1) commissions and brokerages, other than the commission for buying the goods;
(2) expenses for the containers, which are considered integral parts of the goods; and
(3) expenses related to packaging materials and packing services.
2. The value of the following goods or services, which are relevant to the production of imported goods and the selling thereof within the territory of the People's Republic of China, and which are provided for free or sold at a price lower than the cost price by the buyer, and which may be apportioned in appropriate proportion:
(1) the materials, parts, accessories and similar goods contained in imported goods;
(2) the tools, molds and similar goods used in the production of imported goods;
(3) the materials consumed during the production of imported goods; and
(4) the engineering design, technological research and development, techniques and drawings, etc. which are needed for the production of imported goods abroad.
3. The royalties that the buyer needs to pay, either directly or indirectly, to the seller or relevant party, unless it is under either of the following circumstances:
(1) the royalties are irrelevant to the goods; or
(2) the payment of royalties does not constitute the conditions for the goods to be sold within the territory of the People's Republic of China.
4. The proceeds acquired, either directly or indirectly, by the seller from the buyer's selling, use or disposal of the goods after they are imported.
The taxpayer shall provide the objective and quantitative data and materials, about the aforesaid expenses or values, to the customs house. If the taxpayer cannot provide the data and/or materials, the customs house shall, upon price consultation with the taxpayer, assess and determine the duty-paid value, in accordance with the methods mentioned in Article 6 of the Measures.
Article 12 When determining the value of goods that shall be included in the duty-paid value of imported goods, in accordance with Item 2 of Paragraph 1, Article 11 of the Measures, the relevant expenses shall be calculated under the following methods:
1.
......
According to the Decision of the General Administration of Customs on Amending Certain Regulations (Order of the General Administration of Customs No. 273), this document has been amended.
Measures of Customs of the People's Republic of China for Assessing and Determining the Duty-paid Value of Imported and Exported Goods
Order of the General Administration of Customs No.213
December 25, 2013
The Measures of Customs of the People's Republic of China for Assessing and Determining the Duty-paid Value of Imported and Exported Goods (hereinafter referred to as the "Measures"), which have been deliberated and adopted during the executive meeting of the General Administration of Customs (hereinafter referred to as the "GACC") on December 9, 2013, are hereby promulgated for implementation as of February 1, 2014.
Measures of Customs of the People's Republic of China for Assessing and Determining the Duty-paid Value of Imported and Exported Goods
Chapter I General Provisions
Article 1 The Measures are formulated, in accordance with the Customs Law of the People's Republic of China (hereinafter referred to as the "Customs Law") and the Regulations of the People's Republic of China on Import and Export Duties, for the purpose of correctly assessing and determining the duty-paid value of imported and exported goods.
Article 2 Customs houses shall observe the principles of objectiveness, fairness and unification when assessing and determining the duty-paid value of imported and exported goods.
Article 3 Customs houses shall be governed by the Measures when assessing and determining the duty-paid value of imported and exported goods.
The Measures shall not apply to the determination of the duty-paid value of bonded goods sold in the domestic market, the luggage of passengers who enter China, personal postal items and other articles for personal use that are permitted to be imported or the assessment of taxable value of goods and/or articles suspected of having been smuggled into or outside of China.
Article 4 Customs houses, in accordance with relevant provisions of the State, shall properly maintain materials that involve business secrets as provided by taxpayers, and the customs houses shall not provide such materials to outside sources unless otherwise prescribed by laws and/or administrative regulations.
A taxpayer may request the customs house to keep business secrets in written form and specifically mention the contents that must be kept confidential, but the taxpayer must not refuse to provide relevant materials to the customs house under the pretext of maintaining business secrets.
Chapter II Duty-paid Value of Imported Goods
Section 1 Methods for Determining the Duty-paid Value of Imported Goods
Article 5 The duty-paid value of imported goods shall be assessed and determined by the customs house on the basis of the transaction value of the goods, and shall include the freight, relevant expenses and insurance premiums before the goods are transported to and unloaded at the entry spot within the territory of the People's Republic of China.
Article 6 When the transaction value of the imported goods does not meet the provisions in Section 2 of the Chapter, or when the transaction value cannot be determined, the transaction value of the goods shall be determined by the following methods, in succession, after the customs house has determined the relevant conditions and conducted price consultation with the taxpayer:
1. the assessment method for the transaction value of identical goods;
2. the assessment method for the transaction value of similar goods;
3. the subtractive method;
4. the computed method; and
5. the method of rational assessment.
The taxpayer, after providing relevant materials, may file an application to reverse the order for applying Item 3 and Item 4 of the preceding paragraph.
Section 2 Method for Assessing Transaction Value
Article 7 The transaction value of imported goods refers to the total amount of the paid-in or payable value that the buyer must pay to the seller for the goods when the goods are sold within the territory of the People's Republic of China, and which has been adjusted, in accordance with the provisions in Section 3 of the Chapter, and includes the price that is directly or indirectly paid.
Article 8 The transaction value of imported goods shall meet the following conditions:
1. the buyer shall not be restricted with respect to the use and/or disposal of the imported goods, with the exception of restrictions provided for by laws or administrative regulations, the restrictions on areas where the goods will be sold, and the restrictions that have no substantial impact on the value of the goods;
2. the value of imported goods shall not be affected by the conditions or factors that make it impossible to determine the transaction value of the goods;
3. the seller may not directly or indirectly acquire any proceeds from the buyer's selling or the use or disposal of the imported goods, unless the adjustment can be made in accordance with Item 4 of Paragraph 1, Article 11 of the Measures; and
4. there is no special relation between the buyer and the seller, unless the special relation will not affect the transaction value, in accordance with Article 17 and Article 18 of the Measures.
Article 9 Under the following circumstances, the buyer shall be restricted with respect to the use and/or disposal of imported goods:
1. the imported goods can only be used for exhibitions or as gifts;
2. the imported goods can only be sold to a designated third party;
3. the imported goods can only be sold to the seller or designated third party after they have been processed into finished products; or
4. any other circumstance under which the buyer is regarded as being restricted with respect to the use and/or disposal of imported goods, upon examination by the customs house.
Article 10 Under any of the following circumstances, it shall be deemed that the value of the imported goods has been affected by conditions and/or factors that make it impossible to determine the transaction value of the goods:
1. the value of imported goods is determined on the condition that the buyer purchases a certain amount of other goods from the seller;
2. the value of imported goods is determined on the condition that the buyer sells other goods to the seller; or
3. any other circumstance under which the value of the imported goods has been affected by conditions and/or factors that make it impossible to determine the transaction value of the goods, upon examination by the customs house.
Section 3 Adjustment Items for the Transaction Value
Article 11 When the duty-paid value of imported goods is assessed and determined on the basis of transaction price, the following expenses or values, which are excluded from the paid-in or payable value of the goods, shall be included in the duty-paid value:
1. The following expenses borne by the buyer:
(1) commissions and brokerages, other than the commission for buying the goods;
(2) expenses for the containers, which are considered integral parts of the goods; and
(3) expenses related to packaging materials and packing services.
2. The value of the following goods or services, which are relevant to the production of imported goods and the selling thereof within the territory of the People's Republic of China, and which are provided for free or sold at a price lower than the cost price by the buyer, and which may be apportioned in appropriate proportion:
(1) the materials, parts, accessories and similar goods contained in imported goods;
(2) the tools, molds and similar goods used in the production of imported goods;
(3) the materials consumed during the production of imported goods; and
(4) the engineering design, technological research and development, techniques and drawings, etc. which are needed for the production of imported goods abroad.
3. The royalties that the buyer needs to pay, either directly or indirectly, to the seller or relevant party, unless it is under either of the following circumstances:
(1) the royalties are irrelevant to the goods; or
(2) the payment of royalties does not constitute the conditions for the goods to be sold within the territory of the People's Republic of China.
4. The proceeds acquired, either directly or indirectly, by the seller from the buyer's selling, use or disposal of the goods after they are imported.
The taxpayer shall provide the objective and quantitative data and materials, about the aforesaid expenses or values, to the customs house. If the taxpayer cannot provide the data and/or materials, the customs house shall, upon price consultation with the taxpayer, assess and determine the duty-paid value, in accordance with the methods mentioned in Article 6 of the Measures.
Article 12 When determining the value of goods that shall be included in the duty-paid value of imported goods, in accordance with Item 2 of Paragraph 1, Article 11 of the Measures, the relevant expenses shall be calculated under the following methods:
1.
......