Promulgation Authorities:  General Administration of Customs

Promulgation Date:  2018.05.29

Effective Date:  2018.07.01

Validity Status:  valid

Measures of the Customs of the People's Republic of China on Inspection of Bonded Zone Operations

Measures of the Customs of the People's Republic of China on Inspection of Bonded Zone Operations (Revised in 2018)

Chapter 1 GENERAL PRINCIPLES

Article 1   These Measures are formulated pursuant to the provisions of the Customs Law of the People's Republic of China (hereinafter referred to as the "Customs Law") and other relevant laws and administrative regulations for the purposes of standardising Customs inspection of bonded zone operations and strengthening Customs supervision and administration over bonded zone operations.

Article 2   The inspection of bonded zone operations mentioned in these Measures shall refer to the verification and checking of processed goods in bonded zones and logistics goods in bonded zones within the regulatory period, the inspection and supervision over processing enterprises in bonded zones and logistics enterprises in bonded zones, and the inspection and supervision of the veracity and legitimacy of business activities pertaining to bonded zone operations within special Customs control regions and bonded zone monitored premises by the Customs pursuant to the law.

Article 3   The bonded zone regulatory department of the Customs shall organise the implementation of inspection of bonded zone operations.

Article 4   The inspection of bonded zone operations shall be jointly carried out by two or more Customs inspectors.

When the Customs inspectors carry out an inspection, they shall present their Customs inspection pass. The Customs inspection pass shall be printed and issued by the General Administration of Customs.

Article 5   Processing enterprises in bonded zones, logistics enterprises in bonded zones, and business enterprises in special Customs control regions and bonded zone monitored premises (hereinafter referred to as the "party subject to inspection") may request the Customs in writing to keep confidentiality for their commercial secrets and list out specifically the contents required to be kept confidential.

The Customs shall keep information pertaining to commercial secrets provided by the party subject to inspection properly pursuant to the relevant provisions.

Article 6   The party subject to inspection shall adopt a unified accounting system and keep separate accounts for bonded goods and non-bonded goods.

The party subject to inspection shall keep standardised accounts books and financial statements pursuant to the provisions of the Accounting Law of the People's Republic of China and relevant laws, and administrative regulations to record the financial status of an enterprise in a bonded zone and the information pertaining to the importation, exportation, storage, transfer, sale, use, consumption, etc. of bonded goods, to fill in the relevant vouchers and accounts books truthfully, and to carry out bookkeeping and accounting based on lawful and valid vouchers.

The party subject to inspection shall keep the aforesaid information within the regulatory period of the Customs for bonded goods and the three-year period thereafter.

Article 7   The Customs may carry out on-site inspection of the party subject to inspection through verifying data, inspecting vouchers, carrying out stocktaking, matching accounts against inventory, etc., or carry out document inspection based on the relevant documents and materials  submitted by the party subject to inspection.

Chapter 2 SCOPE OF INSPECTION OF BONDED ZONE OPERATIONS

Section 1 Inspection of Processing Operations in Bonded Zones

Article 8    The Customs may carry out an inspection of processed goods in bonded zones and the relevant processing enterprises in bonded zones during the period from the date of application by processing enterprises in bonded zones to the Customs for filing processing operations in bonded zones to the date of cancellation and file-closing of the handbook for processing operations in bonded zones by the Customs, or during the period from the date of commencement of cancellation cycle for electronic handbook of processing enterprises in bonded zones which is subject to network monitoring to the date of ending of cancellation cycle for their electronic handbook.

Article 9   When carrying out an inspection of a processing enterprise in a bonded zone, the Customs shall inspect:

(1) whether the basic information of an enterprise like the factories, warehouses and main production facilities of the processing enterprise in a bonded zone, its legal representatives and key persons-in-charge, etc. matches the filed information;

(2) whether the processing enterprise in a bonded zone keeps standardised, complete accounts books;

(3) whether the processing enterprise in a bonded zone completes the Customs formalities pursuant to the provisions regarding the division, merger or bankruptcy of the enterprise, etc.; and

(4) whether the processing enterprise in a bonded zone carrying out deep processing carry-over or outbound processing business complies with the relevant provisions of the Customs on the conditions and capacity for deep processing carry-over or outbound processing.

Article 10   When carrying out an inspection of processed goods in a bonded zone, the Customs shall inspect whether the following match the actual circumstances:

(1) commodity name, commodity code, specifications and model number, price, place of origin, quantity, etc. of imported materials and exported finished products declared by the processing enterprise in a bonded zone;

(2) unit consumption information declared by the processing enterprise in a bonded zone;

(3) commodity name, commodity code, specifications and model number, price, quantity, etc. of bonded goods for sale in domestic markets declared by the processing enterprise in a bonded zone;

(4) commodity name, commodity code, specifications and model number, quantity, etc. of goods declared by the processing enterprise in a bonded zone for transfer of bonded materials to another processing trade enterprise for further processing for the purpose of exportation of the processed goods, and for commissioning of another enterprise to carry out processing of processing trade goods with the approval of the Customs and the processed goods are shipped back to the commissioning enterprise for exportation;

(5) commodity name, commodity code, specifications and model number, quantity, etc. of bonded goods in an application by the processing enterprise in a bonded zone for forfeiture of bonded goods;

(6) commodity name, commodity code, specifications and model number, quantity, extent of damage, price confirmation, etc. of bonded goods damaged in a disaster declared by the processing enterprise in a bonded zone; and

(7) commodity name, quantity, etc. of non-valuated facilities of the processing enterprise in a bonded zone.

Section 2 Inspection of Logistics Operations in Bonded Zones

Article 11   The Customs may carry out an inspection of goods for bonded logistics and the relevant logistics enterprises in a bonded zone during the period from the date of shipment of the goods for bonded logistics to the special Customs control regions and bonded zone monitored premises to the date of shipment of the same out of the special Customs control regions and bonded zone monitored premises.

Article 12   When carrying out an inspection of a logistics enterprise in a bonded zone, the Customs shall inspect:

(1) whether the basic information of an enterprise like the factories, and warehouses of the logistics enterprise in a bonded zone, its legal representatives and key persons-in-charge, etc. matches the filed information;

(2) whether the logistics enterprise in a bonded zone keeps standardised, complete accounts books; and

(3) whether the logistics enterprise in a bonded zone completes the Customs formalities pursuant to the provisions regarding the division, merger or bankruptcy of the enterprise, etc.

Article 13   When carrying out an inspection of goods for bonded logistics, the Customs shall inspect whether the following match the actual circumstances:

(1) inward and outward movement, inventory, transfer, simple processing, use, etc. of goods for bonded logistics;

(2) sale, transfer, mortgage, pledge, lien, diversion to other applications or proceeding of other form of disposal of goods for bonded logistics;

(3) commodity name, commodity code, specifications and model number, price, quantity, etc. of bonded goods for sale in domestic markets by the logistics enterprise in a bonded zone;

(4) commodity name, commodity code, specifications and model number, quantity, etc. of goods in an application by the logistics enterprise in a bonded zone for forfeiture of bonded goods; and

(5) commodity name, commodity code, specifications and model number, quantity, extent of damage, price confirmation, etc. of bonded goods damaged in a disaster declared by the logistics enterprise in a bonded zone.

Section 3 Inspection of Special Customs Control Regions and Bonded Zone Monitored Premises

Article 14   The Customs may carry out an inspection of the management and business activities of special Customs control regions and bonded zone monitored premises during the period from the date on which such special Customs control regions and bonded zone monitored premises passed the inspection to the date of the expiry of the business term.

Article 15   When carrying out an inspection of a special Customs control region, the Customs shall inspect whether the following items comply with the relevant provisions:

(1) isolation facilities, and monitoring and surveillance facilities of the special Customs control region;

(2) residential facilities and commercial consumption facilities for staff members in the special Customs control region;

(3) establishment of computer public information platform by the management agency in the special Customs control region;

(4) application of computer management system by parties subject to inspection in the special Customs control region; and

(5) keeping of accounts books and statements by business enterprises in the special Customs control region.

Article 16   The Customs shall carry out an inspection of the following in bonded zone monitored premises:

(1) whether the specific warehouses are used for designated purposes in the Customs bonded zone monitored premises;

(2) whether the parties subject to inspection in the Customs bonded zone monitored premises apply a computer management system which satisfies the regulatory requirements of the Customs, and implement a computer linkup with the Customs; and

(3) whether the business enterprises in the Customs bonded zone monitored premises keep accounts books, statements, etc. which satisfies the regulatory requirements of the Customs.

Chapter 3 PROCEDURES FOR INSPECTION OF BONDED ZONE OPERATIONS

Section 1 Preparation for Inspection

Article 17   Prior to carrying out an inspection, the Customs shall determine the parties subject to inspection and formulate the work plan for Customs inspection, taking into account the enterprises in the bonded zone, the importation and exportation of bonded goods, and the business activities in the special Customs control regions and bonded zone monitored premises.

Article 18    Prior to carrying out an inspection, the Customs shall notify the parties subject to inspection.

Under special circumstances and with the approval of the Director-General of the Customs, the Customs may proceed with the inspection.

Article 19   Where the party subject to inspection has provided an audit report issued by an intermediary recognised by the Customs, and upon examination and verification of the audit report by the Customs, the Customs may exempt the party subject to inspection from the implementation of the inspection of bonded zone operations; the Customs may, if deemed necessary, appoint an intermediary to issue a professional opinion.

Section 2 Implementation of Inspection

Article 20   The Customs inspectors may exercise the following powers when carrying out an inspection:

(1) inspect and make copies of contracts, invoices, receipts, accounts books, business correspondence and other relevant materials of the party subject to inspection which relate to bonded zone operations (hereinafter referred to as the "accounts books and vouchers");

(2) enter the production and business premises, and goods storage premises of the party subject to inspection to inspect the status of production and business activities and goods which relate to bonded zone operations; and

(3) query the legal representatives, key persons-in-charge or other relevant personnel of the party subject to inspection on matters relating to bonded zone operations.

Article 21   The party subject to inspection shall accept and cooperate in the Customs inspection of bonded zone operations, provide facilitation support necessary for the inspection, give truthful feedback, provide the relevant accounts books and documents etc required by the Customs inspection of bonded zone operations, and shall not refuse or delay inspection, and conceal information.

When the Customs inspect and make copies of the relevant materials of the party subject to inspection or enter the production and business premises and goods storage premises of the party subject to inspection to carry out an inspection, the relevant person-in-charge of the party subject to inspection or his/her designated representative shall be present and shall check inventory and accounts books, open up goods storage premises, and move or unpack the goods according to the requirements of the Customs.

Where the party subject to inspection has entrusted bookkeeping tasks to other organisations and personnel, the entrusted party and the party subject to inspection shall jointly cooperate with the Customs in the inspection of the relevant accounting information.

Article 22   The relevant information, data, etc. obtained by the Customs during the process of inspection shall be endorsed and confirmed by the party subject to inspection.

Article 23   When the Customs inspection is completed, the inspectors shall fill in the "Work Record for Customs Inspection of Bonded Zone Operations" and affix their signature thereto.

In the event of an on-site inspection, the "Work Record for Customs Inspection of Bonded Zone Operations" shall be signed or sealed by the relevant person-in-charge or his/her designated representative of the party subject to inspection; where the relevant person-in-charge or his/her designated representative of the party subject to inspection refuses to sign or affix the seal thereto, the Customs inspectors shall state so on the "Work Record for Customs Inspection of Bonded Zone Operations".

Section 3 Action following Inspection

Article 24   Upon the completion of inspection, the Customs shall archive the "Work Record for Customs Inspection of Bonded Zone Operations" and relevant materials or keep an electronic file for record.

Article 25   The Customs shall make a conclusion on the inspection of bonded zone operations within 15 working days after the completion of the inspection of bonded zone operations and notify the party subject to inspection.

Where there is an error in the conclusion on the inspection of bonded zone operations, the Customs shall make amendments.

Article 26    Where the party subject to inspection is found not to be in compliance with the regulatory requirements of the Customs in the process of Customs inspection of bonded zone operations, the Customs may adopt the following methods and fill in a "Notice of Action following Inspection of Bonded Zone Operations" to notify the party subject to inspection in writing:

(1) order the party subject to inspection to complete the relevant formalities retrospectively;

(2) order the party subject to inspection to make amendments; and

(3) order the party subject to inspection to provide guarantee pursuant to the relevant provisions.

Article 27   Violations of these Measures, which constitute smuggling, violations of Customs regulatory provisions or other violations of the Customs Law, shall be dealt with by the Customs pursuant to the relevant provisions of the Customs Law and the Implementation Regulations of the Customs of the People's Republic of China on Administrative Penalties; where the case constitutes a criminal offence, criminal liability shall be pursued in accordance with the law.

Chapter 4 SUPPLEMENTARY PROVISIONS

Article 28    The following terms used in these Measures shall be defined as follows:

Enterprises in bonded zones shall refer to enterprises filed or registered with the Customs, which engage in processing operations in bonded zones, engage in logistics operations in bonded zones or operate special Customs control regions or bonded zone monitored premises lawfully pursuant to the bonded zone policies.

Processing operations in bonded zones shall refer to manufacturing business activities approved by the Customs, which include processing supplied materials, processing imported materials, or undergoing research and development, processing, assembly, manufacturing and relevant complementary services for imported and exported bonded goods under other regulatory methods.

Logistics operations in bonded zones shall refer to service business activities approved by the Customs, which include domestic circulation of goods where import tax payment formalities are pending or goods where exportation formalities have been completed.

Article 29   The documents stipulated in these Measures shall be separately formulated and promulgated by the General Administration of Customs.

Article 30   The General Administration of Customs shall be responsible for the interpretation of these Measures.

Article 31   These Measures shall be implemented with effect from 1 June 2008.