Promulgation Authorities:  General Administration of Customs

Promulgation Date:  2018.05.29

Effective Date:  2018.07.01

Validity Status:  valid

Administrative Regulations of the Customs of the People's Republic of China on Bonded Warehouses and the Goods Stored Therein

Administrative Regulations of the Customs of the People's Republic of China on Bonded Warehouses and the Goods Stored Therein

Chapter 1 GENERAL PRINCIPLES

Article 1    These Provisions are formulated in accordance with the Customs Law of the People's Republic of China and other relevant State laws and administrative regulations for the purposes of strengthening the supervision and control by the Customs of bonded warehouses and the goods stored therein, regulating the operation and management of bonded warehouses, and promoting foreign trade and economic development.

Article 2    The term "bonded warehouse" referred to in these Regulations shall refer to warehouses set up, upon approved by the Customs, specifically to store bonded goods and goods which have not completed Customs formalities.

Article 3    Bonded warehouses shall be classified as public bonded warehouses and private bonded warehouses, in accordance with the objects of use.

Public bonded warehouses shall be operated by independent enterprise legal persons in China which are mainly engaged in storage business, to provide bonded storage services specifically for the public.

Private bonded warehouses shall be operated by designated independent enterprise legal persons in China, solely to store bonded goods supplied to the respective enterprise for self-use.

Article 4    Bonded warehouses that are dedicated to storing goods used for specific purposes or special types of goods shall be known as special-purpose bonded warehouses.

Special-purpose bonded warehouses shall include bonded warehouses for liquid, bonded warehouses for spare materials, bonded warehouses for consignment repair, and other special-purpose bonded warehouses.

The term "bonded warehouses for liquid" shall refer to bonded warehouses which specialise in providing bonded storage services for petroleum, processed oil and any other bulk liquids.

The term "bonded warehouses for spare materials" shall refer to bonded warehouses in which processing trade enterprises store raw materials, equipment and spare parts imported for the processing of re-export goods; the goods stored therein shall be supplied only to the said enterprises.

The term "bonded warehouses for consignment repair" shall refer to bonded warehouses which are specifically used for the storage of consigned spare parts imported for repair of foreign goods.

Article 5    Subject to Customs approval, the following goods may be stored in a bonded warehouse:

(1) Imports for processing trade;

(2) Goods in transit;

(3) Fuels, materials and spare parts used for repair, which are to be supplied to international vessels and aircraft;

(4) Consignment spare parts imported for repair of foreign goods;

(5) Goods stored temporarily by foreign investors;

(6) Normal trade goods which have not completed Customs formalities; and

(7) Any other goods which have been approved but not yet completed customs formalities.

Article 6    Bonded warehouses shall not store goods prohibited by the State from inbound, or store without authorisation the goods restricted by the State from inbound which affect public security, public hygiene or health, public morals or order, and other goods that are prohibited from being stored in a bonded warehouse.

Chapter 2 ESTABLISHMENT OF BONDED WAREHOUSES

Article 7    Bonded warehouses shall be established in regions where Customs office has been established and are convenient for Customs supervision and control.

Article 8    Enterprises operating bonded warehouses shall satisfy the following requirements:

(1) Registered with the relevant industry and commerce department, and have enterprise legal person status; and

(2) Have business premises designated for storage of bonded goods.

Article 9    Bonded warehouses shall satisfy the following requirements:

(1) Meet the customs requirements for the layout of bonded warehouses;

(2) Equipped with quarantine facilities and control facilities which comply with the supervision and control requirements of the Customs, and other facilities necessary for business;

(3) Equipped with a bonded warehouse computer management system which complies with the supervision and control requirements of the Customs, and is linked to the Customs' network;

(4) Equipped with a bonded warehouse management system which complies with the supervision and control requirements of the Customs;

(5) Public bonded warehouses shall have a minimum floor area of 2,000 square metres;

(6) Bonded warehouses for liquid shall have a minimum capacity of 5,000 cubic metres; and

(7) Bonded warehouses for consignment repair shall have a minimum floor area of 2,000 square metres.

Article 10    An enterprise applying to establish a bonded warehouse shall submit the following documents to the Customs in charge at the location of the warehouse:

(1) "Bonded Warehouse Application Form";

(2) location map and floor plan of the proposed bonded warehouse; and

(3) in the case of application for setting up a bonded warehouse for consignment repair, the maintenance agreement between the operating enterprise and the foreign investor(s) shall also be submitted.

The Customs office shall accept the application if the application materials are complete and valid. Where the application materials are incomplete or fail to comply with the stipulated requirements, the Customs in charge shall inform the applicant, within five working days in a one-off manner, of all the content to be supplemented or corrected. The Customs in charge shall issue an initial opinion within 20 working days from acceptance of an application, and submit the relevant materials to its direct-reporting Customs for examination and approval.

The direct-reporting Customs shall complete the examination within 20 working days from receipt of the materials, and issue an approval document with a 1-year validity period to qualified applicants; a written explanation of the reasons for rejection shall be issued to unsuccessful applicants.

Article 11    Enterprises applying for establishment of a bonded warehouse shall, within 1 year from the issuance of the bonded warehouse approval document by the Customs, apply to the Customs for inspection and acceptance of the bonded warehouse; the Customs in charge shall carry out inspection and acceptance in accordance with the requirements stipulated in Articles 8 and 9 of these Regulations. Where an applicant enterprise fails to apply for inspection and acceptance within the time limit without a valid reason, or where a bonded warehouse fails in the inspection and acceptance, the approval document for the bonded warehouse shall automatically become void.

Article 12    Upon passing the inspection and acceptance, a bonded warehouse can carry out relevant business only after registration with the Customs and issuance of the "Bonded Warehouse Registration Certificate".

The "Bonded Warehouse Registration Certificate" shall be valid for three years.

Chapter 3 ADMINISTRATION OF BONDED WAREHOUSES

Article 13    Bonded warehouses shall not be sublet or subleased to others for operation, or divided into separate warehouses.

Article 14    The Customs shall implement computer network administration for bonded warehouses, and may at any time send delegates to bonded warehouses to inspect acceptance, delivery and storage of goods and the relevant account books. When the Customs deems it necessary, it may, jointly with the warehouse operator, add locks to the bonded warehouse or directly send personnel to supervise the warehouse; the warehouse operator shall provide the Customs with office space and necessary working conditions.

Article 15    The persons in charge and management personnel of bonded warehouse operators shall be familiar with the relevant Customs rules and regulations, comply with the control requirements of the Customs, and accept training by the Customs.

Article 16    Bonded warehouse operators shall truthfully fill out the relevant forms and documents and warehouse account books, record truthfully and reflect fully the business activities and financial status thereof, compile the warehouse's monthly records of acceptance, delivery and storage, and submit to the Customs in charge on a regular basis.

Article 17    If a bonded warehouse operator needs to change its name, form of organisation, legal representative or other items, it shall submit, prior to the change, a written report to the Customs in charge, stating the changed items, reasons therefor and timing of such change; following the change, the Customs shall conduct re-verification in accordance with the provisions of Article 8 of these Regulations.

If a bonded warehouse needs to change its name, address, storage area (or capacity) and other items, the Customs in charge shall, upon acceptance of the application, submit it to the direct reporting Customs for approval.

Article 18    Where a bonded warehouse wishes to terminate bonded storage services, the bonded warehouse operator shall submit a written application, and upon the acceptance of the Customs in charge and the approval of the direct reporting Customs, return the "Bonded Warehouse Registration Certificate" and complete de-registration formalities.

第四章 ADMINISTRATION OF GOODS STORED IN BONDED WAREHOUSES

Article 19    When the goods in bonded warehouse are put into storage, the consignee and consignor or their agents shall present the relevant documents to the Customs for declaration and storage of goods; the Customs shall verify the product type, quantity and value of goods declared for storage, and approve and register such goods accordingly.

Article 20    Goods stored in bonded warehouses may be packaged, graded and classified, marked, disassembled, assembled or undergo other simple processing, but shall not undergo any substantive processing.

Goods stored in bonded warehouses shall not, without Customs approval, be sold, transferred, mortgaged, pledged, detained, used for other purposes or be disposed of in any other way.

Article 21    When the following goods stored in a bonded warehouse exit the warehouse, they shall be exempt from Customs duties and import-related withholding taxes in accordance with the law:

(1) Spare parts to be used to repair foreign products free of charge during the warranty period, which comply with the relevant provisions on compensation for unpriced goods;

(2) Fuels and other materials to be used by international vessels and aircraft; and

(3) Any other goods stipulated by the State to be tax-exempt.

Article 22    The time limit for storage of goods in a bonded warehouse shall be 1 year. The period may be extended with Customs approval, if there is a legitimate reason; except for special circumstances, the extension shall not exceed one year.

Article 23    Where the goods stored in a bonded warehouse fall under any of the following circumstances, the formalities for exit may be completed with Customs approval, and the Customs shall conduct administration, inspection and clearance according to the corresponding regulations:

(1) Exported out of China;

(2) Transferred into bonded zones or export processing zones in China, or transferred to another bonded warehouse for continuing bonded supervision;

(3) Converted to imports for processing trade;

(4) Sold in China domestic market; and

(5) Any other circumstances stipulated by the Customs.

Article 24    Where goods stored in bonded warehouses are transported to another location in China, the consignee and consignor or their agents shall complete an import declaration form, attach a storage exit voucher and other relevant documents for Customs declaration; and the bonded warehouse shall complete storage exit formalities with the Customs, and dispatch the goods on the basis of the declaration form which is signed and sealed by the Customs for clearing.

Where goods in bonded warehouse are dispatched in small batch and quantities but on a frequent basis, consolidated declarations may be made with Customs approval.

Article 25    Where goods in a bonded warehouse are to be re-transported out of China, the consignor or their agent shall complete an export declaration form, attach the storage exit voucher and other relevant documents for Customs declaration; the bonded warehouse shall complete storage exit formalities with the Customs, and dispatch the goods on the basis of the declaration form which is signed and sealed by the Customs for clearing.

Chapter 5 LEGAL LIABILITY

Article 26    Except for force majeure events, where goods stored in a bonded warehouse are damaged or destroyed during the term of storage, the bonded warehouse shall pay taxes for the damaged or destroyed goods to the Customs in accordance with the law, and assume the corresponding legal liabilities.

Article 27    Where the goods stored in a bonded warehouse fail to apply for extension upon expiry of storage period, or the goods have not been re-exported out of China or converted into import after the expiry of extended storage period, the Customs shall deal with the situation in accordance with the provisions of Article 5 of the Measures of the Customs of the People's Republic of China on Handling Expired and Undeclared Imports, Imports Unloaded by Mistake or in Excess and Abandoned Imports.

Article 28    After the establishment, alteration or termination of a bonded warehouse, If the Customs discovers that the original application materials are incomplete or incorrect, it shall order the bonded warehouse operator to supplement or correct the materials within a specified time limit; on discovery of concealment of factual information, provision of false materials or other illegal conduct by a bonded warehouse operator, the Customs shall punish it in accordance with the law.

Article 29    Where a bonded warehouse operator falls under any of the following circumstances, the Customs shall order it to make correction, and may issue a warning or impose a fine of less than RMB10,000; where there is any illegal income, a fine of less than three times the amount of illegal income, capped at RMB30,000, shall be imposed:

(1) Non-bonded goods are stored in a bonded warehouse without Customs approval;

(2) Unauthorised establishment of a branch of a bonded warehouse;

(3) Poor management of the bonded goods or the account books are not in order; or

(4) Formalities for changes in operational matters are not completed in accordance with the provisions of Article 17.

Article 30    For any other illegal conduct in violation of these Regulations, the Customs shall impose penalties in accordance with the Customs Law of the People's Republic of China and the Implementation Regulations for Administrative Penalties of the Customs Law of the People's Republic of China. Where the case constitutes a criminal offence, criminal liability shall be pursued in accordance with the law.

Chapter 6 SUPPLEMENTARY PROVISIONS

Article 31    The documents stipulated in these Regulations shall be separately formulated and promulgated by the General Administration of Customs.

Article 32    The General Administration of Customs shall be responsible for the interpretation of these Regulations.

Article 33    These Regulations shall be effective 1 February 2004. The Administrative Measures of the Customs of the People's Republic of China on Bonded Warehouses and the Goods Stored Therein implemented on 1 May 1988 shall be repealed simultaneously.