Decree of the General Administration of Customs of the People’s Republic of China No.208

The Measures of Supervision on Pingtan Caomprehensive Experimental Area By the Customs of the People’s Republic of China (trial), which were adopted at the executive meeting of the General Administration of Customs on June 8, 2013, are hereby promulgated, and shall come into force as of August 1, 2013.  

Yu Guangzhou
Minister
General Administration of Customs
June 27, 2013

 Customs Measures on Supervision

On

 Pingtan Comprehensive Experimental Area(Trial)

Chapter 1 General Rules

Article 1 These Measures are formulated in accordance with the Customs Law of the People’s Republic of China and other relevant laws and regulations for the purposes of regulating Customs supervision on Pingtan Comprehensive Experimental Area (Pingtan hereinafter)

Article 2 These Measures are applicable to China Customs' control and check inward and outward means of transport, goods and articles via Pingtan, vehicles, goods and articles into and out of Pingtan, and over the business firms and premises registered in Pingtan with the Customs authorities.

Article 3 The ports between Pingtan and abroad are supervised as the "first line" coverage; the channels between Pingtan and other regions within China Customs territory are supervised as the "second-tier line" coverage. The Customs shall implement hierarchical management under the rule of “A relaxation of thefirst-tier line; a strict supervision over the second-tier line; a separation of person and goods as well as a classified management”.

Article 4 Pingtan shall establish island-wide patrol monitoring facilities and Customs information platform in accordance with China Customs supervision. The "first line", "second-tier line" Customs supervision zones and intra-Pingtan Customs supervision places shall be established with compliant facilities, devices and workplaces usable for Customs supervision. Only based upon the General Administration of Customs of the People’s Republic of China’s (GACC hereinafter) acceptance shall Pingtan carry out relevant operations.

Article 5 Registration with the Customs shall be required over the intra-Pingtan importing and exporting business eligible for bonded treatment, tax reliefs and tax refund, and related logistical enterprises, Customs brokers and enterprises (enterprises hereinafter).

The enterprises shall establish the account books, report forms, etc. in accordance with Customs requirements and accept Customs audit or inspection.

The computerized management shall be required over the enterprises to do computer networking and electronic data exchanging with Customs.

Article 6 Unless otherwise regulated, the Customs shall maintain electronic handbook management concerning goods inward and outward Pingtan, the bonded goods, tax-relievable goods stored in Pingtan, and tax-refundable goods that are carried into Pingtan.

Article 7 China Customs shall conduct supervision over the trading markets in Pingtan for small commodities made in Taiwan. The specific administrative measures will be promulgated by the GACC separately.

Article 8 The goods banned from entry according to laws, administrative regulations and ministerial rules shall not be carried into Pingtan through the "first line"; the goods banned from exit according to laws, administrative regulations and ministerial rules shall not be carried into Pingtan through the "second-tier line" through the means of customs clearing.

The intra-Pingtan enterprises shall not undertake the inward processing involving any goods listed in The Catalogue of Commodities Prohibited from Processing Trade.

Chapter 2 Supervision over Goods Entry and Exit between Pingtan and Abroad

Article 9 Unless otherwise regulated, the Customs shall conduct record-filing management over the bonded goods, tax-relievable goods and tax-refundable goods that are imported and exported between Pingtan and abroad, and conduct Customs clearance procedures as required over other kinds of goods moving between Pingtan and abroad.

Article 10 The Customs shall conduct bonded or tax-relief treatment for production-related goods importing from abroad to Pingtan, except the following goods:

(1) Imported goods for living, consumption, and commercial estate development projects;

(2) Goods banned by law, administrative regulations and ministerial rules from the bonded or tax-relievable treatment;

(3) Goods under the list banned from the bonded or tax-relievable treatment at the "first line" by the Ministry of Finance, the State Administration of Taxation and GACC.

Article 11 Unless otherwise regulated, the record-filing goods from abroad to Pingtan shall not be subject to import quota nor import license management.

The goods exporting from Pingtan to abroad shall be subject to export quota and export license management.

Chapter 3 Supervision over Goods Entry and Exit between Pingtan and Other Regions of Chinese Mainland

Article 12 The intra-Pingtan bonded, tax-relievable and tax-refundable goods sold to other regions of Chinese mainland shall be subject to China Customs' import clearance formalities. The tax-refundable goods sold from other regions of the mainland to Pingtan shall be subject to China Customs' export clearance formalities. The goods aforesaid shall be carried in and out of Pingtan through the declaration channel appointed by Customs. After relevant Customs formalities, those goods aforesaid may be collectively declared to the Customs but may not be declared by spanning more than one month or one year.

The Customs may inspect other goods which enter in and out of Pingtan through the un-declaration channel appointed by Customs.

The intra-Pingtan supervised goods without completion of Customs formalities, where in need of transfer to other customs supervised places out of Pingtan, shall be subject to the declaration formalities according to Customs-shifting transportation.

Article 13 Production-related goods sold to Pingtan from other mainland regions shall be regarded as export and eligible for China Customs' export-tax refund, but excluding the following goods:

(1) Goods purchased outside for living, consumption, and commercial estate development projects;

(2) Goods banned by law, administrative regulations and ministerial rules from the tax refund;

(3) Goods under the list banned from the tax refund at the "second-tier line" by the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs.

The tax-refundable goods entering Pingtan shall be stored in Customs approved places.

Article 14 As regards the bonded goods made in Pingtan and sold to other mainland regions, the Customs shall levy import value-added tax and consumption tax as per the declared real state of the goods.

As regards the bonded goods made in Pingtan and sold to other mainland regions, the enterprises can apply for paying the import duties as per materials or as per the declared real state of the goods.

If the application for paying the duties as per materials is un-submitted, the Customs shall levy the import duties as per the declared real state of the goods.

Where the enterprises apply for paying the duties as per materials, the following rules shall prevail:

(1) The enterprises shall apply to the Customs at the time of record-filing of their handbook ; before the Customs levy duties, the enterprises may alter their applications;

(2) The Customs shall levy the duties as per the bonded materials of the goods;

(3) Where the materials are covered by preferential origins, the enterprises shall declare and submit relevant certificates at the time of record-filing of the materials, otherwise they shall not be eligible for preferential duty rates on their mainland sales. If the relevative bonded materials of the goods are involved in anti-dumping, anti-subsidy and other trade remedy measures, these measures are applicable.

 
Article 15 As regards the goods transported outward from Pingtan under China's preferential trade policies, where in compliance with Customs rules of origin, the enterprises may apply for eligibility for preferential duty rates.

Article 16 The goods carried from Pingtan to other mainland regions shall be subject to import quota and import license management. For the goods subject to the same import quota and license if the Customs have verified the import quota and license in the procedure of import declaration, the Customs may not verify the quota and license again when the goods aforesaid exit.

The goods carried to Pingtan from other mainland regions shall not be subject to export quota and export license.

Chapter 4 Supervision over Intra-Pingtan Goods

Article 17 Where the goods under electronic handbook management transfer between intra-Pingtan enterprises, the enterprises involved shall timely declare relevant electronic data information to the Customs.

Article 18 Where the intra-Pingtan enterprises do not keep the bank deposit accounting system for processing trade, the Customs may not conduct the unit consumption standards on intra-Pingtan goods under processing trade.

Upon relevant Customs formalities, the further-processing transfer and outsourcing business under the processing trade mode may be undertaken between intra-Pingtan enterprises and the enterprises based in other mainland regions.

As regards the enterprises engaged in international service outsourcing business, the import and export formalities of which shall be processed per relevant regulations.

Article 19 Where selling bonded goods within Pingtan under any of the following circumstances, the sellers shall undertake Customs formalities and pay import duties, value-added tax and consumption tax as per Article 14 aforesaid:

(1) Sale to individual persons;

(2) Sale to intra-Pingtan enterprises and not for production use anymore;

(3) Other circumstances to pay tax.

Article 20 Intra-Pingtan goods under tax reliefs shall be supervised according to the Customs regulations on tax reliefs.

Article 21 The tax-refundable goods into Pingtan from other mainland regions shall be supervised as per the regulations below:

(1) Management of record-filing shall be applied to the exit via the "first line" of the goods in original state or of the finished products from tax-refundable goods;

(2) Management of Electronic handbook shall be applied to the intra-Pingtan sale and use for production regarding the goods in original state or the finished products from tax-refundable goods;

(3) Regulations on bonded goods shall be applied to the sale of the goods in original state or of the finished products from tax-refundable goods to mainland-based processing-trade enterprises and also applied to their transportation to Customs supervision zones or bonded supervision venues;

(4) Where the goods in original state or the finished products from tax-refundable goods fall into the infrastructure building materials of Pingtan, they shall be verified as per authorities' approvals and as per their consumed quantity;

(5) Regulations on import declaration shall be applied to intra-Pingtan sale of the goods in original state or of the finished products from tax-refundable goods, not covered by the descriptions of Items (2) and (4) herein; or to mainland-oriented sale which may not be covered by bonded goods management;
(6) Regulations on import declaration also shall be applied to other circumstances.

Article 22 The Customs shall continue bonded supervision over the bonded goods transferred between Pingtan and other Customs special supervision zones, bonded supervision venues or processing trade enterprises.

Article 23 Where the intra-Pingtan goods of bonded, tax-relievable or tax-refundable temporarily enter to or exit from Pingtan for repair purpose, etc., the relevant Customs formalities are required. Such goods shall not be applied to other usage, processing, or production on the mainland and shall be returned to Pingtan within prescribed time.

Article 24 With respect to leftover materials and by-products produced during processing of imported bonded materials by intra-Pingtan enterprises, the Customs shall conduct supervision as per relevant regulations.

Article 25 With respect to any of the following circumstances, the intra-Pingtan enterprises shall timely report to the Customs in writing:

(1) The Customs supervised goods suffer disasters such as force majeure;

(2) The Customs supervised goods suffer damage or loss from factors other than force majeure;

(3) The Customs supervised suffer enforcement measures such as sealing and detainment;

(4) Enterprise division, merger or bankruptcy.

Article 26 Where the Customs-supervised goods are damaged or lost owing to force majeure, the enterprises shall immediately declare in writing to the Customs and submit certificates issued by insurance and appraisal authorities. The Customs may conduct as per the following rules:

(1) With respect to the loss of goods that lose totally use value, the Customs shall conduct reconciliation formalities;

(2) With respect to the goods damaged and deprived of original use but still recyclable, the Customs shall keep them supervised.

Article 27 The Customs-supervised goods that are damaged or lost by the factors other than force majeure shall be disposed as per the following rules:

(1) With respect to the bonded goods that into Pingtan from abroad, the intra-Pingtan enterprises shall pay import tax to the Customs by using Customs prescribed duty-paid value before the goods are damaged or lost, tax rates and exchange rates of the day when Customs accepts goods declaration, and also shall submit import quota and license certificates as required.

(2) With respect to the tax-relievable goods into Pingtan from abroad, the intra-Pingtan enterprises shall pay import tax to the Customs by using Customs-prescribed duty-paid value, tax rates and exchange rates as per the Article 45 of China Customs Administrative Measures on the Tax Reductions and Exemptions for Imported and Exported Goods, and also shall submit import quota and license certificates as required.

(3) With respect to the tax-refundable goods into Pingtan from other mainland regions, the intra-Pingtan enterprises shall declare as per relevant regulations on importation.

Article 28 With respect to the supervised goods enter to or exit from Pingtan as below, the intra-Pingtan enterprises may, after fulfilling Customs formalities, assign special carriers or conduct transportation by themselves:

(1) Small amount of goods worth not more than USD 10,000;

(2) Defective goods entering and exiting via Pingtan for replacement;

(3) Other goods through fulfilled Customs formalities.

Without fulfillment of relevant Customs formalities, any person entering to or exiting from Pingtan shall not carry or transport goods that are bonded, tax-relievable and/or tax-refundable within Pingtan.

Chapter 5 Supervision over Means of Transport and Personal Belongings via Pingtan

Article 29 The means of transport via the "first line" shall be supervised as per China Customs Measures on Supervision of Entry-Exit Means of Transport (GACC Decree No. 196) and China Customs Administrative Measures on Manifests of Entry-Exit Means of Transport (GACC Decree No. 172).

The Customs may conduct inspection to all means of transport via the "second-tier line", which shall not transport any supervised goods without fulfillment of relevant Customs formalities.

Article 30 The motor vehicles originating in Taiwan shall be subject to the Customs measures that are otherwise formulated on their clearance.

Article 31 Personal belongings in the entry and exit shall be subject to the Customs measures that are separately formulated by GACC and other relevant departments..

Chapter 6 Supplementary Provisions

Article 32 Unless otherwise regulated, Customs statistics shall cover the goods moving via the "first line" between Pingtan and abroad. The goods moving via the "second-tier line" between Pingtan and other mainland regions shall be listed into separate statistics of the Customs.

The goods that are transferred or moved between the intra-Pingtan enterprises, and the goods moved between Pingtan and other Customs supervised zones and bonded supervision venues, shall not be listed into Customs statistics.

Article 33 Violation of these Measures and China Customs Law as well as Regulations shall be subject to Customs administrative penalty or even to criminal liability.

Article 34 These Measures shall be construed by GACC.

Article 35 These Measures shall go into effect as of August 1, 2013.