Promulgation Authorities:  General Administration of Customs

Promulgation Date:  2016.09.26

Effective Date:  2016.11.01

Validity Status:  valid

Document Number:  General Administration of Customs Order No. 230

Implementation Measures of the Customs Inspection Regulations of the People's Republic of China (2016)

Implementation Measures of the Customs Inspection Regulations of the People's Republic of China (2016)

General Administration of Customs Order No. 230

Chapter 1 General Principles

Article 1    These Measures are formulated pursuant to the Customs Law of the People's Republic of China and related laws and administrative regulations for the purpose of effective implementation of the Customs Inspection Regulations of the People's Republic of China (hereinafter referred to as the "Inspection Regulations").

Article 2    Enterprises and organisations directly related to imports and exports as stipulated in Article 3 of the Inspection Regulations shall include:

(1) enterprises and organisations engaging in foreign trade;

(2) enterprises engaging in foreign processing trade;

(3) enterprises engaging in protective tax business;

(4) enterprises and organisations using or operating tax-reduced or tax-exempt imports;

(5) enterprises engaging in Customs declaration business;

(6) actual consignee or consignor of imports or exports; and

(7) other enterprises and organisations directly related to imports and exports.

Article 3    The Customs implements inspection for the following importation and exportation activities of enterprises and organisations directly related to imports and exports  (hereinafter referred to collectively as the "import and export enterprises and organisations"):

(1) import and export declaration;

(2) payment of import and export tariffs and other taxes and fees;

(3) inspection of import and export permits and the relevant documentation;

(4) recording and safekeeping of materials relating to imports and exports;

(5) importation, use, storage, servicing, processing, sale, transportation, exhibition and re-exportation of bonded goods;

(6) use and management of tax-reduced or tax-exempt imports; and

(7) other import and export activities.

Article 4    The Customs may, based on the requirements of inspection work, conduct trade investigation through onsite walkabouts, visiting consultation, correspondence enquiry, online survey and entrusted investigation etc with the relevant industry associations, government departments and the relevant enterprises etc, to collect the following information:

(1) supervision and administration information of government departments;

(2) information on specific industries, main profile of the enterprise, trade practices, manufacturing and business operation, market structure etc;

(3) information on technical specifications or technical parameters such as structure, ingredients, grade, functions, uses, workflow and working principle of specific commodities, as well as prices etc; and

(4) other information relating to import and export activities.

The relevant government departments, financial institutions, industry associations and the relevant enterprises etc shall cooperate with trade investigation conducted by the Customs, and provide the relevant information.

Chapter 2 Administration of Accounts and Documents

Article 5    The imports and export enterprises and organisations shall set up, formulate and keep accounts books, accounting vouchers, accounting statements and other accounting materials pursuant to the provisions of the Accounting Law of the People's Republic of China and other relevant laws and administrative regulations, establish an internal management system, record and reflect import and export activities truthfully, accurately and completely.

The imports and export enterprises and organisations shall formulate and keep materials such as original documents and records etc which can reflect import and export activities truthfully.

Article 6    The imports and export enterprises and organisations shall retain Customs declaration documents, import and export documentation, contracts as well as other materials or electronic data related directly to import and export business, within the period stipulated in Article 2 of the Inspection Regulations.

Chapter 3 Implementation of Customs Inspection

Article 7    Customs inspection shall be implemented by the Customs at the place of registration of the party being inspected. Where the place of registration of the party being inspected differs from the place of Customs declaration for the goods or the place of importation or exportation, Customs inspection may be implemented by the Customs at the place of Customs declaration or the place of importation or exportation.

The General Administration of Customs may designate or organise the lower-level Customs to implement inspection across Customs zones. Direct-reporting Customs offices may designate or organise the lower-level Customs to implement inspection within the scope of their Customs zones.

Article 8    Customs inspection shall be implemented by officers who hold inspection and enforcement qualification, and Customs inspector credentials shall be presented to the party being inspected at the time of implementation of inspection.

Article 9    The Customs shall issue a "Notice of Customs Inspection" to the party being inspected three days before implementation of inspection.

Where advance notice is not given for implementation of inspection, the Customs shall issue a "Notice of Customs Inspection" to the party being inspected at the time of commencement of inspection.

Article 10    During Customs inspection, the Customs inspector shall abstain from the inspection under any of the following circumstances:

(1) the legal representative or key person-in-charge of the party being inspected is an immediate relative of the Customs inspector;

(2) the Customs inspector or his/her immediate relative(s) has/have a stake in the party being inspected; or

(3) the Customs inspector or his/her immediate relative(s) is/are otherwise related to the party being inspected, and this may prevent Customs inspection work from being carried out normally.

The party being inspected may apply for abstention of a Customs inspector if there is a proper reason, but the relevant Customs inspector shall not stop performing inspection task before the Customs issues a decision for his/her abstention.

Article 11    When a Customs inspector reads or makes copies of the accounts books, accounting vouchers, Customs declaration documents as well as other relevant materials of the party being inspected (hereinafter referred to collectively as the "relevant accounts and documents"), the legal representative or the key person-in-charge of the party being inspected or his/her designated representative (hereinafter referred to collectively as "representatives of the party being inspected") shall be present onsite and pursuant to Customs requirements, provide information truthfully and facilitate Customs inspection work.

For photocopying of the relevant accounts and documents of the party being inspected, the representative of the party being inspected shall, upon confirming that the photocopies are true copies of the original copies, state the source, page number, photocopying time and the words "certified true copies" on the photocopies, and sign and seal thereon.

Where the relevant accounts and documents of the party being inspected are written in a foreign language, a Chinese translation which satisfies the Customs requirements shall be provided.

Article 12    Where the party being inspected uses modern information technology such as computers and online communications etc for business management, it shall provide the electronic data of the relevant accounts and documents to the Customs, grant access to the relevant systems, and provide user manual and other relevant materials as required by the Customs. Where the electronic data of the party being inspected is being replicated, the preparation method, preparation date, producer and data contents, as well as place of storage of original medium, shall be stated, and the producer and the representative of the party being inspected shall sign and seal thereon.

Article 13    Where it is not possible to read or make copies at the premise(s) of the party being inspected, upon consent of the party being inspected, the Customs inspector may read or make copies at another venue.

Where the Customs inspector needs to read or make copies at another venue, he/she shall complete a "Transfer Form for Customs Inspection"; upon checking and verification by both parties, the Customs inspector shall sign, and the representative of the party being inspected shall sign and seal on the "Transfer Form for Customs Inspection".

Article 14    When a Customs inspector enters the production and business premises or storage premises of goods of the party being inspected, to inspect manufacturing and business conditions and goods relating to import and export activities, the representative of the party being inspected shall be present onsite, open up premises, move the goods as required by the Customs, open up and re-pack goods etc.

The Customs inspector shall record the inspection findings in an "Inspection Records", the Customs inspector shall sign and the representative of the party being inspected shall sign and seal on the "Inspection Records".

Article 15    When a Customs inspector interviews the legal representative, key person-in-charge and other relevant personnel of the party being inspected, he/she shall prepare "Interview Transcripts" which shall be signed and confirmed by the interviewer, the recorder and the interviewee.

Article 16    During Customs inspection, the Customs may collect materials and proof documents related to import and export activities from enterprises and organisations which have financial dealings or other business transactions with the party being inspected, and the relevant enterprises and organisations shall render cooperation to the Customs.

Article 17    Upon approval by the Director of the direct-reporting Customs or the Director of a subordinate Customs of the direct-reporting Customs, the Customs may present a "Notice on Assistance for Enquiry" to look into the deposit accounts of the party being inspected with a commercial bank or any other financial institution.

Article 18    During Customs inspection, where it is discovered that the party being inspected is likely to remove, conceal, tamper with or destroy the relevant accounts and documents, upon approval by the Director of the direct-reporting Customs or the Director of a subordinate Customs of the direct-reporting Customs, the relevant accounts and documents and the storage medium of the relevant electronic data may be seized or confiscated.

During Customs inspection, where it is discovered that the imports and exports of the party being inspected may have violate the Customs Law or other relevant laws and administrative regulations, upon approval by the Director of the direct-reporting Customs or the Director of a subordinate Customs of the direct-reporting Customs, the relevant imports and exports may be seized or confiscated.

Seizure and confiscation by Customs shall comply with the Administrative Enforcement Law of the People's Republic of China and other related laws and administrative regulations.

Article 19    Where the party being inspected has committed any of the acts stipulated in Article 30 and Article 31 of the Inspection Regulations, the Customs shall issue a "Notice of Correction Within a Stipulated Period Ordered by the Customs" to notify the party being inspected of the correction to be made and the deadline, and shall inspect the correction made.

Where the party being inspected refuses to make correction within the stipulated period, the Customs may adjust its credit rating pursuant to the relevant provisions.

Article 20    Where the inspection team discovers that the party being inspected has allegedly committed a violation or there is under-collection or non-collection of taxes, it shall write to the party being inspected to seek its opinion. The party being inspected shall submit its written opinion to the inspection team within seven days from receipt of the relevant materials.

Article 21    Following Customs inspection, the inspection team shall submit an inspection report to the Customs. The Customs shall issue a "Customs Inspection Conclusion" within 30 days from receipt of the inspection report, and serve it on the party being inspected.

Article 22    Under any of the following circumstances, upon approval by the Director of the direct-reporting Customs or the Director of a subordinate Customs of the direct-reporting Customs, the Customs may terminate the inspection:

(1) the party being inspected has gone missing; or

(2) the party being inspected is terminated, and there is no successor of its rights and obligations.

Article 23    Where the Customs discover that the party being inspected has not set up or prepared accounts books pursuant to the provisions, or has removed, concealed, tampered with or destroyed its accounts books, the Customs shall report such information to the financial department of the People's Government of county level and above at the location of the party being inspected.

Article 24    During Customs inspection, the Customs may entrust an accounting firm, tax firm or any other professional organisation which is qualified and competent to handle accounts and tax matters, to issue a professional opinion on the relevant issues which may, upon approval by the Customs, be deemed as proof materials for the facts ascertained by the inspection. Where the party being inspected entrusts a professional organisation to issue a professional conclusion, it can be used as reference in the Customs inspection.

Where the Customs entrusts a professional organisation, both parties shall enter into an entrustment agreement to specify the entrustment matters and rights and obligations etc.

Where the professional organisation has committed fraud, concealed facts or violated confidentiality agreement etc, the Customs shall record the event truthfully and handle the matter accordingly, and may notify the relevant authorities or industry association.

Chapter 4 Voluntary Disclosure

Article 25    Where an import or export enterprise or organisation voluntarily submits a written report to the Customs on its violation of Customs regulatory provisions, and accepts action taken by the Customs, the Customs may deem that the said enterprise or organisation has made voluntary disclosure, except under any of the following circumstances:

(1) prior to the report, the Customs has received leads on the illegal act;

(2) prior to the report, the Customs has notified the party being inspected of the inspection; or

(3) the contents of the report are grossly untrue or conceal any other illegal act.

Article 26    An import or export enterprise or organisation making voluntary disclosure shall provide the relevant proof materials such as accounts books, documentation to the Customs, and shall be responsible for the veracity, accuracy and integrity of the materials submitted.

The Customs shall verify the report submitted by the import or export enterprise or organisation making voluntary disclosure, and may require the enterprise or organisation to provide the relevant supplementary materials.

Article 27    Where an import or export enterprise or organisation making voluntary disclosure has violated Customs regulatory provisions, the Customs shall impose lighter or mitigated administrative punishment; where the illegal act is minor and promptly corrected and does not cause serious consequences, administrative punishment shall not be imposed.

Where an import or export enterprise or organisation has made voluntary disclosure and retrospective tax payment, the Customs may reduce or waive late payment fine.

Chapter 5 Supplementary Provisions

Article 28    A "day" referred to in these Measures shall refer to a calendar day. The date on which a document is served or the date on which a period commences shall be excluded from the period. Where the date of expiry of a period falls on a non-working day or a public holiday, the period shall expire on the first working day following the non-working day or the public holiday.

Article 29    Where the party being inspected refuses to acknowledge receipt of an inspection document, the Customs may invite a witness to be present, explain the situation and state the matter and the date, and the witness and at least two Customs inspectors shall sign, and the Customs may then leave the inspection document at the production and business premises of the party being inspected. The Customs may also leave the inspection document at the production and business premises of the party being inspected, and take photographs or record video of the whole process, and the party being inspection shall be deemed to have received the inspection document.

Article 30    Where the representative of the party being inspected does not sign and seal on the relevant proof materials, the Customs inspectors shall state so on the relevant materials which shall be signed by at least two Customs inspectors.

When the Customs inspect or make copies of documents or conducts inspection, where the representative of the party being inspected is not present onsite, the Customs inspectors shall state the matter and the date, and at least two Customs inspectors shall sign on the statement.

Article 31    "Sign and seal" referred to in these Measures shall mean signature by the representative of the party being inspected or affixation of the seal of the party being inspected.

Article 32    Inspection documents used pursuant to the provisions of these Measures shall be separately announced by the General Administration of Customs.

Article 33    The General Administration of Customs shall be responsible for interpretation of these Measures.

Article 34    These Measures shall be implemented with effect from 1 November 2016. The Implementation Measures for the Customs Inspection Regulations of the People's Republic of China promulgated on 1 November 2000 via General Administration of Customs Order No. 79 shall be repealed simultaneously.