Tariff Law of the People's Republic of China
Tariff Law of the People's Republic of China
Tariff Law of the People's Republic of China
Order of the President of the People's Republic of China No. 23
April 26, 2024
The Tariff Law of the People's Republic of China, which has been adopted at nineth session of the Standing Committee of the14th National People's Congress of the People's Republic of China on April 26, 2024, is hereby promulgated and shall become effective as of December 1, 2024.
Xi Jinping President of the People's Republic of China
Tariff Law of the People's Republic of China
(Adopted at nineth session of the Standing Committee of the14th National People's Congress of the People's Republic of China on April 26, 2024)
Contents
Chapter I General Provisions
Chapter II Tariff Items and Rates
Chapter III Tariff Payable
Chapter IV Tax Preferences and Tariff Collection under Special Circumstances
Chapter V Collection Administration
Chapter VI Legal Liability
Chapter VII Supplementary Provisions
Chapter I General Provisions
Article 1 This Law is enacted for the purpose of regulating the collection and payment of tariffs, maintaining the order of import and export, promoting foreign trade, pursuing high-level opening-up, advancing high-quality development, safeguarding national sovereignty and interests, and promoting the legitimate rights and interests of taxpayers.
Article 2 Goods which the People's Republic of China permit to be imported or exported and inbound items shall be subject to the collection of tariffs by customs authorities in accordance with the provisions hereof and relevant laws and administrative regulations.
Article 3 Consignees of imported goods, consignors of exported goods, and carriers or recipients of inbound articles are taxpayers of tariffs.
E-commerce platform operators, logistics enterprises and customs declaration enterprises engaged in cross-border e-commerce retail imports, as well as entities and individuals who are obliged by laws or administrative regulations to withhold or collect tariffs on behalf of taxpayers are the tariff withholding agents.
Article 4 The tariff items, rates and applicable rules for the tariff items and rates regarding the imported and exported goods shall be subject to the Import and Export Tariff Schedule of the People's Republic of China (the "Tariff Schedule") attached to this Law.
Article 5 Inbound items for reasonable personal use shall be subject to tariffs under the simplified collection method. Inbound items the quantity of reasonable personal use shall be subject to tariffs as imported goods.
Inbound items for reasonable personal use below the specified quota are exempted from tariffs.
The simplified tariff collection method and the quota for tariff exemption shall be stipulated by the State Council and submitted to the Standing Committee of the National People's Congress for record-filing.
Article 6 The tariff work shall adhere to the leadership of the Communist Party of China (CPC), implement the guidelines, policies, decisions, and arrangements of the CPC and the State, and serve the national economy and social development.
Article 7 The State Council has established a Customs Tariff Commission to perform the following duties:
(1) Deliberating major plans for tariff work, formulating tariff reform and development plans, and organizing their implementation;
(2) Deliberating major tariff policies and foreign tariff negotiation plans;
(3) Proposing adjustments to the Tariff Schedule;
(4) Regularly compiling and publishing the Tariff Schedule;
(5) Explaining the tariff items and rates of the Tariff Schedule;
(6) Deciding on the imposition of anti-dumping duties, countervailing duties, safeguard tariffs, and implementing other tariff measures decided by the State Council; and
(7) Performing other duties prescribed by laws, administrative regulations and the State Council.
The composition and working rules of the Customs Tariff Commission of the State Council shall be stipulated by the State Council.
Article 8 Customs and its staff members shall keep confidential the trade secrets, personal privacy, and personal information of taxpayers and withholding agents that come to be known by them in the performance of their duties in accordance with the law, and shall not disclose them or illegally provide them to others.
Chapter II Tariff Items and Rates
Article 9 Tariff items consist of tariff codes and relevant provisions.
The applicable rules for tariff items include categorization rules. The imported and exported goods shall be classified into the corresponding tariff lines in accordance with relevant provisions and general classification rules, class notes, chapter notes, subheading notes, domestic subheading comments and other classification notes.
Based on actual needs, the Customs Tariff Commission of the State Council may submit suggestions for adjusting tariff items and their applicable rules to the State Council for approval before promulgation and implementation.
Article 10 Import tariff rates include most-favored-nation (MFN) rate, agreement rate, preferential rate, and general rate.
Export tax rates shall be set for export tariffs.
For imported and exported goods subject to tariff quota management, in-quota tariff rates shall be set.
Provisional rates may be applied to imported and exported goods within a certain period of time. The scope of application, specific rates and period of provisional rates shall be determined by the Customs Tariff Commission of the State Council.
Article 11 The application of tariff rates shall comply with the corresponding rules of the place of origin.
For goods wholly obtained in one country or region, such country or region shall be the place of origin; for goods produced with inputs from two or more countries or regions, the country or region where the last substantial transformation is carried out shall be the place of origin. Where the State Council has other provisions on the rules of the place of origin based on the international treaties or agreements concluded or acceded to by the People's Republic of China, such provisions shall prevail.
The place of origin of imported goods shall be determined in accordance with this Law and the regulations of the State Council and its relevant departments.
Article 12 The MFN tariff rates apply to imported goods originating in the member states of the World Trade Organization (WTO) that jointly apply the most-favored-nation clause, to imported goods originating in the countries or regions with which the People's Republic of China concludes, or jointly participates in, international treaties and agreements containing the clause of reciprocal MFN treatment, and to imported goods originating in the territory of the People's Republic of China.
Agreement rates apply to imported goods that originate from countries or regions with which the People's Republic of China concludes, or jointly participates in, international treaties and agreements containing provisions on tariff preference and conform to the relevant provisions of the international treaties or agreements.
Preferential rates apply to imported goods originating from countries or regions that have been granted special tariff preferential arrangements by the People's Republic of China and comply with the national regulations for origin management.
General rates apply to imported goods originating from countries or regions other than those specified in Paragraphs 1 to 3 of this Article, and to imported goods whose origin is unknown.
Article 13 If there is a provisional rate for imported goods subject to MFN rates, the provisional rate shall apply.
If there is a provisional rate for imported goods subject to agreement rates, the lower rate shall apply; If its MFN rate is lower than the agreement rate and there is no provisional rate, the MFN rate shall apply.
If there is a provisional rate for imported goods subject to preferential rates, the lower rate shall apply.
For imported goods subject to general rates, provisional rates are not applicable.
If there is a provisional rate for exported goods subject to export tax rates, the provisional rate shall apply.
Article 14 For imported and exported goods subject to tariff quota management, the in-quota tariff rates shall apply to those within the tariff quota, and the provisional tax rate, if any, shall apply; for goods outside the tariff quota, the tax rates shall be applied in accordance with the provisions of Article 12 and Article 13 hereof.
Article 15 Any adjustments to tariff rates shall be subject to the following regulations:
(1) Where it is necessary to adjust the MFN tariff rates, in-quota tariff rates and export tariff rates to which the People's Republic of China has committed under its Protocol of Accession to the WTO, the Customs Tariff Commission of the State Council shall put forward a proposal, which will be examined by the State Council and reported to the Standing Committee of the National People's Congress for a decision to be made.
(2) Where, according to the actual conditions, the MFN tariff rates, in-quota tariff rates or export tariff rates are to be adjusted within the range to which the People's Republic of China has committed under its Protocol of Accession to the WTO, or the country or region and the scope of goods to which the preferential rates apply and the specific tax rates are to be adjusted, or the general rates are to be adjusted, a decision shall be made by the State Council, which will be submitted to the Standing Committee of the National People's Congress for record-filing.
(3) Regarding the applicability of MFN tariff rates under special circumstances, a decision shall be made by the State Council, which will be submitted to the Standing Committee of the National People's Congress for record-filing.
The Customs Tariff Commission of the State Council shall organize the implementation of agreement rates after completing the examination or approval procedures stipulated in relevant international treaties and agreements.
The scope of application, specific rates and period of provisional rates shall be determined by the Customs Tariff Commission of the State Council.
For any technical conversion of tariff rates related to tariff item adjustment, the Customs Tariff Commission of the State Council shall make a proposal, which shall take effect upon approval by the State Council.
Any adjustment to tariff items pursuant to the preceding four paragraphs shall be published by the State Council.
Article 16 Where anti-dumping duties, countervailing duties and safeguard tariffs are levied on imported goods in accordance with the law, the rates shall be applied in accordance with the provisions of the relevant laws and administrative regulations on anti-dumping, countervailing and safeguard measures.
Article 17 If any country or region fails to fulfill the obligations according to the MFN treatment clauses or tariff preferential clauses in the international treaties or agreements that it has concluded, or has jointly participated in, with the People's Republic of China, the Customs Tariff Commission of the State Council may propose suggestions on taking corresponding measures in accordance with the principle of reciprocity which shall be submitted to the State Council for approval before implementation.
Article 18 If any country or region violates the international treaties or agreements that it has concluded, or has jointly participated in, with the People's Republic of China by prohibiting, restricting, imposing additional tariffs on, or taking other measures that affect normal trade with the People's Republic of China, retaliatory tariffs or other measures may be imposed on the imported goods originating from such country or region.
The scope of goods subject to retaliatory tariffs, applicable countries or regions, rates, period of tariffs and collection methods shall be proposed by the Customs Tariff Commission of the State Council and implemented after approval by the State Council.
Article 19 If a taxpayer fails to provide supporting documents for the imported goods involved in the measures provided for in Articles 16, 17 and 18 hereof, or if the taxpayer provides supporting documents but customs authorities cannot, after examination, rule out the possibility that the goods originate in the country or region where the prescribed measures are taken, the higher of the following two tariff rates shall apply to the goods:
(1) The sum of the highest rate imposed on relevant goods due to the adoption of prescribed measures and the applicable rate in accordance with the provisions of Articles 12, 13 and 14 hereof;
(2) General tax rate.
Article 20 For imported and exported goods and inbound items, the tax rate in effect on the date on which the taxpayer and withholding agent completes the declaration shall be applicable.
If the imported goods are declared before their arrival with approval from customs authorities, the tax rate in effect on the date of declaration of entry by transportation vehicle carrying the goods shall be applicable.
Article 21 Under any of the following circumstances, the tax rate in effect on the date on which the taxpayer or withholding agent handles the tax payment procedures shall be applied:
(1) Bonded goods will no longer be shipped out of China and will be sold domestically;
(2) The goods eligible for tax reduction and exemption are transferred, used for other purposes or otherwise disposed of upon approval;
(3) Temporarily inbound goods will not be reshipped out of China or temporarily outbound goods will not be reshipped into China; and
(4) Leased imported goods are retained and purchased or taxes are paid in installments.
Article 22 The applicable rates for supplementary levying or refunding of tariffs shall be determined in accordance with the provisions of Article 20 or Article 21 hereof.
If tariffs need to be retroactively collected because a taxpayer or withholding agent violates regulations, the rate in effect on the date on which the violation occurs shall be applied; if the date of the violation cannot be determined, the rate in effect on the date on which customs authorities discover such violation shall be applicable.
Chapter III Tariff Payable
Article 23 Tariffs shall be levied on an ad valorem basis, on a quantitative basis and on a compound basis.
The tariff payable calculated using the ad valorem method = taxable price × proportional tax rate.
The tariff payable calculated using the quantity-based method = quantity of goods × fixed tax rate.
The tariff payable calculated using the compound method = taxable price × proportional tax rate + quantity of goods × fixed tax rate.
Article 24 The taxable price of imported goods shall be determined on the basis of the transaction price, transportation and related expenses, and insurance premiums before the goods arrive at the import place in the People's Republic of China for unloading.
The transaction price of imported goods refers to, when a seller sells the goods into the territory of the People's Republic of China, the total amount of the price paid and payable by the buyer to the seller for the import of the goods and adjusted in accordance with the provisions of Articles 25 and 26 hereof.
The transaction price of imported goods shall meet the following conditions:
(1) There will be no restrictions on the buyer's disposal or use of the goods, except for those imposed by laws and administrative regulations, those on the resale area of the goods, and those that do not materially affect the price of the goods;
(2) The transaction price of the goods cannot be determined due to tying or other factors;
(3) The seller shall not receive from the buyer, directly or indirectly, any proceeds arising from the resale, disposal, or use of the goods after import, or although there are proceeds, they shall be adjusted in accordance with the provisions of Articles 25 and 26 hereof; and
(4) There is no special relationship between the buyer and the seller, or although there is a special relationship, it does not affect the transaction price.
Article 25 The following costs of imported goods shall be included in the taxable price:
(1) Commissions and brokerage fees other than purchase commissions borne by the buyer;
(2) The cost of the container that is considered to be integrated with the goods borne by the buyer;
(3) The cost of packaging materials and the cost of packaging labor borne by the buyer;
(4) The price of materials, tools, molds, consumable materials and similar goods in connection with the production of such goods and their sales into the territory of the People's Republic of China, which are supplied by the buyer for free or at a price lower than cost and can be apportioned in an appropriate proportion i, as well as the costs of development, design and other related services outside the People's Republic of China;
(5) The royalties related to the goods that the buyer must pay as a condition for the sale of such goods within the People's Republic of China; and
(6) The proceeds directly or indirectly obtained by the seller from the buyer from the resale, disposal or use of the goods after import.
Article 26 The following fees and taxes listed in the price of the goods at the time of import shall not be included in the taxable price of the goods:
(1) The costs of construction, installation, assembly, maintenance and technical services after import of factory buildings, machinery, equipment and other goods, except warranty costs;
(2) The transportation and related expenses and insurance premiums after the imported goods arrive at the place of import in the People's Republic of China and are unloaded; and
(3) Import tariff and domestic taxes.
Article 27 Where the transaction price of imported goods does not meet the conditions specified in Paragraph 3 of Article 24 hereof, or the transaction price cannot be determined, customs authorities, after understanding the relevant information and conducting price consultations with the taxpayer, shall assess the taxable value of the goods at the following prices in turn:
(1) The transaction price of the same goods sold into to a buyer within the territory of the People's Republic of China at or about the same time as the goods;
(2) The transaction price of similar goods sold into to a buyer within the territory of the People's Republic of China at or about the same time as the goods;
(3) At or about the same time as the import of the goods, the unit price of the maximum total sales volume of the imported goods or the same or similar imported goods sold to buyers with no special relationship at the first-level sales link within the territory of the People's Republic of China, after deducting the items stipulated in Article 26 hereof;
(4) The sum of the following: the cost of materials and processing fees used to produce the goods, the usual profits and general expenses for selling goods of the same grade or type into the territory of the People's Republic of China, and the transportation and related expenses and insurance premiums before the goods arrive at the import place in the People's Republic of China for unloading; and
(5) The price assessed by a reasonable method.
Taxpayers may provide relevant information to customs authorities to apply for adjustment of the order of application of Items 3 and 4 of the preceding paragraph.
Article 28 The following items shall be deducted from the taxable price assessed in accordance with the provisions of Item 3, Paragraph 1 of Article 27 hereof:
(1) The usual profits, general expenses and commissions usually paid when goods of the same grade or type are sold at the first-level sales link within the territory of the People's Republic of China;
(2) The transportation and related expenses and insurance premiums after the imported goods arrive at the place of import in the People's Republic of China and are unloaded; and
(3) Import tariff and domestic taxes.
Article 29 The taxable price of exported goods shall be determined on the basis of the transaction price of the goods, transportation and related expenses, and insurance premiums before the goods are shipped to the export place in the People's Republic of China for loading.
The transaction price of exported goods refers to the total price directly and indirectly charged by the seller to the buyer for exporting the goods at the time of export.
Export tariffs are not included in the taxable price.
Article 30 If the transaction price of exported goods cannot be determined, customs authorities, after understanding the relevant information and conducting price consultations with the taxpayer, shall assess the taxable value of the goods at the following prices in turn:
(1) The transaction price of the same goods exported to the same country or region at or about the same time as the goods;
(2) The transaction price of similar goods exported to the same country or region at or about the same time as the goods;
(3) The sum of the following: the cost of materials and parts and processing fees for the production of identical or similar goods within the territory of the People's Republic of China, usual profits and general expenses, and transportation and related expenses and insurance premiums incurred within China; and
(4) The price assessed by a reasonable method.
Article 31 Customs authorities may, upon application or ex officio, lawfully determine the taxable price, category, and origin of imported and exported goods and inbound items.
When necessary, customs authorities may organize tests and inspections, and use the test and inspection results recognized by customs authorities as the basis for determining the taxable price, category, and origin.
Chapter IV Tax Preferences and Tariff Collection under Special Circumstances
Article 32 The following imported and exported goods and inbound items shall be exempted from tariffs:
(1) One consignment of goods within the exemption quota stipulated by the State Council;
(2) Advertising items and samples with no commercial value;
(3) Fuel, materials and dietary supplies necessary for loading on the inbound and outbound transportation vehicles;
(4) Goods and inbound items that are damaged or lost before being released by customs authorities;
(5) Materials donated free of charge by foreign governments and international organizations;
(6) Goods and inbound items exempted from tariffs under international treaties and agreements concluded by the People's Republic of China or to which the People's Republic of China is a party; and
(7) Other goods and inbound items exempted from tariffs by relevant laws.
Article 33 The following imported and exported goods and inbound items shall be subject to reduced tariffs:
(1) Goods and inbound items that are damaged before being released by customs authorities;
(2) Goods and inbound items subject to reduced tariffs under international treaties and agreements concluded by the People's Republic of China or to which the People's Republic of China is a party; and
(3) Other goods and inbound items subject to reduced tariffs as stipulated by relevant laws.
The reduction of tariffs in Item 1 of the preceding paragraph shall be handled in accordance with the degree of damage recognized by customs authorities.
Article 34 Based on the needs of safeguarding national interests, promoting foreign exchanges, economic and social development, and scientific and technological innovation or due to emergencies and other reasons, the State Council may formulate special preferential policies for tariffs, which shall be submitted to the Standing Committee of the National People's Congress for record-filing.
Article 35 Tariff-reduced or exempted goods shall go through procedures in accordance with the law.
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Order of the President of the People's Republic of China No. 23
April 26, 2024
The Tariff Law of the People's Republic of China, which has been adopted at nineth session of the Standing Committee of the14th National People's Congress of the People's Republic of China on April 26, 2024, is hereby promulgated and shall become effective as of December 1, 2024.
Xi Jinping President of the People's Republic of China
Tariff Law of the People's Republic of China
(Adopted at nineth session of the Standing Committee of the14th National People's Congress of the People's Republic of China on April 26, 2024)
Contents
Chapter I General Provisions
Chapter II Tariff Items and Rates
Chapter III Tariff Payable
Chapter IV Tax Preferences and Tariff Collection under Special Circumstances
Chapter V Collection Administration
Chapter VI Legal Liability
Chapter VII Supplementary Provisions
Chapter I General Provisions
Article 1 This Law is enacted for the purpose of regulating the collection and payment of tariffs, maintaining the order of import and export, promoting foreign trade, pursuing high-level opening-up, advancing high-quality development, safeguarding national sovereignty and interests, and promoting the legitimate rights and interests of taxpayers.
Article 2 Goods which the People's Republic of China permit to be imported or exported and inbound items shall be subject to the collection of tariffs by customs authorities in accordance with the provisions hereof and relevant laws and administrative regulations.
Article 3 Consignees of imported goods, consignors of exported goods, and carriers or recipients of inbound articles are taxpayers of tariffs.
E-commerce platform operators, logistics enterprises and customs declaration enterprises engaged in cross-border e-commerce retail imports, as well as entities and individuals who are obliged by laws or administrative regulations to withhold or collect tariffs on behalf of taxpayers are the tariff withholding agents.
Article 4 The tariff items, rates and applicable rules for the tariff items and rates regarding the imported and exported goods shall be subject to the Import and Export Tariff Schedule of the People's Republic of China (the "Tariff Schedule") attached to this Law.
Article 5 Inbound items for reasonable personal use shall be subject to tariffs under the simplified collection method. Inbound items the quantity of reasonable personal use shall be subject to tariffs as imported goods.
Inbound items for reasonable personal use below the specified quota are exempted from tariffs.
The simplified tariff collection method and the quota for tariff exemption shall be stipulated by the State Council and submitted to the Standing Committee of the National People's Congress for record-filing.
Article 6 The tariff work shall adhere to the leadership of the Communist Party of China (CPC), implement the guidelines, policies, decisions, and arrangements of the CPC and the State, and serve the national economy and social development.
Article 7 The State Council has established a Customs Tariff Commission to perform the following duties:
(1) Deliberating major plans for tariff work, formulating tariff reform and development plans, and organizing their implementation;
(2) Deliberating major tariff policies and foreign tariff negotiation plans;
(3) Proposing adjustments to the Tariff Schedule;
(4) Regularly compiling and publishing the Tariff Schedule;
(5) Explaining the tariff items and rates of the Tariff Schedule;
(6) Deciding on the imposition of anti-dumping duties, countervailing duties, safeguard tariffs, and implementing other tariff measures decided by the State Council; and
(7) Performing other duties prescribed by laws, administrative regulations and the State Council.
The composition and working rules of the Customs Tariff Commission of the State Council shall be stipulated by the State Council.
Article 8 Customs and its staff members shall keep confidential the trade secrets, personal privacy, and personal information of taxpayers and withholding agents that come to be known by them in the performance of their duties in accordance with the law, and shall not disclose them or illegally provide them to others.
Chapter II Tariff Items and Rates
Article 9 Tariff items consist of tariff codes and relevant provisions.
The applicable rules for tariff items include categorization rules. The imported and exported goods shall be classified into the corresponding tariff lines in accordance with relevant provisions and general classification rules, class notes, chapter notes, subheading notes, domestic subheading comments and other classification notes.
Based on actual needs, the Customs Tariff Commission of the State Council may submit suggestions for adjusting tariff items and their applicable rules to the State Council for approval before promulgation and implementation.
Article 10 Import tariff rates include most-favored-nation (MFN) rate, agreement rate, preferential rate, and general rate.
Export tax rates shall be set for export tariffs.
For imported and exported goods subject to tariff quota management, in-quota tariff rates shall be set.
Provisional rates may be applied to imported and exported goods within a certain period of time. The scope of application, specific rates and period of provisional rates shall be determined by the Customs Tariff Commission of the State Council.
Article 11 The application of tariff rates shall comply with the corresponding rules of the place of origin.
For goods wholly obtained in one country or region, such country or region shall be the place of origin; for goods produced with inputs from two or more countries or regions, the country or region where the last substantial transformation is carried out shall be the place of origin. Where the State Council has other provisions on the rules of the place of origin based on the international treaties or agreements concluded or acceded to by the People's Republic of China, such provisions shall prevail.
The place of origin of imported goods shall be determined in accordance with this Law and the regulations of the State Council and its relevant departments.
Article 12 The MFN tariff rates apply to imported goods originating in the member states of the World Trade Organization (WTO) that jointly apply the most-favored-nation clause, to imported goods originating in the countries or regions with which the People's Republic of China concludes, or jointly participates in, international treaties and agreements containing the clause of reciprocal MFN treatment, and to imported goods originating in the territory of the People's Republic of China.
Agreement rates apply to imported goods that originate from countries or regions with which the People's Republic of China concludes, or jointly participates in, international treaties and agreements containing provisions on tariff preference and conform to the relevant provisions of the international treaties or agreements.
Preferential rates apply to imported goods originating from countries or regions that have been granted special tariff preferential arrangements by the People's Republic of China and comply with the national regulations for origin management.
General rates apply to imported goods originating from countries or regions other than those specified in Paragraphs 1 to 3 of this Article, and to imported goods whose origin is unknown.
Article 13 If there is a provisional rate for imported goods subject to MFN rates, the provisional rate shall apply.
If there is a provisional rate for imported goods subject to agreement rates, the lower rate shall apply; If its MFN rate is lower than the agreement rate and there is no provisional rate, the MFN rate shall apply.
If there is a provisional rate for imported goods subject to preferential rates, the lower rate shall apply.
For imported goods subject to general rates, provisional rates are not applicable.
If there is a provisional rate for exported goods subject to export tax rates, the provisional rate shall apply.
Article 14 For imported and exported goods subject to tariff quota management, the in-quota tariff rates shall apply to those within the tariff quota, and the provisional tax rate, if any, shall apply; for goods outside the tariff quota, the tax rates shall be applied in accordance with the provisions of Article 12 and Article 13 hereof.
Article 15 Any adjustments to tariff rates shall be subject to the following regulations:
(1) Where it is necessary to adjust the MFN tariff rates, in-quota tariff rates and export tariff rates to which the People's Republic of China has committed under its Protocol of Accession to the WTO, the Customs Tariff Commission of the State Council shall put forward a proposal, which will be examined by the State Council and reported to the Standing Committee of the National People's Congress for a decision to be made.
(2) Where, according to the actual conditions, the MFN tariff rates, in-quota tariff rates or export tariff rates are to be adjusted within the range to which the People's Republic of China has committed under its Protocol of Accession to the WTO, or the country or region and the scope of goods to which the preferential rates apply and the specific tax rates are to be adjusted, or the general rates are to be adjusted, a decision shall be made by the State Council, which will be submitted to the Standing Committee of the National People's Congress for record-filing.
(3) Regarding the applicability of MFN tariff rates under special circumstances, a decision shall be made by the State Council, which will be submitted to the Standing Committee of the National People's Congress for record-filing.
The Customs Tariff Commission of the State Council shall organize the implementation of agreement rates after completing the examination or approval procedures stipulated in relevant international treaties and agreements.
The scope of application, specific rates and period of provisional rates shall be determined by the Customs Tariff Commission of the State Council.
For any technical conversion of tariff rates related to tariff item adjustment, the Customs Tariff Commission of the State Council shall make a proposal, which shall take effect upon approval by the State Council.
Any adjustment to tariff items pursuant to the preceding four paragraphs shall be published by the State Council.
Article 16 Where anti-dumping duties, countervailing duties and safeguard tariffs are levied on imported goods in accordance with the law, the rates shall be applied in accordance with the provisions of the relevant laws and administrative regulations on anti-dumping, countervailing and safeguard measures.
Article 17 If any country or region fails to fulfill the obligations according to the MFN treatment clauses or tariff preferential clauses in the international treaties or agreements that it has concluded, or has jointly participated in, with the People's Republic of China, the Customs Tariff Commission of the State Council may propose suggestions on taking corresponding measures in accordance with the principle of reciprocity which shall be submitted to the State Council for approval before implementation.
Article 18 If any country or region violates the international treaties or agreements that it has concluded, or has jointly participated in, with the People's Republic of China by prohibiting, restricting, imposing additional tariffs on, or taking other measures that affect normal trade with the People's Republic of China, retaliatory tariffs or other measures may be imposed on the imported goods originating from such country or region.
The scope of goods subject to retaliatory tariffs, applicable countries or regions, rates, period of tariffs and collection methods shall be proposed by the Customs Tariff Commission of the State Council and implemented after approval by the State Council.
Article 19 If a taxpayer fails to provide supporting documents for the imported goods involved in the measures provided for in Articles 16, 17 and 18 hereof, or if the taxpayer provides supporting documents but customs authorities cannot, after examination, rule out the possibility that the goods originate in the country or region where the prescribed measures are taken, the higher of the following two tariff rates shall apply to the goods:
(1) The sum of the highest rate imposed on relevant goods due to the adoption of prescribed measures and the applicable rate in accordance with the provisions of Articles 12, 13 and 14 hereof;
(2) General tax rate.
Article 20 For imported and exported goods and inbound items, the tax rate in effect on the date on which the taxpayer and withholding agent completes the declaration shall be applicable.
If the imported goods are declared before their arrival with approval from customs authorities, the tax rate in effect on the date of declaration of entry by transportation vehicle carrying the goods shall be applicable.
Article 21 Under any of the following circumstances, the tax rate in effect on the date on which the taxpayer or withholding agent handles the tax payment procedures shall be applied:
(1) Bonded goods will no longer be shipped out of China and will be sold domestically;
(2) The goods eligible for tax reduction and exemption are transferred, used for other purposes or otherwise disposed of upon approval;
(3) Temporarily inbound goods will not be reshipped out of China or temporarily outbound goods will not be reshipped into China; and
(4) Leased imported goods are retained and purchased or taxes are paid in installments.
Article 22 The applicable rates for supplementary levying or refunding of tariffs shall be determined in accordance with the provisions of Article 20 or Article 21 hereof.
If tariffs need to be retroactively collected because a taxpayer or withholding agent violates regulations, the rate in effect on the date on which the violation occurs shall be applied; if the date of the violation cannot be determined, the rate in effect on the date on which customs authorities discover such violation shall be applicable.
Chapter III Tariff Payable
Article 23 Tariffs shall be levied on an ad valorem basis, on a quantitative basis and on a compound basis.
The tariff payable calculated using the ad valorem method = taxable price × proportional tax rate.
The tariff payable calculated using the quantity-based method = quantity of goods × fixed tax rate.
The tariff payable calculated using the compound method = taxable price × proportional tax rate + quantity of goods × fixed tax rate.
Article 24 The taxable price of imported goods shall be determined on the basis of the transaction price, transportation and related expenses, and insurance premiums before the goods arrive at the import place in the People's Republic of China for unloading.
The transaction price of imported goods refers to, when a seller sells the goods into the territory of the People's Republic of China, the total amount of the price paid and payable by the buyer to the seller for the import of the goods and adjusted in accordance with the provisions of Articles 25 and 26 hereof.
The transaction price of imported goods shall meet the following conditions:
(1) There will be no restrictions on the buyer's disposal or use of the goods, except for those imposed by laws and administrative regulations, those on the resale area of the goods, and those that do not materially affect the price of the goods;
(2) The transaction price of the goods cannot be determined due to tying or other factors;
(3) The seller shall not receive from the buyer, directly or indirectly, any proceeds arising from the resale, disposal, or use of the goods after import, or although there are proceeds, they shall be adjusted in accordance with the provisions of Articles 25 and 26 hereof; and
(4) There is no special relationship between the buyer and the seller, or although there is a special relationship, it does not affect the transaction price.
Article 25 The following costs of imported goods shall be included in the taxable price:
(1) Commissions and brokerage fees other than purchase commissions borne by the buyer;
(2) The cost of the container that is considered to be integrated with the goods borne by the buyer;
(3) The cost of packaging materials and the cost of packaging labor borne by the buyer;
(4) The price of materials, tools, molds, consumable materials and similar goods in connection with the production of such goods and their sales into the territory of the People's Republic of China, which are supplied by the buyer for free or at a price lower than cost and can be apportioned in an appropriate proportion i, as well as the costs of development, design and other related services outside the People's Republic of China;
(5) The royalties related to the goods that the buyer must pay as a condition for the sale of such goods within the People's Republic of China; and
(6) The proceeds directly or indirectly obtained by the seller from the buyer from the resale, disposal or use of the goods after import.
Article 26 The following fees and taxes listed in the price of the goods at the time of import shall not be included in the taxable price of the goods:
(1) The costs of construction, installation, assembly, maintenance and technical services after import of factory buildings, machinery, equipment and other goods, except warranty costs;
(2) The transportation and related expenses and insurance premiums after the imported goods arrive at the place of import in the People's Republic of China and are unloaded; and
(3) Import tariff and domestic taxes.
Article 27 Where the transaction price of imported goods does not meet the conditions specified in Paragraph 3 of Article 24 hereof, or the transaction price cannot be determined, customs authorities, after understanding the relevant information and conducting price consultations with the taxpayer, shall assess the taxable value of the goods at the following prices in turn:
(1) The transaction price of the same goods sold into to a buyer within the territory of the People's Republic of China at or about the same time as the goods;
(2) The transaction price of similar goods sold into to a buyer within the territory of the People's Republic of China at or about the same time as the goods;
(3) At or about the same time as the import of the goods, the unit price of the maximum total sales volume of the imported goods or the same or similar imported goods sold to buyers with no special relationship at the first-level sales link within the territory of the People's Republic of China, after deducting the items stipulated in Article 26 hereof;
(4) The sum of the following: the cost of materials and processing fees used to produce the goods, the usual profits and general expenses for selling goods of the same grade or type into the territory of the People's Republic of China, and the transportation and related expenses and insurance premiums before the goods arrive at the import place in the People's Republic of China for unloading; and
(5) The price assessed by a reasonable method.
Taxpayers may provide relevant information to customs authorities to apply for adjustment of the order of application of Items 3 and 4 of the preceding paragraph.
Article 28 The following items shall be deducted from the taxable price assessed in accordance with the provisions of Item 3, Paragraph 1 of Article 27 hereof:
(1) The usual profits, general expenses and commissions usually paid when goods of the same grade or type are sold at the first-level sales link within the territory of the People's Republic of China;
(2) The transportation and related expenses and insurance premiums after the imported goods arrive at the place of import in the People's Republic of China and are unloaded; and
(3) Import tariff and domestic taxes.
Article 29 The taxable price of exported goods shall be determined on the basis of the transaction price of the goods, transportation and related expenses, and insurance premiums before the goods are shipped to the export place in the People's Republic of China for loading.
The transaction price of exported goods refers to the total price directly and indirectly charged by the seller to the buyer for exporting the goods at the time of export.
Export tariffs are not included in the taxable price.
Article 30 If the transaction price of exported goods cannot be determined, customs authorities, after understanding the relevant information and conducting price consultations with the taxpayer, shall assess the taxable value of the goods at the following prices in turn:
(1) The transaction price of the same goods exported to the same country or region at or about the same time as the goods;
(2) The transaction price of similar goods exported to the same country or region at or about the same time as the goods;
(3) The sum of the following: the cost of materials and parts and processing fees for the production of identical or similar goods within the territory of the People's Republic of China, usual profits and general expenses, and transportation and related expenses and insurance premiums incurred within China; and
(4) The price assessed by a reasonable method.
Article 31 Customs authorities may, upon application or ex officio, lawfully determine the taxable price, category, and origin of imported and exported goods and inbound items.
When necessary, customs authorities may organize tests and inspections, and use the test and inspection results recognized by customs authorities as the basis for determining the taxable price, category, and origin.
Chapter IV Tax Preferences and Tariff Collection under Special Circumstances
Article 32 The following imported and exported goods and inbound items shall be exempted from tariffs:
(1) One consignment of goods within the exemption quota stipulated by the State Council;
(2) Advertising items and samples with no commercial value;
(3) Fuel, materials and dietary supplies necessary for loading on the inbound and outbound transportation vehicles;
(4) Goods and inbound items that are damaged or lost before being released by customs authorities;
(5) Materials donated free of charge by foreign governments and international organizations;
(6) Goods and inbound items exempted from tariffs under international treaties and agreements concluded by the People's Republic of China or to which the People's Republic of China is a party; and
(7) Other goods and inbound items exempted from tariffs by relevant laws.
Article 33 The following imported and exported goods and inbound items shall be subject to reduced tariffs:
(1) Goods and inbound items that are damaged before being released by customs authorities;
(2) Goods and inbound items subject to reduced tariffs under international treaties and agreements concluded by the People's Republic of China or to which the People's Republic of China is a party; and
(3) Other goods and inbound items subject to reduced tariffs as stipulated by relevant laws.
The reduction of tariffs in Item 1 of the preceding paragraph shall be handled in accordance with the degree of damage recognized by customs authorities.
Article 34 Based on the needs of safeguarding national interests, promoting foreign exchanges, economic and social development, and scientific and technological innovation or due to emergencies and other reasons, the State Council may formulate special preferential policies for tariffs, which shall be submitted to the Standing Committee of the National People's Congress for record-filing.
Article 35 Tariff-reduced or exempted goods shall go through procedures in accordance with the law.
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