Promulgation Authorities:  General Administration of Customs

Promulgation Date:  2021.09.13

Effective Date:  2021.11.01

Validity Status:  valid

Document Number:  Decree No. 251 of the General Administration of Customs

Administrative Measures of the Customs of the People's Republic of China on Trustworthiness of Registered/Filed Enterprises

Administrative Measures of the Customs of the People's Republic of China on Trustworthiness of Registered/Filed Enterprises

Decree No. 251 of the General Administration of Customs

The Administrative Measures of the Customs of the People's Republic of China on the Trustworthiness of Registered/Filed Enterprises, adopted upon deliberation at the executive meeting of the General Administration of Customs on September 6, 2021, are hereby promulgated, effective November 1, 2021. The Administrative Measures of the Customs of the People's Republic of China on Enterprise Trustworthiness promulgated on March 3, 2018 under Decree No. 237 of the General Administration of Customs shall be repealed simultaneously.

Ni Yuefeng

Director of the General Administration of Customs

September 13, 2021

Administrative Measures of the Customs of the People's Republic of China on Trustworthiness of Registered/Filed Enterprises

Chapter 1 General Provisions

Article 1    These Measures are enacted pursuant to the provisions of the Law of the Customs of the People's Republic of China, the Inspection Regulations of the Customs of the People's Republic of China, the Provisional Regulations on the Publicity of Enterprise Information, the Regulations on Optimising Business Environment and other related laws and administrative regulations, in order to establish a trustworthiness management system for enterprises registered and filed with the Customs, drive the development of the social trustworthiness system, and promote trade security and convenience.

Article 2    These Measures shall apply to collection and announcement of trustworthiness information of enterprises registered and filed with the Customs (hereinafter referred to as the "enterprises" in short) and the relevant personnel of the enterprises, as well as authentication, identification and management of enterprise trustworthiness etc.

Article 3    The Customs conducts trustworthiness management for enterprises pursuant to the principles of facilitation for honesty and law abiding, punishment on dishonesty and violations of laws, compliance with laws and regulations, impartiality and transparency.

Article 4    The Customs implement convenient management measures for any enterprise certified as an advanced certified enterprise at the application of the enterprise and pursuant to the standards and procedures stipulated herein.

The Customs implement stringent administrative measures for any enterprise certified as a dishonest enterprise for illegalities or irregularities based on the collected trustworthiness information and pursuant to the standards and procedures stipulated herein.

The Customs implement normal administrative measures for enterprises other than advanced certified enterprises and dishonest enterprises.

Article 5    The Customs provide trustworthiness cultivation services for enterprises, help enterprises enhance integrity and law abiding awareness, and raise business level on a good faith basis.

Article 6    Pursuant to the relevant requirements for development of social trustworthiness system, the Customs implement "joint incentives for honest enterprises" and "joint punishment against dishonest enterprises" with the relevant State authorities, promote information exchange, mutual recognition of regulation and mutual assistance in law enforcement.

Article 7    The Customs establishes an enterprise trustworthiness repair mechanism and carry out repair of enterprise trustworthiness pursuant to the law.

Article 8    Pursuant to the relevant international treaties, agreements and these Measures, the Customs of China carry out cooperation with the Customs of other countries or regions on mutual recognition of "authorized economic operators" (AEO), and provide the relevant convenience measures for mutually-recognized enterprises.

Article 9    The Customs establish an enterprise trustworthiness management system and apply information technologies to raise the level of Customs in enterprise trustworthiness management.

Chapter 2 Collection and Publicity of Trustworthiness Information

Article 10    The Customs may collect the following information which can reflect an enterprise's trustworthiness:

(I) registration or filing information, and basic information of the relevant personnel of the enterprise;

(II) the enterprise's importation and exportation information, and business information relating to importation and exportation;

(III) the enterprise's administrative licensing information;

(IV) administrative punishment and criminal punishment information of the enterprise and the relevant personnel;

(V) joint incentive and joint punishment information implemented by the Customs and the relevant State authorities;

(VI) AEO mutual recognition information; and

(VII) other relevant information which reflects the enterprise's trustworthiness status.

Article 11    The Customs shall promptly make public the following trustworthiness information, and announce enquiry methods:

(I) the information registered or filed by an enterprise with the Customs;

(II) the certification or identification results of an enterprise's trustworthiness status by the Customs;

(III) Customs administrative licensing information of an enterprise;

(IV) information on administrative punishments imposed by the Customs on an enterprise;

(V) joint incentive and joint punishment information implemented by the Customs and the relevant State authorities; and

(VI) any other information to be made public pursuant to the law.

Publicity of trustworthiness information which involves State secrets, national security, public interest, trade secrets or personal privacy shall be made pursuant to the provisions of laws and administrative regulations.

Article 12    Where a natural person, a legal person or any other non-legal person organisation believes that the trustworthiness information announced by the Customs is inaccurate, he/it may raise objection to the Customs, and provide the relevant materials or proof.

The Customs shall review the objection within 20 days from receipt of the objection and shall admit the objection if it is justified.

Chapter 3 Certification Standards and Procedures for Advanced Certified Enterprises

Article 13    The certification standards for advanced certified enterprises shall comprise general standards and individual standards.

The general standards for advanced certified enterprises shall include contents on internal control, financial status, compliance with law and trading security etc.

The individual standards for advanced certified enterprises shall be the certification standards formulated by the Customs for different enterprise types and scopes of business.

Article 14    An advanced certified enterprise shall concurrently comply with the general standards and the corresponding individual standards.

The general standards and individual standards shall be separately formulated and promulgated by the General Administration of Customs.

Article 15    To apply to be an advanced certified enterprise, an enterprise shall submit a written application to the Customs, and submit the relevant materials as required by the Customs.

Article 16    The Customs shall, pursuant to the general standards and the corresponding individual standards for advanced certified enterprises, examine the application and the relevant materials submitted by the enterprise, and carry out onsite certification for the enterprise.

Article 17    The Customs shall conduct certification and make a decision on certification within 90 days from receipt of the application and the relevant materials. Under special circumstances, the Customs may extend the certification period by 30 days.

Article 18    Upon certification, the Customs shall issue an advanced certified enterprise certificate to an enterprise which satisfies the criteria for advanced certified enterprise; if an enterprise does not satisfy the criteria for advanced certified enterprise, the Customs shall issue a decision on non-certification to the enterprise.

The advanced certified enterprise certificate and the decision on non-certification shall be served on the applicant, with effect on the date of service.

Article 19    The Customs review an advanced certified enterprise every five years. Where there are abnormal circumstances pertaining to the enterprise's trustworthiness status, the Customs may conduct review on an ad hoc basis.

Upon review, where an enterprise no longer satisfies the criteria for advanced certified enterprises, the Customs shall issue a decision on non-certification to it and take back the advanced certified enterprise certificate from it.

Article 20    The Customs may entrust a social intermediary to issue professional conclusions on issues relating to certification and review of advanced certified enterprise.

Where an enterprise entrusts a social intermediary to issue professional conclusions on issues relating to certification and review of advanced certified enterprise, such conclusions may be taken as reference for Customs' certification and review.

Article 21    Under any of the following circumstances, an enterprise shall not apply for certification to be an advanced certified enterprise within a one-year period:

(I) the enterprise has not undergone certification or review of advanced certified enterprise;

(II) the enterprise has forfeited its status to be an advanced certified enterprise;

(III) the enterprise has withdrawn its application for certification to be an advanced certified enterprise;

(IV) the trustworthiness rating of an advanced certified enterprise is downgraded by the Customs; or

(V) the trustworthiness rating of a dishonest enterprise is upgraded by the Customs.

Chapter 4 Standards and Procedures for Determination of Dishonest Enterprises and Trustworthiness Repair

Article 22    Under any of the following circumstances, an enterprise shall be deemed as dishonest by the Customs:

(I) where the enterprise is under investigation by the public security department of the Customs during smuggling investigation, and criminal liability is pursued by the judicial authorities pursuant to the law;

(II) where the enterprise constitutes smuggling and is subject to administrative punishment by the Customs;

(III) in the case of a non-Customs declaration enterprise which is subject to administrative punishment by the Customs within one year for violation of Customs regulatory provisions, where the number of times of such administrative punishment imposed by the Customs exceeds 0.1% of the total quantity of the relevant documents such as Customs declaration forms, inbound and outbound filing lists, inbound and outbound transport vehicle manifests etc. (hereinafter referred to as the "relevant documents") for the preceding year, and the cumulative administrative punishment amount imposed by the Customs exceeds CNY 1 million; in the case of a Customs declaration enterprise which is subject to administrative punishment by the Customs within one year for violation of Customs regulatory provisions, where the number of times of administrative punishment by the Customs exceeds 0.05% of the total quantity of the relevant documents for the preceding year, and the cumulative administrative punishment amount imposed by the Customs exceeds CNY 300,000; in case it is impossible to calculate the quantity of relevant documents for the preceding year, where cumulative administrative punishment amount imposed by the Customs within one year for violation of Customs regulatory provisions exceeds CNY 1 million on a non-Customs declaration enterprise, or CNY 300 ,000 on a Customs declaration enterprise;

(IV) Where the tax has not been paid within three months upon the expiration of the time limit for tax payment;

(V) where the enterprise fails to pay the fine after six months from the payment deadline, or the illegal income confiscated or money of equivalent value to the smuggled goods and articles recovered exceeds CNY 10,000;

(VI) where the enterprise refuses or hinders any Customs officer from performing his/her duties, and is punished pursuant to the law;

(VII) where the enterprise is subject to a fine or criminal liability pursuant to the law for offering bribes to a Customs officer; or

(VIII) any other circumstances stipulated by laws, administrative regulations or Customs rules.

Article 23    For a dishonest enterprise falling under any of the following circumstances, the Customs shall, pursuant to the relevant provisions of laws and administrative regulations, implement joint punishment, and include it in the list of subjects with serious dishonest acts:

(I) where the enterprise is investigated for criminal liability pursuant to the law for violation of administrative provisions on safety of imported and exported food or supervision and administration provisions on imported and exported cosmetics or smuggled solid waste; or

(II) where enterprise is subject to administrative punishment amount of more than CNY 2.5 million imposed by the Customs for illegal import of solid waste.

Article 24    Prior to making a decision on determination of a dishonest enterprise, the Customs shall notify the enterprise in writing of the reason for the proposed decision, the basis thereof and the rights to make a statement and defense enjoyed by the enterprise pursuant to the law.

Where the Customs proposes to include an enterprise in the list of subjects with serious dishonest acts pursuant to the provisions of Article 23 hereof, it shall also notify the enterprise of the warning of disciplinary measures for inclusion, removal criteria, removal procedures and remedial measures.

Article 25    Where an enterprise makes a statement or defense against the Customs' decision on proposed determination of dishonest enterprise or inclusion of the enterprise in the list of subjects with serious dishonest acts, it shall submit the statement or defense in writing to the Customs within five working days from receipt of the written notification.

The Customs shall conduct verification within 20 days; where the reason given by the enterprise is tenable, the Customs shall adopt.

Article 26    Where a dishonest enterprise not included in the list of subjects with serious dishonest acts has corrected its dishonest acts, eliminated adverse effects and satisfied the following criteria, it may apply to the Customs in writing for repair of trustworthiness and submit the relevant proof materials:

(I) where it has been identified as a dishonest enterprise for one year due to the circumstances stipulated in item (II) or item (VI) of Article 22 hereof;

(II) it has been identified as a dishonest enterprise for six months due to the circumstances stipulated in item (III) of Article 22 hereof; or

(III) it has been identified as a dishonest enterprise for three months due to the circumstances stipulated in item (IV) or item (V) of Article 22 hereof.

Article 27    Where an enterprise is found to satisfy the trustworthiness repair criteria upon examination, the Customs shall make a decision on approval for repair of trustworthiness within 20 days from receipt of the application for repair of enterprise trustworthiness.

Article 28    Where a dishonest enterprise has not committed any of the circumstances stipulated in Article 22 hereof for two consecutive years, the Customs shall make a trustworthiness repair decision for the dishonest enterprise.

Where a dishonest enterprise stipulated in the preceding paragraph has been included in the list of subjects with serious dishonest acts, it shall be removed from such list and notified to the relevant authorities.

Article 29    Where it is expressly stipulated in the laws, administrative regulations and the policy documents of the CPC Central Committee and the State Council that it is not allowed to repair trustworthiness repair, the Customs shall not grant trustworthiness repair.

Chapter 5 Administrative Measures

Article 30    An advanced certification enterprise is an AEO of the Customs of China, to which the following administrative measures shall apply:

(I) the average inspection rate of imports and exports is less than 20% of the average inspection rate for enterprises subject to routine management measures, unless otherwise stipulated by laws, administrative regulations or special provisions of the General Administration of Customs;

(II) the average random inspection percentage for place of origin investigation for exports shall be below 20% of the average random inspection percentage for enterprises, unless otherwise stipulated by laws, administrative regulations or special provisions of the General Administration of Customs;

(III) priority in handling of Customs clearance for imports and exports and the relevant business formalities;

(IV) priority in recommending to other countries (regions) export enterprises of agricultural products, food etc. for registration;

(V) the enterprise may apply to the Customs for exemption from guarantee;

(VI) reduced frequency of inspection or verification for the enterprise;

(VII) the enterprise may declare to the Customs before the exports arrive at the Customs supervision zone;

(VIII) the Customs appoint a coordinator for the enterprise;

(IX) Customs clearance facilitation measures at AEO mutual recognition countries or regions;

(X) joint incentive measures implemented by the relevant State authorities to reward honesty;

(XI) priority in Customs clearance for resumption of international trade suspended by force majeure; and

(XII) any other administrative measures stipulated by the General Administration of Customs.

Article 31    The following administrative measures shall apply to an dishonest enterprise:

(I) the inspection rate for imports and exports is 80% or more;

(II) in the case of operating processing trade, the enterprise shall provide full amount guarantee;

(III) increased frequency of inspection, verification for the enterprise; and

(IV) any other administrative measures stipulated by the General Administration of Customs.

Article 32    Where the trustworthiness ratings of enterprises involved in handling of the same Customs business are different and cause discrepancy in the applicable administrative measures, the Customs shall implement administration pursuant to the administrative measures applicable to enterprises with lower trustworthiness rating.

Article 33    Where an advanced certified enterprise or a dishonest enterprise has division or merger, the Customs shall determine the enterprise trustworthiness status in accordance with the following principles and apply the corresponding administrative measures:

(I) in the event of division of an enterprise and the surviving enterprise succeeds the main rights and obligations of the original enterprise, the certification or identification result of the original enterprise's trustworthiness status shall apply to the surviving enterprise; the certification or identification result of the original enterprise's trustworthiness status shall not apply to the newly-established enterprise;

(II) in the event of division of an enterprise and dissolution of the original enterprise, the certification or identification result of the original enterprise's trustworthiness status shall not apply to the newly established enterprise;

(III) in the event of merger by absorption, the certification or identification result of the original enterprise's trustworthiness status shall apply to the surviving enterprise; and

(IV) in the event of merger by new establishment, the certification or identification result of the original enterprise's trustworthiness status shall no longer apply to the newly established enterprise.

Article 34    Where an advanced certified enterprise is under criminal investigation for alleged violation of laws and regulations in relation to Customs administrative functions, the Customs shall suspend the application of administrative measures for advanced certified enterprises.

Where an advanced certified enterprise is under investigation for alleged violation of the regulatory provisions of the Customs, the Customs may suspend the application of administrative measures for advanced certified enterprises.

Article 35    Where an advanced certified enterprise has financial risks, or there are obvious signs of transfer or concealment of its taxable goods and other assets, or there are other risks of inability to guarantee payment of tax fully, the Customs may suspend the application of administrative measures stipulated in item (V) of Article 30 hereof.

Chapter 6 Supplementary Provisions

Article 36    The management of trustworthiness of overseas manufacturing enterprises of imported foodstuffs registered with the Customs and overseas enterprises engaging in manufacturing, processing and storage of inbound animal and plant products, etc. shall be separately stipulated by the General Administration of Customs.

Article 37    Identification of criminal offences which form the basis for identification of an enterprise's trustworthiness status shall be based on the date on which the relevant legal documents of the judicial authorities come into effect.

Identification of Customs administrative punishment which forms the basis for identification of enterprise trustworthiness status shall be based on the date on which the Customs administrative punishment decision is issued.

The punishment amount which forms the basis for identification of enterprise trustworthiness status shall include the sum of the fine imposed by the Customs, the illegal income confiscated, or the value of goods and articles confiscated.

Where an enterprise discloses voluntarily and is given a warning by the Customs or subject to a fine of less than the amount stipulated by the General Administration of Customs, this shall not be taken as the enterprise's trustworthiness record identified by the Customs.

Article 38    For the purpose of these Measures, the following terms shall be defined as follows:

The relevant personnel of an enterprise shall mean the enterprise's legal representative, key person-in-charge, person-in-charge of finance, person-in-charge of Customs matters and other management personnel.

Authorized economic operators (AEO) shall mean enterprises which participate in international circulation of goods via any method and comply with the standards stipulated by the General Administration of Customs.

Article 39    The power to construe these Measures shall remain with the General Administration of Customs.

Article 40    These Measures shall be implemented with effect on 1 November 2021, repealing simultaneously the Administrative Measures of the Customs of the People's Republic of China on Enterprise Trustworthiness promulgated on 3 March 2018 under Decree No. 237 of the General Administration of Customs.