(Promulgated on August 22, 1992)
(Promulgated on August 22, 1992)
Whole Doc.
Chapter 1 General Principles
Article 1
In order to encourage foreign companies, enterprises and other
economic organizations or individuals to come to China and set up
Sino-foreign equity joint ventures, Sino-foreign cooperative joint
enterprises and foreign enterprises (hereinafter referred to as
enterprises with foreign investment), implement the state industrial
policy, develop the national economy, simplify procedures for legal import
and export and strengthen customs supervision and control, these Measures
are hereby formulated in accordance with the stipulations of the Customs
Law of the People's Republic of China and related laws and regulations.
Article 2
Enterprises with foreign investment shall perform their various
duties in accordance with the stipulations of the laws, regulations and
measures of the People's Republic of China. They shall accurately declare
at Customs their import and export goods, accept customs supervision and
control and enjoy relevant preferential treatment.
Article 3
For enterprises with foreign investment considered to properly comply
with the stipulations of Customs, upon examination, Customs will grant the
title "Enterprises with a Good Reputation", and provide with relevant
conveniences in the performance of customs formalities.
Article 4
Enterprises with foreign investment, which meet the conditions of
customs supervision and control, may be allowed to set up bonded
warehouses and bonded factories. When considered to be necessary, Customs
may send customs personnel to be stationed in enterprises with foreign
investment to carry out the supervision and control and handle customs
procedures. Relevant enterprises should provide necessary conveniences.
Article 5
Goods imported by enterprises with foreign investment, which come
under the supervision and control of Customs according to the stipulations
of the Customs Law of People's Republic of China, shall not be sold,
transferred, mortgaged or diverted to other purposes without authorization
or permission of Customs.
Chapter 2 Procedures for the Recording of Customs Clearance Basis
Article 6
Enterprises with foreign investment shall bring with the copies or
duplicates of the documents of ratification issued by the Department in
charge of foreign economic relations and trade of the People's Republic of
China, or the organization it authorized, and the copies or duplicates of
the business license issued by the State Administration for Industry and
Commerce, or the department it authorized, as well as the articles of
association and contracts of enterprises', to go through the formalities
of registration with local Customs for the record.
Article 7
Each party of enterprises with foreign investment shall pay the
required funds in accordance with the stipulations of contracts, articles
of association and relevant State regulations and, within 1 month after
the funds are verified, hand in the report of verified funds to Customs.
Article 8
When declaring their import and export goods at Customs, enterprises
with foreign investment shall fill in a bill of entry specially provided
for enterprises with foreign investment and declare to Customs and hand in
all goods invoices, packing lists and other related documents for
examination. They shall also hand in import or export licenses for
commodities needing to no license according to State regulation, Customs
will check and give clearance in accordance with the documents approving
the establishment of the enterprises or with the import and export
contract.
Enterprises with foreign investment are not required to apply for
approval and to obtain import licenses for a reasonable amount of goods
imported for their own use.
Article 9
When a enterprise with foreign investment purchases goods that are
not products of the enterprises for export in order to obtain a balance of
foreign exchange income and expenditure, Customs shall check the document
of ratification issued by the economic and trade department in charge. For
commodities which come under state export license control, the enterprise
shall apply for export license in accordance with the document of
ratification, and Customs shall check and issue clearance.
Article 10
A enterprise with foreign investment shall, before importing goods,
bring with its approved contract and equipment detailed lists and other
documents to perform the Customs in charge. After examination and
approval, the Customs shall issue the "Tax Levy and Exemption Certificate
of the Customs of the People's Republic of China" for the import goods of
the enterprise with foreign investment (hereinafter referred to as Tax
Levy and Exemption Certificate). When the goods are imported, the
enterprise shall bring the "Tax Levy and Exemption Certificate" to perform
the procedures of declaration at Customs.
The period of validity of the "Tax Levy and Exemption Certificate" is
3 months. The period can be extended upon the approval of the Customs in
charge under special circumstances. The longest additional extension
period is 3 months.
For the above-mentioned tax levy and exemption, the examination
formalities can either be performed by the Customs in charge or by Customs
in the entry area. The triplicate form of the "Tax Levy and Exemption
Certificate" shall be returned to the Customs in charge for record and
examination within 1 month after the goods are given clearance.
Article 11
The Customs shall verify and issue to the foreign-funded enterprises,
which implement the product export contract, the "Registration Handbook of
the Customs of the People's Republic of China on Imported Materials and
Processed Parts that are necessary to Foreign-funded Enterprises to
Implement their Product Export Contract" (hereinafter referred to as
Registration Handbook).
Raw materials, fuel, bulk parts, spare parts, components, auxiliary
parts, semi-finished materials and packing materials imported by
foreign-funded enterprises in order to implement product export contract
shall be placed under the supervision and control of Customs as bonded
goods. When these goods are imported, no import license is required.
Customs shall give clearance in accordance with the enterprises contract
or import and export contract.
Products processed for export by a foreign-funded enterprise, which
come under the states export license control, are given clearance for
export in accordance with their export license.
Chapter 3 Provisions on Taxing Import and Export Goods
Article 12
A foreign-funded enterprise, which import goods within the amount of
total investment and approved additional investment, can enjoy
preferential tax reduction or exemption treatment. Tax shall be levied,
according to regulations, on goods imported over the amount of investment.
Article 13
No customs duties or industrial and commercial consolidated tax shall
be levied on the following goods imported by a Sino-foreign joint venture:
(1) machinery and equipment, spare parts and components, and other
materials (other materials refer to materials needed for the construction
of a factory and the installation and reinforcing of machinery)
contributed as investment by the foreign partner in accordance with the
stipulations of the contract;
(2) machinery, equipment, spare parts, components and other materials
imported with funds within the total investment;
(3) machinery, equipment, spare parts, components and other materials
imported with added capital, the production and supply of which cannot be
guaranteed in China.
Article 14
Goods prescribed in Article 13 as well as production and management
equipment imported by a enterprise with foreign investment are exempted
from import duties and industrial and commercial consolidated tax.
Article 15
Machinery, equipment, spare parts and materials directly used in
prospecting and development work by Sino-foreign cooperative exploitation
of offshore petroleum, imported spare parts, components and materials
necessary for the manufacture of machinery and equipment used in
exploitation work as well as projects imported with foreign-investment for
energy development, the infrastructure of railways, highways and ports, as
well as in industry, scientific research education, and medical and health
services, and machinery and equipment imported in accordance with the
stipulations of contracts and materials needed for the construction of
factories and sites and for installing and reinforcing machinery and
equipment, are all exempted from import duties and the industrial and
commercial consolidated tax.
Article 16
Goods imported for Sino-foreign cooperatively managed commerce,
catering, photo studios, and other service trades, maintenance centres,
worker training operation, passenger and cargo vehicle transportations,
offshore fishing as well as other trades, shall be levied on import duties
and industrial and commercial consolidated tax according to regulations,
unless there are separate stipulations of the State.
Article 17
A reasonable amount of communication equipment, vehicles used in
production, office articles (equipment) imported for self-use by a
enterprise with foreign investment within the total amount of investment
are exempted from import duties and the industrial and commercial
consolidated tax according to the stipulations of the State.
Article 18
For imported goods enjoying preferential tax reduction and exemption
treatment as listed in Articles 13, 14, 15 and 17, the term for
supervision control shall be regulated by Customs. The term is counted
from the day the tax-free imported goods are given customs clearance.
Term of imported goods enjoying preferential taxfree treatment are as
follows:
(1) ships, aircrafts and building materials (including rolled steel,
timber, plywood, artificial board and glass) for 8 years
(2) motor-driven vehicles and house-hold electrical appliances for 6
years
(3) machinery, equipment and other materials for 5 years
For tax-reduced and exempted goods that exceed the term of customs
supervision
and control, the enterprise may apply to Customs to lift supervision and
control. Upon ratification, the Customs in charge shall issue a
"Certificate of the Customs of t e People's Republic of China on Lifting
Supervision and Control over Tax-Reduced and Exempted Imported Goods of a
Foreign-funded Enterprise".
For the tax reduction and exemption of imported goods within the term
of customs supervision and control which are resold or sold in China upon
the approval of the original examination and approval department, the
Customs shall make an appraisal of depreciation according to the time of
use of these goods and re-levy the import duties.
With regard to tax-reduced or exempted imported goods not included in
the term of customs supervision and control, Customs shall make a price
appraisal according to the use of the goods and re-collect the import
duties.
Article 19
A reasonable amount of catalytic agents, grinding materials and fuel
consumed in production which are imported by the foreign-funded enterprise
in order to perform the product export contract and are directly used in
processing export products shall be exempted from import duties and
industrial and commercial consolidated tax.
Article 20
When by-products, substandard products, and leftover industrial
surplus generated in the process of production are converted to domestic
sales by the foreign-funded enterprise in order to perform the product
export contract, after being verified and according to the circumstances.
Wastes proved really worthless can be exempted from repayment tax.
Materials imported by a foreign-funded enterprise for trial run shall
be levied on duties according to regulations when they are imported.
Article 21
Materials and parts imported by a foreign-funded enterprise for
processing products for domestic sales, with the approval of the economic
and trade department in charge, shall be levied on duties when they are
imported.
Article 22
Products produced by the foreign-funded enterprise for export, except
those commodities which are restricted for export or except there are
separate provisions of the State, are exempted from export duties.
Chapter 4 Management, Verification and Cancellation of Bonded Im- ported Materials and Parts
Article 23
Enterprises with foreign investment shall set up special account
books meeting all customs requirements and state in form of the import,
storage, drawing, using and processing at another factory of bonded
imported materials and parts (hereinafter referred to as materials and
parts), as well as the storage, export and internal sales of processed
products, and regularly report them to Customs for verification.
Article 24
Materials and parts imported by an enterprise with foreign investment
shall be, except due to special reasons and with the approval of Customs,
processed to finished products to perform related export contracts within
1 year from the date of imported.
When imported materials, parts and processed products are changed to
internal sales for some reasons, the foreign-funded enterprise shall have
the approval of the economy and trade department concerned, and repay
duties and the industrial and commercial consolidated tax on the imported
materials and parts before they are allowed to be sold in the domestic
market. For materials and parts under license management, the import
licenses shall be submitted for check.
Article 25
Materials and parts imported by foreign- funded enterprise are not
allowed to be processed directly at another factory. If they have to be
processed at another factory due to special circumstances, the
foreign-funded enterprise shall report to Customs in advance for approval.
Within the term of the customs approval, the finished and semi-finished
products processed at another factory must be transferred to the original
enterprise. When a foreign-funded enterprise's imported materials and
parts processed into finished or semi-finished products are not directly
exported, but instead are sold or transferred to another processing and
exporting enterprise for re-processing and assembling, the enterprise with
the imported materials and parts shall, together with the original
enterprise, bring with them the purchasing and sale contract, or
production and processing contracts and other related documents signed by
both parties to Customs to perform the carry-over, verification and
writing off procedures.
Article 26
For materials and parts under an import contract, a foreign-funded
enterprise must, within 1 month from the day of the export of the last
batch of finished products, bring in the "Registration Handbook" and the
declaration of export goods and other related documents to the Customs to
perform the verification and writing off procedures.
Article 27
After a foreign-funded enterprise imports materials and parts, if
there are changes, transfer and termination of the contract, it shall
immediately perform relevant procedures at Customs.
Chapter 5 Mortgage, Bankruptcy and Liquidation
Article 28
When a foreign-funded enterprise uses goods under customs supervision
and control as a loan mortgage to domestic and foreign financial
institutions, it shall apply in advance to the customs department in
charge and perform mortgage procedures upon approval.
When the above-mentioned collaterals are being actually handled, the
enterprise shall depreciate them according to their used years, repay
duties and complete the customs procedures.
Article 29
When a foreign-funded enterprise terminates or cancels a contract, it
shall, within 15 days from the date of approval of liquidation by
examination and approval department, or within 15 days from the date of
enforcement of the bankruptcy is decided by the court, bring with it
duplicates of the documents of ratification issued by the examination and
approval organization, detailed statements of the duty levy or exemption
on imported materials, the "Tax Levy or Exemption Certificates" and the
"Registration Handbooks" issued by Customs, to apply to the customs in
charge and perform the procedures for cancelling the tax reduction and
exemption on imported materials. The enterprise shall return the "Customs
Declaration Registration Certificates", the "Declarant Certificates" and
other related certificates.
Before Customs completes the procedures for cancelling the case of
the above-mentioned enterprises duty reduction and exemption of imported
materials, it shall seal the related imported materials for safekeeping.
Article 30
Before a bankrupt foreign-funded enterprise clears off its property,
it shall perform the procedures of paying duties for the supervised and
managed goods enjoying preferential customs duty treatment according to
State regulations.
Article 31
With regard to the duty reduction or exemption of imported goods of a
foreign-funded enterprise which terminates or cancels a contract within
the term of customs supervision and control, Customs shall handle the
goods according to the following provisions:
(1) when the imported goods are left to the Chinese partner of the
joint venture for its continued use, or transferred or sold to domestic
units, Customs shall depreciate and re-levy duties on them according to
the duration of their usage;
(2) imported goods transferred to another domestic foreign-funded
enterprise enjoying equal preferential treatment, after approval of the
examination and approval department and completion of the carry-over
procedures at Customs, can continue to have duty reduction and exemption
treatment;
(3) upon approval from Customs, the foreign partner to a joint
venture is allowed to ship the original duty- free imported goods out of
China.
Article 32
For the above-mentioned enterprise with foreign investment which has
completed customs procedures, Customs shall issue it the "Notice for the
Enterprise Completing Customs Procedures".
Chapter 6 Supplementary Provisions
Article 33
Foreign-funded enterprises set up in the special economic zones,
economic and technological development areas, freetrade zones, high-tech
development areas, coastal open cities, coastal open areas as well as
other regions practising special preferential policies, shall handle their
imported and exported goods in accordance with the Measures. In addition,
they shall also implement the related policies granted by the State to the
foreign-funded enterprise in the above-mentioned areas.
Article 34
Enterprises invested by compatriots from Taiwan, Hong Kong and Macao
and overseas Chinese, besides carrying out the relevant stipulations of
the State Council Regulations on Encouraging Investment of Taiwan
Compatriots, and the State Council Regulations on Encouraging Investment
of Overseas Chinese and Hong Kong and Macao Compatriots, shall also
implement the stipulations of the Measures.
Article 35
With regard to actions violating the Measures, Customs shall deal
with them according to the Customs Law of the People's Republic of China,
and the Detailed Rules for the Implementation of the Customs
Administrative Law of the People's Republic of China on Punishment. For
those who violate the Criminal Law, the judicial organ shall affix on them
the criminal responsibility according to the Law.
Article 36
When provisions contravene the Measures, the Measures shall be
followed as the criterion.
Article 37
The General Administration of Customs is responsible for the
interpretation of the Measures.
Article 38
The Measures are to be implemented from September 1, 1992.
ct
export contract, after being verified and according to the circumstances.
Wastes proved really worthless can be exempted from repayment tax.
Materials imported by a foreign-funded enterprise for trial run shall
be levied on duties according to regulations when they are imported.
Article 21
Materials and parts imported by a foreign-funded enterprise for
processing products for domestic sales, with the approval of the economic
and trade department in charge, shall be levied on duties when they are
imported.
Article 22
Products produced by the foreign-funded enterprise for export, except
those commodities which are restricted for export or except there are
separate provisions of the State, are exempted from export duties.
Chapter 4 Management, Verification and Cancellation of Bonded Im- ported Materials and Parts
Article 23
Enterprises with foreign investment shall set up special account
books meeting all customs requirements and state in form of the import,
storage, drawing, using and processing at another factory of bonded
imported materials and parts (hereinafter referred to as materials and
parts), as well as the storage, export and internal sales of processed
products, and regularly report them to Customs for verification.
Article 24
Materials and parts imported by an enterprise with foreign investment
shall be, except due to special reasons and with the approval of Customs,
processed to finished products to perform related export contracts within
1 year from the date of imported.
When imported materials, parts and processed products are changed to
internal sales for some reasons, the foreign-funded enterprise shall have
the approval of the economy and trade department concerned, and repay
duties and the industrial and commercial consolidated tax on the imported
materials and parts before they are allowed to be sold in the domestic
market. For materials and parts under license management, the import
licenses shall be submitted for check.
Article 25
Materials and parts imported by foreign- funded enterprise are not
allowed to be processed directly at another factory. If they have to be
processed at another factory due to special circumstances, the
foreign-funded enterprise shall report to Customs in advance for approval.
Within the term of the customs approval, the finished and semi-finished
products processed at another factory must be transferred to the original
enterprise. When a foreign-funded enterprise's imported materials and
parts processed into finished or semi-finished products are not directly
exported, but instead are sold or transferred to another processing and
exporting enterprise for re-processing and assembling, the enterprise with
the imported materials and parts shall, together with the original
enterprise, bring with them the purchasing and sale contract, or
production and processing contracts and other related documents signed by
both parties to Customs to perform the carry-over, verification and
writing off procedures.
Article 26
For materials and parts under an import contract, a foreign-funded
enterprise must, within 1 month from the day of the export of the last
batch of finished products, bring in the "Registration Handbook" and the
declaration of export goods and other related documents to the Customs to
perform the verification and writing off procedures.
Article 27
After a foreign-funded enterprise imports materials and parts, if
there are changes, transfer and termination of the contract, it shall
immediately perform relevant procedures at Customs.
Chapter 5 Mortgage, Bankruptcy and Liquidation
Article 28
When a foreign-funded enterprise uses goods under customs supervision
and control as a loan mortgage to domestic and foreign financial
institutions, it shall apply in advance to the customs department in
charge and perform mortgage procedures upon approval.
When the above-mentioned collaterals are being actually handled, the
enterprise shall depreciate them according to their used years, repay
duties and complete the customs procedures.
Article 29
When a foreign-funded enterprise terminates or cancels a contract, it
shall, within 15 days from the date of approval of liquidation by
examination and approval department, or within 15 days from the date of
enforcement of the bankruptcy is decided by the court, bring with it
duplicates of the documents of ratification issued by the examination and
approval organization, detailed statements of the duty levy or exemption
on imported materials, the "Tax Levy or Exemption Certificates" and the
"Registration Handbooks" issued by Customs, to apply to the customs in
charge and perform the procedures for cancelling the tax reduction and
exemption on imported materials. The enterprise shall return the "Customs
Declaration Registration Certificates", the "Declarant Certificates" and
other related certificates.
Before Customs completes the procedures for cancelling the case of
the above-mentioned enterprises duty reduction and exemption of imported
materials, it shall seal the related imported materials for safekeeping.
Article 30
Before a bankrupt foreign-funded enterprise clears off its property,
it shall perform the procedures of paying duties for the supervised and
managed goods enjoying preferential customs duty treatment according to
State regulations.
Article 31
With regard to the duty reduction or exemption of imported goods of a
foreign-funded enterprise which terminates or cancels a contract within
the term of customs supervision and control, Customs shall handle the
goods according to the following provisions:
(1) when the imported goods are left to the Chinese partner of the
joint venture for its continued use, or transferred or sold to domestic
units, Customs shall depreciate and re-levy duties on them according to
the duration of their usage;
(2) imported goods transferred to another domestic foreign-funded
enterprise enjoying equal preferential treatment, after approval of the
examination and approval department and completion of the carry-over
procedures at Customs, can continue to have duty reduction and exemption
treatment;
(3) upon approval from Customs, the foreign partner to a joint
venture is allowed to ship the original duty- free imported goods out of
China.
Article 32
For the above-mentioned enterprise with foreign investment which has
completed customs procedures, Customs shall issue it the "Notice for the
Enterprise Completing Customs Procedures".
Chapter 6 Supplementary Provisions
Article 33
Foreign-funded enterprises set up in the special economic zones,
economic and technological development areas, freetrade zones, high-tech
development areas, coastal open cities, coastal open areas as well as
other regions practising special preferential policies, shall handle their
imported and exported goods in accordance with the Measures. In addition,
they shall also implement the related policies granted by the State to the
foreign-funded enterprise in the above-mentioned areas.
Article 34
Enterprises invested by compatriots from Taiwan, Hong Kong and Macao
and overseas Chinese, besides carrying out the relevant stipulations of
the State Council Regulations on Encouraging Investment of Taiwan
Compatriots, and the State Council Regulations on Encouraging Investment
of Overseas Chinese and Hong Kong and Macao Compatriots, shall also
implement the stipulations of the Measures.
Article 35
With regard to actions violating the Measures, Customs shall deal
with them according to the Customs Law of the People's Republic of China,
and the Detailed Rules for the Implementation of the Customs
Administrative Law of the People's Republic of China on Punishment. For
those who violate the Criminal Law, the judicial organ shall affix on them
the criminal responsibility according to the Law.
Article 36
When provisions contravene the Measures, the Measures shall be
followed as the criterion.
Article 37
The General Administration of Customs is responsible for the
interpretation of the Measures.
Article 38
The Measures are to be implemented from September 1, 1992.
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