Promulgation Authorities:  State Council

Promulgation Date:  2022.03.29

Effective Date:  2022.05.01

Validity Status:  valid

Implementation Regulations of the Customs of the People's Republic of China on Administrative Penalties（Revised in 2022）

Implementation Regulations of the Customs of the People's Republic of China on Administrative Penalties（Revised in 2022）

(Promulgated under Decree No. 420 of the State Council of the People's Republic of China on September 19, 2004, and revised in accordance with Decision of the State Council on Amending and Repealing Some Administrative Regulations on March 29, 2022)

CHAPTER I — GENERAL PRINCIPLE

Article 1.   

The Implementation Regulations are enacted in accordance with the provisions of the Customs Law of the People's Republic of China (hereinafter referred to as the "Customs Law") and other relevant laws for the purposes of standardising the customs administrative penalties, protecting Customs functions and powers and protecting the legal rights and interests of citizens, legal persons or other organisations.

Article 2.   

The Implementation Regulations shall apply to prosecution of smuggling and violation of Customs supervision for which criminal liability is not pursued and Customs implementation of administrative penalties in accordance with the provisions of laws and administrative rules and regulations.

Article 3.   

The Customs which discovers the illegal acts or the Customs at the location where such illegal acts are committed shall have the right to exercise jurisdiction.

In the event that 2 or more Customs are entitled to exercise jurisdiction, the Customs which discovers the illegal act first shall exercise jurisdiction.

In the event that the entitlement to exercise jurisdiction is uncertain, the Customs involved shall discuss and decide. Where the Customs are unable to reach a decision following discussion, the case shall be submitted to the Customs of superior level for decision.

The General Administration of Customs shall designate the relevant Customs to exercise jurisdiction over major and complex cases.

Article 4.   

Where other administrative authorities are entitled to exercise jurisdiction over an illegal act discovered by the Customs, the case shall be transferred to the relevant administrative authorities for handling. Cases which constitute criminal offence shall be transferred to the public security department of the Customs in charge of smuggling investigation and the local public security department for handling in accordance with law.

Article 5.   

Where a party involved is subject to administrative penalties such as a warning or a fine in accordance with the Implementation Regulations but the imports and exports, goods or transport vehicles are not confiscated, the party involved shall not be exempt from the obligation to pay duties, hand in import and export licence and complete Customs formalities.

Article 6.   

Persons who refuse to cooperate with or obstruct the Customs public security department in charge of smuggling investigation from carrying out their official duties shall be punished under the relevant provisions of administration penalties by the aforesaid Customs public security department in charge of smuggling investigation which reports directly to the Customs and the subordinating Customs.

Persons who refuse to cooperate with or obstruct Customs personnel from performing their official duties shall be dealt with by the local public security department in accordance with law.

CHAPTER II — SMUGGLING AND PENALTIES FOR SMUGGLING

Article 7.   

The following events which constitute a violation of the provisions of the Customs Law and other relevant laws, rules and regulations, evasion of Customs supervision, evasion of duties and importation or exportation of restricted or prohibited items shall be deemed as smuggling:

(1) transporting or carrying prohibited or restricted items into or out of China at places without Customs establishment without prior approval of the State Council or the authorities empowered by the State Council or evading payment of Customs duties for dutiable items;

(2) transporting, carrying or mailing prohibited or restricted items into or out of China through Customs by means of concealment, camouflage, omission in declaration or fraudulent declaration etc. or evading payment of Customs duties for dutiable items;

(3) using forged and altered manuals, documents, seals, book accounts and electronic data etc. to evade Customs supervision and unauthorised sale of goods, articles, imported transport vehicles under Customs supervision in the domestic market;

(4) using forged and altered manuals, documents, seals, book accounts and electronic data etc. or fraudulent declaration of unit consumption for finished products of processing trade etc. to evade Customs supervision;

(5) unauthorised exportation of controlled goods and articles from Customs special surveillance zones such as bonded zone or export processing zone etc. by means of concealment, camouflage, omission in declaration or fraudulent declaration etc. to evade Customs supervision; and

(6) other acts of evasion of Customs supervision which constitutes smuggling.

Article 8.   

The following acts shall be deemed as smuggling:

(1) illegal purchase of goods and articles from smuggler despite knowing that such goods and articles are smuggled items; and

(2) transporting or dealing with prohibited or restricted goods and articles or transporting or dealing with dutiable goods or goods without legal certificates within inland sea, territorial waters, boundary rivers, boundary lakes and on vessels.

Article 9.   

Persons guilty of committing any of the acts listed in Articles 7 and 8 of the Implementation Regulations shall be subject to the following penalties:

(1) Persons smuggling prohibited imports and exports shall have the smuggled items and illegal earning confiscated and a fine of not more than RMB1,000,000 may be imposed; persons smuggling prohibited articles into and out of China shall have the smuggled items and illegal earning confiscated and a fine of not more than RMB100,000 may be imposed.

(2) Persons smuggling prohibited goods and articles into and out of China who paid duties but did not submit their licence shall have the smuggled items and illegal earning confiscated and a fine of not more than the value of smuggled goods and articles may be imposed.

(3) Persons bringing dutiable goods and articles into and out of China who evaded duties but submitted their licence shall have the smuggled items and illegal earning confiscated and a fine of not more than 3 times the evaded Customs duties may be imposed.

Transportation vehicles used in smuggling or goods and articles used for covering up of smuggled goods; transportation vehicles or goods and articles used for covering up of smuggled goods used for 3 times or more within 2 years for smuggling shall be confiscated. Special equipment, layers and secret compartments where the smuggled goods and articles are hidden shall be confiscated or dismantled by order. Persons found using such special equipment, layers and secret compartments shall be subject to severe punishment.

Article 10.   

Persons found to be in conspiracy with smugglers in providing loans, funding, account numbers, invoices, certification and Customs documents or assisting in collection, forwarding, freight, storage and posting or other form of assistance shall be deemed as coparties of the smuggling act shall have their illegal income confiscated and be punished in accordance with the provisions of Article 9.

Article 11.   

Where an enterprise approved by the Customs to engage in, among others, the transportation, storage, processing, assembly, consignment and display of goods under Customs control commits a crime of smuggling or commits two or more smuggling acts within a year, the Customs may cancel its registration. Any customs declaration enterprise or personnel under any of the above circumstances shall be prohibited from conducting customs declaration activities

CHAPTER III — VIOLATION OF PROVISIONS ON CUSTOMS SUPERVISION AND THE CORRESPONDING PUNISHMENT

Article 12.   

Violation of the provisions of the Customs law and other relevant laws, administrative rules and regulations which do not constitute smuggling shall be dealt with as violations of the provisions on Customs supervision.

Article 13.   

Persons found importing or exporting prohibited goods in violation of State regulations on import and export administration shall be ordered to be shipped back and be subject to a fine of not more than RMB1,000,000.

Article 14.   

Where restricted goods are imported or exported in violation of State regulations on import and export administration and the consignee and the consignor are unable to produce the permit at the time of Customs declaration, such imports or exports shall not be cleared by the Customs and a fine of not more than 30% of the value of the goods shall be imposed.

Where goods subject to automatic import or export permit are imported or exported in violation of State regulations on import and export administration and the consignor and consignee are unable to produce the automatic permit at the time of Customs declaration, such imports and exports shall not be cleared by the Customs.

Article 15.   

Persons who fail to make declaration or truthful declaration to the Customs of the descriptions, tariff numbers, quantities, specifications, prices, trading mode, place of origin, place of departure, place of consignment and final destination of imports and exports or other declarable items shall be punished in accordance with the following provisions and illegal income shall be confiscated:

(1) where the accuracy of Customs statistics is compromised, the offender shall be given a warning or subject to a fine ranging from RMB1,000 to RMB10,000;

(2) where the order of Customs supervision is compromised, the offender shall be given a warning or be subject to a fine ranging from RMB1,000 to RMB30,000;

(3) where the administration of State permits is compromised, a fine ranging from 5% to 30% of the value of the goods shall be imposed;

(4) where the collection of State taxes is compromised, a fine ranging from 30% to 200% of the evaded tax amount shall be imposed; and

(5) where foreign exchange administration and administration of export tax refund are compromised, a fine ranging from 10% to 50% of the declared price shall be imposed.

Article 16.   

Where the consignee and consignor fail to provide accurate Customs declaration information as entrusted by their principal to the Customs declaration enterprise and thus resulting in any of the occurrences stipulated in Article 15 of the Regulations, the principal shall be punished in accordance with the provisions of Article 15.

Article 17.   

Where the failure of the Customs declaration enterprise and Customs declaration agent to conduct a reasonable examination of the accuracy of information provided by the principal or their negligence results in any of the occurrences stipulated in Article 15 of the Regulations, the Customs declaration enterprise shall be subject to a fine of not more than 10% of the value of the goods and be suspended from engaging in Customs declaration activities for a period of not more than 6 months. Under serious circumstances, the Customs declaration enterprise shall be prohibited from engaging in Customs declaration activities.

Article 18.   

Persons guilty of any of the following acts shall be subject to a fine ranging from 5% to 30% of the value of the goods and the illegal income shall be confiscated:

(1) opening, collection, delivery, forwarding, exchange, repacking, mortgage, pledge, lien, transfer, change of marking, use for other purposes or other disposal of goods under Customs supervision without Customs approval;

(2) storage of goods under Customs supervision outside the Customs supervision zone without Customs approval;

(3) persons engaging in freight, storage, processing, assembling, consignment and exhibition of goods under Customs supervision who are unable to give proper explanation for losses, shortfall in quantity or inaccurate records of the goods;

(4) persons engaging in freight, storage, processing, assembling, consignment and exhibition of bonded goods who fail to complete receipt, delivery, carry over and cancellation formalities in accordance with the provisions or fail to complete Customs formalities for suspension, extension, alteration and assignment of the relevant contracts in accordance with the provisions;

(5) failure to declare unit consumption of finished products for processing trade truthfully to the Customs;

(6) failure to ship out transit goods, transhipment goods or pass-through goods within the stipulated timeframe and unauthorised retention of the goods;

(7) failure to re-import temporary exports or re-export temporary imports within the stipulated timeframe and unauthorised retention of the goods; and

(8) violation of other provisions on Customs supervision resulting in the Customs to be unable to exercise or to suspend supervision of imports and exports.

Persons who fail to produce the permit required for restricted imports or exports mentioned in the preceding paragraph within the specified timeframe shall be subject to an additional fine of not more than 30% of the value of the goods. Persons guilty of tax evasion may be subject to an additional fine of not more than 100% of the amount of evaded tax.

Article 19.   

Persons guilty of any of the following acts shall be given warnings and subject to a fine of not more than 20% of the value of the goods and the illegal income shall be confiscated:

(1) opening, delivering, posting, moving or use for other purposes of imports and exports which have not been cleared by the Customs without Customs approval;

(2) failure to declare personal effects which exceed reasonable quantities brought, carried or posted by individuals to the Customs;

(3) failure to declare restricted personal effects which exceed reasonable quantities carried, brought or posted by individuals to the Customs where the individual has not attempted to evade Customs supervision by means of concealment and camouflage etc.;

(4) failure to declare personal effects carried, brought or posted by individuals to the Customs;

(5) failure to re-export temporary duty-free imports or re-import temporary duty-free exports registered and approved by the Customs; and

(6) persons passing through the Customs leaving behind articles without Customs approval.

Article 20.   

Where prohibited articles are brought, carried or posted inward or outward without Customs declaration but there was no attempt to evade Customs supervision by means of concealment and camouflage etc., the articles shall be confiscated or shipped back by order or destroyed or undergo technical processing under Customs supervision.

Article 21.   

Under any of the following circumstances, persons guilty shall be given warnings and be subject to a fine of not more than RMB100,000 and the illegal income shall be confiscated:

(1) entry or exit of transportation vehicles at places without Customs establishment;

(2) unauthorised departure of transportation vehicles which have stopped over at Customs supervision zone;

(3) transportation vehicles passing from one Customs location to another Customs location which change their course and leave the territory or go to places without Customs establishment without Customs approval; and

(4) failure to declare to the Customs or provide the relevant documents to the Customs for examination in accordance with provisions or submission of untrue documents for examination at the time of entry or exit from the Customs.

Article 22.   

Persons guilty of the following acts shall be given warnings and be subject to a fine of not more than RMB50,000 and the illegal income shall be confiscated:

(1) loading or unloading of imports and exports or boarding or alighting of passengers without Customs approval;

(2) using transportation vehicles entering or exiting the territory to engage in passenger transportation or domestic freight or for purposes other than inward or outward freight without Customs approval;

(3) unauthorised use of transportation vehicles entering or exiting the territory to engage in domestic freight without completing Customs formalities in accordance with the provisions;

(4) failure to transmit electronic data such as cargo manifest etc. within a specified timeframe to the Customs or transmission of inaccurate electronic data or failure to retain the relevant electronic data for a specified timeframe which affects Customs supervision;

(5) failure to follow designated route of the communications department or the Customs during the period from entry of the transportation vehicle to the time of making Customs declaration or during the period from completion of Customs formalities to the time of exit of the transportation vehicle;

(6) failure to follow designated route of the Customs for vessels and vehicles carrying goods under Customs supervision;

(7) failure to report berth or landing of inward and outward vessels or aircraft or discarding or unloading of goods and articles at places without Customs establishment in the event of a force majeure to the nearby Customs and such failure is not supported by a valid reason;

(8) failure to notify the Customs in advance of the time of arrival or place of stopover or any changes in time and venue of inward and outward vessels, trains and aircraft and such failure is not supported by a specific reason; and

(9) refusal to undergo inspection and examination by the Customs of inward and outward transportation vehicles, goods and articles in accordance with the provisions.

Article 23.   

Persons guilty of any of the following acts shall be given warnings and be subject to a fine of not more than RMB30,000:

(1) unauthorised opening or mutilation of Customs seals;

(2) loss of supervision documents or manuals etc. issued by the Customs which causes a hindrance to Customs supervision; and

(3) violation of Customs supervision regulations which causes the Customs to be unable to exercise or to suspend supervision of inward and outward transportation vehicles, goods and articles.

Article 24.   

Persons guilty of forgery, alteration, transaction and buying and selling of Customs documents shall be subject to a fine ranging from RMB50,000 to RMB500,000 and the illegal income shall be confiscated. Where the case constitutes a criminal offence, criminal liability shall be pursued in accordance with the law.

Article 25.   

Imports and exports that infringe upon intellectual property rights under the protection of the laws and administrative rules and regulations of the People's Republic of China shall be confiscated and a fine of not more than 30% of the value of the goods shall be imposed. Where the case constitutes a criminal offence, criminal liability shall be pursued in accordance with the law.

Consignees, consignors and agents who fail to make truthful declaration of intellectual property rights information to the Customs or fail to submit supporting documents to prove legitimate use of the relevant intellectual property rights shall be subject to a fine of not more than RMB50,000.

Article 26.   

Where an enterprise approved by the Customs to engage in, among others, the transportation, storage, processing, assembly, consignment and display of goods under Customs control falls under any of the following circumstances, it shall be ordered to make corrections, given a warning, and may be suspended from the relevant business within 6 months:

(1) failing to pay taxes in arrears or perform its tax obligations;

(2) damaging or lossing goods under Customs control, for which no justification can be provided; and

(3) other illegal acts that require suspension from the relevant business.

Article 27.   

Where an enterprise approved by the Customs to engage in, among others, the transportation, storage, processing, assembly, consignment and display of goods under Customs control falls under either of the following circumstances, the Customs may revoke its registration:

(1) the circumstances prescribed in Article 26 hereof occur again within one year after the relevant business suspended by the Customs resumes; or

(2) other illegal acts which require the revocation of its registration.

Article 28.   

Customs declaration enterprises and personnel acting illegally as others' agents to make Customs declaration shall be ordered to make correction and be subject to a fine of not more than RMB50,000. Under serious circumstances, they shall be prohibited from engaging in Customs declaration activities.

Article 29.   

The Customs shall prohibit consignees, consignors, Customs declaration enterprises and Customs declaration persons guilty of offering bribes to Customs personnel from engaging in Customs declaration activities and impose a fine of not more than RMB100,000 on them. Where the case constitutes a criminal offence, criminal liability shall be pursued in accordance with the law.

Article 30.   

Whoever engaging in Customs declaration activities without filing with the Customs shall be ordered to make correction, with the illegal income confiscated, and be imposed a fine of not more than RMB100,000.

Article 31.   

For anyone who obtains registration with the Customs by providing false materials, its registration shall be revoked and a fine of not more than RMB300,000 shall be imposed.

Article 32.   

In the event of violation of the Customs Law by a legal person or organisation, in addition to punishment of the legal person or organisation, the person-in-charge or directly responsible personnel of such legal persons or organisations shall be given warnings; a fine of not more than RMB50,000 may be imposed and the illegal income shall be confiscated.

CHAPTER IV — INVESTIGATIONS ON VIOLATIONS OF THE CUSTOMS LAW

Article 33.   

The Customs shall set up an investigation on discovery of any punishable acts by citizens, legal persons or other organisations.

Article 34.   

Upon setting up the investigation, investigation and collection of evidence shall be carried out in a comprehensive, objective, fair and prompt manner.

Investigation and collection of evidence by the Customs shall comply with the provisions of the laws, administrative rules and regulations.

There shall be at least 2 Customs officers involved in an investigation and collection of evidence and the Customs officials shall produce their identification to the parties under investigation.

The Customs shall keep the investigation and evidence confidential where State secrets, trade secrets or individual privacy are involved.

Article 35.   

Body searches conducted by the Customs on persons suspected of involvement in smuggling shall be carried out at a secluded location or outside the sight of persons not involved in the search. The body search shall be carried out by 2 or more Customs officers of the same gender as the subject of search.

Persons suspected of smuggling shall not pose obstruction to the search.

Article 36.   

The Customs shall inspect transportation vehicles and venues, goods and articles in accordance with the law and record the inspection findings.

Article 37.   

The Customs shall detain suspected smugglers in accordance with the law and issue a decision on detention of suspected smuggler. The detention shall not exceed 24 hours and may be extended to 48 hours under special circumstances.

The Customs shall examine the detainee within the statutory time limit for detention. Where the detainee is cleared from being a criminal suspect or on expiry of the statutory time limit for detention, the detainee shall be forthwith released and a decision on release from detention shall be issued.

Article 38.   

The following goods, articles, transportation vehicles and materials such as account books and invoices may be detained by the Customs in accordance with the law:

(1) goods, articles and transportation vehicles suspected of involvement in smuggling;

(2) goods, articles and transportation vehicles in violation of the provisions of the Customs Law or other relevant laws and administrative rules and regulations;

(3) materials such as account books and invoices relating to goods and articles which violate the provisions of the Customs Law or other relevant laws and administrative rules and regulations; and

(4) other goods, articles, transportation vehicles and related materials such as account books and invoices which may be detained in accordance with the laws and administrative rules and regulations.

Article 39.   

The Customs shall collect require the party involved or the person-in-charge of the transportation vehicles to provide a guarantee equivalent to the value of the suspected goods, articles and transportation vehicles where such goods, articles and transportation vehicles cannot be detained. Where the guarantee is not provided, the Customs may detain such other properties of the party involved which are of equivalent value of the goods, articles and transportation vehicles.

Article 40.   

The time limit for Customs detention of goods, articles, transportation vehicles and materials such as account books and invoices shall not exceed one year. Upon approval from the Commissioner of a direct-reporting Customs or the Commissioner of an authorised subordinate Customs, the period of detention may be extended up to one year if it is necessary for investigation of the case, provided that the periods for administrative review and litigation are excluded.

Article 41.   

Under any of the following circumstances, the Customs shall promptly release the detention:

(1) clearance of suspected illegality;

(2) expiry of detention period and extension;

(3) performance of Customs administrative penalties; and

(4) other circumstances for which the detention shall be released in accordance with the laws and administrative rules and regulations.

Article 42.   

The Customs shall issue a certificate of detention for goods, articles, transportation vehicles, other properties, account books and invoices etc.. The certificate shall be signed by the Customs officers, the party involved or their agents, custodians and witnesses or affixed with their seal, and the Customs seal may be affixed. Where the Customs seal is affixed, the party involved or its agent and custodian shall take proper care.

The Customs shall issue a notice on release of detained items or release of guarantee for goods, articles, transportation vehicles, other properties, account books and invoices etc. released from detention or released guarantee of equivalent value of the aforesaid items. The notice shall be signed by the Customs officers, the party involved or their agents, custodians and witnesses or affixed with their seal.

Article 43.   

The Customs shall question suspects or take statements from witnesses on an individual basis and inform them of their rights and legal liabilities for perjury. The suspects and witnesses shall make factual representation and provide evidence.

The Customs shall make written records in the course of questioning and taking statements. The records shall be verified by the suspect or witness who shall sign on the records if they have no objection. If they have any objection to the records, the records shall be corrected before the suspect or witness sign for confirmation.

The Customs shall not torture or extort confession or threaten, entice or deceive the subject into giving evidence.

The Customs may question suspects at the workplace or residence of the suspect or at the Customs office or a place designated by the Customs.

Article 44.   

The Customs shall collect original physical and documentary evidence. Where there is difficulty in obtaining the original documents or articles, photographs and duplicates may be submitted. The Customs may appoint the relevant units or individuals to safe keep the original documents or articles.

The Customs shall make a list of the documentary and physical evidence collected. The date of collection shall be indicated on the list. The list shall be signed by the relevant units or individuals or affixed with their seal upon confirmation.

The Customs shall collect source copies of electronic data and audio-visual materials such as audio recordings and videotapes. Where there is difficulty in obtaining the source copies, duplicate copies indicating the replication method, time of replication and producer etc. may be submitted. The relevant units or individuals shall sign and affix their seal thereto upon confirmation.

Article 45.   

The Customs may collect samples of goods and articles for inspection and authentication based on investigation requirement.

The party involved or its agent shall be present when the Customs collect samples. Where the party involved or its agent is absent, the Customs shall invite the witness to be present. The samples shall be sealed by the Customs and signed by the Customs officers, the party involved or their agents and witnesses or affixed with their seal.

The identification and authentication shall be carried out by the Customs inspection and authentication unit or such organisation accredited by the State and appointed by the Customs.

An analysis report and an authentication conclusion shall be issued by the personnel conducting the inspection and authentication upon the inspection and authentication. The report shall be signed by the personnel or affixed with their seal.

Article 46.   

Pursuant to the relevant provisions of the Customs Law, the Customs shall have the right to inquire into amounts deposited in and remitted through financial institutions and postal enterprises by units and individuals suspected to be involved in the case.

The Customs shall produce the notice on assistance in Customs investigation for conducting the investigation of the amounts deposited in and remitted through financial institutions and postal enterprises by units and individuals suspected to be involved in the case.

Article 47.   

Goods, articles and transportation vehicles detained by the Customs shall not be disposed unless a court order is issued or the penalty decision by the Customs is implemented. However, hazardous items or fresh, living, perishable, short-lived or easily spoiled items which cannot be kept for a long period of time or goods, articles or transportation vehicles applied to be put up for sale by the owners in advance may be put up for sale upon approval of the Commissioner of a direct-reporting Customs or the Commissioner of an authorised subordinate Customs. The Customs shall safe keep the proceeds from such sale and inform the owners.

Article 48.   

The party involved shall have the right to request for withdrawal of Customs officers in accordance with the provisions of the Customs Law.

CHAPTER V — DECISION AND IMPLEMENTATION OF CUSTOMS ADMINISTRATIVE PENALTIES

Article 49.   

The Customs shall inform the party involved of its right to request for a hearing prior to making an administrative penalty on suspension of relevant business, revocation of Customs declaration qualification, prohibition from engaging in Customs declaration activities, a fine of not less than RMB 10, 000 in the case of a citizen or RMB 100, 000 in the case of a legal person or any other organization, confiscation of goods, articles or transportation vehicles used for smuggling etc. If the party involved requests for a hearing, the Customs shall organise a hearing.

Specific measures on hearing for Customs administrative penalties shall be formulated by the General Administration of Customs.

Article 50.   

Upon conclusion of an investigation, the Commissioner of the Customs shall examine the investigation findings and make a decision based on the merits of each case.

The Customs Examination Committee shall discuss and decide on major or complicated cases or to mete out severe administrative penalties.

Article 51.   

Where a party involved is guilty of smuggling and violation of the provisions on Customs supervision and such acts are of a cause and effect relationship, the party involved shall be given the heavier punishment in accordance with the provisions on smuggling herein and no separate punishment shall be meted out for in the violation of the provisions on Customs supervision.

Where a party involved is guilty of 2 or more violations of the provisions on Customs supervision for the same batch of goods and articles and there is a cause and effect relationship between the 2 acts, the party involved shall be given a heavier punishment in accordance with the respective range of penalties stipulated herein.

Article 52.   

Where there are 2 or more coparties in an illegal act, the coparties shall be punished respectively in accordance with the circumstances and respective liabilities.

Article 53.   

Under any of the following circumstances, the offender shall be given a heavier punishment:

(1) guilty of smuggling as repeated offence within 2 years from being convicted of a criminal offence for smuggling or being imposed a Customs administrative penalty;

(2) guilty of a repeat violation of the provision on Customs supervision within one year from being imposed a Customs administrative penalty for such violation; and

(3) other circumstances which warrant the meting out of heavier punishment under the law.

Article 54.   

The Customs shall issue a notice on administrative penalty decision to the party involved in respect of the penalty for the violation of the provisions of the Customs Law.

Where a party involved is guilty of 2 or more violations of the provisions of the Customs Law, the Customs may issue only one notice on administrative penalty decision.

Where there are 2 or more parties involved in a violation of the provisions of the Customs Law, the Customs may issue separate notices on administrative penalty decision to the parties involved.

Where there are 2 or more coparties in a violation of the provisions of the Customs Law, the Customs shall issue only one notice on administrative penalty decision to the coparties to mete out the respective penalties on the coparties, unless the case requires separate handling.

Article 55.   

The notice on administrative penalty decision shall be served on the party involved in accordance with the relevant laws and regulations.

Notices on administrative penalty decisions required to be delivered by way of public announcement shall be displayed on the Customs announcement board in the form of original copy and advertised on the newspapers.

Article 56.   

Where the Customs decided on an administrative penalty for confiscation of goods, article and transportation vehicles used for smuggling and subsequent finds that it is impossible or difficult to confiscate such items, the Customs shall seek payment of an amount of equivalent value of the aforesaid goods, articles or transportation vehicles.

Article 57.   

Where a legal person or an organisation undergoes a merger, division or restructuring after committing a violation of the provisions of the Customs Law, the original legal person or organisation shall be deemed as the party involved in the case.

The legal person or organisation which enjoys the rights and assumes the obligations shall be subject to such fine, confiscation of illegal income or payment of equivalent value of goods, articles and transportation vehicles used for smuggling imposed on the original legal person or organisation.

Article 58.   

Payment of fines, surrendering of illegal income and payment of equivalent value of goods, articles and transportation vehicles used for smuggling shall be made by the stipulated deadlines provided by the Customs provisions on administrative penalty decisions.

Where the party involved has performed the administrative penalty and completed Customs clearance formalities, the Customs shall forthwith release the guarantee provided.

Article 59.   

The party involved or its legal representative and person-in-charge subject to Customs administrative penalty shall pay up the fine, surrender the illegal income and pay the amount of equivalent value of the goods, articles and transportation vehicles used for smuggling before they leave the territory. Otherwise, they shall provide a guarantee of equivalent amount. Where the guarantee is not provided, the Customs may notify the excise department to prevent such individuals, being the party involved (in the case of a natural person) or the legal representative or person-in-charge of the party involved (in the case of a legal person or an organisation) from leaving the country.

Article 60.   

Where the party involved fails to perform the administrative penalty by the stipulated deadline, the Customs may take the following measures:

(1) an additional fine of 3% per day shall be computed on the original fine with effect from the deadline for payment of the original fine;

(2) sell the detained good, articles or transportation vehicles and use the proceeds from the sale or use the guarantee provided by the party involved to offset payment; or

(3) apply to the People's Court for enforcement.

Article 61.   

Where the party involved is in financial difficulties and proposes to defer payment of the fine or payment by instalments, the Customs may approve the proposed deferred payment or payment by instalment.

The party involved shall apply to the Customs in writing for deferred payment or payment by instalments. The Customs shall make a decision and inform the applicant within 10 working days from receipt of the application. Where the Customs approve such deferred payment or payment by instalments, it shall inform the collection authorities promptly.

Article 62.   

Under any of the following circumstances, the goods, articles, illegal income, transportation vehicles and special tools shall be seized:

(1) where the party involved who is exempted from administrative penalties pursuant to Articles 30 and 31 of the Administrative Penalties Law carries or posts prohibited goods and articles into or out of the territory;

(2) where the party involved who makes sporadic posting of prohibited or restricted articles into and out of the territory or carry small quantities of prohibited or restricted articles into and out of the territory is exempted from administrative penalties in accordance with the law;

(3) where the party involved is deceased (in the event of a natural person) or is terminated (in the event of a legal person or an organisation) and there is no successor for their rights and obligations; and the goods, articles, illegal income, transportation vehicles and special tools are to be seized in accordance with the laws before the Customs makes an administrative penalty decision;

(4) where the smuggling act is basically evident, but the Customs is unable to ascertain the party involved and a 3-month period has lapsed since the date of public announcement made by the Customs; and

(5) other violations of the provisions of laws and administrative rules and regulations which warrants the seizing.

The Customs shall make a list for the goods, articles, illegal income, transportation vehicles and special tools seized by the Customs in accordance with the preceding paragraph. The list shall be signed by the party whose possession is seized or its agent and witness or affixed with their seal. Where such party or witness is not found, a public announcement shall be made.

Article 63.   

Smuggled goods and articles, illegal income, transportation vehicles used for smuggling and special tools ordered by the People's Court to be confiscated or goods and articles ordered by the Customs to be confiscated and seized shall be disposed of by the Customs. The proceeds from the disposal and the fines collected by the Customs shall be handed over to the State Treasury.

CHAPTER VI — SUPPLEMENTARY PROVISIONS

Article 64.   

The following terms used herein shall be defined as follows:

"Places with Customs establishment" shall refer to Customs barriers established in Customs supervision zones at seaport, station, airport, border pass and international postal matter exchange station etc., Customs control points set up in special Customs supervision zones such as bonded area and export processing zone etc. and halfway surveillance station established on the sea by Customs.

"Licence" shall refer to certifications and documents issued by State authorities for approved import or export activities to be engaged by the party involved in respect of an application filed by the party involved in accordance with the relevant State regulations.

"Legal certificates" shall refer to commercial documents, shipping documents, other relevant certifications and documents held by the vessels and the personnel thereon in accordance with the relevant State regulations or international transportation conventions to prove that the goods and articles transported, carried, purchased and sold are authentic, legal and valid.

"Articles" shall refer to travellers' luggage and posted articles carried or brought by any individual into or out of the territory, which shall include currencies, gold and silver etc.. Such items shall be deemed as goods if the quantities exceed personal use and reasonable quantities.

"Personal use" shall refer to personal consumption by the traveller or the consignee or gift to their relatives and friends and not for sale or lease.

"Reasonable quantities" shall refer to normal quantities determined by the Customs based on its assessment of the traveller or the consignee, the purpose of travel and the length of stay.

"Value of goods" shall refer to the sum of dutiable value, Customs duties, taxes and levies withheld by the Customs for imports and exports.

"Value of articles" shall refer to the sum of dutiable value and import duties of the inward and outward articles.

"Tax payable" shall refer to the sum of import duties and taxes and levies withheld by the Customs for imports and exports.

"Transportation vehicles used for smuggling" shall refer to transportation vehicles manufactured, refitted and purchased for the purpose of smuggling.

"Not less than", "not more than", "within" and "expiry" shall include the given figure.

Article 65.   

The Regulations shall apply to administrative penalties imposed on foreigners, stateless persons, foreign enterprises or other organisations.

Article 66.   

The catalogue of prohibited or restricted articles for import and export shall be formulated in accordance with the Foreign Trade Law of the People's Republic of China by the foreign trade department of the State Council and announced by the General Administration of Customs.

Article 67.   

Administrative penalties imposed in accordance with Customs regulations shall comply with the procedures specified herein.

Article 68.   

The Implementation Regulations shall be effective 1 November 2004. The Implementation Regulations on Administrative Penalties of the Customs Law of the People's Republic of China revised by the State Council on 17 February 1993 and promulgated on 1 April 1993 by the General Administration of Customs shall be repealed simultaneously.