Regulations of the People’s Republic of China on Import and Export Duties

Guangzhou China Customs Hall

Regulations of the People’s Republic of China on Import and Export Duties

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(Adopted at the 26th Executive Meeting of the State Council on October 29, 2003, promulgated by Decree No. 392 of the State Council of the People’s Republic of China on November 23, 2003, and effective as of January 1, 2004 )

Chapter I General Provisions

Article 1 These Regulations are formulated in accordance with the relevant provisions of the Customs Law of the People’s Republic of China (hereinafter referred to as the Customs Law) for the purposes of implementing the policy of opening to the outside world and promoting the development of foreign economic relations and foreign trade and the national economy.

Article 2 Unless otherwise provided for by laws or administrative regulations, the Customs shall, in accordance with these Regulations, collect import or export duties on all goods permitted by the People’s Republic of China to be imported into or exported out of the Customs territory and all inward articles.

Article 3 The State Council shall formulate the Customs Import and Export Tariff of the People’s Republic of China (hereinafter referred to as the Tariff) and the Flat Duty Rates on Inward Articles of the People’s Republic of China (hereinafter referred to as the Flat Duty Rates on Inward Articles), providing for tariff items, tariff headings and duty rates, which constitute component parts of these Regulations.

Article 4 The State Council shall establish the Tariff Commission, which is responsible for making adjustment to and interpretation of tariff items, tariff headings and duty rates in the Tariff and the Flat Duty Rates on Inward Articles and implementing such adjustment and interpretation after they are submitted to and approved by the State Council; determining the goods subject to temporary duty rates and the rates and duration thereof; determining tariff quota rates; determining the imposition of anti-dumping duty, countervailing duty, safeguard duty, retaliatory duty or other tariff measures; determining the application of duty rates under special circumstances; and performing other functions and responsibilities prescribed by the State Council.

Article 5 The consignee of import goods, the consignor of export goods and the owner of inward articles are duty payers.

Article 6 The Customs and staff members thereof shall fulfill the responsibility of duty collection in accordance with the statutory authority and procedure, safeguard State interests, protect lawful rights and interests of duty payers, and receive supervision according to law.

Article 7 A duty payer has the right to request the Customs to keep confidential its commercial secrets, and the Customs shall keep confidential such secrets for the duty payer according to law.

Article 8 The Customs shall, in accordance with the relevant provisions, reward units and individuals that inform against violations of these Regulations or provide assistance in investigating such violations, and be responsible for keeping secrets concerned.

Chapter II Composition and Application of Duty Rates

on Import and Export Goods

Article 9 Duty rates on import goods are composed of most-favored-nation duty rates, conventional duty rates, special preferential duty rates, general duty rates, tariff quota duty rates, etc. Temporary duty rates may apply to import goods within a specific time limit.

Duty rates on export goods are designed to collect export duty. Temporary duty rates may apply to export goods within a specific time limit.

Article 10 The most-favored-nation duty rates shall apply to import goods originated from members of the World Trade Organization that are subject to the common application of the most-favored-nation clause, import goods originated from countries or regions with which the People’s Republic of China has concluded a bilateral trade agreement for reciprocally granting of most-favored-nation treatment, and import goods originated from the Customs territory of the People’s Republic of China.

The conventional duty rates shall apply to import goods originated from countries or regions with which the People’s Republic of China has concluded a regional trade agreement that comprises preferential duty clauses.

The special preferential duty rates shall apply to import goods originated from countries or regions with which the People’s Republic of China has concluded a trade agreement that comprises special preferential duty clauses.

The general duty rates shall apply to import goods originated from countries or regions other than those specified in Paragraphs 1, 2 and 3 of this Article or to the import goods of undetermined origins.

Article 11 Where there are temporary duty rates on import goods to which the most-favored-nation duty rates are applicable, such temporary duty rates shall apply; where there are temporary duty rates on import goods to which the conventional duty rates or preferential duty rates are applicable, the lower duty rates shall apply; temporary duty rates shall not apply to import goods to which the general duty rates are applicable.

Where there are temporary duty rates on export goods to which the export duty rates are applicable, such temporary duty rates shall apply.

Article 12 Where the quantity of import goods that are subject to tariff quota administration in accordance with the provisions of the State is within the tariff quota, the tariff quota duty rates shall apply; if such quantity exceeds the tariff quota, the application of the duty rates shall be governed by the provisions of Article 10 or 11 of these Regulations.

Article 13 Where anti-dumping, countervailing or safeguard measures are adopted on import goods in accordance with the provisions of the relevant laws or administrative regulations, the application of duty rates of such import goods shall be governed by the relevant provisions of the Regulations of the People’s Republic of China on Anti-Dumping, the Regulations of the People’s Republic of China on Countervailing Measures, and the Regulations of the People’s Republic of China on Safeguards.

Article 14 Where any country or region, in violation of the trade agreements or other relevant agreements that it concludes or accedes to with the People’s Republic of China, unilaterally adopts measures affecting normal trade such as imposition of prohibition or restriction or surcharge of duties in the trade with the People’s Republic of China, retaliatory duty may be imposed on import goods originated from such country or region and retaliatory duty rates may apply.

The goods and countries subject to retaliatory duty, as well as the rates, duration and collection measures of retaliatory duty shall be determined and published by the Tariff Commission of the State Council.

Article 15 For any import or export goods, the duty rates implemented on the date when the Customs accepts the declaration for import or export of such goods shall apply.

Where, upon verification and approval of the Customs, the declaration is made prior to entry of import goods, the duty rates implemented on the date of declaration of the means of transport carrying such goods for entry shall apply.

The date for application of the duty rates on goods for the transport under Customs transit shall be separately provided for by the General Administration of Customs.

Article 16 Where duty needs to be paid under any of the following circumstances, the duty rates implemented on the date when the Customs accepts the declaration for duty payment shall apply:

(1) where bonded goods are, with approval, not to be re-transported out of the Customs territory;

(2) where goods subject to duty reduction or exemption are, with approval, to be transferred or diverted to other purposes;

(3) where goods permitted to temporarily enter or leave the Customs territory are, with approval, not to be re-transported out of or into the Customs territory;

(4) where the duty on import goods on lease is to be paid by installments.

Article 17 In the recovery or refund of duties on import or export goods, the duty rates to apply shall be determined in accordance with the provisions of Article 15 or 16 of these Regulations.

Where there is a need to pursue the payment of duties unpaid due to the duty payer’s violation of relevant provisions, the duty rates implemented on the date when such violation occurs shall apply; if it is impossible to ascertain the date when such violation occurs, the duty rates implemented on the date when the Customs finds such violation shall apply.

Chapter III Determination of Customs Value of Import and Export Goods

Article 18 The customs value of import goods shall be determined by the Customs on the basis of the transaction value which complies with the conditions specified in Paragraph 3 of this Article, as well as the costs of transport, charges associated with transport, and the cost of insurance incurred prior to unloading of such goods at the port or place of entry within the Customs territory of the People’s Republic of China.

The transaction value of import goods is the price actually paid or payable for the import goods by the buyer when sold by the seller for export to the Customs territory of the People’s Republic of China, adjusted in accordance with the provisions of Articles 19 and 20 of these Regulations, including the price paid directly and indirectly.

The transaction value of import goods shall comply with the following conditions: