海关总署令第124号

颁布日期：20050104 　实施日期：20050301 　颁布单位：海关总署

No. 124

The Rules of the Customs of the People's Republic of China for the Administration of the Levying of Duties on Imports and exports， which were deliberated and adopted at the executive meeting of the General Administration of Customs on December 15th， 2004， are hereby promulgated and shall come into force on March 1st， 2005. The Rules of the Customs for the Administration of the Levying of Duties， which were promulgated on September 30th， 1986， shall be annulled simultaneously.

Mu Xinsheng， Director-General of the General Administration of Customs

January 4th， 2005

Rules of the Customs of the People's Republic of China on Governing the Levying of Duties on Imports and Exports

Chapter I General Provisions

Article 1 The present Rules are formulated with a view to ensuring the implementation of the duty policies of the State， better administering the levying of customs duties， upholding the rule of law in duty levying practices， safeguarding the State revenues in the form of customs duties， and protecting the lawful rights and interests of duty payers， and in accordance with the Customs Law of the People's Republic of China （hereinafter referred to as the Customs Law）， the Regulation of the People's Republic of China on Import and Export Duties （hereinafter referred to as the Customs Duty Regulation）， as well as other relevant laws and regulations.

Article 2 The levying of customs duties shall be accurately classified， appropriately evaluated， calculated on the basis of the applicable tariffs， reduced and exempted according to law， refunding and recovering taxes by strict standards， and timely transfer of the paid duties to the State treasury.

Article 3 These Rules shall apply to the levying and management of the import and export duties and taxes levied by the customs on behalf of other authorities during the import process.

The levying and management of the entry goods import taxes and the vessel tonnage dues shall be carried out in accordance with the provisions of relevant laws， regulations and departmental rules. In the absence of such provisions， the present Rules shall apply.

Article 4 The customs shall fulfill its confidentiality obligation in accordance with relevant provisions of the State and take good care of the materials involving commercial secrets that are provided by duty payers. No such materials may be provided to outsiders unless otherwise prescribed by law or regulation.

A duty payer may request the Customs in written form to keep confidential its commercial secrets and list in detail the contents deserving confidentiality protection， and may not refuse to provide relevant materials to the customs under any pretext of commercial secrets.

Chapter II The Levying of Duties on Imports and exports

Section 1 The Declaration and Examination

Article 5 When importing or exporting goods， a duty payer shall go through the declaration process with the customs in accordance with the law and provide relevant documents as required. In case the customs deems it necessary， the duty payer shall provide such documentation so as to determine the classification， dutiable value， place of origin， etc.， of the goods. If the documentation provided is in a foreign language， the customs may demand the duty payer to provide a Chinese translation， for the quality of which the duty payer shall be responsible.

When importing or exporting any goods with duty reduction or exemption， except those as listed in Article 72 of the present Rules， a duty payer shall submit the duty levying/exemption certificate for imported/exported goods （hereinafter referred to as the duty levying/exemption certificate； see Attachment 1 as a specimen） as issued by the customs.

Article 6 A duty payer shall， in accordance with relevant laws， regulations and customs rules， file a bona fide declaration of the name， tariff nomenclature heading number （product ID）， specification/type， value， freight/insurance cost and other relevant costs， place of origin， quantity， etc. of the imported or exported goods.

Article 7 To examine and determine the classification， dutiable value， place of origin， etc. of the imported or exported goods as declared， the customs may demand a duty payer to file an additional declaration in accordance with relevant provisions. Where a duty payer deems it necessary， it may offer to file an additional declaration.

Article 8 The customs shall， in accordance with relevant laws， regulations and customs rules， examine the name， specification/type， tariff nomenclature heading number， place of origin， value， transaction terms， quantity， etc. of the imported or exported goods as declared by a duty payer.

The customs may carry out procedural examination of the content to be declared during the clearance process based on the specific circumstances， and double check the authenticity and accuracy of the declared value， classification， place of origin， etc. of the goods after their declaration.

Article 9 In order to determine the classification， dutiable value， place of origin， etc. of the imported or exported goods， the customs may conduct examination or organize testing， inspection of the goods， or make an investigation on relevant enterprise（s）。

Where， upon examination， the tariff nomenclature heading number of the goods declared by a duty payer is found to be incorrect， the customs shall conduct reexamination in accordance with relevant regulations and rules on commodities classification.

Where， upon examination， the value of the goods declared by a duty payer is found to mismatch the prescribed price conditions for a transaction， or it is impossible to determine the transaction price， the customs shall separately assess the value in accordance with relevant provisions on determining the dutiable value of imports and exports.

Where， upon examination， the place of origin of the imported or exported goods as declared by a duty payer is found to be incorrect， the customs shall， in accordance with relevant provisions of the customs on the administration of place of origin， make determinations thereof by checking the place of origin certificate as provided by the duty payer， conducting field inspection， or examining other relevant papers， etc.

Where， upon examination， the application for duty reduction or exemption as filed by a duty payer， or any content thereof， is found to fail to meet relevant provisions on duty reduction or exemption， the customs shall calculate and levy the duties in accordance with applicable provisions.

In case a duty payer is suspected of falsification or deception in its declaration， breaching the provisions of the customs， it shall be handed over to the customs for investigation or to the anti-smuggling department for treatment.

Article 10 Before the real act of goods import or export occurs， a duty payer may， in accordance with relevant provisions， file an application to the customs for pre-classification， pre-examination of the value， or pre-determination of the place of origin， of the goods to be imported or exported. The customs shall send a written notification to the duty payer upon the completion of such pre-examination and determination and acknowledge its validity when the real act of importing or exporting occurs.

Section 2 The Levying of Duties

Article 11 The customs shall calculate and levy the duties on the basis of the tariff nomenclature heading number， dutiable value， place of origin， of the imported or exported goods， and the applicable tariff and exchange rate.

Article 12 The customs shall determine the applicable tariff for the imported or exported goods in accordance with relevant provisions of the Customs Duty Regulation on the application of the most-favored-nation tariff， the contracted tariff， the preferential tariff， the general tariff， the export tariff， the quota tariff， or the temporary tariff， as well as on the applicable tariff during the imposition of anti-dumping， countervailing， safeguard measures or retaliatory duties.

Article 13 For any imported or exported goods， the valid tariff for the day on which the customs accepts the import or export declaration shall apply.

Where， upon the approval of the customs， a declaration is filed before the arrival of the imported goods， the valid tariff for the day on which the vehicle carrying the goods is declared for border entry shall apply.

With respect to imported goods in transit， the valid tariff for the day on which the customs at the place of designation accepts the declaration of such goods shall apply. Where， upon the approval of the customs， a declaration is filed before the goods arrive at the place of designation， the valid tariff for the day on which the vehicle carrying the goods arrive at the place of designation shall apply.

With respect to exported goods in transit， the valid tariff for the day on which the customs at the place of consignment accepts the declaration of such goods shall apply.

With respect to imported or exported goods as declared collectively upon the approval of the customs， the valid tariff for the day on which the customs accepts the declaration for each import or export of such goods shall apply.

For any imported goods that are sold by the customs in accordance with the law， as a result of failure of a duty payer to go through the declaration within the time limit， the valid rate for the day on which an entry declaration is filed for the vehicle carrying the goods shall apply for the calculation and levying of the duties.

In case a duty payer is required to pay any duties due to violation of relevant provisions， the valid tariff for the day on which the violation occurs shall apply. If the exact day when the violation occurs is unable to be determined， the valid rate for the day on which the Customs detects the violation shall apply.

Article 14 Where， under any of the following circumstances， the payment of duties is required for bonded goods， the goods with duty reduction or exemption， or leased goods， any of which have been cleared upon entry declaration， or the temporary entry/exit goods which have been cleared upon entry or exit declaration， the valid tariff for the day on which the customs accepts the renewed declaration filed by the duty payer to go through relevant formalities for duty payment shall apply.

（1） If， upon approval， the bonded goods are not to be shipped out of The PRC；

（2） If the goods stored in a bonded warehouse are transited for sale on the domestic market；

（3） If， upon approval， the goods with duty reduction or exemption are transferred， or used for other purposes；

（4） If， upon approval， the temporary entry/exit goods on which the payment of duties is temporarily not required are not to be shipped out of or back to the PRC； or

（5） If the import duties on the leased goods are paid by installment.

Article 15 In case any duties are to be recovered or refunded on the imported or exported goods， the applicable tariff shall be determined in accordance with Articles 13 and 14 of the present Rules

Article 16 In case the value of the imported or exported goods or the associated expenses are denominated in a foreign currency， the customs shall， for the purpose of calculating the dutiable value of the goods， convert them into RMB according to the valid exchange rate for the day when the tariff is applied to the goods. The dutiable value shall be rounded off to RMB fen.

The exchange rate adopted monthly by the customs as the basis for the calculation of dutiable value shall be the basic exchange rate as posted by the People's Bank of China on the third Wednesday of the previous month （the fourth Wednesday shall be an alternate to the third one， in case the latter is any statutory state holiday）。 If the value of the imported or exported goods or the associated expenses are denominated in a foreign currency beyond the scope of foreign currencies of basic exchange rate， the median （rounded off to 4 decimal places after RMB yuan） of the cash buying and selling rates as posted by the Bank of China on the same day shall apply. In the event of major currency fluctuations of the above rates， the customs may otherwise prescribe the exchange rate applicable for the calculation and levying of duties upon its own discretion， but it shall make an announcement.

Article 17 The customs shall， in accordance with the Customs Duty Regulation， levy the duties on the imports and exports ad valorem or by quantity or by any other means as prescribed by the State.

The customs shall calculate and levy the import linkage taxes on the imported or exported goods， in light of the applicable tariff item， tariff nomenclature heading number， tariff and calculation formula as prescribed in relevant laws and regulations.

Except otherwise prescribed， the customs duties and the import linkage taxes shall be calculated in accordance with the following formulas：

The formula for ad valorem calculating the customs duties： Payable Duties = Dutiable Value × Tariff

The formula for calculating the customs duties by quantity： Payable Duties = Quantity of Goods × Unit Duty Value

The formula for calculating the import process value-added tax： Payable Tax = （Dutiable Value ＋ Duties Levied ＋ Consumption Tax Levied） × Value － added Tax Rate

The formula for ad valorem calculating the import process consumption tax： Payable Tax = [（Dutiable Value ＋ Duties Levied）/（1－Consumption Tax Rate）] × Consumption Tax Rate

The formula for calculating the import process consumption tax by quantity： Payable Tax = Quantity of Goods × Unit Consumption Tax

Article 18 In case the entry of goods actually takes place， the customs shall， unless otherwise prescribed， issue the duty payment form in a timely manner after completing the field examination upon receipt of the declaration. In case an inspection is needed to determine the classification， dutiable value， and place of origin of the goods， the duty payment form shall be issued or modified after the inspection is completed.

The duty payer shall sign for the customs duty payment form upon its receipt.

Article 19 The customs duty payment form shall be in six copies （see Attachment 2 for the format）。 The first copy （receipt） shall be given to the payment-making organization or the duty payer， after being sealed by the bank upon receipt of the payment. The second copy （certificate of payment） shall be kept by the account-opening bank of the payment-making organization. The third copy （certificate of payment collection） shall be kept by the State treasury to which the payment is made. The fourth copy （return receipt） shall be returned to the finance department of the customs， after being sealed by the State treasury. For the fifth copy （verification copy）， after payment is made to the State treasury， the exclusive form for paying the customs duties shall be returned to the customs， and the exclusive form for paying the import taxes be sent to the local tax department. The sixth copy （stub copy） shall be archived by the form-issuing unit.

Article 20 A duty payer shall pay the duties to the designated bank within 15 days from the day on which the duty payment form is issued by the customs. Any duty payer failing to make the payment within such time limit shall pay a late fee of 0.05% of the amount of the outstanding duties per day from the day on which the time limit expires until the day on which the outstanding duties are paid. The duty payer shall pay the outstanding duties to the designated bank within 15 days from the day on which the late fee payment form is issued by the customs. The format of the late fee payment form is identical to that of the duty payment form.

In case the day on which the time limit expires falls on a rest day such as Saturday or Sunday or any statutory holiday of the State， the first working day after the rest day or the statutory holiday shall be the alternate due date. If the rest and working days are adjusted on a temporary basis by the State Council， the customs shall calculate the time limit in light of the adjustment.

Article 21 The customs duties， the import linkage taxes， the late fees， etc. shall be calculated and levied in terms of RMB and rounded off to RMB fen. The threshold for levying a late fee shall be 50 RMB yuan.

Article 22 The day on which the bank receives the payment shall be the day on which a duty payer settles the duties. The duty payer shall， after paying the duties to the bank， send the duty payment form that is sealed by the bank upon receipt of the payment in a timely manner to the customs for verification， which shall go through the write-off formalities thereafter.

If a bank is found to have failed to transfer the duties in good time or in full amount to the State treasury， the customs shall notify the latter of such relevant information.

Article 23 In case a duty payer has lost the duty payment form before the payment is made， he/she may file a written application with the form-issuing customs for reissue. The customs shall make verification thereabout and issue a remedial form within two working days upon receipt of the application as filed by the duty payer. The content in remedial form shall be same as in the original.

Should a duty payment form be lost after the payment of duty is made， the duty payer may file a written application to the form-issuing customs for confirming the payment within one year from the day on which the payment is made. The customs shall make a confirmation without making a reissue of the duty payment form.

Article 24 Where a duty payer is unable to pay the duties within the time limit due to force majeure or change of the duty policies of the State， it shall， prior to the import or export of the goods， file a written application for a time limit extension， to which relevant materials are attached， and provide a payment plan to the General Administration of Customs' directly-controlled agency under whose jurisdiction the customs handles the import/export declaration and duty levying formalities.

Where the real act of import or export of the goods occurs， if a duty payer requests the customs to clear the goods before duty payment， it shall provide a duty guarantee to the latter.

Article 25 The General Administration of Customs' directly-controlled agency shall verify the application for a time limit extension within 10 days upon its receipt. If the circumstances as stated in the application are found to be true， it shall immediately submit the application to the General Administration of Customs， which shall， within 20 days upon receipt of the application， make a decision on whether or not to approve the time limit extension， and if yes， how long the time limit will be extended， and notify the said agency of its decision. In case it is impossible to make a decision within 20 days due to special circumstances， another 10 days will be allowed at the General Administration of Customs' discretion.

The extended period for duty payment may not exceed six months from the day on which the goods are cleared.

If， within the extended time limit upon approval， the duty payer pays the duties， no late fee will be imposed. Failure of a duty payer to pay the duties within the extended time limit will result in a late fee of 0.05% of the amount of the outstanding duties per day from the day on which the extended time limit expires until the day on which the outstanding duties are paid.

Article 26 Where the General Administration of Customs denies an application for time limit extension for duty payment， its directly-controlled agency shall notify the duty payer and issue the duty payment form within three working days upon receipt of the decision of disapproval.

The duty payer shall pay the duties to the designated bank within 15 days from the day on which the customs issues the duty payment form. A duty payer who fails to pay the duties within the time limit shall pay a late fee of 0.05% of the amount of outstanding duties per day from the day on which the time limit expires until the day on which the outstanding duties are paid.

Article 27 When goods are imported or exported in bulk shipments of more or less quantity， the following provisions shall apply：

（1） In case the actual quantity of shipment is more than but within a 3% margin of， or less than that as stipulated in the contract or invoice， the customs shall calculate and levy duties on the basis of the approved unit price of the goods multiplying the quantity as stipulated in the contract or invoice. And

（2） In case the actual quantity of shipment is over 3% more than that as stipulated in the contract or invoice， the customs shall calculate and levy duties on the basis of the approved unit price multiplying the actual quantity of the goods imported or exported.

Article 28 If a duty payer or its guarantor fails to pay the duties or the late fee within three months from the day on which the time limit for duty payment expires， the customs may take enforcement measures in accordance with Article 60 of the Customs Law.

Where there are obvious signs that a duty payer may try to transfer or hide dutiable goods or other assets， the customs may order it to provide a duty guarantee. If the duty payer is unable to provide such a guarantee， the customs may take conservatory measures in accordance with Article 61 of the Customs Law.

The detailed rules for the application of enforcement and conservatory measures will be formulated separately.

Chapter III The Collection of Duties on Special Imports or Exports

Section 1 Goods Compensated at No Cost

Article 29 Imported goods compensated at no cost are exempted from import duties or import linkage taxes； and exported goods compensated at no cost are exempted from export duties.

The term “goods compensated at no cost” as mentioned in the preceding paragraph shall refer to the goods identical with the original goods or conforming to the contract， which are， after the original imports or exports are cleared with the customs， offered free-of-charge by the consigner， carrier or insurer as their compensation or replacement， due to such reasons as damage， shortage， inferior quality， or incompatible specification， of the original goods.

Article 30 With respect to the import or export of goods compensated at no cost， a duty payer shall handle the declaration formalities within the claim period as stipulated in the original import/export contract and within three years from the day on which the original goods are imported or exported.

Article 31 Where the import of goods compensated at no cost is declared， the following papers shall be provided：

（1） The declaration form for the original imports；

（2） The export declaration form for shipping the originally imported goods out of The PRC， or the certificate for abandoning the original imports to the customs；

（3） The duty payment form or duty reduction/exemption certificate for the original imports； and

（4） The claim agreement signed by and between the selling and buying parties.

With respect to import of the goods compensated at no cost due to shortage of the original imports， none of the papers as listed in Item 2 of the preceding paragraph will be required.

Where the customs considers it necessary， the duty payer shall also present the testing certificate confirming the damage， shortage， inferior quality， or incompatible specification of the original imports， as issued by a qualified commodities testing agency.

Article 32 Where the export of the goods compensated at no cost is declared， the following papers shall be provided：

（1） The declaration form for the original exports；

（2） The import declaration form for shipping the original exports back to the PRC；

（3） The duty payment form or duty reduction/exemption certificate for the original exports； and

（4） The claim agreement signed by and between the selling and buying parties.

With respect to export of goods compensated at no cost due to shortage of the original exports， none of the papers as listed in Item 2 of the preceding paragraph will be required.

Where the customs considers it necessary， the duty payer shall also present the testing certificate confirming the damage， shortage， inferior quality， or incompatible specification of the original exports， as released by a qualified commodities testing agency.

Article 33 Where goods compensated at no cost as declared by the duty payer for import or export are not identical to the original goods that are shipped out of or back to the PRC， or fail to observe the stipulations of the contract， the duty payer shall state the reason（s） to the customs.

Where there is a justifiable reason upon the customs' examination， and the tariff nomenclature heading number has not changed， the customs shall， in light of relevant provisions on determining the dutiable value of imports or exports and the applicable exchange rate and tariff for the original imports or exports， determine the dutiable value and calculate the duty payer's payable duties. If the payable duties surpass the duties already paid for the original imports or exports， the difference between them shall be levied. In case the payable duties fall short of the duties already paid for the original imports or exports， while the consigner， carrier or insurer refunds the goods payment， the customs shall refund the corresponding duties for the refunded goods payment； but in case such goods payment fails to be refunded， the difference between the payable duties and the duties already paid will not be refunded.

For any goods compensated or replaced free-of-charge， as being the subject of the import or export declaration， in case their tariff nomenclature heading number fails to conform to that of the original goods， relevant provisions on goods compensated at no cost will not govern， and the customs shall levy the duties according relevant provisions on the import or export of regular goods.

Article 34 With respect to any goods compensated or replaced free-of-charge， as being the subject of the import or export declaration， if the original imports thus replaced fail to be shipped out of The PRC or are abandoned to the customs， or if the original exports thus replaced fail to be shipped back to the PRC， the customs shall reassess the value of the original imports or exports and levy the duties accordingly， on the basis of the tariff， exchange rate and relevant provisions， applicable on the day on which the declaration for goods compensated at no cost is accepted.

Article 35 No export duties will be levied on the original imports as has been replaced when they are shipped out of the PRC.

No import duties or import linkage taxes will be levied on the original exports as has been replaced on which they are shipped back to the PRC.

Section 2 The Import of Leased Goods

Article 36 In the event of the import of any leased goods， a duty payer shall， unless otherwise prescribed， go through the import and duty-paying declaration formalities with the local customs.

Where an import declaration is filed for leased goods， the duty payer shall provide the lease contract as well as other relevant documents to the customs. Where the customs considers it necessary， the duty payer shall provide a duty guarantee to the customs.

Article 37 The customs shall conduct supervision and control over the import of leased goods， from the day of their entry until the day on which the customs formalities are concluded with the termination of the lease.

Where the duty payer pays the lease fee in a lump sum， he shall handle the duty payment procedures and pay the duties at the time when the import declaration of the leased goods is filed.

Where the duty payer pay the lease fee by installments， he shall handle the duty payment procedures and pay the duties in proportion to the first installment of the lease fee at the time when the import declaration of the leased goods is filed. When paying any of the subsequent installments of the lease fee， the duty payer shall go through the duty payment declaration formalities with the customs no later than the 15th day from the day on which the lease fee is paid. Where a duty payer fails to go through the duty payment declaration formalities for any of such installments within the time limit， the customs shall levy the corresponding duties on the basis of the applicable tariff and exchange rate on the 15th day as of the day on which the duty payer pays the installment of the lease fee， as well as a late fee of 0.05% of the amount of the payable duties per day from the day on which the time limit for the duty payment declaration as prescribed in the present Article expires until the day on which such declaration is filed by the duty payer.

Article 38 The customs shall conduct follow-up oversight of the leased goods having been imported and urge the duty payer to go through the duty payment declaration formalities in time， so as to ensure the timely， full-amount handover of the payable duties to the State treasury.

Article 39 A duty payer shall， within 30 days as of the day on which the lease of the imported goods expires， file an application to the customs for concluding the supervision/control formalities， and ship the goods out of The PRC. In case the duty payer purchases the leased goods or renews the lease， it shall go through the declaration process with the customs no later than the 30th day as of the day on which the lease expires.

With respect to purchase of the leased goods that have been imported， the customs shall determine the dutiable value and calculate and levy the payable duties， in accordance with relevant provisions on determining the dutiable value of imported goods， as well as the applicable exchange rate and tariff on the day on which it accepts the declaration and handles relevant formalities for their purchase.

With respect to renewal of lease of the goods that have been imported， the duty payer shall submit the lease renewal contract to the customs， and go through the declaration and duty payment formalities according to Articles 36 and 37 of the present Rules.

Article 40 Where a duty payer fails to go through the declaration procedure and relevant formalities for purchasing the leased goods that have been imported， within the time limit as prescribed in Paragraph 1 of Article 39 of the present Rules， the customs shall， in addition to the determination of the dutiable value and levying of the payable duties on the basis of the applicable tariff and exchange rate on the 30th day as of the day on which the lease of the goods expires， levy a late fee of 0.05% of the amount of the payable duties per day as of the 30th day upon expiration of the lease until the day on which the declaration is filed by the duty payer.

Where a duty payer fails to go through the declaration procedure and relevant formalities for renewing the lease of the goods that have been imported， within the time limit as prescribed in Paragraph 1 of Article 39 of the present Rules， the customs shall， in addition to the levying of the payable duties in accordance with Article 37 of the present Rules， levy a late fee of 0.05% of the amount of the payable duties per day as of the 30th day upon expiration of the lease until the day on which the declaration is filed by the duty payer.

Article 41 Where the lease of goods that have been imported terminates prior to its expiration， the day on which the lease expires shall be regarded as the day on which the lease terminates.

Section 3 Temporary Entry/Exit Goods

Article 42 The customs shall， according to relevant provisions， oversee the goods that temporarily enter or leave The PRC upon its approval.

Article 43 With respect to temporary entry/exit goods as listed in Paragraph 1 of Article 42 of the Customs Duty Regulation， a duty payer may opt not to pay the duties for the time being within the time limit as prescribed by the customs.

Where any temporary entry/exit goods as cited in the preceding paragraph are not to be shipped out of or back to the PRC after the time limit expires， the duty payer shall go through the declaration and duty payment formalities with the customs before the time limit expires. The customs shall levy duties in accordance with relevant provisions.

Article 44 For any temporary entry/exit goods beyond the scope of those as listed in Paragraph 1 of Article 42 of the Customs Duty Regulation， the customs shall， according to relevant provisions on determining the dutiable value of imports or exports， as well as the applicable exchange rate and tariff on the day when the entry or exit declaration of the goods is accepted， determine the dutiable value， and levy the duties either on a monthly basis or at the time when the goods are shipped out of or back to the PRC within the prescribed time limit.

The time limit for calculating and levying the duties shall be 60 months. If the goods stay in The PRC for more than 15 days but less than one month， it will be regarded as a full month for the calculation and levying of duties. If the goods stay in The PRC for less than 15 days， no duties will be levied. Such time limit shall be counted as of the day on which the goods are cleared with the customs.

The formula for calculating the duties on a monthly basis shall be：

Monthly Amount of the Duties = Total Amount of the Duties × （1/60）

Monthly Amount of the Import linkage taxes = Total Amount of the Import linkage taxes × （1/60）

Where any temporary entry/exit goods as cited in the first paragraph of the present Article are not to be shipped out of or back to the PRC after the time limit expires， the duty payer shall go through the import/export declaration and duty payment formalities with the customs before the time limit expires， and settle the payable duties.

Article 45 Where any temporary entry/exit goods fail to be shipped out of or back to the PRC within the time limit， if the duty payer fails to go through the import/export declaration and duty payment formalities with the customs before the time limit expires， the customs shall levy the payable duties in accordance with relevant provisions， and levy a late fee of 0.05% of the amount of the payable duties per day as of the day on which the time limit expires until the day on which the declaration is filed by the duty payer.

Article 46 The time limit as cited from Article 43 to Article 45 of the present Rules shall cover the time period which has been extended upon the approval of the customs for the temporary entry/exit goods to be shipped out of or back to the PRC.

Section 4 Entry/Exit Goods for Maintenance and Exit Goods for Processing

Article 47 When going through the import declaration procedure for any entry goods for maintenance， a duty payer shall submit the goods maintenance contract （or the original import contract containing a maintenance article） to the customs， and provide an import duty guarantee or be subject to the administration of the customs under the item of bonded goods.

When the import of any raw materials or spare/component parts is needed for fixing the entry goods for maintenance purposes， the duty payer shall， when going through the import declaration procedure， submit the goods maintenance contract （or the original import contract containing a maintenance article） and the import declaration form for the goods （except for the raw materials or spare/component parts which are concurrently declared and imported with the entry goods for maintenance）， and provide an import duty guarantee or be subject to the oversight of the customs under the item of bonded goods. The raw materials or spare/component parts thus imported shall be used exclusively for maintaining the entry goods for maintenance purposes； any of their residuals upon completion of the maintenance shall be shipped out of The PRC concurrently with the goods.

Article 48 When going through the export declaration procedure for shipping out of The PRC any entry goods for maintenance purposes as well as the residuals of the raw materials or spare/component parts imported for their maintenance， a duty payer shall submit such papers as the original import declaration form for the goods and the raw materials or spare/component parts subsequently imported， as well the maintenance contract （or the original export contract containing a maintenance article）。 Based on such declaration， the customs shall handle relevant formalities for canceling the duty guarantee， as provided by the duty payer when the goods or spare/component parts enter The PRC. If they are administered by the customs under the item of bonded goods， relevant provisions on the administration of bonded goods shall apply.

Where， due to justifiable reasons， any entry goods for maintenance are unable to be shipped out of The PRC within the time limit as prescribed by the customs， the duty payer shall， before the time limit expires， make a statement of the reasons and file an application for time limit extension.

Article 49 Where any entry goods for maintenance fail to be shipped out of The PRC within the time limit （including the extended period； the same below） as permitted by the customs， the customs shall oversee them in accordance with relevant provisions on levying duties for the import or export of regular goods， and convert the duty guarantee， as provided by the duty payer when the goods enters The PRC， to the payment of the duties.

Article 50 When going through the export declaration procedure for exit goods for maintenance purposes， a duty payer shall submit the goods maintenance contract （or the original import contract containing a maintenance article） to the customs. Such goods shall be shipped back to the PRC within the time limit as prescribed by the customs.

Article 51 When going through the import declaration procedure for shipping the exit goods for maintenance back to the PRC， a duty payer shall submit to the customs such papers as the original export declaration form， the maintenance contract （or the original import contract containing a maintenance article）， the maintenance bill， etc.

The customs shall determine the dutiable value and calculate and levy the import duties in accordance with relevant provisions on determining the dutiable value of imported goods and the applicable exchange rate and tariff on the day on which the declaration for shipping the goods back to the PRC is accepted.

Where， due to justifiable reasons， any entry goods for maintenance are unable to be shipped back to the PRC within the time limit as prescribed by the customs， the duty payer shall， before the time limit expires， make a statement of the reasons and file an application for time limit extension.

Article 52 Where the exit goods for maintenance purposes are shipped back to the PRC beyond the time limit as permitted by the customs， the customs shall levy the import duties in accordance with relevant provisions on levying the duties for the import of regular goods.

Article 53 When going through the export declaration procedure for any exit goods for processing purposes， a duty payer shall submit the entrusted processing contract for the goods to the customs； if such goods fall into any category of the commodities that are subject to the payment of export duties， the duty payer shall provide a duty guarantee to the customs. The exit goods for processing shall be shipped back to the PRC within the time limit as prescribed by the customs.

Article 54 When going through the import declaration formalities for shipping the exit goods for processing back to the PRC， the duty payer shall submit to the customs such papers as the original export declaration form， the entrusted processing contract， the processing bill， etc.

The customs shall determine the dutiable value and calculate and levy import duties in accordance with relevant provisions on determining the dutiable value of imported goods and the applicable exchange rate and tariff on the day on which the declaration for shipping the goods back to the PRC is accepted， and handle relevant formalities for canceling the duty guarantee， as provided by the duty payer when the goods leave The PRC.

Where， due to justifiable reasons， any exit goods for processing are unable to be shipped back to the PRC within the time limit as prescribed by the customs， the duty payer shall， before the time limit expires， make a statement of the reasons and file an application for time limit extension.

Article 55 Where any exit goods for processing fail to be shipped back to the PRC within the time limit as permitted by the customs， the customs shall oversee them in accordance with relevant provisions on levying the duties for the import or export of regular goods， and convert the duty guarantee， as provided by the duty payer when the goods leave The PRC， to the payment of the duties； when such goods are subsequently shipped back to the PRC， the customs shall levy the import duties in accordance with relevant provisions on levying the duties for the import of regular goods.

Article 56 The “time limit as prescribed by the customs” and the “time limit as permitted by the customs” as cited from Article 47 down to Article 55 of the present Rules shall be determined by the customs on the basis of relevant contractual stipulations on the entry/exit goods for maintenance or the exit goods for processing， as well as the specific circumstances.

Section 5 The Returned Goods

Article 57 Where， due to the reason of quality or specification， any exported goods are shipped in their original shape back to the PRC within one year as of the day on which they are cleared with the customs， the duty payer shall， when going through the import declaration procedure for such goods， submit relevant papers and certificates in accordance with the provisions concerned. No import duties or import linkage taxes will be levied on the original exports that are shipped back to the PRC upon the approval of the customs.

Article 58 Where， due to the reason of quality or specification， any imported goods are shipped in their original shape out of The PRC within one year as of the day on which they are cleared with the customs， the duty payer shall， when going through the export declaration procedure for such goods， submit relevant papers and certificates in accordance with the provisions concerned. No export duties will be levied on the original imports that are shipped out of The PRC upon the approval of the customs.

Chapter IV The Refund and Recovery of the Duties for Imports or exports

Article 59 Where the customs detects any overpaid duties， it shall immediately notify the duty payer of going through the duty refund formalities. The latter shall go through the duty refund formalities within three months upon receipt of the notification.

Article 60 Where a duty payer discovers any overpaid duties， it may， within one year as of the day on which the duties are paid， file an application to the customs for refunding the overpaid duties and paying the current deposit interest of the corresponding period.

When filing the application to the customs for refunding the overpaid duties and paying the interest， the duty payer shall submit the following materials：

（1） The refund application form （see Attachment 3 for its format）； and

（2） The original duty payment form， and the materials that can justify the refund.

Article 61 Where any duty-paid imported goods are shipped in their original shape out of The PRC due to the reason of quality or specification， the duty payer may， within one year as of the day on which the duties are paid， file an application to the customs for refunding the duties.

When filing the application to the customs for refunding the duties， the duty payer shall submit the following materials：

（1） The refund application form；

（2） The original import declaration form， the duty payment form， and the invoice；

（3） The export declaration form for shipping the goods out of The PRC； and

（4） The agreement by and between the consigner and the consignee on returning the goods.

Article 62 Where any duty-paid exported goods are shipped in their original shape back to the PRC due to the reason of quality or specification， if the duty payer has repaid export rebates， it may， within one year as of the day on which the duties are paid， file an application to the customs for refunding the duties.

When filing the application to the customs for refunding the duties， the duty payer shall submit the following materials：

（1） The refund application form；

（2） The original export declaration form， the duty payment form， and the invoice；

（3） The import declaration form for shipping the goods back to the PRC； and

（4） The agreement by and between the consigner and the consignee on returning the goods， and the certificate for the repayment of the export rebates as issued by the tax department.

Article 63 Where an application is filed for canceling the declaration of the export-duty-paid goods that fail to be loaded and exported for any reason， the duty payer may， within one year as of the day on which the duties are paid， file a duty refund application to the customs.

When filing the application to the customs for refunding the duties， the duty payer shall submit the following materials：

（1） The refund application form； and

（2） The original export declaration form and the duty payment form.

Article 64 Where any imports or exports in bulk are shipped in less quantity， yet the duties have been paid and the goods cleared with the customs， if the consigner， carrier or insurer has refunded or compensated for the goods payment for the shipment shortfall， the duty payer may， within one year as of the day on which n the duties are paid， file an application to the customs for refunding the corresponding duties for the import or export shipment shortfall.

When filing the application to the customs for refunding the duties， the duty payer shall submit the following materials：

（1） The refund application form；

（2） The original import or export declaration form， the duty payment form， and the invoice；

（3） Relevant testing certificate issued by a qualified commodities testing agency； and

（4） The document certifying the refund of or compensation for the goods payment.

Article 65 Where relevant payment for the imports or exports are compensated for by the consigner， carrier or insurer due to damage， inferior quality， or incompatible specification of the goods， or in connection with any circumstances of goods shortage except as prescribed in Article 64 of the present Rules， the duty payer may， within one year as of the day on which the duties are paid， file an application to the customs for refunding the corresponding duties for the compensated amount of the goods payment.

When filing the application to the customs for refunding the duties， the duty payer shall submit the following materials：

（1） The refund application form；

（2） The original import or export declaration form， the duty payment form， and the invoice； and

（3） The document certifying the compensation for the goods payment.

Article 66 The customs shall exercise examination upon receipt of the refund application as filed by a duty payer. If the application materials so submitted are complete and conform to the prescribed format， the customs shall accept the application， and regard the day on which the materials are received as the day on which the application is accepted. In case the application materials so submitted are incomplete or fail to conform to the prescribed format， the customs shall notify the duty payer of a complete package of any additional or modified materials required to be submitted， within five days after the day on which the application materials are received， and regard the day on which all such materials are received as the day on which the refund application is accepted.

Where the duty payer files an application for duty refund in accordance with Article 61， 62 or 65 of the present Rules， if the customs considers it necessary， it may demand the duty payer to provide the testing certificate as issued by a qualified commodities testing agency confirming inferior quality， incompatible specification， shortage of， or damage to， the original imports or exports， or any other relevant certification.

The customs shall， within 30 days as of the day on which the refund application is accepted， verify the facts and notify the duty payer of its decision on whether to approve the application. If the application is approved， the duty payer shall go through relevant duty refund formalities with the customs within three months upon receipt of the customs notification approving its application.

Article 67 When handling the duty refund formalities， the customs shall issue a payment refund certificate （see Attachment 4 for its format） and apply the following provisions：

（1） Where the interest is payable on the overpaid duties refundable in accordance with Article 60 of the present Rules， the customs shall calculate the payable interest on the basis of the current deposit interest rate as posted by the People's Bank of China on the day on which the payment refund certificate is issued.

（2） Any import linkage value-added tax that has already been deducted shall be nonrefundable， unless otherwise prescribed by the State.

（3） Any late fee that has already been levied shall be nonrefundable.

Should the refundable duties and the payable interest need to be withdrawn from the State treasury， such withdrawal shall be carried out in accordance with the laws and regulations regarding the administration of the State treasury as well as the detailed implementation rules concerned.

Article 68 Where the customs detects any duties underpaid after the imports or exports are cleared， it shall， within one year as of the day when the duties are paid， recover the unpaid duties from the duty payer. Where the customs detects any duties ignored， it shall， within one year as of the day on which the goods are cleared， recover the ignored duties from the duty payer.

Article 69 Where a duty payer underpays its duties due to any violation of relevant provisions， the customs shall， within three years as of the day on which the duties are paid， recover the underpaid duties. Where a duty payer ignores its duties due to any violation of relevant provisions， the customs shall， within three years as of the day on which the goods are cleared， recover the ignored duties. The customs shall demand the duty payer to pay， in addition to the underpaid or ignored duties， a late fee of 0.05% of the amount of underpaid or ignored duties per day as of the day on which the duties are paid or the day on which the goods are cleared until the day when the customs detects the violation.

Where the duties on any goods subject to customs supervision/control are underpaid or ignored due to violation of relevant provisions by the duty payer， the customs shall， within three years as of the day on which the duties are payable by the duty payer， recover the underpaid or ignored duties and levy a late fee of 0.05% of the amount of underpaid or ignored duties per day as of the day on which the duties are payable until the day when customs detects the violation.

The term “the day when the duties are payable” as cited in the preceding paragraph shall mean the day when the violation of the duty payer occurs； if the day when the violation occurs is unable to be determined， the day when the customs detects the violation shall be the day when the duties are payable.

Article 70 With respect to recovery of the duties underpaid or ignored， the customs shall produce and issue the customs notification for duty recovery （see Attachment 5 specimen）。 The duty payer shall go through the remedial payment formalities within 15 days upon receipt of such notification.

Where a duty payer fails to go through the remedial payment formalities within the time limit as prescribed in the preceding paragraph， the customs shall issue the duty payment form on the day on which such time limit expires.

Article 71 Where， resulting from any violation of relevant provisions， a duty payer is required to pay， in addition to the duties， a late fee in accordance with Article 37， 40， 45 or 69 of the present Rules， yet it fails to make such payment within 15 days， which is the time limit as prescribed， the customs shall， according to Article 20 of the present Rules， levy another late fee on the unpaid duties as of the day on which such time limit expires until the day when the unpaid duties are settled.

Chapter V Duty Reduction and Exemption for Imported/Exported Goods

Article 72 Where a duty payer imports or exports any goods with duty reduction or exemption， it shall， before the import or export of the goods， go through the duty reduction/exemption approval formalities upon the strength of relevant papers and in accordance with the provisions concerned. No duty reduction or exemption formalities will be required for the import or export of any of the following goods with duty reduction/exemption.

（1） Any goods of a consignment on which the amount of the duties or the import process value-added tax or consumption tax is less than 50 RMB yuan；

（2） Any advertising articles and samples of goods， which are of no commercial value；

（3） Any goods suffering damage or loss before the customs clearance；

（4） Any necessary fuels， materials and foods and provisions for use en route loaded on any means of transport， which are in transit across the border； and

（5） Any other goods with duty reduction/exemption of which relevant formalities for approval are not required.

Article 73 For any of the goods as listed in Item 3 of Article 72 of the present Rules， the duty payer shall make a written statement and provide relevant certification， when going through the declaration or within 15 days as of the day on which the goods are cleared with the customs. Where the customs believes it necessary， it may demand the duty payer to provide the testing certificate as issued by a qualified commodities testing agency recording the degree to which the goods are damaged.

Article 74 For any goods with duty reduction or exemption， the duty payer shall， unless otherwise prescribed， file an application to the customs for approval thereof. The customs shall conduct examination and issue the tax reduction/exemption certificate in accordance with relevant provision.

Article 75 Special goods imported with duty reduction or exemption for special areas， special enterprises or special purposes shall be subject to customs supervision and control.

The duration through which special goods imported with duty reduction or exemption are subject to customs supervision and control shall be as follows.

（1） Ships， vessels， and aircrafts： 8 years；

（2） Motor vehicles： 6 years；

（3） Other goods： 5 years.

Such duration shall be counted as of the day on which the goods are cleared.

Article 76 Within the duration through which the special goods imported with duty reduction or exemption are subject to customs supervision and control， the duty payer shall report annually to the customs regarding the conditions of such goods， as of the day on which the goods are cleared. Except for the transfer of such goods to a project unit that enjoys the equivalent tariff treatment upon the approval of the customs， the duty payer may not transfer or dispose of them until after settling the payable duties and going through the formalities for canceling the state of customs supervision and control.

When the duration through which the special goods imported with duty reduction or exemption are subject to customs supervision and control expires， the state of customs supervision and control will be automatically cancelled. If the duty payer wants to obtain the supervision/control cancellation certificate， it may file an application to the customs by submitting relevant papers， within one year as of the day on which such duration expires. The customs shall conduct verification and issue such certificate within 20 days upon receipt of the application.

Chapter VI The Duty Guarantee for Imports and Exports

Article 77 Subject to any of the following circumstances， if the duty payer requests the customs to clear the goods prior to duty payment， it shall present a full-amount duty guarantee in light of the payable duties as determined on a preliminary basis by the customs.

（1） In case such elements for levying duties as the classification， dutiable value， place of origin， etc. of the goods have yet to be determined；

（2） In case it is going through the formalities for approval of duty reduction or exemption with the customs；

（3） In case it files an application for a time limit extension for duty payment；

（4） In case the temporary entry/exit goods are concerned；

（5） In case the entry goods for maintenance or the exit goods for processing， except those administered under the item of bonded goods， are concerned；

（6） In case the duty payer files a declaration for the import or export of the goods compensated at no cost， due to damage， inferior quality， or incompatible specification of the original goods， if the original imports have yet to be shipped out of The PRC or abandoned to the customs， or the original exports have yet to be shipped backed to the PRC；

（7） Other circumstances under which a duty guarantee is required in accordance with relevant provisions.

Article 78 The period of a duty guarantee may in general， unless otherwise prescribed， not exceed six months. Under special circumstances， such period may be reasonably extended upon the approval of the chief of the General Administration of Customs' directly-controlled agency or the person authorized thereby.

A duty guarantee shall normally， unless otherwise prescribed， take the form of caution money or a letter of guarantee as issued by a bank or a non-bank financial institution.

A letter of duty guarantee as issued by a bank or a non-bank financial institution shall be of the mode of joint liability guarantee. If a period has been stipulated in the letter of guarantee， such period may not fall short of the period of duty guarantee as approved by the customs.

Article 79 In case a duty payer fulfils its duty payment obligation within the period of duty guarantee as approved by the customs， the latter shall， within five days as of the day on which such obligation is fulfilled， handle and conclude relevant formalities for canceling the duty guarantee.

In case a duty payer fails to fulfill its duty payment obligation within the period of duty guarantee as approved by the customs， if any caution money is collected， the customs shall， within five days as of the day on which the approved period of duty guarantee expires， complete the formalities for converting the caution money to the payment of duties； if a letter of duty guarantee is provided by a bank or a non-bank financial institution， the customs shall demand the guarantor to fulfill the corresponding duty payment obligation within six months as of the day on which the approved period of duty guarantee expires or within the period of guarantee as stipulated in the letter of guarantee.

Chapter VII Supplementary Articles

Article 80 In case a duty payer or guarantor disagrees with the customs on the identification of the duty payer， or the determination of the dutiable value， classification， place of origin of the goods， the applicable tariff or exchange rate， the duty reduction or exemption， the duty recovery or refund， the levying of any late fee， the method employed for calculating and levying duties， or the location of duty payment， he shall， as required by law， pay the duties in accordance with relevant administrative decision made by the customs， but may file an application for reconsideration to the customs at a higher level in light of the Administrative Reconsideration Law of the People's Republic of China and the Measures of the Customs of the People's Republic of China on the Implementation of the Administrative Reconsideration Law. In the event the duty payer disagrees with the decision of reconsideration， it may institute a proceeding with the people's court in accordance with the law.

Article 81 In case an act in violation of relevant provisions on customs supervision/control or an act of smuggling is constituted， as being in violation of the present Rules， punishment shall be given in accordance with the Customs Law， the Regulation of the Customs of the People's Republic of China on the Implementation of Administrative Sanctions， as well as other relevant laws and regulations. Where a crime is constituted， the offender（s） shall be subject to criminal liabilities.

Article 82 The administration of the levying of duties on the bonded goods and on the goods entering or leaving the bonded zones， the export processing zones， the bonded warehouses， and any other similar sites subject to customs supervision and control shall be carried out in accordance with relevant provisions of the present Rules. In the absence of such provisions in the present Rules， the provisions of relevant laws， regulations and customs rules shall be observed.

Article 83 The rules for the administration of duty declaration and payment through electronic data interchange （EDI） shall be formulated separately.

Article 84 The power to interpret the present Rules shall be vested in the General Administration of Customs.

Article 85 The present Rules shall be implemented as of March 1st， 2005. The Rules of the Customs for the Administration of the Levying of Duties， which were promulgated by the General Administration of Customs of the People's Republic of China on September 30th， 1986， shall be annulled simultaneously.

Attachments：

1. The Duty Levying/Exemption Certificate for Imported/Exported Goods （Format） （Omitted）

2. The Customs Duty Payment Form （Format） （Omitted）

3. The Refund Application Form （Format） （Omitted）

4. The Payment Refund Certificate （Format） （Omitted）

5. The Customs Notification for Duty Recovery （Format）（Omitted）