Promulgation Authorities:  General Administration of Customs

Promulgation Date:  2009.08.19

Effective Date:  2009.09.01

Validity Status:  valid

Document Number:  General Administration of Customs Order No. 184

Provisional Measures of the Customs of the People's Republic of China on Tax Payment Guarantee and Compulsory Measures

Provisional Measures of the Customs of the People's Republic of China on Tax Payment Guarantee and Compulsory Measures

General Administration of Customs Order No. 184

Promulgated on 19 August 2009

Article 1   These Measures are formulated pursuant to the Customs Law of the People's Republic of China and the Regulations of the People's Republic of China on Import and Export Duties for the purposes of standardising Customs' implementation of tax payment guarantee and compulsory measures, assuring tax collection of the State and safeguarding the legitimate rights and interests of taxpayers.

Article 2   These Measures shall apply to Customs' implementation of tax payment guarantee and compulsory measures.

Article 3   Where it is evident that a taxpayer engaging in importation or exportation of goods is moving or concealing taxable goods and other properties within a stipulated tax payment period, the Customs shall issue a "Notice of Provision of Guarantee Ordered by the Customs of the People's Republic of China" to require that the taxpayer provides a guarantee recognised by the Customs within the period stipulated by the Customs.

Where the taxpayer is unable to provide the guarantee required by the Customs within the period stipulated by the Customs, upon approval of the Director of a Customs office directly under the General Administration of Customs or the Director of a subordinate Customs office authorised by a Customs office directly under the General Administration of Customs, the Customs shall adopt tax payment guarantee measures.

Article 4   Where tax payment guarantee measures are adopted pursuant to the provisions of Article 3 of these Measures, the Customs shall notify the account opening bank of the taxpayer or any other financial institution (hereinafter referred to collectively as the "financial institutions") in writing to suspend payment of a deposit which is equivalent to the tax payable amount to the taxpayer.

Where the suspension of payment measures cannot be implemented due to inability to identify the account or deposit balance, etc, of the taxpayer, goods or other properties of the taxpayer of value equivalent to the tax payable amount shall be detained.

Where the goods or other properties of the taxpayer are indivisible, and there is no other properties which can be detained, the value of the goods or other properties detained may exceed the tax payable amount.

Article 5   Where the Customs has notified a financial institution to suspend payment of a deposit to the taxpayer, a "Notice of the Customs of the People's Republic of China on Suspension of Payment" shall be issued to the financial institution, setting out the amount and period for suspension of payment.

Where the Customs has confirmed that the financial institution has suspended payment of the corresponding amount, a "Notification of the Customs of the People's Republic of China on Suspension of Payment" shall be issued to the taxpayer.

Article 6   Where the taxpayer has made tax payment within the stipulated tax payment period, the Customs shall issue a "Notice of the Customs of the People's Republic of China on Lifting of Suspension of Payment" to the financial institution to lift the suspension of payment measures implemented for the corresponding deposit of the taxpayer.

Under the circumstances stipulated in the first paragraph of this Article, the Customs shall issue a "Notification of the Customs of the People's Republic of China on Lifting of Suspension of Payment" to the taxpayer.

Article 7   Where the taxpayer failed to make tax payment within 15 days from the date of issuance of the tax payment notice by the Customs, upon approval of the Director of a Customs office directly under the General Administration of Customs or the Director of a subordinate Customs office authorised by a Customs office directly under the General Administration of Customs, the Customs shall issue a "Notice of the Customs of the People's Republic of China on Withholding of Tax" to the financial institution, notifying the financial institution to withhold the corresponding tax from the amount for which payment is suspended.

Where the Customs has confirmed withholding of tax by the financial institution, a "Notification of the Customs of the People's Republic of China on Withholding of Tax" shall be issued to the taxpayer.

Article 8   Where the Customs has detained goods or other properties of the taxpayer of value equivalent to the tax payable amount pursuant to the provisions of Article 4 of these Measures, a "Detention Notice of the Customs of the People's Republic of China" shall be issued to the taxpayer, and a list of detained items shall be attached.

The list of detained items shall state the descriptions, specifications, quantity, weight, etc, of the goods or other properties detained; where it is unable to determine the descriptions, specifications, quantity, weight, etc, on the spot, the external characteristics shall be described as complete as possible. The list of detained items shall be confirmed and signed or sealed by the taxpayer or its agent or custodian.

Article 9   Where the taxpayer has made tax payment within 15 days from the date of issuance of the tax payment notice by the Customs, the Customs shall lift the detention measures and issue a "Notice of the Customs of the People's Republic of China on Lifting of Detention" to the taxpayer with the attachment of a list of returned items; the relevant goods and properties shall be returned to the taxpayer. The list of returned items shall be confirmed and signed or sealed by the taxpayer or its agent.

Article 10   Where the taxpayer failed to make tax payment within 15 days from the date of issuance of the tax payment notice by the Customs, the Customs shall issue a "Notice of the Customs of the People's Republic of China on Offsetting of Tax" to the taxpayer; the goods or other properties detained shall be sold pursuant to the law and the proceeds from sale shall be used to offset the tax amount.

Under the circumstances stipulated in the first paragraph of this Article, where the proceeds from sale are insufficient to offset the tax amount, the Customs shall continue to adopt compulsory measures to offset the difference of tax amount; the balance upon offsetting of tax amount and deduction of the relevant expenses using the proceeds from sale shall be returned to the taxpayer.

Article 11   Where the taxpayer engaging in importation or exportation of goods and the guarantor failed to make tax payment more than three months from the date of expiry of the stipulated tax payment period, upon approval of the Director of a Customs office directly under the General Administration of Customs or the Director of a subordinate Customs office authorised by a Customs office directly under the General Administration of Customs, the Customs may adopt the following compulsory measures in sequential order:

(1) notify the financial institution in writing to withhold the tax from the deposit;

(2) sell the taxable goods pursuant to the law and use the proceeds from sale to offset the tax amount; or

(3) detain and sell goods or other properties of value equivalent to the tax payable amount pursuant to the law and use the proceeds from sale to offset the tax amount.

Article 12   Under the circumstances stipulated in Article 11 of these Measures, where the Customs has notified the financial institution to withhold tax, a "Notice of the Customs of the People's Republic of China on Withholding of Tax" shall be issued to the financial institution, notifying the financial institution to withhold the corresponding tax from the deposit of the taxpayer and the guarantor.

Where the financial institution has withheld tax, the Customs shall issue a "Notification of the Customs of the People's Republic of China on Withholding of Tax" to the taxpayer and the guarantor.

Article 13   Under the circumstances stipulated in Article 11 of these Measures, a late payment fine shall be levied for the period from the date of expiry of the stipulated tax payment period to the date of withholding of tax, and withheld simultaneously.

Article 14   Under the circumstances stipulated in Article 11 of these Measures and the Customs has decided to sell the taxable goods or detained goods or other detained properties of value equivalent to the tax payable amount and use the proceeds from sale to offset the tax amount, a "Notification of the Customs of the People's Republic of China on Offsetting of Tax" shall be issued to the taxpayer and the guarantor.

Under the circumstances stipulated in the first paragraph of this Article, where the proceeds from sale are insufficient to offset the tax amount, the Customs shall continue to adopt compulsory measures to offset the difference of tax amount; the balance upon offsetting of tax amount and deduction of the relevant expenses using the proceeds from sale shall be returned to the taxpayer and the guarantor.

Article 15   Where the goods or other properties are detained pursuant to Article 8 and Article 14 of these Measures, the Customs shall keep the goods or other properties detained properly and shall not use or destroy the detained goods or properties arbitrarily.

Article 16   Where it is unable to adopt tax payment guarantee measures or compulsory measures, or it is unable to collect the full amount of tax even when tax payment guarantee measures or compulsory measures have been adopted pursuant to the provisions of these Measures, the Customs shall apply to a People's Court for mandatory enforcement pursuant to the law and submit the relevant materials required by the Court.

Article 17   Where the goods or other properties are detained pursuant to Article 8 and Article 14 of these Measures, there shall be not less than two Customs officers implementing the detention, and the Customs officers shall present their enforcement credentials.

Article 18   A taxpayer or guarantor who disagrees with the tax payment guarantee measures or compulsory measures adopted by the Customs may apply for administrative review or file an administrative lawsuit pursuant to the law.

Article 19   Where the taxpayer has made tax payment within the stipulated tax payment period, but the Customs does not lift the tax payment guarantee measures or where the tax payment guarantee measures or compulsory measures adopted are inappropriate and cause harm to the legitimate rights and interests of the taxpayer or guarantor, the Customs shall bear compensation liability.

Article 20   Receipt of legal documents set out in these Measures shall be acknowledged by the taxpayer or its agent, the guarantor, the custodian, etc, by way of signature or affixation of seal; where the taxpayer or its agent, the guarantor, the custodian, etc, refuses to sign or affix seal thereto, the Customs officers shall make a note on the relevant legal documents and a witness shall sign or affix seal thereto.

Article 21   Where the Customs officers do not adopt tax payment guarantee measures or compulsory measures pursuant to the law and harm State interests or the legitimate rights and interests of the taxpayer or guarantor, and the consequences are serious, punishment shall be meted out pursuant to the law. Where the case constitutes a criminal offence, criminal liability shall be pursued in accordance with the law.

Article 22   Where the taxpayer or guarantor refuses or obstructs tax payment guarantee measures or compulsory measures adopted by the Customs pursuant to the law, the case shall be forwarded to the local public security bureau for handling pursuant to the law. Where the case constitutes a criminal offence, criminal liability shall be pursued in accordance with the law.

Article 23   The legal documents set out in these Measures shall be separately formulated and promulgated by the General Administration of Customs.

Article 24   The General Administration of Customs shall be responsible for interpretation of these Measures.

Article 25   These Measures shall be effective 1 September 2009.