Promulgated by Decree No.164 of the General Administration of Customs of the People’s Republic of China on September 3, 2007, and revised based on Decision of the General Administration of Customs on Amending Interim Measures of the Customs of the People's Republic of China for the Administration of Bonded Port Areas
Chapter I General Provisions
Article 1 These Measures are formulated in accordance with the Customs Law of the People’s Republic of China (hereinafter referred to as the Customs Law) and other related laws and administrative regulations for the purpose of standardizing the Customs administration of the bonded port areas.
Article 2 The term “bonded port area” in these Measures means the special areas under the supervision and control by the Customs which, with the approval by the State Council of the People’s Republic of China, are located in the port areas open to foreign trade or located in the specific areas adjacent to the said port areas and have such functions as a port or the functions of logistics or processing.
Article 3 The Customs shall conduct its supervision and control over the means of transport, the goods and articles entering or leaving the bonded port areas as well as the enterprises and other facilities located in the areas in accordance with these Measures.
Article 4 The bonded port areas shall be managed in a closed mode. Between a bonded port area and any other area (hereinafter referred to as the “outer area”) in the territory of the People’s Republic of China, there shall be set up checkpoints, separation facilities, video camera surveillance systems and such other facilities as required for the supervision and control by the Customs.
Article 5 There shall be no resident allowed to inhabit in the bonded port areas. Except those non-profit facilities as necessary for the normal work and life of the personnel in the areas, there shall be no commercial facilities, no facilities for consumption in everyday life or any retail business in these areas.
The offices of the Customs or other administrative institutions shall be located in the comprehensive administrative office area within the planned territory of the bonded port area but outside the separation line.
Article 6 The administrative organs of a bonded port area shall establish a computer-based common information platform for sharing relevant information and enable through “e-port” the electronic data exchange between the enterprises or other related institutions and the Customs.
Article 7 The infrastructure facilities and the supervision and control facilities in a bonded port area must conform to the “Criteria for the Acceptance of the Infrastructure Facilities and the Supervision and Control Facilities in the Special Areas under the Supervision and Control of the Customs”. A bonded port area may start to operate after the General Administration of Customs and other relevant authorities of the State Council have jointly inspected and accepted these facilities.
Article 8 Within a bonded port area the following businesses may be conducted:
1) Storing import and export goods and other goods that have not yet been processed for customs clearance;
2) International entrepot trade;
3) International procurement, distribution and delivery;
4) International transit shipment;
5) Inspection and after-sale service and maintenance;
6) Commodity exhibition;
7) Research and development, processing and manufacturing;
8) Port operation;
9) Other businesses with the approval of the Customs.
Article 9 All the enterprises in the bonded port areas (hereinafter referred to as “enterprise within the area”) must have the legal person status and be able to pay taxes and duties to the Customs and perform other statutory obligations. Under special circumstances and subject to the approval of the competent Customs authorities of the bonded port area, incorporated enterprises outside a bonded port area may set up branch offices according to law in the bonded port areas and register with the Customs.
Article 10 The Customs shall in its administration of the enterprises within the area implement a management system aided by computer network and a customs inspection system.
The enterprises within the area shall implement such computer management system as meeting the requirement of the Customs, shall provide to the Customs such terminal equipment and computer software interface as necessary for the Customs to search the relevant data, shall connect their computers to the network of the Customs according to the authentication methods and the data criteria as prescribed by the Customs and shall ensure the truthfulness, accurateness and effectiveness of these data.
The Customs shall carry out inspection of the enterprises within the area according to law and shall supervise these enterprises to ensure that they shall be managed in a normalized manner and they shall comply with the law and well discipline themselves.
Article 11 The enterprises within the bonded port areas shall, according to the Accounting Law of the People’s Republic of China and other relevant laws and administrative regulations, regulate their financial management, set up account books and account statements meeting the requirements for the supervision and control of the Customs, maintain records as to the financial conditions of the enterprises, the related information of the storage, assignment, transfer, sale, processing, use, etc. of the goods and articles entering or exiting the bonded port areas, truthfully complete the relevant documents and account statements, and keep and check accounts on the basis of lawful and valid vouchers or certificates.
Article 12 The operation and related business activities of the port enterprises and shipping enterprises in the boned port areas shall be conducted in compliance with the applicable laws, the relevant administrative regulations and the provisions concerning the Customs supervision.
Article 13 The goods and articles prohibited by the state from import or export shall not enter or exit the bonded port areas.
Article 14 The production activities and business operation of the enterprises in the bonded port areas shall conform to the need of the state’s industrial development and they shall not be engaged in any processing trade related to high energy-consuming, high pollution and resources-intensive products or the commodities listed in the “Catalogue of the Prohibited Commodities in Processing Trade”.
Chapter II Supervision over the Goods Transported between a Bonded Port Area and an Overseas Area
Article 15 For the goods transported between a bonded port area and an overseas area, the customs formalities shall be completed with the competent Customs authority in the bonded port area. In the cases where the entry and exit port is not located within the jurisdiction of the competent Customs authority in the bonded port area, the formalities may be completed with the Customs of the entry and exit port upon the approval of the competent Customs authority in the bonded port area.
Article 16 In the cases of the goods transported between a bonded port area and an overseas area, the Customs in the bonded port area shall implement a register-on-file management system. The goods transported from an overseas area shall be bonded, except under circumstances prescribed in Articles 17,18 and 39.
In the cases of goods subject to the register-on-file management as prescribed in the preceding paragraph of this article, the consigner and consignee or their agents shall truthfully complete the manifests of the goods for registering on file with the Customs.
Article 17 Unless otherwise prescribed by applicable laws or administrative regulations, when the following goods enter a bonded port area from overseas, the Customs shall not levy on them any import duties or withhold any other import-related taxes:
1) The machines and equipment required for the infrastructure construction projects related to production within the area and the infrastructure supplies required for the construction of plants and storage facilities within the area;
2) The machines, equipment and molds required for the production of the enterprises within the area, as well as the spare parts and accessories required for the repair and maintenance thereof;
3) The office supplies in reasonable quantities as required for self-use by the enterprises and administrative offices within the area.
Article 18 For the means of transport and consumer goods transported from an overseas area into the bonded port area for the self-use by the enterprises or the administrative offices within the area, relevant customs declaration formalities shall be completed according to the regulations applicable to import goods and the Customs shall levy import duties and withhold other import-related taxes on them according to relevant provisions.
Article 19 The export duties shall be exempted for the goods transported from a bonded port area to an overseas area unless otherwise stipulated by law or by relevant administrative regulations.
Article 20 The goods transported between a bonded port area and an overseas area shall not be subject to the import-export quota certificate control or licensing certificate control unless relevant laws or administrative regulations stipulate otherwise.
In the cases of the goods under the same quota certificate or the same licensing certificate, if they have already been checked in respect of the quota and the license when entering the bonded port area, they shall not be required to present the original quota certificate or licensing certificate at the exit link.
Chapter III Supervision over the Goods Transported between a Bonded Port Area and an Outer Area
Article 21 For goods transported between a bonded port area and an outer area, the enterprise concerned in the bonded port area, the consigner or consignee of the outer area shall complete the customs declaration formalities with the competent Customs authority in the bonded port area according to the relevant provisions on import-export goods. If any duty needs to be levied, the enterprise in the bonded port area or the consigner or consignee of the outer area shall pay the duty in terms of the actual conditions of the goods at the time when entering or exiting the bonded port area; as for the commodities subject to quota or license control, the enterprise concerned in the bonded port area or the consigner or consignee of the outer area shall present to the Customs the quota certificate or the licensing certificate. In the cases of the goods under the same quota certificate or the same licensing certificate, if they have already been checked in respect of the quota or the license when entering the area, they shall not be required to present the original quota certificate or licensing certificate at the exit link.
If any enterprise in the bonded port area engages in foreign trade in an outer area and its goods do not actually enter or exit the bonded port area, the relevant declaration formalities may be processed with the Customs authority at the place of the consigner or consignee or at the port the goods actually enter or exit.
Article 22 For the goods under customs supervision to be transported between a bonded port area and an outer area, the Customs of the bonded port area may demand a corresponding security.
Article 23 The leftover scraps and wastes engendered in the processing or production of an enterprise in the bonded port area, as well as the used packing materials engendered in the process of production, storing and transport, may be transported out of the bonded port area, provided the enterprise concerned in the area files a written application with the Customs in the area and obtains its approval. The Customs shall then levy due duties on these goods in terms of their actual conditions at the time of exiting. In case these goods are commodities subject to the import quota control or license control, they may be exempt from obtaining quota certificate and licensing certificate; if they are the wastes listed in the Catalogue of Wastes Banned from Import or other hazardous wastes that need to be disposed outside the bonded port area, the enterprise concerned in the area shall present to the Customs in the area the approval documents or other relevant materials issued by the administrative authorities in the area and the local environment administration at the municipal level and complete necessary exit formalities with the Customs in the area.
If an enterprise in a bonded port area intends to sell any substandard products or by-products engendered in the process of processing or production at the domestic market out of the area, the Customs shall levy duties on them in terms of their actual conditions at the time when they are sold at the domestic market. In the cases of the substandard products or by-products subject to quota control or license control, the enterprise concerned shall present to the Customs the relevant import quota certificate and licensing certificate.
Article 24 If the goods transported outward are goods under any preferential trade treaty and conform to the provisions of the General Administration of Customs concerning the origin of goods, they may be entitled to the tariff rate as prescribed by the treaty or some most-favored tariff rate upon application.
Article 25 Upon approval of the Customs within the area, an enterprise in the area may complete declaration formalities with the Customs in a “concentrated” manner, which means that the enterprise shall get together all the relevant manifests and data for declaration of a calendar month in one lot and then complete the import-export declaration forms and submit them to the Customs for processing at one time before the end of the next month.
In case of “concentrated” declaration, the tariff rate and the exchange rate of the day the submission is made shall prevail. The “concentrated” declaration may not span more than one year.
Article 26 For the goods transported into a bonded port area from an outer area, the tax payment shall be effected according to the relevant provisions on export goods and the Customs shall issue the certification page of the export declaration form to be used for export refund according the following provisions:
1) For the home-made goods and their packing materials transported from an outer area into a bonded port area for the business need of the enterprises in the area, the Customs shall handle them according to the provisions on export goods and shall issue the certification page of the export declaration form accordingly. For the transit export goods, the Customs of the departure port shall issue the certification page of the export declaration form after receiving the electronic reply from the competent Customs of the bonded port area confirming that the transit shipment has already entered the bonded port area;
2) For the home-made capital construction materials, machines, loading and unloading equipment, management facilities, office supplies, etc. transported from an outer area into a bonded port area for the use of the administrative offices or the enterprises within the area, the Customs shall handle them according to the relevant provisions on export goods and shall issue the certification page of the export declaration form accordingly;
3) For the consumer goods and articles and transport vehicles transported into a bonded port area for the use of the administrative offices or the enterprises within the area, the Customs shall not issue the certification page of the export declaration form;
4) For the original import goods, packing materials, equipment, capital construction materials, etc. transported into a bonded port area from an outer area, the enterprise concerned of the outer area shall provide to the Customs the manifests of the above said goods or articles and complete the declaration formalities according to the relevant provisions on export goods. The Customs shall not issue the certification page of the export declaration form and shall not refund the duties already paid or the taxes withheld by the Customs at the entry links.
Article 27 Upon approval of the competent Customs within a bonded port area, the enterprises within the area may carry out commodity exhibition activities at the special site for commodity exhibition within the comprehensive administrative offices area. The exhibits on display shall be registered with the Customs and subject to the supervision and control of the Customs. For the commodity exhibition activities in an outer area, the enterprise concerned in the bonded port area shall complete due formalities with the Customs in the light of the relevant administrative provisions on temporary import goods.
Article 28 Such goods under the supervision and control of the Customs as the machines, equipment, molds and office supplies for use within the area may be transported outward for inspection, test or maintenance according to the relevant provisions on the inward goods for repairs. For the molds transported outward for inspection, test or maintenance, the enterprise concerned within the area shall retain and keep the samples of the products that are manufactured thereon or the related graphic materials. The machines, equipment, molds and office supplies transported outward for inspection, test or maintenance shall not be used in an outer area for the purpose of processing or production and shall be transported back into the bonded port area within 60 days from the day of their existence. In case they cannot be transported back as scheduled, the enterprise concerned within the area or the administrative office within the area shall file an application with the Customs for extension 7 days before the date of expiration of the above-mentioned time limit. However, the extension may not be more than 30 days.
The machines, equipment, molds or office supplies transported back into the bonded port area after inspection, test or maintenance must be the same original ones. If there are any spare parts, accessories or fittings replaced, the original ones must be transported back into the area together with the replacements. In case of any need for tax refunding for the replacements of the homemade spare parts, accessories or fittings, the enterprises within the area or out of the area shall file an application with the competent Customs within the area. The latter shall handle the formalities according to the relevant provisions on export goods and shall issue the certification page of the export declaration form accordingly.
Article 29 If any enterprise within a bonded port area needs to transport any molds, raw materials or semi-finished products outward for processing, it shall, before starting the outward processing, submit to the competent Customs in the area the contract or agreement for undertaking the processing, the photocopies of the business license of the undertaking enterprise and the materials signed by the enterprise within the area evidencing the productive capability of the undertaking enterprise and complete the formalities for outward processing accordingly.
The period for processing commissioned to an enterprise out of the bonded port area shall not be more than 6 months. The processed goods shall be transported back into the bonded port area as scheduled. For the leftover bits and pieces, the rejects, the substandard products or by-products that are not transported back into the bonded port area, the Customs shall levy taxes and duties in the light of their actual conditions. The enterprise concerned within the area shall complete the due formalities for clearance and writing-off after verification of the application for outward processing and other relevant documents.
Article IV Supervision and Control of Goods within the Bonded Port Areas
Article 30 The goods within the bonded port areas may freely circulate. In cases of conveyance or transfer of goods between the enterprises within the area, the two parties concerned shall submit to the Customs in a timely manner the relevant electronic data, such as the name, quantity and amount of the goods to be conveyed or transferred.
Article 31 The enterprises within the bonded port areas shall not be subject to the system of bank account of guarantee fund for processing trade or the contract verification and cancellation system for processing trade. The Customs shall not implement unit consumption standard management over the processing trade goods within the area. Ever since starting their business, the enterprises within the bonded port area shall regularly submit to the Customs the information related to their goods entering or exiting the area or stored in the area.
Article 32 Any enterprise applying for carrying on repair and maintenance business within the bonded port area must have the incorporated enterprise status and must register with the competent Customs in the area. The repair and maintenance business within the area is restricted to the after-sale repair and maintenance service in respect to the mechanic or electronic products exported from China. The repaired products, the replaced components, accessories and the materials engendered in the process of repair and maintenance shall be transported out of the area.
Article 33 If any enterprise within the bonded port area needs to carry on the business of production, operating or transporting any hazardous chemicals, any inflammable or explosive goods, it shall obtain administrative permits from the relevant safety control authority or transportation authority and shall register with the competent customs in the area.
The related storage tanks, installations, equipment and facilities shall satisfy the requirements for the supervision and control of the Customs. The goods entering or exiting the bonded port area through pipelines shall be equipped with metering instruments or other facilities necessary for the supervision and control of the Customs.
Article 34 For the goods any enterprise in the bonded port area applies to give up, upon approval and verification by the Customs and relevant authorities, the competent Customs within the area may retain and sell them and shall handle the proceeds from the sale according to relevant regulations. However, this provision shall not be applicable to the goods that are forbidden to be given up by relevant laws, administrative regulations or the provisions of the Customs.
Article 35 In case of losses or damages of the goods as a result of force majeure, the enterprise concerned within the bonded port area shall report in writing to the competent Customs in the bonded port area, providing detailed information and relevant certificates issued by the competent authorities in charge of the verification of force majeure. After due verification, the competent Customs in the bonded port area shall handle the matter according to the following provisions:
1) In the cases of goods lost, or goods that, though not lost, have wholly lost their value for use, the Customs shall write them off after verification and exempt them from any taxes or duties;
2) In the cases of the imported goods that have been damaged and thus have lost part of use value, the enterprise concerned in the bonded port area shall complete with the Customs the formalities for transporting them back. If the enterprise requests to transport them to an outer area instead transporting them back out of the territory, it shall file an application with the competent Customs in the area, and, after verification and approval by the competent Customs in the area, taxes and duties shall be levied on them on the basis of the prices assessed and verified by the Customs;
3) If any inward goods from an outer area have been damaged and lost part of use value and need to be returned to the export enterprise concerned for replacements, they may be replaced or exchanged with either the same goods or some similar goods and due formalities shall be completed with the competent Customs in the bonded port area for transporting them back.
If the goods to be transported back to an area out of the bonded port area have not yet been processed for export tax refund, formalities for transporting them back shall be completed with the competent Customs within the bonded port area. If the goods to be transported back have already been processed for export tax refund, due formalities shall be completed according to the relevant provision in Section 2 of this article concerning transporting the import goods out of the bonded port area.
Article 36 In case of losses or damages of the goods as a result of mismanagement or other non-force majeure factors, the enterprise within the bonded port area concerned shall report in writing to the competent Customs in the bonded port area and provide detailed information. After due examination and verification, the competent Customs in the bonded port area shall handle the matter according to the following provisions:
1) For the inward goods from an overseas area, the enterprise concerned in the bonded port area shall abide by the general provisions on import goods and pay the customs duties and the taxes to be withheld by the Customs at the import links on the basis of the dutiable prices before the loss or damage assessed and verified by the Customs and according to the applicable duty rate and exchange rate on the date of the occurrence of the loss or the damage;
2) For the inward goods from an outer area, the enterprise concerned in the bonded port area shall repay all the taxes or duties it has paid at all the domestic links but has been refunded for export. The Customs shall handle the formalities of verification and writing–off accordingly and shall not refund the export customs duties already paid.
Article 37 There shall not be any time limit for storage of goods in the bonded port area. However, for goods stored more than 2 years, the enterprise concerned in the bonded port area shall register with the Customs annually.
For the goods that may affect public security, environmental sanitation or human health either because of the nature of the goods or any other actual factors if they continue to be stored in the bonded port area, the Customs shall cause the enterprise concerned to complete the relevant Customs clearance formalities promptly and transport the said goods out of the bonded port area.
Article 38 For the goods transported between a bonded port area and any other special areas under the supervision and control of the Customs or any other bonded places under the supervision and control of the Customs, the Customs shall exercise bonded supervision and control over them and shall not issue the certification page of the export declaration forms to be used for export tax refund. However, if the goods are transferred into the bonded port area from a special area under the supervision and control of the Customs or any other bonded places under the supervision and control of the Customs that have not yet implemented the export tax refund system for domestic goods entering the area (warehouse), they shall be treated as the goods actually exiting the territory and the Customs at the place from where the goods are transferred shall issue the certification page of the export declaration form to be used for the export tax refund formalities.
No duties or taxes related to relevant entry or exit links shall be levied on the goods circulated between a bonded port area and any other special areas under the supervision and control of the Customs or any other bonded places under the supervision and control of the Customs.
The transport vehicles carrying the goods between a bonded port area and any other special areas under the supervision and control of the Customs or any other bonded places under the supervision and control of the Customs must satisfy the requirements for the supervision and control by the Customs.
Chapter V Supervision and Control over Goods of Direct Import or Export, the Means of Transport and Personal Goods or Effects Entering or Exiting the Bonded Port Areas
Article 39 For the goods imported or exported directly through a bonded port area, the Customs shall conduct supervision and control according to the relevant provisions on import and export; the consigner or his agent of the export goods shall declare to the Customs before the goods arrive in the bonded port area; when the export goods arrive in the bonded port area, the Customs, after accepting the declaration and clearing the export goods, shall issue the certification page of the export declaration form.
Article 40 The transport vehicles and the persons entering or exiting a bonded port area shall be subject to the supervision and control of the Customs.
Article 41 For the personal articles carried into or out of a bonded port area by the crew of the exit-entry transport vehicles or by the exit-entry passengers, the Customs shall conduct supervision and control according to the relevant provisions on the luggage and articles of the exit-entry passengers.
Article 42 Upon approval of the Customs, the following goods circulating between a bonded port area and an outer area may be carried by persons specially appointed by the enterprises in the area or transported by themselves:
1) Goods of small quantity with a value below USD$10,000;
2) Substandard goods returned to the outer areas for replacement or exchange;
3) Goods that have already been processed for payment of import duties;
4) Goods for which the enterprise concerned does not request export tax refund;
5) Other goods approved by the Customs.
Chapter VI Supplementary Provisions
Article 43 The goods transported into the bonded port areas from overseas and the goods transported overseas from the bonded port areas shall be included into the Customs statistics of import and export unless relevant laws, administrative regulations or Customs regulations prescribe otherwise. The goods transported into the bonded port areas from the outer areas and the goods transported to the outer areas from the bonded port areas shall be included into separate Customs statistics.
The goods conveyed or transferred between the bonded port areas, or between a bonded port area and another special area under the supervision and control of the Customs or another bonded place under the supervision and control of the Customs shall not be included into the Customs statistics.
Article 44 In case of any violation of these Measures or any act that shall constitute a smuggling act or an act in violation of the relevant provisions on the supervision and control of the Customs or any other act in violation of the Customs law, the customs shall deal with them according to the “ Regulations of the People’s Republic of China for Implementing Customs Administrative Penalty”; in case of any criminal act, the Customs shall start legal proceedings and give criminal sanctions according to law.
Article 45 The comprehensive bonded areas with functions similar to those of the bonded port areas set up in the inland regions with approval of the State Council shall be handled with reference to these Measures.
Article 46 General Administration of Customs of the People’s Republic of China is entitled to interpret and construe these Measures.
Article 47 These Measures shall be effective as of October 3, 2007.