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Customs Law of the People's Republic of China
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(Adopted at the 19th Meeting of the Standing Committee of the Sixth National People's Congress and promulgated by Order No. 51 of the President of the People's Republic of China on January 22, 1987, amended in accordance with the Decision on Amending the Customs Law of the People's Republic of China adopted at the 16th Meeting of the Standing Committee of the Ninth National People's Congress on July 8, 2000)

Contents

Chapter I???? General Provisions

Chapter II??? Inward and Outward Means of Transport

Chapter III?? Inward and Outward Goods

Chapter IV??? Inward and Outward Articles

Chapter V???? Customs Duties

Chapter VI??? Customs Bond

Chapter VII?? Supervision over Law-Enforcement?

Chapter VIII? Legal Responsibilities

Chapter IX??? Supplementary Provisions

Chapter I

General Provisions

Article 1? This Law is formulated for the purpose of safeguarding State sovereignty and national interests, strengthening supervision and control by the Customs, promoting exchanges with foreign countries in economic affairs, trade, science, technology and culture, and ensuring socialist modernization.?

Article 2? The Customs of the People's Republic of China is a State organ responsible for supervision and control over all arrivals in and departures from the Customs territory (hereinafter referred to as the territory in short). It shall, in accordance with this Law and other related laws and administrative regulations, exercise control over the means of transport, goods, travellers' luggage, postal items and other articles entering or leaving the territory (hereinafter referred to as inward and outward means of transport, goods and articles in short), collect Customs duties and other taxes and fees, prevent and suppress smuggling, prepare Customs statistics and handle other Customs operations.?

Article 3? The State Council sets up the General Customs Administration, which exercises unified administration of the Customs offices throughout the country.

Customs offices are set up by the State at ports open to foreign trade and at places where concentrated Customs operations are required for supervision and control. The subordination of one Customs office to another shall not be restricted by administrative divisions.

The Customs offices exercise their functions and powers independently in accordance with law and are accountable to the General Customs Administration.

Article 4? In the General Customs Administration, the State sets up a special police department, which is in charge of the investigation of offences of smuggling and is staffed with professional anticontraband policemen, who are responsible for conducting investigations, making detentions and arrests, and carrying out preliminary inquiries into smuggling cases under the jurisdiction of the said department.

The police department responsible for the investigation of smuggling offences shall, in accordance with the Criminal Procedure Law of the People's Republic of China, perform its duties of conducting investigations, making detentions and arrests and carrying out preliminary inquiries.

The police department responsible for the investigation of smuggling offences may, in accordance with the relevant regulations of the State, set up its branch offices, which shall, in accordance with law, hand over to the competent People's Procuratorate for prosecution the smuggling cases which are under their jurisdiction and the investigation of which they have completed.

Local public security organs at different levels shall cooperate with the Customs police department responsible for the investigation of smuggling offences in the latter's performance of its duties in accordance with law.

Article 5? The State maintains an anti-contraband mechanism under which joint action is to be taken, smuggling cases are to be handled in a unified manner and smuggling is to be suppressed in an all-round way. The Customs is responsible for mobilizing, coordinating and regulating efforts against smuggling. The regulations in this regard shall be formulated separately by the State Council.

Smuggling cases discovered by relevant administrative law-enforcement departments and involving administrative penalties shall by handed over to the Customs for its handling in accordance with law; suspected offences shall be transferred to the Customs police department responsible for the investigation of smuggling offences and local public security organs to be dealt with according to the division of their jurisdiction and to legal procedures.

Article 6? The Customs shall exercise the following powers:

(1) to check inward and outward means of transport, examine inward and outward goods and articles, and detain those entering or leaving the territory in violation of this Law or other relevant laws and administrative regulations;

(2) to examine the identification documents of persons entering or leaving the territory, interrogate the persons suspected of violating this Law or other relevant laws and administrative regulations and investigate the illegal activities of such persons;

(3) to examine and duplicate contracts, invoices, account books, bills, records, documents, business letters and cables, audio and video products and other material that are related to the inward and outward means of transport, goods and articles, and detain those involved in the means of transport, goods or articles entering or leaving the territory in violation of this Law or other relevant laws and administrative regulations;

(4) to search, within a Customs surveillance zone and the specified coastal or border area in the vicinity of a Customs office, the means of transport suspected of being involved in smuggling, and the places suspected of concealing smuggled goods and articles, and search the body of the persons suspected of smuggling; to detain, with the approval of the director of a Customs office directly under the General Customs Administration or the director of a Customs office subordinate to and authorized by the former, the means of transport, goods or articles suspected of being involved in smuggling, and the persons suspected of being guilty of smuggling; the length of time for detention of the persons suspected of being guilty of smuggling shall be not longer than 24 hours, which may be extended to 48 hours under special circumstances.

When investigating smuggling cases beyond the Customs surveillance zone and the specified coastal or border area in the vicinity of a Customs office, the Customs may, with the approval of the director of a Customs office directly under the General Customs Administration or the director of a Customs office subordinate to and authorized by the former, search the means of transport suspected of being involved in smuggling and, with the exception of citizens' residence, the places suspected of concealing smuggled goods or articles, which shall be conducted in the presence of the parties concerned. Where the parties fail to show up, the Customs may effect the search in the presence of witnesses and may detain the means of transport, goods or articles suspected of smuggling which is supported by evidence.

The specified coastal or border area in the vicinity of a Customs office shall be delimited by the General Customs Administration and the public security department under the State Council in conjunction with the relevant people's government at the provincial level;

(5) When investigating smuggling cases, the Customs may, with the approval of the director of a Customs office directly under the General Customs Administration or the director of the Customs office subordinate to and authorized by the former, check up on the bank accounts and remittances the suspected entities and persons have in financial institutions or postal services;

(6) to chase the means of transport or persons defying and escaping from Customs control to places beyond a Customs surveillance zone or the specified coastal or border area in the vicinity of a Customs office and bring them back to be dealt with;?

(7) to be provided with arms for the performance of its duties. Rules governing the carrying and use of arms by Customs officers shall be formulated by the General Customs Administration in conjunction with the public security department under the State Council and submitted to the State Council for approval; and?

(8) to exercise other powers given to the Customs by law and administrative regulations.

Article 7? Local authorities and all departments shall support the Customs offices in exercising their functions and powers according to law; they may not illegally interfere in the Customs enforcement of law.?

Article 8? All inward and outward means of transport, goods and articles shall enter or leave the territory at a place where there is a Customs office. Under special circumstances where it is necessary to enter or leave the territory temporarily at a place where there is no Customs office, the matter shall be subject to approval by the State Council or the department authorized by it, and Customs formalities shall be duly completed in accordance with this Law.?

Article 9? Unless otherwise provided for, the declaration of import or export goods and the payment of duties may be made by the consignees or consigners themselves, and such formalities may also be completed by their entrusted Customs brokers that have registered with the permission of the Customs.?

The declaration of inward and outward articles and payment of duties on them may be made by the owners of the articles themselves or by the persons they have entrusted with the work.?

Article 10? Any Customs broker entrusted by the consignee or consigner for import or export goods to complete Customs formalities in the name of the principal shall produce to the Customs a letter of authorization signed by the principal and abide by all the provisions of this Law governing the principal.?

Where a Customs broker entrusted by the consignee or consigner for import or export goods and completes the Customs formalities in its own name, it shall bear the same legal liability as the consignee or consigner shall do.?

The principal that entrusts a Customs broker to complete the Customs formalities shall provide the broker with true information regarding the items it entrusts the broker to declare to the Customs. The Customs broker so entrusted shall, as appropriate, verify the authenticity of the information provided by the principal.

Article 11? The consignees or consigners for import or export goods and the Customs brokers engaged in Customs declaration shall register with the Customs according to law. Individuals engaged in Customs declaration are required to obtain the qualifications in this field in accordance with law. No broker that has not registered with the Customs in accordance with law and no individual that has not obtained the qualifications for Customs declaration may engage in work in this field.?

No Customs brokers or individuals engaged in Customs declaration may illegally make Customs declaration on behalf of others or go beyond their scope of business.

Article 12? When the Customs performs its duty in accordance with law, the entity or individual concerned shall give true answers to inquiries made by the Customs and be cooperative. No entity or individual may obstruct the Customs in the course of performing its duty.?

Where Customs officers meet with violent resistance while performing their duty, public security organs and the People's Armed Police units performing related tasks shall provide assistance.?

Article 13? The Customs shall establish a system whereby any activities designed to evade Customs control in violation of the provisions of this Law shall be reported.???

All entities and individuals shall have the right to report to the Customs activities violating the provisions of this Law.?

The Customs shall give moral encouragement or material rewards to entities or individuals that perform meritorious deeds in reporting offences against this Law or helping to track down and seize the offenders.?

The Customs shall keep the reporters secret.?

Chapter II

Inward and Outward Means of Transport

Article 14? When a means of transport arrives at or departs from a place where there is a Customs office, the person in charge of the means of transport shall make a truthful declaration to the Customs, submit the relevant papers for examination and accept Customs control and inspection.?

The inward and outward means of transport staying at a place with a Customs office shall not depart from it without permission by the Customs.?

Before an inward or outward means of transport moves from one place with a Customs office to another place with a Customs office, it shall comply with the control requirements of the Customs and complete Customs formalities. No means of transport may change its course and leave the territory unless it has cleared the Customs.

Article 15? The inward means of transport which has entered the territory but has not made its declaration to the Customs or the outward means of transport which has cleared the Customs but has not left the territory shall move along the routes specified by competent communications authorities. In the absence of such specifications, the routes shall be designated by the Customs.?

Article 16? The Customs shall be notified in advance either by the person in charge of the means of transport or by the relevant transport and communications department of such details as when an inward or outward vessel, train or aircraft will arrive and depart, where it will stay, where it will move to during its stay and when the loading or unloading of goods and articles will take place.

Article 17? The loading and unloading of export and import goods and articles onto and from any means of transport and the embarking and disembarking of its passengers shall be subject to Customs control.

Upon completion of such loading and unloading, the person in charge of the means of transport shall submit to the Customs documents and records which reflect the actual situation of the loading and unloading.?

Articles carried by individuals embarking on or disembarking from an outward or inward means of transport shall be truthfully declared to the Customs and be subject to Customs inspection.?

Article 18? When an inward or outward means of transport is being inspected by the Customs, the person in charge of the means of transport shall be present, and open the holds, cabins, rooms or doors of the means of transport at the request of the Customs. Where smuggling is suspected, the person in charge of the means of transport shall also open or dismantle the part thereof which may conceal smuggled goods and articles or move the goods and materials.?

Where work requires, the Customs may dispatch officers to perform duties on board the means of transport. The person in charge of the means of transport shall provide them with conveniences.?

Article 19? No inward means of transport belonging to countries or regions outside the territory nor outward means of transport belonging to entities inside the territory may be transferred or devoted to other uses prior to completion of Customs formalities and payment of Customs duties.?

Article 20? For inward and outward vessels and aircraft to concurrently engage in transportation of goods and passengers within the territory, Customs approval shall be obtained and requirements for Customs control shall be fulfilled.?

Customs formalities shall be completed for an inward and outward means of transport to shift to transport business within the territory.?

Article 21? No coastal transport vessels, fishing boats or ships engaged in special operations at sea may, without approval of the Customs, carry, obtain on an exchange basis, purchase, sell or transfer inward or outward goods and articles.

Article 22? When, owing to force majeure, an inward or outward vessel or aircraft anchors, lands, jettisons or discharges goods or articles at a place without a Customs office, the person in charge of the means or transport shall immediately report to the Customs office nearby.

Chapter III

Inward and Outward Goods

Article 23? Import goods, throughout the period from the time of arrival in the territory to the time of Customs clearance, export goods, throughout the period from the time of declaration to the Customs to the time of departure from the territory, and transit, transshipment and through goods, throughout the period from the time of arrival in the territory to the time of departure from the territory shall be subject to Customs control.

Article 24? The consignee for import goods and the consigner for export goods shall make a truthful declaration and submit the import or export license and relevant papers to the Customs for inspection. In the absence of an import or export license, no goods whose importation is restricted by the State may be released. Specific measures for handling such matters shall be formulated by the State Council.?

Declaration of import goods shall be made to the Customs by the consignee within 14 days from the date of the declaration of the arrival of the means of transport, and declaration of export goods shall be made by the consigner upon the arrival of the goods at the Customs surveillance zone and 24 hours prior to loading, unless otherwise specially approved by the Customs.?

Where the consignee fails to declare the import goods within the time limit prescribed in the preceding paragraph, a fee for delayed declaration shall be imposed by the Customs.?

Article 25? Declaration forms made of paper or electronic means shall be used for completing Customs formalities for import and export goods.?

Article 26? After acceptance by the Customs, the declaration forms and documents as well as their contents may not be changed or withdrawn unless the reason given is really justifiable and the Customs approves.?

Article 27? Prior to declaration, the consignee for the import goods may, upon approval of the Customs, check the goods or draw samples. Samples of goods that need to be quarantined according to law shall be drawn after the goods pass the quarantine.?

Article 28? All import and export goods shall be subject to Customs examination. While the examination is being carried out, the consignee for the import goods or the consigner for the export goods shall be present and responsible for moving the goods and opening and restoring the package. The Customs may examine or re-examine the goods or take samples from them straightaway in the absence of the consignee or the consigner whenever it considers this necessary.?

Import and export goods may be exempted from examination if an application has been made by the consignee or consigner and approved by the General Customs Administration.?

Article 29? Unless specially approved by the Customs, import and export goods shall be released upon the Customs endorsement only after the consignee or consigner has paid the duties or provided a bond.

Article 30? Where the consignee for import goods fails to declare the import goods to the Customs within three months from the date of the declaration of the arrival of the means of transport, the goods shall be taken over and sold off by the Customs in accordance with law. After the costs of transport, loading, unloading and storage and the duties and taxes are deducted from the money obtained from the sale, the remaining sum, if any, shall be returned to the consignee provided that he submits an application to the Customs within one year from the date of the sale of the goods; the remaining sum for those goods the importation of which is restricted by the State and a license for which is required but cannot be provided shall not be returned. In cases where nobody applies within the time limit or the sum is not to be returned, the money shall be turned over to the State Treasury.?

For inward goods that are misdischarged or over-discharged, which is confirmed by the Customs, the person in charge of the means of transport carrying the goods or the consignee or the consigner shall, within three months from the date the goods are discharged, complete the necessary formalities for taking out of the territory or importing such goods. When necessary, an extension of three months may be granted upon approval by the Customs. Where the formalities are not completed within the time limit, the goods shall be disposed of by the Customs in accordance with the provisions in the preceding paragraph.?

Where goods mentioned in the preceding two paragraphs are not suitable for storage over a long period, the Customs may, according to actual circumstances, dispose of them before the expiration of the the time limit.

Import goods declared to be abandoned by the consignee or the owner shall be taken over and sold off by the Customs in accordance with law. The money thus obtained shall be turned over to the State Treasury after the costs of transport, loading, unloading and storage are deducted.

Article 31? Goods that are temporarily imported or exported with the approval of the Customs shall be exported or imported within six months. Under special circumstances an extension may be granted with the approval of the Customs.?

Article 32? Anyone who wishes to engage in storing, processing, assembling, exhibiting, transporting or consigning bonded goods or running duty free shops shall meet the requirements for Customs control and obtain approval from and register with the Customs.?

For the transfer of ownership of the bonded goods, their shift to other places, or their entering or leaving the bonded premises, relevant Customs formalities shall be completed, and the matter shall be subject to Customs control and examination.?

Article 33? Enterprises that are engaged in processing trade are required to register with the Customs with the relevant documents of approval and contracts for processing trade. The material consumption per finished product for the processing trade shall be assessed and fixed by the Customs in accordance with relevant regulations.?

The finished products for processing trade shall be exported within the specified time limit. For those imported materials used for the purpose that are bonded with approval given in accordance with State regulations, formalities for the records of bond shall be written off with the Customs; where duties are collected in advance, formalities for the drawback of the duties paid shall be completed with the Customs in accordance with law.?

Where the bonded materials imported for processing trade or the finished products that are, for one reason or another, sold on the domestic market instead of exported, the Customs shall, on the basis of the documents of approval for domestic marketing and in accordance with law, levy duties on the said imported materials. For materials the importation of which is restricted by State regulations, certificates of import license shall, in addition, be produced to the Customs.?

Article 34? Control over the special Customs surveillance zones, such as the bonded areas established in the territory of the People's Republic of China with the approval of the State Council, shall be exercised by the Customs in accordance with relevant State regulations.?

Article 35? Customs formalities for import goods shall be completed by the consignee at the Customs office at the place where the goods enter the territory; those for export goods shall be completed by the consigner at the Customs office at the place where the goods depart from the territory.?

If applied for by the consignee or the consigner and approved by the Customs, Customs formalities for import goods may be completed at the named place of destination where there is a Customs office, and those for export goods at the place of departure where there is a Customs office. The transport of such goods from one place with a Customs office to another shall comply with the control requirements of the Customs. When necessary, the goods may be transported under the escort of the Customs.?

Where the goods are transported into or out of the territory by means of electric cables, pipelines or other special means of conveyance, the entities concerned shall, at regular intervals, declare to the designated Customs office and complete Customs formalities as required.?

Article 36? All transit, transshipment and through goods shall be truthfully declared by the person in charge of the means of transport to the Customs office at the place where the goods enter the territory, and shall be shipped out of the territory within the specified time limit.?

The Customs may examine such goods whenever it considers this necessary.

Article 37? Without permission of the Customs, no goods under Customs control may be opened, taken, delivered, forwarded, transposed, repacked, mortgaged, hypothecated or held as a lien, nor may their ownership be transferred or their labels replaced, nor may they be used for other purposes or disposed of by other means.?

No seals affixed by the Customs may be opened or broken by any person without Customs authorization.?

Before a People's Court proceeds to make a judgement or ruling with regard to the goods under Customs control or an administrative law-enforcing authority concerned makes a decision to dispose of such goods, it shall order the person concerned to complete all necessary Customs formalities.?

Article 38? The enterprises engaged in storing goods that are under Customs control shall register with the Customs and complete the formalities for receipt and delivery of goods in accordance with Customs regulations.?

The storage of goods under Customs control at a place outside a Customs surveillance zone shall be subject to Customs approval and control.?

Where the provisions of the two preceding paragraphs are violated or damage or loss is caused to the goods under Customs control during the period when the said goods are being kept, unless caused by force majeure, the person who is obligated to keep the goods shall perform the obligation of paying the appropriate duties and bear legal liability.?

Article 39? Control measures for inward and outward containers, for the salvage of inward and outward goods and sunken vessels, for inward and outward goods involved in small volumes of border transactions and for inward and outward goods not specified in this Law shall be separately formulated by the General Customs Administration on its own or in conjunction with the departments concerned under the State Council.

Article 40? With regard to inward and outward goods and articles which are banned or restricted by State regulations, the Customs shall exercise control over them in accordance with laws, administrative regulations, regulations laid down by the State Council, or regulations laid down by the relevant departments under the State Council as authorized by laws or administrative regulations. Specific measures for such control shall be formulated by the General Customs Administration.

Article 41? The origin of inward and outward goods shall be determined in accordance with the State rules of origin.

Article 42? Import and export goods shall be classified in accordance with the State regulations regarding the classification of commodities.?

The Customs may ask the consignee for import goods and the consigner for export goods to provide it with information needed for determining their classification. Whenever necessary, the Customs may make arrangements for analysis and inspection and take the results it confirms as the basis for classification.

Article 43? The Customs may, on the basis of the written application submitted by the person engaged in foreign trade, make an administrative ruling in advance regarding such matters as classification of the goods to be imported or exported.?

The administrative ruling regarding the classification of commodities shall be applicable to similar goods to be imported or exported.?

The administrative ruling regarding such matters as the classification of commodities made by the Customs shall be promulgated.?

Article 44? The Customs shall, in accordance with laws and administrative regulations, protect the intellectual property right relating to import and export goods.?

Where it is necessary to declare to the Customs the status of intellectual property right, the consignee for import goods and the consigner for export goods as well as their agents shall, in accordance with State regulations, make a truthful declaration to the Customs and produce supporting documents for the lawful use of the right.?

Article 45? The Customs may, within the period of three years from the date of release of import or export goods or within the period when the bonded goods or the import goods the duties on which are reduced or remitted are under Customs control and three years thereafter, examine the account books, accounting vouchers, declaration documents, other relevant information and import and export goods of the enterprises and institutions directly related to the import and export goods. The specific measures shall be formulated by the State Council.?

Chapter IV

Inward and Outward Articles

Article 46? Inward and outward luggage carried by individuals and inward and outward postal items shall be limited to reasonable quantities for personal use and shall be subject to Customs control.?

Article 47? All inward and outward articles shall be truthfully declared to the Customs by the owner and shall be subject to Customs examination.?

No person may, without authorization, open or damage the seals affixed by the Customs.?

Article 48? The loading, unloading, transshipment and transit of inward and outward mailbags shall be subject to Customs control. A waybill shall be submitted to the Customs by the postal service.?

The postal service shall inform the Customs in advance of the schedule for the opening and sealing of international mailbags. The Customs shall, on schedule, dispatch officers to exercise control and conduct examination on the spot.?

Article 49? Inward and outward postal items shall be posted or delivered by the postal service concerned only after they have been examined and released by the Customs.?

Article 50? Articles registered with the Customs and permitted by it to temporarily enter or leave the territory duty-free shall be taken out of or brought into the territory by the owner.?

Without Customs approval, no persons passing through the territory may leave in the territory the articles they bring in.?

Article 51? Inward and outward articles declared to be abandoned by the owner, articles for which the Customs formalities are not completed or to which no one makes a claim within the time limit specified by the Customs, and inward postal items which can neither be delivered nor be returned shall be disposed of by the Customs in accordance with the provisions of Article 30 of this Law.?

Article 52? Inward and outward articles for official or personal use by foreign missions or personnel enjoying diplomatic privileges and immunities shall be dealt with in accordance with relevant laws and administrative regulations.?

Chapter V

Customs Duties

Article 53? Customs duties shall, in accordance with law, be levied by the Customs on goods permitted to be imported or exported and on articles permitted to enter or leave the territory.?

Article 54? The consignee for import goods, the consigner for export goods and the owner of inward and outward articles shall be the persons obligated to pay Customs duties.

Article 55? The dutiable price for import and export goods shall be determined after examination by the Customs on the basis of the transaction value of the goods. Where it is impossible to ascertain the transaction value, the dutiable price shall be assessed by the Customs in accordance with law.?

The dutiable price for import goods shall consist of the value of the goods, the cost of transport and the charges associated with the transport of the goods and the cost of insurance, which are paid before the goods are unloaded at the entering point of the territory of the People's Republic of China; the dutiable price for export goods shall consist of the value of the goods, the cost of transport and the charges associated with the transport of the goods, which are paid before the goods are loaded at the leaving point of the territory of the People's Republic of China, as well as the cost of insurance - from all of which the amount of export duties shall be deducted.?

The dutiable price for inward and outward articles shall be determined by the Customs in accordance with law.

Article 56? Duty reduction or exemption shall be granted to the following import and export goods and inward and outward articles:???

(1) advertising items and trade samples of no commercial value;

(2) materials presented free of charge by foreign governments or international organizations;?

(3) goods to which damage or loss has caused prior to Customs release;?

(4) articles of a quantity or value within the fixed limit;

(5) other goods and articles specified by law as items for duty reduction or exemption; and

(6) goods and articles specified as items for duty reduction or exemption by international treaties to which the People's Republic of China is either a contracting party or an acceding party.?

Article 57? Duty reduction or exemption may be granted to import and export goods of specific areas and specific enterprises or for specific purposes. The scope of and the measures for such reduction or exemption shall be defined and formulated by the State Council.?

All import goods to which duty reduction or exemption is granted in accordance with the preceding paragraph shall be used only in specific areas and specific enterprises or for specific purposes. They may not be used otherwise unless Customs approval is obtained and duties are duly paid.?

Article 58? Temporary duty reduction or exemption to be granted to goods other than the ones as specified in Article 56 and the first paragraph of Article 57 of this Law shall be decided by the State Council.?

Article 59? After the consignee or consigner has paid to the Customs a deposit of an amount equal to the duties or provide a bond, temporary duty exemption shall be granted to goods that are temporarily imported or exported with the approval of the Customs and to bonded goods that are imported with special permission.

Article 60? The person obligated to pay Customs duties for import or export goods shall pay the duties within l5 days from the date the Customs issues the memorandum of payment. If the person fails to do so within the time limit, a fee for delayed payment shall be imposed by the Customs. Where the person obligated to pay Customs duties fails to do so or the bondsman fails to provide the bond within three months, the Customs may, upon approval of the director of the Customs office directly under the General Customs Administration or the director of a Customs office subordinate to and authorized by the former, take the following enforcement measures:?

(1) to notify in writing the bank where the person or bondsman concerned has opened an account or other financial institution to deduct the amount of duties due from his deposits;

(2) to sell off the dutiable goods in accordance with law to offset the duties payable with the proceeds; and

(3) to detain and sell off in accordance with law the goods or other property of the person or bondsman concerned to the tune of the duties payable to offset the duties with the proceeds;?

While taking enforcement measures, the Customs shall, by compulsory means, make the obligatory duty payer or the bondsman who fails to pay the fine for delayed payment of duties or provision of bond do so.?

The person obligated to pay duty for inward or outward articles shall do so prior to release of the articles.?

Article 61? Where during the period specified for the person obligated to pay Customs duties for import or export goods there are obvious indications that the person is transferring or concealing the dutiable goods and other property, the Customs may order the obligatory duty payer to provide a bond. Where the duty payer cannot provide a bond for duty payment, the Customs may, upon approval of the director of the Customs office directly under the General Customs Administration or the authorized director of a subordinate Customs office subordinate to and authorized by the former, take the following protective measures for collection of the duties:?

(1) to notify in writing the bank where the obligatory duty payer has opened an account or other financial institution to suspend payment of the amount of the deposits equal to the duties payable; and

(2) to detain the goods or other property of the duty payer equal to the value of the duties payable.

As soon as the obligatory duty payer pays the duties within the specified time limit, the Customs shall repeal the protective measures for collection of the duties. If, at the expiration of the time limit, the duty payer fails to pay the duties, the Customs may, upon approval of the director of the Customs office directly under the General Customs Administration or the director of a Customs office subordinate to and authorized by the former, notify in writing the bank where the duty payer has opened an account or other financial institution to deduct the amount of the duties due from the deposits the payment of which is suspended or, in accordance with law, sell off the detained goods or other property to offset the duties with the proceeds.

If the protective measures for collection of duties adopted by the Customs are inappropriate, or if the Customs fails to repeal such measures when the obligatory duty payer has paid the duties within the time limit, so that the lawful rights and interests of the duty payer suffer losses, the Customs shall bear the liability to pay compensation in accordance with law.

Article 62? Where the Customs finds that the duties are short-levied or not levied on a consignment of import or export goods or on an inward or outward article after its release, it shall collect the money payable from the obligatory duty payer within one year of the previous duty payment or the release of the item. If the short-levied or non-levied duties are attributable to the duty payer's violation of the Customs regulations, the Customs may collect the unpaid amount from him within three years.

Article 63? Where the duties are over-levied, the Customs, upon discovery, shall refund the money without delay. The obligatory duty payer may ask the Customs for refunding within one year from the date the duties are paid.

Article 64? Where the obligatory duty payer is involved in a dispute over duty payment with the Customs, he shall pay the duties and may apply for administrative reconsideration in accordance with law; if he is not satisfied with the decision made after the reconsideration, he may file a suit in a People's Court in accordance with law.

Article 65? The regulations for collection of Customs duties shall be applicable to the collection of taxes by the Customs on behalf of other government departments for import goods.

Chapter VI

Customs Bond

Article 66? If, before the classification of the goods is determined, their value is assessed, effective declaration documents are presented or other Customs formalities are completed, the consignee or consigner asks the Customs to release the goods, the Customs shall release the goods after the consignee or consigner provides a bond which is commensurate with the legal obligation he is required to perform according to law. A bond may be dispensed with where it is so provided for by laws or administrative regulations.

Where it is otherwise stipulated in laws and administrative regulations with respect to the bond for the obligation of completing Customs formalities, the provisions there shall prevail.

Where the importation or exportation of goods or articles is restricted by State regulations or the license required cannot be presented, or in other cases where bond is not allowed according to the laws and administrative regulations, the Customs may not release the goods or articles against any bond.

Article 67? Any legal person, other organization or citizen that is capable of fulfilling a Customs bond may become a bondsman except where it is otherwise provided for by law.

Article 68? A bondsman may offer bond with the following property and rights:

(1) Renminbi (RMB) and free convertible currencies;

(2) draft, cashier's check, check, debenture and certificate of deposit;?

(3) letter of guarantee issued by a bank or a non-banking financial institution; and

(4) other property and rights approved by the Customs in accordance with law.

Article 69? The bondsman shall, within the bond period, bear the responsibility for bond. Where the bondsman performs his responsibility, the bonded person shall not be freed from his obligation to complete Customs formalities.

Article 70? Administrative measures for Customs bond shall be formulated by the State Council.

Chapter VII

Supervision over Law-Enforcement

Article 71? In performing its duties, the Customs shall abide by laws, safeguard national interests, enforce the law strictly in accordance with the statutory functions and powers and the legal procedures, and accept supervision.

Article 72? Customs officers shall enforce the law impartially, be honest and self-disciplined, devote themselves to their duties, render services with civility, and they may not commit any of the following acts:

(1) to shield or connive at smuggling or collude with others in smuggling;

(2) to illegally restrict others' personal freedom, search the body, domiciles or places of others, inspect or detain inward or outward means of transport, goods or articles;

(3) to seek private ends for themselves or others by taking advantage of their powers;

(4) to extort or accept bribes;

(5) to divulge State, commercial or Customs secrets;

(6) to abuse their powers, intentionally create difficulties in or procrastinate the control and inspection process;

(7) to purchase, divide up among themselves or appropriate confiscated smuggled goods or articles;?

(8) to participate in, or do so in disguised form, profit-making business;

(9) to perform their duties in violation of legal procedures or beyond the limits of their powers; or

(10) other acts against the law.

Article 73? The Customs shall, according to the need for performing its duties in compliance with laws, strengthen its contingent, so that the Customs officers are armed with good political and professional qualifications.

The professional staff of the Customs shall have legal and relevant professional knowledge and meet the job requirements set by the Customs for professional posts.

When recruiting staff, the Customs shall, in accordance with State regulations, hold examinations openly, make strict assessment and employ those who pass the examinations.

The Customs shall make plans for conducting training among its officers in respect of political and ideological education, the legal system and the work of the Customs. The Customs officers shall be trained and assessed regularly; those who are proved disqualified by assessment shall discontinue performing their duties at their posts.

Article 74? The General Customs Administration shall implement a system under which the directors of the Customs are rotated regularly.

The directors of the Customs at lower levels shall report to the directors of the Customs at the next higher level on their work, giving a truthful statement of their performance of duties. The General Customs Administration shall make regular assessment of the directors of the Customs offices directly under it, and the latter shall do the same with regard to the directors of the Customs offices subordinate to them.

Article 75? The administrative enforcement of laws by the Customs and its officers shall be subject to supervision by the supervisory authority in accordance with law; when conducting investigations, the anti-smuggling police shall be subject to supervision by the People's Procuratorates.

Article 76? The auditing authority shall, in accordance with law, exercise supervision by auditing the revenues and expenditures of the Customs, and it has the power to investigate, by auditing, the special items which are related to the revenues and expenditures of the State and are handled by the Customs.

Article 77? The Customs at a higher level shall exercise supervision over the administration of law by the Customs at the lower level. Where the Customs at the higher level considers the settlement or decision made by the Customs at a lower level inappropriate, it may modify or replace it.

Article 78? The Customs shall, in accordance with the provisions of this Law and other relevant laws and administrative regulations, establish and improve an internal system for supervision, exercising supervision over and inspection of its staff members as to how they implement the laws and administrative regulations and observe discipline.

Article 79? The responsibilities and powers of the key posts for document examination, inspection, release of goods, checking and investigation conducted inside the Customs shall be clearly defined, and be separate from each other and mutually restricting.

Article 80? Any entity and individual shall have the right to accuse and report the violations of laws and rules of discipline committed by the Customs or its staff members. Where the authority that receives such accusations and reports has the power to handle them, it shall, in accordance with law and the division of responsibilities, conduct investigation and handle them without delay. The authority that receives the accusations and reports and the authority that is responsible for investigating and handling them shall keep the accusers and reporters secret.

Article 81? When investigating and handling a case of violation of law, the staff members of the Customs shall withdraw in any of the following situations:

(1) where he is a party or a close relative of a party to the case;

(2) where he or his close relative has an interest in the case; or

(3) where he has other relationships with a party to the case, which may affect the impartial handling of the case.

Chapter VIII

Legal Responsibilities

Article 82? Anyone who, in violation of this Law and other relevant laws or administrative regulations, commits any of the following acts by evading Customs control, duties payable, or State control over the goods or articles the importation or exportation of which is prohibited or restricted is committing smuggling:

(1) to transport, carry or mail into or out of the territory goods or articles the importation or exportation of which is prohibited or restricted by the State or goods or articles for which duties are payable according to law;

(2) to sell within the territory, without Customs permission and without payment of the payable duties or without producing relevant licenses, bonded goods, goods listed for specific duty reduction or exemption and other goods, articles or inward foreign means of transport under Customs control; or

(3) to commit other acts by evading Customs control that constitute smuggling.

Anyone who commits any of the acts listed in the preceding paragraph, which is not serious enough to constitute a crime, the Customs shall confiscate the smuggled goods, articles and illegal gains and it may also impose a fine on the person; the Customs shall confiscate the goods or articles that are specially or repeatedly used for shielding smuggling and the means of transport that are specially or repeatedly used for smuggling, and it shall order that the equipment specially made for concealing smuggled goods or articles be demolished or confiscated them.

Anyone who commits any of the acts listed in the first paragraph, which constitutes a crime, shall be investigated for criminal responsibility in accordance with law.

Article 83? Any of the following acts shall be dealt with as smuggling and punished in accordance with the provisions of Article 82 of this Law:

(1) to purchase directly and illegally from smugglers the goods or articles imported by smuggling; or

(2) for any vessels or persons aboard on inland seas, territorial waters, boundary rivers or boundary lakes to transport, purchase or sell goods or articles the importation or exportation of which is prohibited or restricted by the State or, without lawful documents, transport, purchase or sell goods for which duties should be paid in accordance with law.

Article 84? Anyone who counterfeits, adulterates, purchases or sells Customs documents, conspires with smugglers and provides them with loans, funds, account numbers, invoices, certificates or Customs documents or conspires with smugglers and provides them with transport, storage, mailing or other conveniences, which constitutes a crime, shall be investigated for criminal responsibility in accordance with law; where the case is not serious enough to constitute a crime, the Customs shall confiscate the illegal gains and it may also impose a fine on the person.

Article 85? Any individual who carries or mails articles for personal use into or out of the territory in a quantity exceeding the reasonable limit fails to declare them to the Customs in accordance with law shall be ordered to pay the duties and a fine may also be imposed on him.

Article 86? A fine may be imposed for any of the following acts committed in violation of the provisions of this Law and the illegal gains, if any, shall be confiscated:

(1) for a means of transport to enter or leave the territory at a place without a Customs office;

(2) to fail to inform the Customs of the arrival or departure time of an inward or outward means of transport, the place where it will stay or any change of such a place;

(3) to fail to declare truthfully to the Customs the import or export goods or articles, or the transit, transshipment or through goods;

(4) to fail to accept, in accordance with relevant regulations, the checking and inspection by the Customs of the means of transport, goods or articles entering or leaving the territory;

(5) for an inward or outward means of transport to load or unload inward or outward goods or articles or let passengers embark or disembark without Customs approval;

(6) for an inward or outward means of transport staying at a place with a Customs office to leave without Customs approval;

(7) for an inward or outward means of transport en route from one place with a Customs office to another to move out of the territory or to a place in the territory where there is no Customs office, without? completing the Customs formalities and obtaining Customs approval;

(8) for an inward or outward means of transport to engage concurrently in or change to services within the territory without Customs approval;

(9) for an inward or outward vessel or aircraft which, due to force majeure, anchors or lands at a place without a Customs office, or jettisons or discharges goods or articles in the territory to fail, without justifiable reasons, to report to the Customs nearby;

(10) without Customs permission to open, take, deliver, forward, transpose, repack, mortgage, hypothecate, hold as a lien, transfer the ownership of or replace the labels of the goods under Customs control, or use them for other purposes, or dispose of them by other means;

(11) without permission to open or break the seals affixed by the Customs;

(12) for an entity or individual engaged in such businesses as transportation, storage and processing of goods subjected to Customs control to fail to produce justifiable reasons for the loss of related goods or the untruthfulness of the related records; or

(13) to commit other acts in violation of the regulations for Customs control.

Article 87? Where an enterprise permitted by the Customs to engage in related businesses violates the relevant provisions of this Law, the Customs shall order it to rectify and may give it a disciplinary warning, suspend it from engaging in the related businesses or revoke its registration.

Article 88 Any entity or individual that, without Customs registration or the qualifications for such declaration, engages in declaration at the Customs shall be banned by the Customs, the illegal gains shall be confiscated, and a fine may also be imposed on the entity or individual.

Article 89? Where a Customs clearing enterprise or individual that illegally declares to the Customs on behalf of others or conducts declaration beyond the scope of its or his businesses, the Customs may order it or him to rectify, impose a fine on it or him or suspend it or him from the business; if the circumstances are serious, the Customs may revoke its declaration registration or his qualifications for declaration.

Article 90? Where the consignee for import goods or the consigner for export goods, the Customs clearing enterprise or individual bribes the staff members of the Customs, the Customs shall revoke its declaration registration or his qualifications and it may also impose a fine. Where a crime is constituted, the enterprise or individual shall be investigated for criminal responsibility in accordance with law and shall not be allowed to re-register with the Customs as a clearing enterprise or to be granted qualification certificate for Customs declaration.

Article 91? Where an entity that, in violation of the provisions of this Law, imports or exports goods, which constitutes an infringement on the intellectual property rights protected by laws and administrative regulations of the People's Republic of China, the Customs shall confiscate the said goods and impose a fine on it; if the violation constitutes a crime, the entity shall be investigated for criminal responsibility in accordance with law.

Article 92? No goods, articles or means of transport detained by the Customs in accordance with law may be disposed of before the People's Court makes a judgement or the Customs makes a penalty decision. However, hazardous goods or such goods or articles not suitable for storage for a long time as fresh and live ones, perishable ones and ones easy to lose effectiveness and goods, articles or means of transport which the owner applies to sell off in advance may, upon approval by the director of the Customs directly under the General Customs Administration or the director of a Customs office subordinate to and authorized by the former, be sold off in advance in accordance with law, and the Customs shall keep the proceeds thus obtained and inform the owner of the fact.?

The smuggled goods or articles, the illegal proceeds obtained therefrom and the means of transport and the equipment specially made for smuggling - which the People's Court decides by judgement to confiscate or the Customs decides to confiscate - shall all be disposed of by the Customs in accordance with law, the money thus obtained and the fine imposed by decision of the Customs shall all be turned over to the State Treasury.

Article 93? Where the party concerned refuses to carry out the Customs' penalty decision and fails to apply for a reconsideration of the case or file a suit in a People's Court within the specified time limit, the Customs that makes the penalty decision may substitute the party's bond for the penalty or, in accordance with law, substitute the detained goods, articles or means of transport of the party at the current price for the penalty, or apply to the People's Court for compulsory execution of the decision.

Article 94? If the Customs causes damage to any inward or outward goods or articles while inspecting them, it shall compensate for the actual loss from such damage.

Article 95? If the Customs, in violation of law, detains goods, articles or means of transport, thus causing losses to the lawful rights and interests of a party, it shall bear the liability to pay compensation in accordance with law.

Article 96? Any staff member of the Customs who commits one of the acts listed in Article 72 of this Law shall be given administrative sanctions in accordance with law; the illegal gains, if any, shall be confiscated; if the case constitutes a crime, he shall be investigated for criminal responsibility in accordance with law.

Article 97? If the revenues and expenses of a Customs office are found to be in violation of laws or administrative regulations, the matter shall be dealt with by the audit authority and the relevant departments in accordance with laws and administrative regulations. The persons who are directly in charge and the other persons who are directly responsible shall be given administrative sanctions in accordance with law; if a crime is constituted, criminal responsibility shall be investigated in accordance with law.

Article 98? Any authority that fails to keep the accusers and reporters secret in accordance with the provisions of this Law, the persons who are directly in charge and the other persons who are directly responsible shall be given administrative sanctions in accordance with law by the department to which they belong or by relevant departments.

Article 99? Where Customs staff members, when investigating and handling cases of violations, fail to withdraw in accordance with the provisions of this Law, the persons who are directly in charge and the other persons who are directly responsible shall be given administrative sanctions in accordance with law.

Chapter IX

Supplementary Provisions

Article 100? The terms used in this law are defined as follows:

The term "Customs office directly under the General Customs Administration" refers to the Customs which is directly under the leadership of the General Customs Administration and responsible for the administration of the Customs work in a certain region. The term "the Customs office subordinate" refers to the Customs which is under the leadership of a Customs office directly under the General Customs Administration and is responsible for dealing with specific Customs formalities.

The term "inward and outward means of transport" refers to the various vessels, vehicles, aircraft and beasts of burden, which enter or leave the territory carrying persons, goods or articles.

The term "transit, transshipment and through goods" refers to goods which come from a place outside the territory and pass through the territory en route to a place outside the territory. Among them, "transit goods" are those which pass throough the territory by land, "transshipment goods" are those which do not pass through the territory by land but are loaded on a different means of transport at a place with a Customs office, and "through goods" are those which are carried into and out of the territory by the same vessel or aircraft.

The term "goods under Customs control" refers to import and export goods, transit goods, transshipment goods and through goods listed in Article 23 of this law, specific goods granted with duty reduction or exemption, temporarily imported and exported goods, bonded goods and other inward and outward goods for which Customs formalities have not been completed.

The term "bonded goods" refers to goods which, with the approval of the Customs, enter the territory without going through the formalities to pay duties, and are reshipped out of the territory after being stored, processed or assembled in the territory.

The term "Customs surveillance zone" refers to seaports, railway and highway stations, airports, border passes and international postal exchanges (stations for exchanging postal items) where there are Customs offices, other places where Customs control is conducted and places where there are no Customs offices but that are specified, upon approval of the State Council, as spots of entry into and exit of the territory.

Article 101? Measures for control over the means of transport, goods and articles that go between specific areas, such as the special economic zones, and other areas within the territory shall be formulated by the State Council.

Artic1e 102? This Law shall go into effect as of July 1, 1987. The Provisional Customs Law of the People's Republic of China promulgated by the Central People's Government on April 18, 1951 is annulled simultaneously.?

Source: NPC

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