Promulgation Authorities:  State Council

Promulgation Date:  2017.03.01

Effective Date:  2017.03.01

Validity Status:  valid

Regulations of the People’s Republic of China on Import and Export Duties(Revised in 2017)

Regulations of the People's Republic of China on Import and Export Duties (Revised in 2017)

(Promulgated under Decree No. 392 of the State Council of the People's Republic of China on November 23, 2003, revised for the first time in accordance with the Decision of the State Council on Abolishing and Amending Some Administrative Regulations on January 8, 2011,  revised for the second time in accordance with the Decision of the State Council on Amending Some Administrative Regulations on December 7, 2013, revised for the third time according to the Decision of the State Council on Amending Some Administrative Regulations on February 6, 2016, and revised for the fourth time according to the Decision of the State Council on Amending and Abolishing Some Administrative Regulations on March 1, 2017)

CHAPTER I — GENERAL PRINCIPLES

Article 1.   

These Regulations are formulated in accordance with the relevant provisions of the Customs Law of the People's Republic of China (hereinafter referred to as the "Customs Law") for the purposes of implementing open-up policies and promoting the development of foreign trade and economic cooperation and the national economy.

Article 2.   

The Customs shall collect customs duties in accordance with the provisions of these Regulations for imports and exports approved by the People's Republic of China or articles allowed to be brought into the country, unless otherwise provided by laws and administrative regulations.

Article 3.   

The State Council shall formulate the Regulations on Import and Export Tariff of the People's Republic of China (hereinafter referred to as the "Tariff Regulations") and the Schedule of Import Duties of the People's Republic of China (hereinafter referred to as the "Schedule of Import Duties") and stipulate the tariff items, codes and rates which shall form a part of these Regulations.

Article 4.   

The Customs Tariff Commission of the State Council shall be responsible for the adjustment and interpretation of tax items, codes and rates set out in the Tariff Regulations and Schedule of Import Duties and implementation upon approval of the State Council. The Commission shall also determine the items for which provisional duties apply and the rates and period of validity, tariff rates for quota items, collection of anti-dumping duties, countervailing duties, safeguard duties, retaliatory duties, implementation of other customs duties and application of customs duty rates for special circumstances as well as perform other duties stipulated by the State Council.

Article 5.   

Consignees of imports, consignors of exports and owners of articles brought into the country shall pay customs duties.

Article 6.   

The Customs and its personnel shall impose and collect customs duties, safeguard the rights and interests of the State and protect the legal rights and interests of taxpayers in accordance with their statutory powers and the statutory procedures and shall be subject to supervision in accordance with laws.

Article 7.   

Taxpayers shall have the right to request that the Customs keep their commercial secrets confidential and the Customs shall do so in accordance with laws.

Article 8.   

The Customs shall reward organisations and individuals for reporting on offences or assisting in the uncovering of acts which contravene these Regulations and shall be keep their identity confidential.

CHAPTER II — SETTING AND APPLICATION OF CUSTOMS DUTY RATES FOR IMPORTS AND EXPORTS

Article 9.   

Customs duty rates for imports shall include most-favoured-nation tariff rates, conventional tariff rates, preferential tariff rates, general tariff rates and tariff rates for quota items. Provisional rates of import duties may be implemented for a specified period of time.

Customs duty rates for exports shall be established. Provisional rates of export duties may be implemented for a specified period of time.

Article 10.   

Most-favoured-nation tariff rates shall apply to imports originating from any member country of the World Trade Organisation that applies the most-favoured-nation treatment clause, imports originating from a country or region that has signed a bilateral agreement with the People's Republic of China which includes a clause on reciprocal granting of most-favoured-nation treatment, and imports originating from the People's Republic of China.

Conventional tariff rates shall apply to imports originating from a country or region that has signed a regional trade agreement with the People's Republic of China which includes a clause on preferential tariffs.

Preferential tariff rates shall apply to imports originating from a country or region that has signed a trade agreement with the People's Republic of China which includes a clause on special tariff concessions.

General tariff rates shall apply to imports originating from a country or region other than those listed in the preceding paragraphs of this Article and imports of unknown place of origin.

Article 11.   

Where applicable, provisional rates shall apply for imports subject to most-favoured-nation tariff. Where provisional rates are applicable for imports on which conventional and preferential tariff rates apply, the lower of the applicable rates shall apply. Provisional rates shall not apply for imports subject to general tariff.

Where applicable, provisional rates for exports subject to export tariff.

Article 12.   

Tariff rates for quota items shall apply to imports subject to tariff quota administration in accordance with State regulations and which fall within the quota. Application of tariff rates for imports which are not within the quota shall comply with the provisions of Articles 10 and 11.

Article 13.   

Application of tariff rates in accordance with the relevant provisions of the Anti-dumping Regulations of the People's Republic of China, Anti-subsidy Regulations of the People's Republic of China and Regulations of the People's Republic of China on Safeguard Measures.

Article 14.   

Retaliatory duties may be levied on imports originating from any country or region that breaches a trade agreement and related agreements that it has signed with or taken part in jointly with the People's Republic of China, by putting in place embargoes or restrictions, levying additional customs duties or adopting any other measures that affect normal trade in relation to trade with the People's Republic of China, and retaliatory duty rates shall apply.

The goods and nationality of the goods to which retaliatory duties shall be applied, tariff rates, duration and method of levying shall be determined and announced by the Customs Tariff Commission of the State Council.

Article 15.   

Prevailing rates of customs duties as of the date of acceptance of customs declaration for the imports or exports shall apply on such imports or exports.

In the event of customs declaration accepted in advance of arrival of imports, the prevailing rates of customs duties as of the date of declaration for the arrival of the vessel or vehicle carrying the imports shall apply.

The date of application of tariff rates for goods in transit shall be stipulated separately by the General Administration of Customs.

Article 16.   

Prevailing rates of customs duties as of the date of acceptance of an application for payment of customs duties shall apply in any of the following situation:

(1) bonded goods which are not re-shipped out of the country upon approval;

(2) duty-reduced or duty-free goods approved for transfer to another party or other usage purposes;

(3) goods entering on a temporary basis are subsequently not re-shipped out of the country upon approval, and goods exiting on a temporary basis are subsequently not re-shipped into the country upon approval; or

(4) imports on lease for which customs duties are paid in instalments.

Article 17.   

Applicable rates for supplementary duties or refund of import and export duties shall be determined in accordance with the provisions of Article 15 or Article 16.

Prevailing rates of customs duties as of the date of the violation shall apply for supplementary duties payable in the event of a violation by the taxpayer. Where the date cannot be determined, prevailing rates of customs duties as of the date on which the violation is uncovered by the Customs shall apply.

CHAPTER III — DETERMINATION OF DUTIABLE VALUE OF IMPORTS AND EXPORTS

Article 18.   

The dutiable value of imports shall be examined and determined by the Customs in accordance with the transaction price which complies with the criteria stipulated in paragraph 3 of this Article and such shipping and other related costs and insurance costs of the imports incurred up to the point of uploading on arrival in the People's Republic of China.

The transaction price of imports shall refer to the total purchase price after adjustment in accordance with the provisions of Articles 19 and 20 paid or payable by the buyer to the seller for the imports at the time of sale of the goods in the People's Republic of China and shall include both direct and indirect payment of purchase price.

The transaction price of imports shall satisfy the following criteria:

(1) no restriction on the disposal or use of the goods by the buyer, unless otherwise provided by laws and administrative regulations in relation to restrictions on the region where the goods can be resold and restrictions which have no substantive effect on the price of the goods;

(2) the transaction value of the goods is not undeterminable as a result of the goods being sold as a package or other factors;

(3) the seller shall not receive any proceeds from the buyer directly or indirectly as a result of resale, disposal or use of the imports or adjustment may be made to the proceeds in accordance with the provisions of Articles 19 and 20; and

(4) there is no special relationship between the buyer and seller or in the event of the existence of a special relationship, such relationship does not have an impact on the transaction price.

Article 19.   

The following costs of imports shall be included in the dutiable value:

(1) commissions and brokerages borne by the buyer in addition to commissions on purchase;

(2) costs of containers which are deemed as an integral part of the goods at the time of examination and determination of the dutiable value of the goods and borne by the buyer;

(3) costs of packaging material and labour costs borne by the buyer;

(4) purchase prices of parts and materials, tools, moulds, consumables and other similar goods related to the manufacture and sale of the imports which are supplied by the buyer free-of-charge or below-cost and which can be apportioned in accordance with an appropriate ratio, and expenses for overseas development and design;

(5) franchise fees related to the imports which are payable by the buyer as a condition of the sale of such imports; and

(6) proceeds obtained by the seller directly or indirectly from the buyer as a result of the resale, disposal or use of the imports.

Article 20.   

The following taxes and costs which are stipulated as part of the purchase price of the goods at the time of import shall not be included in the dutiable value of the goods:

(1) costs of construction, installation, assembly, maintenance and technical services for imports such as plants, machinery and equipment subsequent to importation;

(2) transportation costs and insurance costs of imports incurred subsequent to offloading on arrival in the People's Republic of China; and

(3) import duties and domestic taxes.

Article 21.   

Where the transaction price of the imports does not comply with the criteria stipulated in Paragraph 3 of Article 18 or is undeterminable, the Customs shall estimate the dutiable value of the goods in accordance with the following sequential criteria upon clarification and discussion with the taxpayer:

(1) the transaction price of identical imports to the People's Republic of China at the same time or approximately the same time as the imports;

(2) the transaction price of similar imports to the People's Republic of China at the same time or approximately the same time as the imports;

(3) the unit price of the largest quantity sold of the imports or identical or similar imports sold at the same time or approximately the same time as the imports at the first link of the sales chain in an arm's length transaction and after deductions of the items stipulated in Article 22;

(4) a price calculated in accordance with the sum total of the production and processing costs of parts and materials used for the manufacturing of the goods, normal profits and general costs of selling goods of the same class or the same category in the People's Republic of China and shipping and other related costs and insurance costs of the goods up to the point of offloading on arrival in the People's Republic of China; and

(5) an estimated price based on a reasonable method.

Upon submission of the relevant documents by the taxpayer to the Customs, the taxpayer may submit an application in reversal of the application sequence of items (3) and (4) above.

Article 22.   

The items to be deducted for the determination of dutiable value in accordance with the provisions of item (3) of paragraph 1 of Article 21 shall be:

(1) normal profits and general costs of goods of a similar class or category sold at the first stage of the sales chain within the People's Republic of China and any commission normally paid;

(2) transportation costs and insurance costs of imports incurred subsequent to offloading on arrival in the People's Republic of China; and

(3) import duties and domestic taxes.

Article 23.   

The dutiable value of imports on lease shall be the leasing cost of the goods as examined and determined by Customs.

Taxpayers requesting for one-off payment of customs duties may opt for determination of the dutiable value of their goods in accordance with the provisions of Article 21 or use the total lease cost estimated by the Customs as the dutiable value.

Article 24.   

The dutiable value of goods sent overseas for processing with customs declaration formalities completed and shipped back into the country within the period stipulated by the Customs shall be determined on the basis of processing costs plus costs of materials and parts and shipping and related costs and insurance costs for shipping the goods back into the country.

Article 25.   

The dutiable value of machinery, transportation vehicles or other goods sent overseas for repair with customs declaration formalities completed and shipped back into the country within the period stipulated by the Customs shall be determined on the basis of repair costs plus costs of materials and parts.

Article 26.   

The dutiable value of exports shall be determined by the Customs on the basis of the transaction price of the goods plus shipping and related costs and insurance costs of the goods up to the point of offloading for exportation from the People's Republic of China.

The transaction price of exports shall refer to the total purchase price collected by the seller directly or indirectly from the buyer at the time of exportation for such exports.

Export duties shall not be included in the dutiable value of exports.

Article 27.   

Where the transaction price of the exports is undeterminable, the Customs shall estimate the dutiable value of the goods in accordance with the following sequential criteria upon clarification and discussion with the taxpayer:

(1) the transaction price of identical exports to the same country or region at the same time or approximately the same time as the exports;

(2) the transaction price of similar exports to the same country or region at the same time or approximately the same time as the exports;

(3) a price calculated in accordance with the sum total of the production and processing costs of parts and materials used for the manufacturing of identical or similar goods domestically, normal profits and general costs, shipping and other related costs and insurance costs incurred domestically; and

(4) an estimated price based on a reasonable method.

Article 28.   

Production costs, costs, and duties which are included or excluded in the dutiable valuable in accordance with the provisions of these Regulations shall be based on objective, quantifiable data.

CHAPTER IV — COLLECTION OF CUSTOMS DUTIES ON IMPORTS AND EXPORTS

Article 29.   

Taxpayers for imports shall submit a declaration to the Customs at the place of importation within 14 days of the date of declaration on entry of the transportation vehicle or vessel into the country. Taxpayers for exports shall submit a declaration to the Customs at the place of exportation upon arrival of the goods at the Customs supervision and control zone and 24 hours prior to loading, unless otherwise with special approval of the Customs. Collection of customs duties for goods in transit shall comply with the regulations of the General Administration of Customs.

Subject to approval of the Customs, taxpayers may submit a declaration for imports prior to their arrival. Specific measures shall be stipulated by the General Administration of Customs.

Article 30.   

Taxpayers shall make a legal and factual declaration to the Customs and submit all documents required to determine the dutiable value, commodity categorisation, place of origin, and documents required for implementation of anti-dumping, countervailing or safeguard measures in accordance with Customs regulations. Where necessary, the Customs may require taxpayers to make supplementary declaration.

Article 31.   

Taxpayers shall carry out commodity categorisation of declared imports in accordance with coding and general rules of categorisation, category notes, chapter notes, sub-directory notes and other categorisation notes stipulated in the Tariff Regulations and classify the imports with the corresponding tariff code numbers. The Customs shall examine and confirm the commodity categories of imports in accordance with laws.

Article 32.   

The Customs may request taxpayers to provide all documents required to determine commodity categories. Where necessary, the Customs may organise testing and inspection and use the testing and inspection results as the basis for commodity categorisation.

Article 33.   

The Customs may check and make copies of the contracts, invoices, accounts, exchange settlement vouchers, shipping documents, business correspondence, audio and video tapes and other documents which reflects the relationship and trading activities between the buyer and seller for the purposes of examination of the validity and accuracy of declared prices.

Subject to the approval of the Director of the Customs office or the Director of an authorised subordinate Customs office, the Customs may investigate into fund transactions of the bank accounts of the taxpayer with a bank or financial institution by presenting the "Notice of the General Administration of Customs on Assistance to Bank Account Enquiries" and ID cards of the relevant personnel and investigation findings shall be reported to the banking regulatory authorities for cases of doubtful declared prices and large amount of custom duties.

Article 34.   

The Customs shall notify the taxpayer in writing of grounds on finding the declared prices doubtful and require the taxpayer to submit a written explanation and provide relevant information by a stipulated deadline.

Where the taxpayer failed to provide a written explanation and relevant information by the stipulated deadline or the Customs is still doubtful of the validity and accuracy of the declared prices, the Customs may reject the prices declared by the taxpayer and estimate the dutiable value in accordance with the provisions of Chapter III.

Article 35.   

Upon examination and determination by the Customs of the dutiable value of imports, the taxpayer may submit a written request for the Customs to give a written account of how the dutiable value of the imports was determined, to which the Customs shall accede.

Article 36.   

Import duties shall be levied on the basis of value, quantity or other methods stipulated by the State.

The formula for calculation of customs duties on a value basis shall be: Amount of duties payable = dutiable value × customs duty rate.

The formula for calculation of customs duties on a quantity basis shall be: Amount of duties payable = quantity of goods × amount of duty per unit.

Article 37.   

Taxpayers shall make payment of the duties to the designated bank within 15 days from the date of issue of payment notice by the Customs. Taxpayers who failed to make payment on time shall be liable to a daily overdue fine of 0.05% of the total amount of duties payable, commencing on the due date.

The Customs may publish details of duties in arrears.

The Customs shall issue payment vouchers for collection of customs duties and overdue fines. The format of such vouchers shall be stipulated by the General Administration of Customs.

Article 38.   

Calculation and levying of customs duties and overdue fines shall be in Renminbi.

Transaction price and other related costs of imports in foreign currencies shall be converted to Renminbi using the base exchange rate published by the People's Bank of China for the calculation of dutiable value of the goods. Transaction price and other related costs of imports in non-basic foreign currencies shall be converted into Renminbi using cross exchange rates in accordance with State regulations for the calculation of dutiable value of the goods. The date on which the exchange rate applies shall be stipulated by the General Administration of Customs.

Article 39.   

Subject to provision of security for taxes pursuant to the law, taxpayers who are unable to pay customs duties on time due to the occurrence of a force majeure event or State adjustment of tax policies may defer payment, provided that the period of deferment shall not exceed 6 months.

Article 40.   

Taxpayers for imports or exports who are evidently transferring or concealing dutiable goods and other assets during the stipulated period for payment of customs duties may be ordered by the Customs to provide a guarantee. Where the taxpayer is unable to provide a guarantee, the Customs may implement tax preservation measures in accordance with the provisions of Article 61 of the Customs Law.

Where the taxpayer or guarantor failed to make payment within 3 months from the expiry of the stipulated period of tax payment, the Customs may implement mandatory measures in accordance with the provisions of Article 60 of the Customs Law.

Article 41.   

Where parts and materials imported for processing trade purposes imported on a bonded basis in accordance with State regulations but the finished products or the imported parts and materials are not exported within the stipulated time limit, the Customs shall levy import duties in accordance with regulations.

Where import duties are levied and collected in accordance with State regulations on parts and materials imported for processing trade purposes but the finished products or the imported parts and materials are exported within the stipulated time limit, the Customs shall refund such import duties in accordance with State regulations.

Article 42.   

Where a taxpayer pays a security or provides some other form of guarantee equivalent to the amount of customs duties payable for the following imports or exports which were granted approval for temporary entry or exit by the Customs, payment of the customs duties may be deferred temporarily and the goods shall be re-shipped into or out of the country within 6 months of the exit or entry; where there is a need to extend the time limit for reshipping the goods into or out of China, the taxpayer shall complete the formalities for extension of time with the Customs pursuant to the provisions of the General Administration of Customs:

(1) goods to be exhibited or used at exhibitions, trade fairs, conferences and other similar events;

(2) items to be used for performance or competition in cultural and sporting exchanges;

(3) instruments, equipment and items to be used for news reporting or filming of movies and television programs;

(4) instruments, equipment and items to be used for scientific research and educational and medical activities;

(5) transport equipment and special vehicles to be used for the activities listed in items (1) to (4) above;

(6) samples;

(7) instruments and tools to be used for installation, commissioning and testing of equipment;

(8) containers for the goods;

(9) other goods to be used for non-commercial purposes.

Where the aforesaid goods entering or exiting on a temporary basis are not re-shipped into or out of the country within the stipulated time limit, the Customs shall levy customs duties in accordance with laws.

For goods entering on a temporary basis which do not fall within the scope of temporary duty-free concessions, import duties shall be levied in accordance with the dutiable value of the goods and the ratio between the holding period in the country and the depreciation period. Specific measures shall be promulgated by the General Administration of Customs.

Article 43.   

Import duties shall not be levied on exports which are re-shipped into the country in their original state within 1 year from the date of export for quality or specification reasons.

Export duties shall not be levied on imports which are re-shipped out of the country in their original state within 1 year from the date of import for quality or specification reasons.

Article 44.   

Customs duties shall not be levied on goods supplied by the consignor or carrier of imports or exports or the associated insurance company compensation or in exchange for damage, shortfall in quantity, poor quality or non-compliance to specifications of such imports or exports. Where the original exports or imports which have been replaced at no cost are not re-shipped into or out of the country, the Customs shall re-levy customs duty on the original imports or exports in accordance with relevant regulations.

Article 45.   

The following imports and exports shall be duty-free:

(1) a consignment of goods which is subject to customs duties payable of less than RMB50;

(2) promotional products and samples of no commercial value;

(3) goods and materials donated free-of-charge by foreign governments and international organisations;

(4) damaged goods found prior to customs clearance; and

(5) fuel, materials, foodstuff and beverages carried by inbound or outbound shipping vessels and vehicles;

Customs duties may be reduced for damaged goods found prior to customs clearance in accordance with the extent of damage determined by the Customs.

The Customs shall grant reduction or exemption of customs duties for other duty-free or duty-reduced goods in accordance with laws and regulations.

Article 46.   

Reduction or exemption of customs duties for imports from specified regions and enterprises or for specific uses and temporary reduction or exemption of customs duties shall be implemented in accordance with the relevant provisions of the State Council.

Article 47.   

Reduction or exemption of import-related taxes collected by the Customs for imports shall be implemented in accordance with the provisions of relevant laws and administrative regulations.

Article 48.   

Taxpayers eligible for reduction or exemption of import or export duties shall submit all relevant documents to the Customs prior to the importation or exportation of the goods to obtain approval for the reduction or exemption in accordance with regulations, unless otherwise provided. Upon examination of the documents by the Customs, reduction or exemption of customs duties shall be granted for goods which are eligible.

Article 49.   

For imports eligible for reduction or exemption of customs duties and subject to Customs supervision and control for usage which are transferred or used for other purposes within the period of supervision and control and thus liable to additional customs duties, the Customs shall depreciate the estimated value of the goods on the basis of the amount of time lapsed since the importation of the goods to levy additional import duties payable.

The period of supervision and control for specific imports eligible for reduction or exemption of customs duties shall be stipulated by the General Administration of Customs.

Article 50.   

Under any of the following circumstances, the taxpayer may submit a written explanation supported by original copies of proof of payment and relevant information to apply for the refund of customs duties within 1 year from the date of payment of customs duties:

(1) goods on which import duties were levied are rejected and shipped out of the country in their original state due to quality or specification reasons;

(2) goods on which export duties were levied are rejected and shipped into the country in their original state due to quality or specification reasons and on which domestic taxes were levied for reject of exports;

(3) goods on which export duties were levied but cannot be exported for some reasons, with cancellation declaration completed with the Customs;

The Customs shall carry out verification and notify the taxpayer to complete duty refund formalities within 30 days from acceptance of an application for refund of custom duties. The taxpayer shall complete the duty refund formalities within 3 months from receipt of the notification.

The Customs shall make refund of customs duties in accordance with the provisions of relevant laws and administrative regulations.

Article 51.   

Where the Customs discovers upon clearance that there has been a shortfall in the customs duties collected or omission in collection, the Customs shall collect the shortfall amount from the taxpayer within 1 year from the date of payment of customs duties or customs clearance. Where such shortfall or omission in collection is caused by a breach of provisions by the taxpayer, the Customs may pursue the collection of such customs duties for up to 3 years from the date of payment of customs duties or customs clearance, and may charge a daily overdue fine of 0.05% of the shortfall amount or amount payable commencing from the date of payment of customs duties or customs clearance.

Where the Customs discovers that there has been a shortfall in the customs duties collected or omission in collection for goods pending customs clearance which is caused by a breach of provisions by the taxpayer, the Customs may pursue the collection of such customs duties for up to 3 years from the date of payment of customs duties or customs clearance, and may charge a daily overdue fine of 0.05% of the shortfall amount or amount payable commencing from the date of due payment of customs duties.

Article 52.   

The Customs shall forthwith notify the taxpayer to complete refund formalities upon discovery of over levy of customs duties.

Taxpayers who discover an over levy of customs duties may submit a written request within 1 year from the date of payment of custom duties to the Customs for refund of the excess amount paid plus interest amount accrued for the same period based on the interest rate of a current savings deposit. The Customs shall carry out verification and notify the taxpayer to complete duty refund formalities within 30 days from acceptance of an application for refund of customs duties.

The taxpayer shall complete the duty refund formalities within 3 months from receipt of the notification.

Article 53.   

Refund of customs duties and accrued interest in accordance with the provisions of Articles 50 and 52 which involves withdrawals from the State Treasury shall comply with laws and administrative regulations on administration of State Treasury.

Article 54.   

Where an enterprise making customs declaration is engaged by a taxpayer to complete customs declaration and make payment of customs duties for and on behalf of the taxpayer violates the provisions and thus causes a shortfall or omission in the collection of customs duties, such enterprise shall assume joint liability together with the taxpayer for payment of the shortfall amount or amount payable and any overdue fine.

Where an enterprise making customs declaration is engaged by a taxpayer to complete customs declaration and make payment of customs duties for and on behalf of the taxpayer, the enterprise and the taxpayer shall assume joint liability for payment of customs duties.

With the exception of force majeure events, where goods under Customs supervision and control are damaged or destroyed during custody, the custodian shall bear corresponding liability for payment of customs duties.

Article 55.   

Taxpayers in arrears of customs duties who are subject to a merger or subdivision shall make a report to the Customs in advance of such merger or subdivision and make payment in accordance with laws. Where the taxpayer failed to make payment at the time of merger, the post-merger legal person or entity shall continue to perform the obligation to pay customs duties. Where the taxpayer failed to make payment at the time of subdivision, the post-subdivision legal person or entity shall bear joint liability for payment of customs duties.

Taxpayers who are subject to a merger or restructuring of assets during the period for which the goods are entitled to reduction or exemption of customs duties or in which bonded goods are under supervision and control shall make a report to the Customs. Payment of customs duties shall be made in full in accordance with laws and regulations. Taxpayers who are entitled to reduction or exemption of customs duties or enjoy bonded status in accordance with regulations shall complete change of taxpayer formalities with the Customs.

Taxpayers in arrears of customs duties or taxpayers who are subject to revocation, dissolution, bankruptcy or other legitimate termination of business operations shall make a report to the Customs in advance of the liquidation. The Customs shall grant a settlement of payable duties to the taxpayer in accordance with laws.

CHAPTER V — COLLECTION OF IMPORT DUTIES ON ARTICLES BROUGHT INTO THE COUNTRY

Article 56.   

Customs duties and import-related taxes collected by the Customs on articles brought into the country shall be consolidated as import duties and collected by the Customs in accordance with laws.

Article 57.   

Personal articles within stipulated quantities in accordance with the General Administration of Customs regulations shall be exempt from import duties.

Taxpayers bringing excess but reasonable quantities of personal articles into the country shall pay import duties in accordance with regulations prior to customs clearance.

Personal articles in excess of reasonable quantities brought into the country shall be treated as imports and the relevant formalities shall be completed in accordance with laws.

Articles brought into the country which are deemed as dutiable items by the Customs Tariff Commission of the State Council shall be subject to customs duties in accordance with the provisions of Chapters II to IV.

Article 58.   

Taxpayers for articles brought into the country shall refer to persons bringing the articles into the country, recipients of postal articles entering the country and consignees of articles imported by other means.

Article 59.   

Taxpayers for articles brought into the country may complete formalities for payment of customs duties personally or appoint others to complete such formalities. Persons who are appointed to complete the formalities shall comply with the provisions of this Chapter on taxpayers.

Article 60.   

Import duties shall be based on dutiable values.

The formula for calculation of import duties shall be: Amount of import duties = dutiable value × customs duty rate.

Article 61.   

The Customs shall categorise articles brought into the country, determine the dutiable value and applicable customs duty rate in accordance with the Schedule of Import Duties and the Schedule of Imports Categories of the People's Republic of China and Schedule of Dutiable Values of Imports of the People's Republic of China formulated by the General Administration of Customs.

Article 62.   

Prevailing customs duty rate and dutiable value as of the date of issue of the payment notice of customs duties by the Customs shall apply to articles brought into the country.

Article 63.   

Reduction and exemption of import duties, supplementary collection of a shortfall in import duties collected, pursue of collection of import duties, refund of import duties, and collection of import duties on articles approved for entry on a temporary basis shall comply with the provisions of these Regulations on collection of import duties.

CHAPTER VI — SUPPLEMENTARY PROVISIONS

Article 64.   

Taxpayers or guarantors who object to the definition of taxpayer, dutiable value, commodity categorisation, or place of origin by the Customs, the applicable duty rate or exchange rate, reduction or exemption of customs duties, supplementary payment of customs duties, refund of customs duties, imposition of overdue fines, method of calculation of duties or place of payment of customs duties determined by Customs shall pay the customs duties and may apply to a Customs of superior level for a review in accordance with laws. Taxpayers or guarantors who disagree with the review decision may initiate litigation in a People's Court in accordance with laws.

Article 65.   

Collection and administration of import-related taxes collected by the Customs shall comply with the regulations on administration and collection of customs duties.

Article 66.   

Persons in violation of the provisions of these Regulations shall be punished in accordance with the provisions of the Implementation Regulations of the Customs of the People's Republic of China on Administrative Penalties and other laws and administrative regulations.

Article 67.   

These Regulations shall be effective 1 January 2004. The Regulations of the People's Republic of China on Import and Export Duties revised and issued by the State Council on 18 March 1992 shall be repealed simultaneously.