China Customs Measures (Trial) on Supervision

Of

 Pingtan Comprehensive Experimental Area

Chapter 1 General Rules

Article 1 These Measures are formulated in accordance with the Customs Law of the People’s Republic of China and other relevant laws and regulations for the purposes of regulating the supervision over Pingtan Comprehensive Experimental Area (Pingtan hereinafter)

Article 2 These Measures are applicable to China Customs' supervision and inspection over the means of transport, goods and articles that entry and exit China via Pingtan, into and out of Pingtan, and over the business firms and premises registered in Pingtan with the Customs authorities.

Article 3 The ports between Pingtan and abroad are supervised as the "first line" coverage; the channels between Pingtan and other regions within China Customs are supervised as the "second line" coverage. The Customs shall implement hierarchical management under the rule of “A relaxation of the first line; a strict supervision over the second line; a separation of man and goods as well as a classified management”.

Article 4 Pingtan shall establish island-wide patrol, monitoring facilities and Customs information platform in accordance with China Customs supervision requirements; the "first line" and "second line" Customs supervision zones and intra-Pingtan Customs venues shall be equipped with necessary facilities, devices and workplaces applicable for Customs supervision. Only based upon the General Administration of Customs of the People’s Republic of China’s (GACC hereinafter) acceptance shall Pingtan carry out relevant operations.

Article 5 Registration with the Customs shall be required over the related logistical firms, Customs brokers and enterprises (enterprises hereinafter) that operate import and export business in Pingtan and are eligible for bonded treatment, tax reliefs and tax refund.

Enterprises shall set up the account books and financial statements, etc in accordance with the Customs supervision requirements and accept Customs audit or inspection.

Enterprises shall set up the computer management system to connect with Customs computer network and achieve the electronic data interchange.

Article 6 Unless otherwise regulated, the Customs shall implement electronic handbook management concerning the bonded goods, tax-relievable goods and tax-refundable goods that are carried into or out of Pingtan, or stored in Pingtan.

Article 7 China Customs shall conduct supervision over the trading markets in Pingtan for small commodities originating in Taiwan. The specific administration measures will be promulgated by the GACC separately.

Article 8 The goods prohibited from entry shall not be carried into Pingtan through the "first line"; the goods prohibited from exit shall not be carried into Pingtan through the "second line".

The intra-Pingtan enterprises shall not undertake the processing trade businesses involving any goods in The Catalogue of Commodities Prohibited from Processing Trade.

Chapter 2 Supervision over Goods Entry and Exit between Pingtan and Abroad

Article 9 Unless otherwise regulated, the Customs shall conduct registration management over the bonded goods, tax-relievable goods and tax-refundable goods that are imported and exported between Pingtan and abroad, and conduct Customs clearance procedures as required over other kinds of goods moving between Pingtan and abroad.

Article 10 The Customs shall conduct bonded or tax-exemption treatment for production-related goods importing from abroad to Pingtan, except the following goods:

(1) Goods imported for living, consumption, and commercial estate development projects;

(2) Goods prohibited by law and regulations from the bonded or tax-exemption treatment;

(3) Goods under the list prohibited from the bonded or tax-exemption treatment at the "first line" by the Ministry of Finance, the State Administration of Taxation and GACC.

Article 11 Unless otherwise regulated, the registered goods from abroad into Pingtan shall not be subject to import quota nor import license management.

The goods that are exported from Pingtan to abroad shall be subject to export quota and export license management.

Chapter 3 Supervision over Goods Entry and Exit between Pingtan and Other Regions of Chinese Mainland

Article 12 The intra-Pingtan bonded, tax-relievable and tax-refundable goods sold from Pingtan to other regions shall be subject to China Customs' import clearance formalities; the tax-refundable goods sold from other regions to Pingtan shall be subject to China Customs' export clearance formalities. The goods aforesaid shall be carried in and out of Pingtan through the declaration channel appointed by Customs.

Based upon relevant Customs formalities, those goods aforesaid may be collectively declared to the Customs but cannot be declared by spanning more than one month or year.

The Customs may inspect other goods which enter in and out of Pingtan through the un-declaration channel appointed by Customs.

The intra-Pingtan supervised goods without completion of Customs formalities, where in need of transfer to other Customs supervised regions out of Pingtan, shall be subject to the declaration formalities concerning transit shipments.

Article 13 When the production-related goods are sold to Pingtan from other regions, it shall be deemed as exportation and eligible for China Customs' tax refund regime with exclusion of the following goods:

(1) Goods for living, consumption, and commercial estate development projects;

(2) Goods prohibited by law and regulations from the tax refund;

(3) Goods under the list prohibited from the tax refund at the "second line" by the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs.

The tax-refundable goods entering Pingtan shall be stored in Customs approved place.

Article 14 With regard to the bonded goods manufactured in Pingtan and sold to other regions, the Customs shall levy import-related value-added tax and consumption tax as per the declared real state of the goods.

Regarding the bonded goods manufactured in Pingtan and sold to other mainland regions, the enterprises can apply for paying the import duties upon raw materials or upon the declared real state of the goods.

Where the enterprises didn’t apply for the taxation mode, the Customs shall levy the import duties upon the declared real state of the goods.

Where the enterprises apply for paying the duties upon materials, the following rules shall prevail:

(1) The enterprises shall apply to the Customs at the time of registration of their electronic handbook ; before the Customs levy duties, the enterprises may alter their applications;

(2) The Customs shall levy the duties upon the bonded raw materials of the goods;

(3) Where the raw materials are eligible for preferential trade, the enterprises shall declare and submit relevant certificates at the time of registration of the raw materials, otherwise they shall not be eligible for preferential duty rates when been sold to domestic. Where the raw materials are involved in anti-dumping and anti-subsidy, the Customs shall levy the duties upon relevant trade remedy measures.

Article 15 With respect to the goods under China's preferential trade policies, where in compliance with Customs rules of country of origin, the enterprises can apply for eligibility for preferential duty rates.

Article 16 The goods that are carried from Pingtan to other mainland regions shall be subject to import quota and import license management. With regard to the goods that have been verified the quota and license during the import process, the same procedure shall be exempted when goods are carried out of Pingtan.

The goods that are carried to Pingtan from other mainland regions shall not be subject to export quota and export license.

Chapter 4 Supervision over the Intra-Pingtan Goods

Article 17 Where the goods under Customs electronic handbook management transfer between intra-Pingtan enterprises, the enterprises involved shall timely declare relevant electronic data information to the Customs.

Article 18 The intra-Pingtan enterprises do not need to follow out the bank deposit account system for processing trade. The Customs shall not conduct the unit consumption standards on intra-Pingtan goods under processing trade.

Upon completion of relevant Customs formalities, the intra-Pingtan enterprises and domestic enterprises can conduct the further-processing transfer and outsourcing business under the processing trade mode.

Regarding the enterprises engaged in international service outsourcing business, the import and export formalities of which shall be processed per relevant regulations.

Article 19 Where selling bonded goods within Pingtan under any of the following circumstances, the sellers shall undertake Customs formalities and pay import duties, value-added tax and consumption tax as per Article 14 aforesaid:

(1) Sale to individuals;

(2) Sale to intra-Pingtan firms and not for production use anymore;

(3) Other taxable circumstances.

Article 20 Intra-Pingtan goods under tax reliefs shall be subject to the Customs supervisory regulations on tax reliefs.

Article 21 The tax-refundable goods that enter Pingtan from other mainland regions shall be supervised as per the regulations below:

(1) Registration shall be applied to the exit via the "first line" of the goods in original state or of the finished products from such goods;

(2) Electronic handbook management shall be applied to the intra-Pingtan sale and use for production regarding the goods in original state or the finished products from such goods;

(3) Regulations on bonded goods shall be applied to the sale of the goods in original state or of the finished products from such goods to mainland-based processing trade enterprises and also applied to their transportation to Customs supervision zones or bonded supervision venues;

(4) Where the goods in original state or the finished products from such goods fall into the infrastructure building materials of Pingtan, they shall be reconciled as per authorities' approvals and as per their consumed quantity;

(5) Regulations on import declaration shall be applied to the intra-Pingtan sale or mainland-oriented sale not covered by the descriptions of Items (2) and (4) herein;

(6) Regulations on import declaration also shall be applied to other circumstances.

Article 22 The Customs shall continue the bonded supervision over the bonded goods transferred between Pingtan and other Customs special supervision zones, bonded supervision venues or processing trade enterprises.

Article 23 Where the intra-Pingtan goods of bonded, tax-relievable or tax-refundable state  need temporarily exit Pingtan for repair, shall go through the Customs formalities. Such goods shall not be applied to other usage, processing, or production out of Pingtan and shall be returned to Pingtan within a prescribed time.

Article 24 With respect to the leftover materials and by-products that are produced during the processing of imported bonded materials by intra-Pingtan enterprises, the Customs shall conduct supervision as per relevant processing trade regulations.

Article 25 With respect to any of the following circumstances, the intra-Pingtan enterprises shall timely report to the Customs in writing:

(1) The Customs supervised goods suffer disasters such as force majeure;

(2) The Customs supervised goods suffer damage or loss from factors other than force majeure;

(3) The Customs supervised suffer law-enforcement measures such as sealing and detainment by administrative or judicial authority;

(4) Enterprise division, merger or bankruptcy.

Article 26 Where the Customs supervised goods are damaged or lost owing to force majeure, the enterprises shall immediately declare in writing to the Customs and submit certificates issued by insurance and appraisal authorities. The Customs may conduct as per the following rules:

(1) With respect to the loss of goods that results in the total loss of use value, the Customs shall conduct reconciliation formalities;

(2) With respect to the goods that are damaged and deprived of original use but still recyclable, the Customs shall keep them supervised.

Article 27 The Customs supervised goods that are damaged or lost by the factors other than force majeure shall be disposed as per the following rules:

(1) With respect to the bonded goods that enter Pingtan from abroad, the intra-Pingtan enterprises shall pay import tax to the Customs by using Customs prescribed dutiable value, tax rates and exchange rates, and also shall submit import quota and license certificates as required.

(2) With respect to the tax-relievable goods that enter Pingtan from abroad, the intra-Pingtan enterprises shall pay import tax to the Customs by using Customs-prescribed dutiable value, tax rates and exchange rates as per the Article 45 of China Customs Administrative Measures on the Tax Reductions and Exemptions for Imported and Exported Goods, and also shall submit import quota and license certificates as required.

(3) With respect to the tax-refundable goods that enter Pingtan from other mainland regions, the intra-Pingtan enterprises shall declare as per the regulations on importation.

Article 28 With respect to the supervised entry-exit goods as below, the intra-Pingtan enterprises may, based on Customs formalities, assign special carriers or conduct transportation by themselves:

(1) Small amount of goods worth not more than USD 10,000;

(2) Defective goods entering and exiting via Pingtan for replacement;

(3) Other goods through fulfilled Customs formalities.

Without fulfillment of relevant Customs formalities, any person entering to or exiting from Pingtan shall not carry or transport the goods that are bonded, tax-relievable and/or tax-refundable within Pingtan.

Chapter 5 Supervision over Means of Transport and Personal Belongings via Pingtan

Article 29 The means of transport via the "first line" shall be supervised as per China Customs Measures on Supervision of Entry-Exit Means of Transport (GACC Decree No. 196) and China Customs Administrative Measures on Manifests of Entry-Exit Means of Transport (GACC Decree No. 172).

The Customs may conduct inspection to all means of transport via the "second line", which shall not transport any supervised goods without fulfillment of relevant Customs formalities.

Article 30 The motor vehicles originating in Taiwan shall be subject to the Customs measures that are otherwise formulated on their clearance.

Article 31 Personal belongings shall be subject to the Customs measures that are otherwise formulated on their clearance.

Chapter 6 Supplementary Provisions

Article 32 Unless otherwise regulated, Customs statistics shall cover the goods moving via the "first line" between Pingtan and abroad. The goods moving via the "second line" between Pingtan and other mainland regions shall be listed into separate statistics of the Customs.

The goods that are transferred or moved between the intra-Pingtan enterprises, and the goods moved between Pingtan and other Customs supervised zones and bonded supervision venues, shall not be listed into Customs statistics.

Article 33 Violation of these Measures and China Customs Law as well as Regulations shall be subject to Customs administrative penalty or even to criminal liability.

Article 34 These Measures shall be construed by GACC.

Article 35 These Measures shall enter into force on August 1, 2013.