Promulgation Authorities:  Standing Committee of the National People's Congress

Promulgation Date:  2021.04.29

Effective Date:  2021.04.29

Validity Status:  valid

Customs Law of the People's Republic of China (Amended in 2021)

(Adopted January 22, 1987 at the Nineteenth Session of the Standing Committee of the Sixth National People's Congress, amended for the first time in accordance with the Decision on Amending the Customs Law of the People's Republic of China adopted at the Sixteenth Session of the Standing Committee of the Ninth National People's Congress on 8 July 2000; amended for the second time in accordance with the Decision on Amending Twelve Laws including the Law on the Protection of Cultural Relics of the People's Republic of China adopted at the third session of the Standing Committee of the 12th National People's Congress on June 29, 2013; amended for the third time in accordance with the Decision on Amending Seven Laws including the Marine Environment Protection Law of the People's Republic of China adopted at the Sixth Session of the Standing Committee of the Twelfth National People's Congress on December 28, 2013; amended for the fourth time in accordance with the Decision on Amending twelve Laws including The Foreign Trade Law of the People's Republic of China adopted at the 24th session of the Standing Committee of the 12th National People's Congress on November 7, 2016; amended for the fifth time in accordance with the Decision on Amending Eleven Laws including the Accounting Law of the People's Republic of China adopted at the 30th session of the Standing Committee of the 12th National People's Congress on November 4, 2017; and amended for the fifth time in accordance with the Decision on Amending Eight Laws including the Road Traffic Safety Law of the People's Republic of China at the 28th Session of the Standing Committee of the 13th National People's Congress on April 29, 2021)

Article 1.   

This Law is enacted in order to safeguard China's sovereignty and interests, strengthen Customs supervision and administration, promote foreign economic trade and scientific, technological and cultural exchanges with other countries and ensure socialist modernisation.

Article 2.   

The Customs of the People's Republic of China is the State organ responsible for the supervision and administration of entry into and exit from the customs territory (hereinafter referred to as entry and exit). Customs shall exercise supervision and administration over all means of transport, goods, luggage, postal items and other articles entering and leaving Chinese territory (hereinafter referred to as inbound and outbound means of transport, goods and articles) pursuant to this Law and other relevant laws and administrative regulations, levy Customs duties and other taxes and fees, investigate and counter smuggling, compile Customs statistics and handle other Customs affairs.

Article 3.   

The State Council establishes the General Administration of Customs to carry out the unified administration of Customs offices throughout the country.

The State sets up Customs offices at ports open to foreign countries and at places which call for concentrated Customs supervision and administration operations. Customs offices are not subordinate to the authorities of the administrative divisions where they are situated.

Customs offices shall exercise their functions and powers independently in accordance with law and shall be responsible to the General Administration of Customs.

Article 4.   

The State establishes a public security office within the General Administration of Customs to specialise in the investigation of smuggling related crimes, shall appoint full-time counter-smuggling police, and shall be responsible for all investigations, detention, the carrying out of arrests and preliminary investigations related to cases of smuggling within its jurisdiction.

The public security office within Customs which investigates smuggling related crimes shall fulfil its duties of investigating, detaining, carrying out arrests and conducting preliminary interrogation in accordance with the provisions of the Criminal Procedure Law of the People's Republic of China.

The public security office within Customs which investigates smuggling related crimes may establish branch offices in accordance with relevant State regulations. All branch offices shall transfer cases of smuggling related crimes, which have been handled by them within their jurisdictions, to the People's Procuratorate with jurisdictional authority for prosecution in accordance with law.

Local public security organs at all levels shall cooperate with the public security offices within Customs offices which investigate smuggling related crimes in the fulfilment of their duties in accordance with law.

Article 5.   

The State adopts a unified counter-smuggling system to counter smuggling in a centralised and comprehensive way. Customs offices are responsible for the organisation, coordination and administration of the work of investigating and countering smuggling. Relevant regulations shall be separately formulated by the State Council.

For all cases of smuggling which have been discovered by the administrative departments of law enforcement, if an administrative penalty shall be imposed, they shall be transferred to Customs to be handled in accordance with law; where it is suspected that a crime has been committed, the matter shall be transferred to the public security office within Customs which investigates smuggling related crimes or the local public security organ to be dealt with according to the jurisdictional division of work in respect of the case and legal procedure.

Article 6.   

Customs may exercise the following rights:

(1) inspect inbound and outbound means of transport and examine inbound and outbound goods and articles; where a violation of this Law or other relevant laws or administrative regulations occurs, any offending items may be held in custody;

(2) examine the papers of persons entering or leaving Chinese territory; interrogate those suspected of violating this Law or other relevant laws or administrative regulations and investigate their illegal activities;

(3) examine and duplicate contracts, invoices, account books, bills, records, documents, business correspondence and telegraphs, audio and video recordings and other material related to inbound and outbound means of transport, goods and articles; where the means of transport, goods and articles which enter or leave Chinese territory are involved in a violation of this Law or other relevant laws or administrative regulations, the relevant materials may be withheld;

(4) within the jurisdiction of Customs supervision and designated coastal or border areas near the Customs office, inspect means of transport suspected of being used for smuggling and places suspected of concealing smuggled goods and articles, and search the bodies of persons suspected of smuggling; means of transport, goods and articles suspected of being involved in smuggling or persons suspected of being involved in the crime of smuggling may be detained subject to the approval of the head of the direct supervising Customs office or the head of the authorised subordinate Customs office; for persons suspected of criminal smuggling the term of detention shall not exceed 24 hours, but may be extended to 48 hours in special circumstances.

When investigating cases of smuggling in areas other than the Customs supervision and administration zone and designated coastal or border areas near the Customs office, Customs may inspect means of transport suspected of being used for smuggling and places suspected of concealing smuggled goods and articles except where they are the residences of citizens, and the parties concerned shall be present, subject to the approval of the head of the directly administered Customs office or the head of the authorised subordinate Customs office; where the parties concerned are not present, but there is a witness present, an inspection may be carried out; and where there is evidence showing that the means of transport, goods and articles are suspected of being involved in smuggling, they may be withheld.

The range of designated coastal or border areas shall be determined by the General Administration of Customs and public security departments of the State Council in conjunction with the relevant provincial people's government.

(5) when investigating cases of smuggling, inquiries may be made into the deposits into and withdrawals out of financial institutions and postal service enterprises by suspected units or suspected persons, subject to the approval of the head of the directly supervising Customs office or the head of the authorised subordinate Customs office.

(6) when pursuing means of transport which or persons who have defied and escaped from Customs supervision and administration, Customs may continue the chase beyond the Customs supervision and administration zone or the designated coastal or border areas near the Customs office, so that they can be seized and brought back to be dealt with.

(7) a Customs office may be provided with weapons in order to exercise its functions and powers. The regulations governing the carrying and use of weapons by Customs officers shall be formulated by the General Administration of Customs in conjunction with the public security departments of the State Council and submitted to the State Council for approval; and

(8) other powers which Customs may exercise as stipulated by laws and administrative regulations.

Article 7.   

All local governments and authorities shall support the Customs' exercise of powers in accordance with law and shall not illegally intervene in Customs law enforcement activities.

Article 8.   

All inbound and outbound means of transport, goods and articles shall pass through a place where a Customs office is established when entering or leaving Chinese territory. In special circumstances, where it is necessary to temporarily enter or leave Chinese territory without passing through a place where a Customs office is established, approval to do so shall be obtained from the State Council or an organ authorised by the State Council, and all Customs procedures shall be duly handled pursuant to the provisions of this Law.

Article 9.   

Unless otherwise stipulated, the consignee or consignor of import and export goods may take import and export goods through Customs declaration procedures and pay duties themselves, it may also entrust a Customs clearing enterprise to complete declaration procedures and pay duties for import and export goods.

Customs declaration procedures and the payment of duties may be completed by the owner of inbound and outbound articles, or by a person entrusted to complete Customs declaration procedures and pay duties.

Article 10.   

Where Customs clearing enterprises have accepted the authorisation of a consignee or consignor of import and export goods and are handling Customs declaration procedures under the name of the consignee or consignor, they shall submit a power of attorney signed by the consignee or consignor to Customs, and shall abide by all provisions of this Law pertaining to the consignee or consignor.

Where Customs clearing enterprises have accepted the authorisation of a consignee or consignor of import and export goods and are handling Customs declaration procedures under their own name, they shall assume the same legal liability as the consignor or consignee.

Where the consignee or consignor authorises a Customs clearing enterprise to handle Customs declaration procedures, he or she shall provide the true circumstances in relation to the Customs clearance to the Customs clearing enterprise; where the Customs clearing enterprise accepts the authorisation of the consignee or consignor to handle Customs declaration procedures, it shall conduct a rational examination and investigation of the authenticity of circumstances provided by the consignee or consignor.

Article 11.   

Where a consignee or consignor of import or export goods or a Customs clearing enterprise go through Customs declaration procedures, they shall file for record with the Customs in accordance with law.

Customs clearing enterprises and Customs clearing personnel must not illegally act as agents for Customs declarations.

Article 12.   

Relevant units or individuals shall accurately answer the inquiries of and cooperate with Customs officers, and no unit or individual shall obstruct Customs officers from performing their duties in accordance with law.

Where Customs officers encounter violent resistance whilst performing their duties, public security organs and troops of the People's Armed Police who are performing related tasks shall provide assistance.

Article 13.   

Customs shall establish a crime reporting system in respect of activities which evade Customs supervision and administration and are in breach of the provisions of this Law.

All units and individuals without exception shall have the right to report activities which evade Customs supervision and administration and are in breach of the provisions of this Law.

Customs shall grant spiritual or material rewards to meritorious units and individuals who report cases or assist in apprehensions in cases which breach this Law.

Customs shall not reveal the identity of informers.

CHAPTER II — INBOUND AND OUTBOUND MEANS OF TRANSPORT

Article 14.   

When an inbound or outbound means of transport arrives at or departs from a place where a Customs office is established, the person in charge of the means of transport shall make an accurate declaration to Customs, submit the relevant documents for examination and subject themselves to Customs supervision, administration and inspection.

Inbound and outbound means of transport which have stopped at a place where a Customs office is established must not depart without the permission of Customs.

Where an inbound or outbound means of transport moves from one place where a Customs office is established to another place where a Customs office is established, it shall comply with Customs supervision and administration requirements and go through Customs procedures, and where Customs procedures have not been completed, it must not change its course and leave Chinese territory.

Article 15.   

Inbound means of transport which have entered Chinese territory but have yet to make a declaration to Customs or outbound means of transport which have completed Customs procedures but have yet to leave Chinese territory shall move along routes specified by the organ in charge of transportation; where routes have not been specified by the organ in charge of transportation, they shall be designated by Customs.

Article 16.   

The person in charge of the means of transport or the relevant transport department shall notify Customs in advance of the arrival and departure time of the inbound or outbound vessel, train or aircraft, its place of arrival, other places it will move to during its stay as well as the times of loading and unloading of goods and articles.

Article 17.   

The loading and unloading of inbound and outbound goods and articles from means of transport and the boarding and disembarking of inbound and outbound passengers shall be subject to Customs supervision and administration.

Upon the completion of the loading or unloading of goods and articles, the person in charge of the means of transport shall submit documents and records which accurately reflect the actual loading or unloading operations to Customs.

Articles carried by persons boarding or disembarking from an inbound or outbound means of transport shall be accurately declared to Customs and shall be subject to Customs inspection.

Article 18.   

When an inbound or outbound means of transport is being inspected by Customs, the person in charge of the means of transport shall be present and shall open cabins, rooms or doors of vehicles at the request of Customs; where smuggling is suspected, compartments within the means of transport which may conceal smuggled goods or articles shall be dismantled and any such goods or materials removed.

When deemed necessary, Customs may assign personnel to perform their duties on board the means of transport, and the person in charge of the means of transport shall provide them with all assistance.

Article 19.   

An inbound means of transport entering from outside Chinese territory or an outbound means of transport leaving Chinese territory must not be assigned to another party or used for other purposes before Customs procedures have been handled and Customs duties have been paid.

Article 20.   

Where inbound and outbound vessels and aircraft are concurrently engaged in the transportation of domestic passengers and goods, it is necessary to obtain the permission of Customs and to comply with the requirements of Customs supervision and administration.

Where inbound and outbound means of transport are exchanged for domestic transportation services, it is necessary to go through Customs procedures.

Article 21.   

Coastal transport vessels, fishing boats and specialised ships engaged in operations at sea must not carry, exchange, purchase and sell or assign inbound and outbound goods and articles without the permission of Customs.

Article 22.   

When due to force majeure an inbound or outbound vessel or aircraft is forced to berth or land at a place where a Customs office is not established or to jettison or discharge goods or articles at such a place, the person in charge of the means of transport shall immediately report the matter to the nearest Customs office.

CHAPTER III — INBOUND AND OUTBOUND GOODS

Article 23.   

Import goods shall be subject to Customs supervision and administration throughout the period from the time of their entry into Chinese territory to the time when Customs procedures are completed; export goods shall be subject to Customs supervision and administration throughout the period from the time of Customs declaration to the time of departure from Chinese territory, and transit, trans-shipment and through goods shall be subject to Customs supervision and administration throughout the period from the time of entry into Chinese territory to the time of departure from Chinese territory.

Article 24.   

Accurate declarations shall be made by the consignee of imported goods and by the consignor of exported goods, and the import or export licence and relevant documents shall be submitted to Customs for examination. Without an import or export licence, goods subject to State import or export restrictions shall not be released. Specific measures for handling such matters shall be stipulated by the State Council.

Import goods shall be declared to Customs by the consignee within 14 days of the date on which the arrival of the means of transport was declared, and export goods shall be declared to Customs by the consignor after the goods have arrived in the Customs supervision and administration zone but at least 24 hours prior to loading, unless otherwise specially approved by Customs.

If a consignee fails to declare import goods to Customs within the time limit stipulated in the preceding paragraph, a fine for late declaration shall be levied by Customs.

Article 25.   

Customs declaration procedures for import and export goods shall be handled in the form of the paper Customs declaration form and the electronic data Customs declaration form.

Article 26.   

After a declaration has been made to Customs, the declaration documents and their contents must not be altered or rescinded; where genuinely reasonable grounds exist, they may only be altered or rescinded after Customs has granted permission to do so.

Article 27.   

With the permission of Customs, a consignee of import goods may examine the goods or take a trade sample before declaring them. Where it is necessary to quarantine the goods in accordance with law, a trade sample shall be taken after they have met quarantine standards.

Article 28.   

All import and export goods shall be subject to Customs examination. While the examination is being carried out, the consignee of the import goods or the consignor of the export goods shall be present and shall be responsible for moving the goods and opening and resealing packaging. Where Customs deems it necessary, Customs may examine or re-examine the goods or take samples.

Import and export goods may be exempt from examination where an application is filed by the consignee or consignor and approved by the General Administration of Customs.

Article 29.   

Import and export goods shall only be given a signed and sealed clearance by Customs after duties have been paid in full or a guarantee has been provided by the consignee or the consignor, unless otherwise specially approved by Customs.

Article 30.   

Where a consignee fails to declare import goods to Customs within three (3) months of the date on which the arrival of the means of transport was declared, the import goods shall be taken and sold off by Customs in accordance with law, and the balance of the proceeds of the sale after deducting the costs of transport, loading and unloading, storage and other such costs as well as duties shall be returned to the consignee within one (1) year of the date on which the goods were sold in accordance with law, provided the consignee files an application with Customs; where the goods are subject to import restrictions as stipulated by the State, a licence shall be submitted. Failure to do so will result in the balance of the proceeds not being returned. Where no application is made after the time limit or the balance of the proceeds is not returned, the money shall be turned over to the State Treasury.

Inbound goods which are verified as having been misdirected or unloaded in excessive quantities shall be taken through return transport or import procedures by the person in charge of the original means of transport which carried the goods, or by the consignee or the consignor of the goods within three (3) months of the date on which the goods were unloaded from the means of transport; where necessary, an extension of another three (3) months may be allowed subject to Customs approval. If the procedures are not handled within the time limit, the goods shall be dealt with by Customs in accordance with the provisions of the preceding paragraph.

Where goods listed in the preceding two paragraphs are not suitable for long periods of storage, Customs may deal with them in advance on the basis of the actual circumstances.

Import goods which the consignee or the owner declare to be abandoned shall be taken and sold off by Customs in accordance with law; the proceeds of the sale shall be turned over to the State Treasury after the costs of transport, loading and unloading, storage and other such costs are deducted.

Article 31.   

Goods temporarily imported or temporarily exported pursuant to the provisions of laws, administrative regulations, the State Council or the General Administration of Customs shall be re-transported out of or into Chinese territory within six months; where there is a need to extend the period for re-transportation out of or into Chinese territory, the formalities for extension of time shall be completed pursuant to the provisions of the General Administration of Customs.

Article 32.   

Business operations concerned with storage, processing, assembly, exhibition, transport, consignment sales for bonded goods and the operation of duty free stores shall comply with the requirements of Customs supervision and administration, and shall be approved by and registered with Customs.

The assignment and transfer of bonded goods as well their entry into and exit from bonded areas shall be conducted through the relevant procedures with Customs, and shall be subject to Customs supervision, administration and inspection.

Article 33.   

Enterprises engaging in processing trade shall complete filing formalities with Customs pursuant to the provisions of the General Administration of Customs, the quantity of materials consumed per unit of the finished product of the processing trade shall be verified by Customs pursuant to the relevant provisions.

The finished products of the processing trade must be re-exported within the stipulated time limit. Materials which have been imported for use and have been approved by the State to be bonded shall be taken through cancellation after verification procedures with Customs; where duties have previously been levied, rebate procedures shall be handled by Customs in accordance with law.

Where bonded materials have been imported for the processing trade or finished products are for domestic sale, the Customs levy tax on the bonded import materials pursuant to the law; where they are subject to import restrictions stipulated by the State, the import licence shall be submitted to the Customs.

Article 34.   

Customs shall carry out supervision and administration in bonded zones and other special Customs supervision and administration zones established with State Council approval in the territory of the People's Republic of China in accordance with the relevant State regulations.

Article 35.   

Customs procedures for import goods shall be handled by the consignee at the Customs office at the place where the goods enter Chinese territory, and Customs procedures for export goods shall be handled by the consignor at the Customs office at the place where the goods leave Chinese territory.

Customs procedures may be handled by the consignee of import goods at the Customs office established at the place of destination and by the consignor of export goods at the Customs office at the place of consignment; where an application has been made by the consignee or the consignor and where the permission of Customs has been obtained. Customs transit of the aforementioned goods shall comply with the requirements of Customs supervision and administration; where necessary, Customs may assign personnel to escort the goods being transferred.

Where goods enter or leave Chinese territory by electric cables, pipelines or other special modes of transport, the operating unit shall report at regular intervals to the designated Customs office and handle Customs procedures.

Article 36.   

All transit, trans-shipment and through goods shall be accurately declared by the person in charge of the means of transport to the Customs office at the place where the goods enter Chinese territory, and shall be transported out of Chinese territory within the time limit.

Where Customs deems it necessary, Customs may examine transit, trans-shipment and through goods.

Article 37.   

Goods under Customs supervision and administration must not be opened, collected, delivered, forwarded, exchanged, repacked, mortgaged, pledged, retained, assigned, have their identification marks changed, be used for other purposes or be dealt with in any other way without the permission of Customs.

Seals affixed by Customs must not be opened or broken by any person without authorisation.

Where a people's court makes a decision or ruling or a relevant administrative department for law enforcement makes a decision to deal with goods under Customs supervision and administration, it shall order the party concerned to complete with Customs procedures.

Article 38.   

Enterprises which engage in the warehousing of goods which are under Customs supervision and administration shall go through procedures for the receipt, storage and delivery of goods subject to obtaining Customs registration and in accordance with Customs regulations.

Customs approval is required to store goods which are under Customs supervision and administration at a place outside the Customs supervision and administration zone and such goods shall be subject to Customs supervision and administration.

Where the provisions of the two preceding paragraphs are violated or where goods under Customs supervision and administration are damaged, destroyed or lost during the term of custody for goods under Customs supervision and administration, except where it is by reason of force majeure, the person responsible for the custody of the goods under Customs supervision and administration shall assume a corresponding obligation to pay duties and legal liability.

Article 39.   

The General Administration of Customs shall separately formulate, either independently or jointly with the relevant departments of the State Council, measures for the supervision and administration of inbound and outbound containers, measures for the supervision and administration of the salvage of inbound and outbound goods and sunken ships, measures for the supervision and administration of import and export goods involved in small border transactions, as well as measures for the supervision and administration of other inbound and outbound goods not specified in this Law.

Article 40.   

Where the State has regulated to prohibit or restrict inbound and outbound goods and articles, Customs shall carry out supervision and administration in accordance with laws and administrative regulations, State Council regulations or regulations made by relevant departments under the delegated power of the State Council in accordance with laws and administrative regulations. Specific measures for supervision and administration shall be formulated by the General Administration of Customs.

Article 41.   

The origin of import and export goods shall be ascertained in accordance with relevant State regulations on the rules of origin.

Article 42.   

The classification of import and export goods shall be ascertained in accordance with relevant State regulations on the classification of goods.

Customs may request that the consignee or consignor of import and export goods provide the relevant materials necessary to ascertain the classification of goods; where necessary, Customs may organise laboratory tests and inspections, and may use the results of Customs laboratory tests and inspections as the basis for a classification of goods.

Article 43.   

Customs may make an administrative ruling in advance regarding the classification of goods which are intended for import or export, in accordance with a written application submitted by a foreign trader.

The same administrative ruling on the classification of goods shall be applicable to identical import or export goods.

Customs shall publish administrative rulings made on the classification of goods and so on.

Article 44.   

Customs shall protect intellectual property rights related to inbound and outbound goods pursuant to the provisions of laws and administrative regulations.

Where it is necessary to declare the state of intellectual property rights to Customs, the consignee or consignor of import and export goods and their agents shall accurately declare the state of the relevant intellectual property rights in accordance with State regulations, and shall submit a certificate permitting the legal use of the relevant intellectual property rights.

Article 45.   

Customs may check the account books, accounting documents, Customs declaration documents and other relevant materials and the relevant import and export goods of enterprises and units directly related to the import and export of goods, within three (3) years of the date on which the import or export goods were released, or within three (3) years after the term of Customs supervision and administration for bonded goods and import goods with tax concessions has concluded. Specific measures shall be formulated by the State Council.

CHAPTER IV — INBOUND AND OUTBOUND ARTICLES

Article 46.   

Inbound and outbound luggage carried by individuals and inbound and outbound articles sent by post shall be limited to a reasonable amount for personal use only and shall be subject to Customs supervision and administration.

Article 47.   

All inbound and outbound articles shall be accurately declared to Customs by the owner and shall be subject to Customs inspection.

Seals affixed by Customs may not be opened or broken by any person without Customs authorisation.

Article 48.   

The loading, unloading, trans-shipment and transit of inbound and outbound mail bags shall be subject to Customs supervision and administration. A covering way-bill shall be submitted to Customs by the postal service enterprise.

The postal service enterprise shall inform Customs in advance of the schedule for the opening and sealing of international mail bags, and Customs shall send personnel to the site on schedule to supervise, administer and inspect the bags accordingly.

Article 49.   

Inbound and outbound articles sent by post may only be delivered or consigned by the relevant operating unit after Customs has inspected and released them.

Article 50.   

Inbound duty-free articles or outbound duty-free articles registered with and approved by Customs for temporary entry into or temporary exit out of Chinese territory shall be brought out of Chinese territory or into Chinese territory again by the same person.

Persons passing through Chinese territory must not leave any articles carried by them within Chinese territory without Customs approval.

Article 51.   

Pursuant to the provisions of Article 30 of this Law, Customs is entitled to deal with inbound and outbound articles which have been declared abandoned by the owner, articles for which Customs procedures have not been handled within the time limit set by Customs, unclaimed articles, and inbound and outbound postal items which can neither be delivered nor returned.

Article 52.   

Inbound and outbound articles intended for official or personal use by foreign missions or personnel enjoying diplomatic privileges and immunities shall be dealt with pursuant to the provisions of relevant laws and administrative regulations.

CHAPTER V — CUSTOMS DUTIES

Article 53.   

Customs shall levy Customs duties in accordance with law on goods permitted for import or export and inbound and outbound articles permitted for entry into or exit from Chinese territory.

Article 54.   

The consignee of import goods, the consignor of export goods and the owner of inbound and outbound articles are the persons obliged to pay Customs duties.

Article 55.   

The dutiable value of import and export goods shall be examined and ascertained by Customs by taking the purchase price of the goods as the basis for determination. When it is not possible to ascertain the purchase price, the dutiable value shall be evaluated by Customs in accordance with law.

The dutiable value of import goods includes the price of the goods and the costs of transportation and related costs and insurance fees for the goods upon arrival at the place of import in the territory of the People's Republic of China but prior to unloading; the dutiable value of export goods includes the price of the goods and the costs of transportation and related costs and insurance fees for transportation to the place of export in the territory of the People's Republic of China but prior to loading, with a deduction for the amount of export duty to be paid.

The dutiable value of inbound or outbound articles shall be ascertained by Customs in accordance with law.

Article 56.   

Customs duty reductions or exemptions shall apply to the following import and export goods and inbound and outbound articles:

(1) advertising items and trade samples of no commercial value;

(2) material presented free of charge by foreign governments or international organisations;

(3) goods suffering damage or loss caused prior to Customs clearance;

(4) articles of a quantity within the stipulated limit;

(5) other goods and articles stipulated by law as items enjoying Customs duty reductions or exemptions; and

(6) goods and articles stipulated by international treaties to which the People's Republic of China is either a contracting or an acceding party as items enjoying duty reductions or exemptions.

Article 57.   

Customs duty reductions or exemptions may be granted to import and export goods from specially designated areas, specially designated enterprises or designated for specific purposes. The scope of specially designated reductions and exemptions and measures pertaining to them shall be stipulated by the State Council.

Import goods which are subject to a reduction or exemption from Customs duties pursuant to the provisions of the preceding paragraph may only be used in specially designated areas, by specially designated enterprises or for specially designated purposes, and must not be used for other purposes without Customs authorisation and without the payment of supplementary levies on Customs duties.

Article 58.  

Ad hoc Customs duty reductions or exemptions outside the scope of the provisions of Article 56 and paragraph 1 of Article 57 of this Law shall be decided upon by the State Council.

Article 59.   

Temporary Customs duty exemptions shall be permitted for temporarily imported or temporarily exported goods as well as bonded goods which are imported with special permission, after the consignee or the consignor of the goods pays a security deposit to Customs for an amount equal to the duties payable, or provides a guarantee.

Article 60.   

A person obliged to pay Customs duties on import or export goods shall pay the duties within 15 days of the date on which Customs issued the duty payment notice; where there is a failure to meet this time limit, a fine for late payment shall be levied by Customs. Where the person obliged to pay duties or the guarantor delays payment in excess of three (3) months, Customs may adopt any of the following coercive measures subject to the approval of the head of a directly administered Customs or the head of an authorised subordinate Customs office:

(1) notify the person's bank of deposit or some other financial institution in writing to deduct the amount of duties payable from their savings;

(2) sell off the taxable goods in accordance with law, and use the proceeds of the sale to pay the balance of the duties; and

(3) withhold and sell off the goods or some other property in accordance with law to a value equal to the amount of duties due and use the proceeds of the sale to pay the balance of the duties.

When Customs adopts coercive measures, a fine for late payment shall also be enforced against the aforementioned person obliged to pay Customs duties or the guarantor as listed in the preceding paragraphs.

A person obliged to pay Customs duties on inbound and outbound articles shall pay the duties prior to the articles being released.

Article 61.   

Where there is a clear indication that a person obliged to pay Customs duties on import and export goods has transferred or hidden the taxable goods and other property within the stipulated time limit for payment of duties, Customs may order the person obliged to pay Customs duties to provide a guarantee; where the person obliged to pay Customs duties cannot provide a guarantee to pay duties, Customs may adopt any of the following tax preservative measures subject to the approval of the head of a directly administered Customs office or the head of an authorised subordinate Customs office:

(1) notify in writing the bank where the person obliged to pay Customs duties has opened an account or some other financial institution to suspend payments of savings to the person obliged to pay duties to an amount equal to the duties payable; and

(2) withhold goods or some other property of the person obliged to pay Customs duties of a value equal to the duties payable.

Where the person obliged to pay Customs duties pays the duties within the stipulated time limit for payment of duties, Customs must immediately revoke the tax preservation measures; where the time limit expires and duties have still not been paid, Customs may notify in writing the bank where the person obliged to pay duties has opened an account or some other financial institution to deduct the amount of duties payable from their suspended account, or sell off the withheld goods or other property in accordance with law and use the proceeds of the sale to pay the balance of the duties, subject to the approval of the head of the directly administered Customs office or the head of the authorised subordinate Customs office.

Where it is inappropriate to adopt tax preservation measures, or the person obliged to pay Customs duties has already paid the duties within the stipulated time limit, and Customs has not immediately revoked the tax preservation measures, thereby depriving the person obliged to pay duties of their lawful rights and interests, Customs shall assume liability for compensation in accordance with law.

Article 62.   

Where a Customs authority finds after Customs clearance that duties have been short-levied or not levied on import or export goods or on inbound or outbound articles, Customs shall collect a supplementation levy from the person obliged to pay Customs duties within one (1) year of the date on which the duties were paid or the goods or articles were released. If the short-levying or non-levying of the duties is a result of a violation of regulations by the person obliged to pay duties, Customs may pursue payment of the amount due within 3 years.

Article 63.   

Upon discovering that duties have been over-levied by Customs, Customs shall refund the money immediately; the person obliged to pay Customs duties may demand a refund from Customs within one (1) year of the date on which the duties were paid.

Article 64.   

When a dispute over a duty payment arises between the person obliged to pay Customs duties and Customs, the person obliged to pay duties shall pay the duties and may apply for administrative reconsideration in accordance with law; where the person obliged to pay duties refuses to accept the reconsideration decision, he or she may institute proceedings in a people's court in accordance with law.

Article 65.   

Regulations on the administration of Customs duty collection shall apply to the administration and collection of import related duties levied by delegated Customs.

CHAPTER VI — CUSTOMS GUARANTEES

Article 66.   

Where a consignee or consignor requests clearance for goods prior to ascertaining the classification or valuation of goods, and prior to providing a valid Customs clearance form or completing other Customs procedures, Customs shall release the goods after a guarantee is provided which is sufficient to fulfil all legal obligations in accordance with law, unless exceptions to the release of goods upon guarantees is provided by laws and administrative regulations.

These provisions shall be complied with except where laws and administrative regulations stipulate otherwise in respect of guarantees to fulfil obligations to Customs.

Where the State has regulated to restrict inbound or outbound goods and articles, and where a licence has not been provided where one is required to be provided, or where laws or administrative regulations stipulate that in certain circumstances goods and articles cannot be guaranteed, Customs must not process the guarantee or provide clearance.

Article 67.   

Where a legal person or some other organisation or citizen has the capacity to fulfil a Customs guarantee, they may become the guarantor with the exception of cases where laws stipulate to exclude them as guarantors.

Article 68.   

A guarantor may provide guarantees with the following property or rights:

(1) Renminbi and convertible currencies;

(2) bills of exchange, promissory notes, cheques, creditor's claims and certificates of deposit;

(3) letters of guarantee from banks or non-bank financial institutions; and

(4) any other property or right which Customs has approved in accordance with law.

Article 69.   

A guarantor shall assume liability for guarantee during the period of guarantee. Where a guarantor assumes liability for the guarantee, the guaranteed shall not be exempted from his or her obligation from going through the relevant Customs procedures.

Article 70.   

Measures for the administration of Customs guarantees shall be formulated by the State Council.

CHAPTER VII — SUPERVISION OF LAW ENFORCEMENT

Article 71.   

In the fulfilment of its duties, Customs must abide by the law, safeguard the interests of the State, strictly enforce the law pursuant to its legal authority and to legal procedure, and subject itself to supervision.

Article 72.   

Customs officers must enforce the law impartially, be honest and exercise self-discipline, be devoted to their duties and render service in a civilised manner, and must not engage in the following acts:

(1) harbour smugglers, conspire to smuggle, or collaborate with another to smuggle;

(2) illegally restrict the personal freedoms of other persons, illegally search the bodies, residences or premises of other persons, or illegally inspect or withhold inbound and outbound means of transport, goods or articles;

(3) use their authority to obtain personal gains for themselves or another;

(4) ask for or accept bribes;

(5) disclose State secrets, trade secrets or the secrets of Customs operations;

(6) abuse their authority, deliberately make things difficult, or delay supervision and administration or inspection;

(7) purchase, illegally divide up, or own confiscated smuggled goods and articles;

(8) participate in, or disguise their participation in, operations in pursuit of profits;

(9) violate legal procedure or overstep their authority in the execution of duties; and

(10) any other illegal activities.

Article 73.   

Customs shall build up a strong contingent of staff and bring about a good quality of political and professional work by Customs officers according to the requirements for the fulfilment of duties in accordance with law.

Specialised Customs officers shall possess a knowledge of law and the relevant specialised profession and shall comply with the requirements of Customs regulations in the specialised post.

Customs recruitment personnel shall hold public examinations, assess candidates strictly, and recruit according to merit in accordance with State regulations.

Customs shall have a program for training and assessing Customs officers in the areas of political consciousness, the legal system and Customs affairs. Customs officers must undergo training and assessment at regular intervals, and where the assessment is not up to standard, Customs officers must not continue to carry out the duties of their post.

Article 74.   

The General Administration of Customs shall implement a regular exchange system for heads of Customs.

Heads of Customs shall report to Customs at the next higher level at regular intervals and shall accurately report on the situation in respect of the execution of duties. The General Administration of Customs shall conduct an assessment of the heads of directly administered Customs offices at regular intervals, and the directly administered Customs offices shall conduct an assessment of the heads of the subordinate Customs offices at regular intervals.

Article 75.   

Administrative law enforcement operations by Customs and Customs officers shall be subject to the supervision of the supervisory body in accordance with law; investigations by counter-smuggling police shall be subject to the supervision of the people's procuratorate.

Article 76.   

The auditing office shall conduct audit supervision of the financial revenue and expenditure of Customs in accordance with law, and where there are matters related to Customs handling of State revenue and expenditure, it has the right to conduct a special audit investigation.

Article 77.   

Customs at the next higher level shall supervise the law enforcement operations of Customs at the next lower level in accordance with law. Where Customs at the higher level considers the actions or decisions made by Customs at the lower level to be improper, it may alter or revoke them in accordance with law.

Article 78.   

Customs shall establish and continuously improve a system of internal supervision, and shall supervise and inspect the situation with regard to the implementation of laws and administrative regulations by Customs officers  and their compliance with internal discipline, pursuant to the provisions of this Law and other relevant laws and administrative regulations.

Article 79.   

The limits to the duties and powers of the major posts within Customs which are responsible for examining documents, conducting examinations, clearances, checks, inspections and so on shall be made clear, and these duties and powers shall be kept mutually separate and the major posts shall mutually restrict each other.

Article 80.   

All units and individuals without exception have the right to bring charges against, and report to the authorities, Customs and Customs officers where they have engaged in illegal conduct and conduct in violation of discipline. Where the authority receiving the charges and reports has the power to deal with them, it shall investigate and handle them promptly in accordance with law according to its duties and the division between duties and responsibilities. The authority receiving the charges and reports and the authority responsible for investigations and handling shall not reveal the identity of accusers and informants.

Article 81.   

When Customs officers are investigating and dealing with cases of violations of the law and encounter any one of the following circumstances, they shall withdraw:

(1) they are a party in the case or are a close relative of a party in the case;

(2) they or their close relatives have an interest in the case; and

(3) they have other interests with the party involved in the case which are likely to affect a fair settlement of the case.

CHAPTER VIII — LEGAL LIABILITIES

Article 82.   

Violations of this Law and relevant laws and administrative regulations, evasion of Customs supervision and administration, theft and evasion of payable duties, and evasion of administration of inbound and outbound goods which are prohibited or restricted by the State in one of the forms listed below constitutes the act of smuggling:

(1) where inbound or outbound goods and articles which are prohibited or restricted by the State, or goods and articles upon which duties ought to have been paid in accordance with law, are transported, carried or sent by post into or out of Chinese territory;

(2) where bonded goods, goods with specially designated Customs duty reductions and exemptions, and other goods, articles and foreign means of transport brought into Chinese territory which are under Customs supervision and administration are sold without the permission of Customs and without paying Customs duties or submitting relevant licences for examination; and

(3) any other act of evading Customs supervision and administration which constitutes smuggling.

Where any one of the acts listed in the preceding paragraph does not constitute a crime, Customs shall confiscate the smuggled goods, articles and illegal gains and a fine may be imposed; where goods and articles are used in a specialised manner or used repeatedly to disguise smuggling operations or where a means of transport is used in a specialised manner or repeatedly for smuggling, they shall be confiscated. Where specially established facilities are used for concealing smuggled goods and articles, an order for their destruction or confiscation shall be made.

Where any one of the acts listed in the first paragraph constitutes a crime, criminal liability shall be pursued in accordance with law.

Article 83.   

Where one of the following acts is performed, it shall be regarded as an act of smuggling and shall be punished pursuant to the provisions of Article 82 of this Law.

(1) where smuggled import and export goods are illegally purchased directly from a smuggler; and

(2) where inbound or outbound goods and articles which are prohibited or restricted by the State are transported on vessels, transported on the person, or are purchased or sold on inland waters, territorial waters, boundary rivers or boundary lakes, or where goods upon which Customs duties ought to have been paid in accordance with law are transported, purchased or sold without legal certification.

Article 84.   

Where Customs documents are forged, altered or purchased and sold, or where there is collaboration with and a provision for smugglers with loans, capital, account numbers, invoices, certificates or Customs documents, or where there is collaboration with and a provision for smugglers with transportation, storage, postage or other assistance, if the case constitutes a crime, criminal liability shall be pursued in accordance with law; where the case does not constitute a crime, Customs shall confiscate all illegal gains, and impose a fine.

Article 85.   

Any individual who carries or sends by post articles for personal use into or out of Chinese territory in a quantity exceeding the reasonable limit and who fails to declare them to Customs in accordance with law shall be ordered to pay supplementation levies in respect of the duties payable and a fine may be imposed.

Article 86.   

A fine may be imposed for any one of the following acts which violate the provisions of this Law, and where there are illegal gains, they shall be confiscated:

(1) where a means of transport enters or leaves Chinese territory at a place where a Customs office is not established;

(2) where there is a failure to inform Customs of the arrival time of inbound or outbound means of transport, the place where it will remain or any change of such a place;

(3) where there is a failure to declare accurately to Customs the import and export goods and articles or goods in transit, trans-shipment or through goods;

(4) where there is a failure to accept inspections and examinations of means of transport, goods and articles by Customs in accordance with regulations;

(5) where an inbound or outbound means of transport loads or unloads inbound or outbound goods and articles, or allows passengers to board or disembark without the permission of Customs;

(6) where an inbound or outbound means of transport staying at a place where a Customs office is established leaves without the permission of Customs;

(7) where an inbound or outbound means of transport which is en route from one place where a Customs office is established to another place where a Customs office is established changes course midway to depart from Chinese territory or to a point within Chinese territory where no Customs office is established without completing Customs procedures and obtaining Customs approval;

(8) where an inbound or outbound means of transport concurrently engages in, or changes its operations to, domestic transportation services without the permission of Customs;

(9) where due to force majeure an inbound or outbound vessel or aircraft stops or lands at a place where no Customs office is established or jettisons or discharges goods and articles within Chinese territory without reasonable grounds, and fails to report the matter to the nearest Customs office;

(10) where goods under Customs supervision and administration are opened, collected, delivered, forwarded, exchanged, repacked, mortgaged, pledged, retained, assigned, have their identification marks changed, or are used for other purposes or are dealt with in any other way without the permission of Customs;

(11) where seals affixed by Customs are opened or broken without authorisation;

(12) where goods under Customs supervision and administration are being transported, stored, processed and so on, and the relevant goods are lost or the relevant records are not authentic, and justifiable reasons for this cannot be provided; and

(13) any other act which violates Customs supervision and administration regulations.

Article 87.   

Where Customs permits an enterprise to engage in relevant business, and there is a violation of the provisions of this Law, an order for rectification shall be made by Customs, a warning may be given, and the relevant business of the enterprise may be suspended, and its registration may be cancelled.

Article 88.   

Where Customs declaration business is engaged in without being filed with the Customs, the Customs shall impose a fine against the party concerned.

Article 89.   

Where a Customs clearing enterprise illegally act as an agent for Customs declarations, an order for rectification shall be made and a fine imposed by the Customs; in serious cases, the Customs clearing enterprise shall be prohibited from engaging in Customs declaration activities.

Article 90.   

Any consignee or consignor of import and export goods, or any Customs clearing enterprise that offers a bribe to Customs officer(s) will be prohibited from engaging in customs declaration activities and imposed a fine; where the act constitutes a crime, criminal liability shall be pursued in accordance with law.

Article 91.   

Where goods are imported or exported which infringe upon intellectual property rights as protected by the laws and administrative regulations of the People's Republic of China in violation the provisions of this Law, the goods of infringement shall be confiscated by Customs in accordance with law, and a fine shall be imposed; where the act constitutes a crime, criminal liability shall be pursued in accordance with law.

Article 92.   

Goods, articles and means of transport which Customs has withheld in accordance with law must not be handled prior to a decision being made by a people's court or a penalty decision being made by Customs. However, where the goods or articles are dangerous, fresh and live, corrosive or subject to a short expiry period, or are under any other such conditions which make them unsuitable for long periods of storage, or where the owner of the goods, articles or means of transport applies to sell them off beforehand, they may be sold off in advance in accordance with law, subject to the approval of the head of the directly administered Customs office or the head of the authorised subordinate Customs office. The income from the sale shall be kept by Customs, and the owner shall be notified.

Where a people's court decision or a Customs decision authorises the confiscation of smuggled goods and articles, illegal gains, means of transport used for smuggling operations or specially established facilities, Customs shall deal with them in a unified way in accordance with law, and the illegal gains and fines imposed under decisions of Customs shall be turned over in full to the central State Treasury

Article 93.   

If a party refuses to follow a Customs penalty decision within the time limit and also fails to apply for reconsideration or institute proceedings in a people's court, the Customs office which made the penalty decision may confiscate the security deposit of the party concerned, or sell off at current market value the goods, articles and means of transport of the party concerned which have been detained by Customs, or may request the people's court to enforce the decision.

Article 94.   

When Customs causes damage to inbound and outbound goods and articles while examining them, it shall compensate for the actual loss from such damage.

Article 95.   

Where Customs illegally withholds goods, articles or means of transport, thereby causing a loss to the lawful rights and interests of a party concerned, it shall assume liability for compensation in accordance with law.

Article 96.   

Where Customs officers  commit any one of the acts listed in Article 72 of this Law, administrative penalties shall be imposed in accordance with law; where there are illegal gains, they shall be confiscated in accordance with law; where the act constitutes a crime, criminal liability shall be pursued in accordance with law.

Article 97.   

Where the financial revenue and expenditure of Customs violates the provisions of laws and administrative regulations, it shall be dealt with by the auditing office and relevant departments pursuant to the provisions of laws and administrative regulations; where the personnel in charge are directly responsible and other personnel are directly liable, administrative penalties shall be imposed in accordance with law; where the case constitutes a crime, criminal liability shall be pursued in accordance with law.

Article 98.   

Where the identity of complainant, accusers, and informants is not kept confidential in accordance with the provisions of this Law, administrative penalties shall be imposed upon the personnel in charge who are directly responsible and other personnel who are directly liable by their unit or the relevant unit in accordance with law.

Article 99.   

When Customs officers  are investigating and dealing with cases of violations of the law and do not withdraw in accordance with the provisions of this Law, administrative penalties shall be imposed upon the personnel in charge who are directly responsible and other personnel who are directly liable in accordance with law.

CHAPTER IX — SUPPLEMENTARY PROVISIONS

Article 100.   

Terms used in this Law are defined as follows:

The term "directly administered Customs" refers to the Customs office which is directly under the leadership of the General Administration of Customs, and is responsible for the administration of Customs affairs in a specified area; the term "subordinate Customs" refers to the Customs office which is subordinate to directly administered Customs, and is responsible for the handling of daily Customs affairs.

The term "inbound and outbound means of transport" refers to the various types of vessels, vehicles, aircraft and pack animals which are used to carry persons, goods and articles into or out Chinese territory.

The term "transit, trans-shipment and through goods" refers to goods which come from a place outside Chinese territory and pass through Chinese territory en route to a place outside Chinese territory. Among them, "transit goods" are those which are transported through Chinese territory by land; "trans-shipment goods" are those which are not transported overland through Chinese territory, but stop to change the means of transport at a place where a Customs office is established; "through goods" are those which are carried into Chinese territory and out of Chinese territory by the same vessel or aircraft.

The term "goods under Customs supervision and administration" refers to import or export goods listed under Article 23 of this Law, transit goods, trans-shipment goods, passing through goods and goods with specially designated Customs duty reductions and exemptions as well as goods temporarily imported or exported, bonded goods and other inbound or outbound goods for which Customs procedures have yet to be completed.

The term "bonded goods" refers to goods which have been approved by Customs as items for which no Customs duty payment procedures need be completed for entry into Chinese territory, and which shall be reshipped out of Chinese territory after storage, processing or assembly within Chinese territory.

The term "Customs supervision and administration zone" refers to seaports, railway and highway stations, airports, border passes and international postal exchanges (exchange stations) where a Customs office is established, other places where Customs supervision and administration is conducted and places where no Customs office is established but which are approved by the State Council as entry or exit points to or from Chinese territory.

Article 101.   

Measures for the supervision and administration of means of transport, goods and articles which come from other parts of China and enter and leave the Special Economic Zones and other specially designated areas shall be separately formulated by the State Council.

Article 102.   

This Law shall come into force on 1 July 1987, simultaneously annulling the Provisional Customs Law of the People's Republic of China promulgated on 18 April 1951 by the Central People's Government.