Administrative Measures of the Customs of the People's Republic of China for the Levying of Duties on Imported and Exported Goods (Revised in 2018)
Administrative Measures of the Customs of the People's Republic of China for the Levying of Duties on Imported and Exported Goods (Revised in 2018)
Administrative Measures of the Customs of the People's Republic of China for the Levying of Duties on Imported and Exported Goods (Revised in 2018)
Order of the General Administration of Customs No.240
May 29, 2018
Chapter I General Provisions
Article 1 With the goal of ensuring smooth implementation of the duty policies of the state, better administering the levying of customs duties, upholding the rule of law in duty levying practices, safeguarding the state revenues in the form of customs duties, and protecting the lawful rights and interests of duty payers, the Administrative Measures of the Customs of the People's Republic of China for the Levying of Duties on Imported and Exported Goods (Revised in 2014) (hereinafter referred to as the "Measures") are formulated in accordance with the Customs Law of the People's Republic of China (hereinafter referred to as the "Customs Law"), the Regulations of the People's Republic of China on Import and Export Duties (hereinafter referred to as the "Customs Duty Regulations"), as well as other relevant laws and administrative regulations.
Article 2 The levying of customs duties shall follow the principle of appropriate classification, accurate evaluation, calculation on the basis of the applicable tariff rates, reduction and exemption according to law, refunding and recovering taxes by strict standards, and timely transfer of the paid duties to the state treasury.
Article 3 The Measures shall apply to the levying and administration of the import and export duties and the import link taxes imposed by the customs on behalf of other authorities.
The levying and administration of the entry goods import taxes and the vessel tonnage dues shall be governed by the provisions of the relevant laws, administrative regulations and departmental rules. In the absence of such provisions, the Measures shall apply.
Article 4 The customs shall fulfill its confidentiality obligation in accordance with the relevant provisions of the state and take good care of the materials involving business secrets that are provided by duty payers. No such materials may be provided by the customs to outsiders unless it is otherwise prescribed by any law or administrative regulation.
A duty payer may request the customs in writing to keep confidential its business secrets and list in detail the contents requiring confidentiality protection, but may not refuse to provide the relevant materials to the customs under any pretext of business secrets.
Chapter II Levying of Duties on Imported and Exported Goods
Section 1 Declaration and Examination
Article 5 When importing or exporting goods, a duty payer shall go through the declaration process with the customs in accordance with the law and produce relevant documents as required. Where the customs considers it necessary, the duty payer shall also produce such documentation required for the determination of the classification, dutiable value and place of origin of the goods. If the documentation provided is in a foreign language, the customs may demand the duty payer to provide a Chinese translation, and the latter shall be responsible for the quality thereof.
When importing or exporting any goods with duty reduction or exemption, except those as listed in Article 72 of the Measures, a duty payer shall submit the Duty Levying/Exemption Certificate for Imported/Exported Goods (hereinafter referred to as the "Duty Levying/Exemption Certificate") as issued by the competent customs.
Article 6 A duty payers shall, in accordance with the relevant laws, administrative regulations and customs rules on the administration of classification, determined dutiable value and place of origin of goods, file a bona fide declaration of the name, tariff nomenclature heading number (product ID), specification/type, value, freight/insurance cost and other relevant costs, place of origin, quantity and other information of the imported or exported goods.
Article 7 To examine and determine the classification, dutiable value, place of origin and other information of the imported or exported goods, the customs may demand a duty payer to file an additional declaration in accordance with the relevant provisions. Where a duty payer considers it necessary, it may offer to file an additional declaration.
Article 8 The customs shall, in accordance with the relevant laws, administrative regulations and customs rules, examine the name, specification/type, tariff nomenclature heading number, place of origin, value, transaction terms, quantity and other information of the imported or exported goods as declared by a duty payer.
The customs may, based on the specific circumstances of clearance and import or export of the goods, conduct only procedural examination of the declaration during the clearance system, and conduct substantive check on the authenticity and accuracy of the declared value, classification, place of origin and other information of the goods after they are cleared.
Article 9 To determine the classification, dutiable value, place of origin and other information of the imported or exported goods, the customs may conduct examination or organize testing, inspection of the imported or exported goods, or launch an investigation on the relevant enterprise(s).
Where, upon examination, the tariff nomenclature heading number of the imported or exported goods as declared by a duty payer is found to be incorrect, the customs shall conduct re-examination in accordance with the relevant rules and provisions on commodities classification.
Where, upon examination, the value of the imported or exported goods as declared by a duty payer is found to fail to meet the prescribed conditions for a transaction value, or the transaction value is unable to be determined, the customs shall separately assess the value in accordance with the relevant provisions on determining the dutiable value of imported and exported goods.
Where, upon examination, the place of origin of the imported or exported goods as declared by a duty payer is found to be incorrect, the customs shall, in accordance with the relevant provisions of the customs on the administration of place of origin, make determination thereof by employing such methods as checking the certificate of origin as provided by the duty payer, conducting field inspection on the goods and examining other relevant documents.
Where, upon examination, the application for duty reduction or exemption as filed by a duty payer, or any content thereof, fail to meet the relevant provisions on duty reduction or exemption, the customs shall calculate and levy the duties in accordance with the applicable provisions.
Where a duty payer is suspected of falsification or deception in its declaration, as being in breach of the provisions of the customs, it shall be transferred to the customs for investigation or to the anti-smuggling department for handling according to provisions.
Article 10 Prior to the real act of import or export of goods comes into being, a duty payer may, in accordance with the relevant provisions, file an application to the customs for pre-classification, pre-examination of the value, or pre-determination of the place of origin, of the goods to be imported or exported. The customs shall send a written notification to the duty payer upon the completion of such pre-examination and determination and acknowledge its validity when the real act of import or export takes place.
Section 2 Imposition of Duties
Article 11 The customs shall calculate and levy the duties on the basis of the tariff nomenclature heading number, dutiable value, place of origin, of the imported or exported goods, and the applicable tariff rate and exchange rate.
Article 12 The customs shall determine the applicable tariff rate for the imported or exported goods in accordance with the relevant provisions of the Customs Duty Regulations on the application of the most-favored-nation tariff rate, the conventional tariff rate, the preferential tariff, the general tariff rate, the export tariff rate, the quota tariff rate, or the temporary tariff rate, as well as on the applicable tariff rate during the imposition of anti-dumping, countervailing, safeguard measures or retaliatory duties.
Article 13 For any imported or exported goods, the applicable tariff rate of the day when the customs accepts the import or export declaration shall apply.
Where, upon the approval of the customs, a declaration is filed before the imported goods arrive, the applicable tariff rate of the day when an entry declaration is filed for the modes of transportation that carries the goods shall apply.
For the imported goods in transit, the applicable tariff rate of the day when the customs at the place of designation accepts the declaration of such goods shall apply. Where, upon the approval of the customs, a declaration is filed before the goods arrive at the place of designation, the applicable tariff rate of the day when the modes of transportation that carries the goods arrive at the place of designation shall apply.
For the exported goods in transit, the applicable tariff rate of the day when the customs at the place of departure accepts the declaration for export of such goods shall apply.
For the imported or exported goods as declared collectively upon the approval of the customs, the applicable tariff rate of the day when the customs accepts the declaration for each import or export of such goods shall apply.
For any imported goods that are auctioned by the customs in accordance with the law, as a result of failure of a duty payer to go through the declaration within the time limit, the applicable tariff rate of the day when an entry declaration is filed for the modes of transportation that carries the goods shall apply to the calculation and levying of the duties.
For any imported or exported goods on which a duty payer is required to pay any penalty duties due to violation of the relevant provisions, the applicable tariff rate of the day when the violation occurs shall apply. If the exact day when the violation occurs is unable to be determined, the valid tariff rate of the day when the customs detects the violation shall apply.
Article 14 Where, under any of the following circumstances, the payment of duties is required for bonded goods, the goods with duty reduction or exemption, or leased goods, any of which have been cleared upon entry declaration, or the temporary entry/exit goods which have been cleared upon entry or exit declaration, the applicable tariff rate of the day when the customs accepts the renewed declaration as filed by the duty payer for handling the formalities for duty payment or other relevant formalities shall apply:
1. if, upon approval, the bonded goods are not to be shipped out of China;
2. if the goods stored in a bonded warehouse are sold in the domestic market;
3. if, upon approval, the goods with duty reduction or exemption are transferred, or used for other purposes;
4. if the temporary entry/exit goods on which the payment of duties is temporarily not required are not to be shipped out of or back to China; or
5. if the import duties on the leased goods are paid by installments.
Article 15 Where any duties are to be recovered or refunded on the imported or exported goods, the applicable tariff rate shall be determined in accordance with Articles 13 and 14 of the Measures.
Article 16 Where the value of the imported or exported goods or the associated expenses are denominated in a foreign currency, the customs shall, for the purpose of calculating the dutiable value of the goods, convert them into RMB according to the applicable exchange rate of the day when the tariff rate is applied to the goods. The dutiable value shall be rounded off to RMB fen.
The exchange rate adopted monthly by the customs as the basis for calculating and levying the dutiable value shall be the basic exchange rate as published by the People's Bank of China on the third Wednesday of the preceding month (the fourth Wednesday shall be an alternate to the third one, in case the latter falls on any statutory holiday of the state).
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Order of the General Administration of Customs No.240
May 29, 2018
Chapter I General Provisions
Article 1 With the goal of ensuring smooth implementation of the duty policies of the state, better administering the levying of customs duties, upholding the rule of law in duty levying practices, safeguarding the state revenues in the form of customs duties, and protecting the lawful rights and interests of duty payers, the Administrative Measures of the Customs of the People's Republic of China for the Levying of Duties on Imported and Exported Goods (Revised in 2014) (hereinafter referred to as the "Measures") are formulated in accordance with the Customs Law of the People's Republic of China (hereinafter referred to as the "Customs Law"), the Regulations of the People's Republic of China on Import and Export Duties (hereinafter referred to as the "Customs Duty Regulations"), as well as other relevant laws and administrative regulations.
Article 2 The levying of customs duties shall follow the principle of appropriate classification, accurate evaluation, calculation on the basis of the applicable tariff rates, reduction and exemption according to law, refunding and recovering taxes by strict standards, and timely transfer of the paid duties to the state treasury.
Article 3 The Measures shall apply to the levying and administration of the import and export duties and the import link taxes imposed by the customs on behalf of other authorities.
The levying and administration of the entry goods import taxes and the vessel tonnage dues shall be governed by the provisions of the relevant laws, administrative regulations and departmental rules. In the absence of such provisions, the Measures shall apply.
Article 4 The customs shall fulfill its confidentiality obligation in accordance with the relevant provisions of the state and take good care of the materials involving business secrets that are provided by duty payers. No such materials may be provided by the customs to outsiders unless it is otherwise prescribed by any law or administrative regulation.
A duty payer may request the customs in writing to keep confidential its business secrets and list in detail the contents requiring confidentiality protection, but may not refuse to provide the relevant materials to the customs under any pretext of business secrets.
Chapter II Levying of Duties on Imported and Exported Goods
Section 1 Declaration and Examination
Article 5 When importing or exporting goods, a duty payer shall go through the declaration process with the customs in accordance with the law and produce relevant documents as required. Where the customs considers it necessary, the duty payer shall also produce such documentation required for the determination of the classification, dutiable value and place of origin of the goods. If the documentation provided is in a foreign language, the customs may demand the duty payer to provide a Chinese translation, and the latter shall be responsible for the quality thereof.
When importing or exporting any goods with duty reduction or exemption, except those as listed in Article 72 of the Measures, a duty payer shall submit the Duty Levying/Exemption Certificate for Imported/Exported Goods (hereinafter referred to as the "Duty Levying/Exemption Certificate") as issued by the competent customs.
Article 6 A duty payers shall, in accordance with the relevant laws, administrative regulations and customs rules on the administration of classification, determined dutiable value and place of origin of goods, file a bona fide declaration of the name, tariff nomenclature heading number (product ID), specification/type, value, freight/insurance cost and other relevant costs, place of origin, quantity and other information of the imported or exported goods.
Article 7 To examine and determine the classification, dutiable value, place of origin and other information of the imported or exported goods, the customs may demand a duty payer to file an additional declaration in accordance with the relevant provisions. Where a duty payer considers it necessary, it may offer to file an additional declaration.
Article 8 The customs shall, in accordance with the relevant laws, administrative regulations and customs rules, examine the name, specification/type, tariff nomenclature heading number, place of origin, value, transaction terms, quantity and other information of the imported or exported goods as declared by a duty payer.
The customs may, based on the specific circumstances of clearance and import or export of the goods, conduct only procedural examination of the declaration during the clearance system, and conduct substantive check on the authenticity and accuracy of the declared value, classification, place of origin and other information of the goods after they are cleared.
Article 9 To determine the classification, dutiable value, place of origin and other information of the imported or exported goods, the customs may conduct examination or organize testing, inspection of the imported or exported goods, or launch an investigation on the relevant enterprise(s).
Where, upon examination, the tariff nomenclature heading number of the imported or exported goods as declared by a duty payer is found to be incorrect, the customs shall conduct re-examination in accordance with the relevant rules and provisions on commodities classification.
Where, upon examination, the value of the imported or exported goods as declared by a duty payer is found to fail to meet the prescribed conditions for a transaction value, or the transaction value is unable to be determined, the customs shall separately assess the value in accordance with the relevant provisions on determining the dutiable value of imported and exported goods.
Where, upon examination, the place of origin of the imported or exported goods as declared by a duty payer is found to be incorrect, the customs shall, in accordance with the relevant provisions of the customs on the administration of place of origin, make determination thereof by employing such methods as checking the certificate of origin as provided by the duty payer, conducting field inspection on the goods and examining other relevant documents.
Where, upon examination, the application for duty reduction or exemption as filed by a duty payer, or any content thereof, fail to meet the relevant provisions on duty reduction or exemption, the customs shall calculate and levy the duties in accordance with the applicable provisions.
Where a duty payer is suspected of falsification or deception in its declaration, as being in breach of the provisions of the customs, it shall be transferred to the customs for investigation or to the anti-smuggling department for handling according to provisions.
Article 10 Prior to the real act of import or export of goods comes into being, a duty payer may, in accordance with the relevant provisions, file an application to the customs for pre-classification, pre-examination of the value, or pre-determination of the place of origin, of the goods to be imported or exported. The customs shall send a written notification to the duty payer upon the completion of such pre-examination and determination and acknowledge its validity when the real act of import or export takes place.
Section 2 Imposition of Duties
Article 11 The customs shall calculate and levy the duties on the basis of the tariff nomenclature heading number, dutiable value, place of origin, of the imported or exported goods, and the applicable tariff rate and exchange rate.
Article 12 The customs shall determine the applicable tariff rate for the imported or exported goods in accordance with the relevant provisions of the Customs Duty Regulations on the application of the most-favored-nation tariff rate, the conventional tariff rate, the preferential tariff, the general tariff rate, the export tariff rate, the quota tariff rate, or the temporary tariff rate, as well as on the applicable tariff rate during the imposition of anti-dumping, countervailing, safeguard measures or retaliatory duties.
Article 13 For any imported or exported goods, the applicable tariff rate of the day when the customs accepts the import or export declaration shall apply.
Where, upon the approval of the customs, a declaration is filed before the imported goods arrive, the applicable tariff rate of the day when an entry declaration is filed for the modes of transportation that carries the goods shall apply.
For the imported goods in transit, the applicable tariff rate of the day when the customs at the place of designation accepts the declaration of such goods shall apply. Where, upon the approval of the customs, a declaration is filed before the goods arrive at the place of designation, the applicable tariff rate of the day when the modes of transportation that carries the goods arrive at the place of designation shall apply.
For the exported goods in transit, the applicable tariff rate of the day when the customs at the place of departure accepts the declaration for export of such goods shall apply.
For the imported or exported goods as declared collectively upon the approval of the customs, the applicable tariff rate of the day when the customs accepts the declaration for each import or export of such goods shall apply.
For any imported goods that are auctioned by the customs in accordance with the law, as a result of failure of a duty payer to go through the declaration within the time limit, the applicable tariff rate of the day when an entry declaration is filed for the modes of transportation that carries the goods shall apply to the calculation and levying of the duties.
For any imported or exported goods on which a duty payer is required to pay any penalty duties due to violation of the relevant provisions, the applicable tariff rate of the day when the violation occurs shall apply. If the exact day when the violation occurs is unable to be determined, the valid tariff rate of the day when the customs detects the violation shall apply.
Article 14 Where, under any of the following circumstances, the payment of duties is required for bonded goods, the goods with duty reduction or exemption, or leased goods, any of which have been cleared upon entry declaration, or the temporary entry/exit goods which have been cleared upon entry or exit declaration, the applicable tariff rate of the day when the customs accepts the renewed declaration as filed by the duty payer for handling the formalities for duty payment or other relevant formalities shall apply:
1. if, upon approval, the bonded goods are not to be shipped out of China;
2. if the goods stored in a bonded warehouse are sold in the domestic market;
3. if, upon approval, the goods with duty reduction or exemption are transferred, or used for other purposes;
4. if the temporary entry/exit goods on which the payment of duties is temporarily not required are not to be shipped out of or back to China; or
5. if the import duties on the leased goods are paid by installments.
Article 15 Where any duties are to be recovered or refunded on the imported or exported goods, the applicable tariff rate shall be determined in accordance with Articles 13 and 14 of the Measures.
Article 16 Where the value of the imported or exported goods or the associated expenses are denominated in a foreign currency, the customs shall, for the purpose of calculating the dutiable value of the goods, convert them into RMB according to the applicable exchange rate of the day when the tariff rate is applied to the goods. The dutiable value shall be rounded off to RMB fen.
The exchange rate adopted monthly by the customs as the basis for calculating and levying the dutiable value shall be the basic exchange rate as published by the People's Bank of China on the third Wednesday of the preceding month (the fourth Wednesday shall be an alternate to the third one, in case the latter falls on any statutory holiday of the state).
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