The General Administration of Customs of the People's Republic of China &

The Ministry of Foreign Trade and Economic Cooperation of the People's Republic of China

Decree No.86

The Provisions on the Approval of Application of Convenient Customs-Clearance Measures to Large High-Tech Enterprises are hereby promulgated for implementation as of the date of promulgation.

Customs Minister: Mou Xinsheng

Foreign-trade Minister: Shi Guangsheng 

Provisions on the Approval for Application of Convenient Customs-Clearance Measures to Large High-Tech Enterprises

Article 1 According to Articles 1 and 5 of the Circular of the General Administration of Customs (GAC) and the Ministry of Foreign Trade and Economic Cooperation on Several Issues concerning Supporting the Development of High-tech Industry (Shu Ting Fa [2001] No.279, hereinafter referred to as the "Circular"), large-scale high-tech enterprises shall go through the formalities for application, filing or approval to apply the convenient customs-clearance measures according to the following procedures.

Article 2 Any enterprise meeting the following basic requirements may apply for one or several convenient customs-clearance measures stated in the Circular:

1. it abides by law with creditworthiness, has standardized and strict internal management practices, and no record of smuggling or incompliance and owns sufficient assets or funds to provide a general guarantee for economic liabilities for application of convenient clearance measures;

2. it has an independent legal personality within the customs territory of China and engages in high-tech production with its products being listed in the Catalogue of China's High-tech Export Products jointly prepared by the Ministry of Science and Technology, the Ministry of Foreign Trade and Economic Cooperation, the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs of China;

3. it has import and export operation rights and has been registered at the Customs;

4. it has an annual export volume of not less than $100 million (including those carried forward from deep processing trade).

Article 3 Any enterprise shall go through the formalities of application for filing according to the following proceedings:

1. The enterprise shall truthfully fill out the Form for Filing and Approval of the Application of Convenient Clearance Measures by a Large-scale High-tech Enterprise (see Appendix 1 for the format, hereinafter referred to as the "Form for Filing and Approval") in quintuplicate. Its legal representative or its authorized representative shall sign and seal them with its corporate seal.

2. When the enterprise submits an application for enterprise condition approval to the foreign economic and trade commission (department, bureau) in the province, autonomous region, municipality directly under the Central Government or city specifically designated in the state plan where it is located, the foreign economic and trade commission (department, bureau) responsible for approval shall complete the approval work within ten working days and affix its official seal on the corresponding columns of the Form for Filing and Approval in quintuplicate in case an approval is granted.

3. When the enterprise submits an application to apply the convenient clearance measures for approval to its competent customs directly under the General Administration of Customs of China, the competent customs directly under the General Administration of Customs of China responsible for approval shall complete the approval work within ten working days and affix their official seal on the corresponding columns of the Form for Filing and Approval in quintuplicate in case an approval is granted. Concurrently, one copy of the Form for Filing and Approval with two official seals of the foreign economic and trade commission (department, bureau) and the Customs directly under the General Administration of Customs of China affixed thereon will be sent to the enterprise; two copies thereof shall be submitted to the General Administration of Customs and the Ministry of Foreign Trade and Economic Cooperation respectively and two copies thereof shall be put on file by the foreign economic and trade commission (department, bureau) and the Customs directly under the General Administration of Customs respectively.

4. The enterprise shall sign a Letter of Guarantee for Liabilities for Application of Convenient clearance measures (see Appendix 2 for the format, hereinafter referred to as the "Letter") with the competent customs directly under the General Administration of Customs of China. The uniform format and basic contents of the Letter may be prescribed by the General Administration of Customs of China. The specific provisions of the Letter may be supplemented according to the special requirements of the Customs for supervision or the enterprise operation. The Letter is made in quintuplicate. Each responsible party keeps one copy; two copies shall be filed with the General Administration of Customs of China and the Ministry of Foreign Trade and Economic Cooperation, and one copy placed on file.

5. The competent customs shall be responsible for filing the Form for Filing and Approval with two official seals of the foreign economic and trade commission (department, bureau) and the Customs directly under the General Administration of Customs of China affixed thereon together with one copy of the Letter signed by three responsible parties with the General Administration of Customs of China and the Ministry of Foreign Trade and Economic Cooperation respectively. If the General Administration of Customs of China or the Ministry of Foreign Trade and Economic Cooperation dissents from the Form for Filing and Approval or the Letter, it shall request the Customs directly under the General Administration of Customs of China to defer implementing or revoke the Form for Filing and Approval, or modify the Letter within ten days upon receipt thereof. If no dissent is raised within the time limit, the Form for Filing and Approval or the Letter will become valid.

To enhance the work efficiency, the above filing formalities may be handled through the China E-port System between the enterprises and the examination and approval authorities and among the examination and approval authorities. All filing formalities are free of charge.

Article 4 The competent Customs directly under the General Administration of Customs of China are entitled to change the corresponding clearance parameters of any enterprise according to the specific requirements of convenient customs clearance procedure applied by the enterprise and the special requirements of the Letter upon the effective date of the Form for Filling and Approval and the Letter. If an enterprise intends to handle the formalities for declaration of the imported or exported goods, it may directly apply the application of corresponding convenient clearance measures as per the specific convenient clearance measures and the special stipulations in the Letter.

If there is any material change or variation that will affect the contents in the Form for Filing and Approval of the Application of Convenient clearance measures by a Large-scale High-tech Enterprise or the Letter, the enterprise shall timely report the same to the competent customs directly under the General Administration of Customs of China and the competent foreign economic and trade commission (department, bureau).

Article 5 The Form for Filing and Approval and the Letter shall be valid in the long term before they are suspended or revoked by any of the Customs, the department of foreign trade and economy and the enterprise. The modification, suspension and resumption thereof shall be also made in accordance with the proceedings as prescribed in Article 3 hereof.

Article 6 The original competent approving Customs directly under the General Administration of Customs of China may, in concert with the competent foreign economic and trade commission (department, bureau), cancel the qualifications of an enterprise for application of convenient clearance measures. Such decisions made by the competent approving customs directly under the General Administration of Customs of China in concert with the competent foreign economic and trade commission (department, bureau) shall be filed with the General Administration of Customs of China and the Ministry of Foreign Trade and Economic Cooperation respectively by the competent customs directly under the General Administration of Customs. The General Administration of Customs of China shall be responsible for duly changing corresponding customs clearance parameters of the enterprise. The relevant Form for Filing and Approval and the Letter shall become invalid accordingly. In case of any re-application, the enterprise shall go through the filing formalities once again according to Article 3 hereof.

Article 7 The Customs may manage the credit of the enterprises who apply the convenient clearance measures. The imported and exported goods shall be inspected and released mainly according to the declaration made by the enterprises. In general, the Customs will not make any opening-up examination on the spot; the Customs in the places of import or export will not visit the enterprises to perform inspection on them. To ensure that the enterprises will obtain the actual conveniences and benefits from convenient customs clearance, the Customs in all places shall propose special approving procedures, under which when any enterprise needs to make an open-up examination on the spot and then applies the convenient clearance measures for imported or exported goods, it shall handle approval formalities under the examination and approval procedures. The competent customs directly under the General Administration of Customs of China shall make it clear that its competent departments or its competent subordinate customs offices shall be fully responsible for managing the enterprises who apply the convenient clearance measures. The competent departments or the competent subordinate customs offices shall strengthen the management of law observance of the enterprises who apply convenient clearance measures, learn and understand their credit status, internal management, financial affairs (funds), production and operation, annual export volume, tax and fee payment from time to time, establish specific credit archives based on the enterprises and make necessary verifications of the goods convinced of and released by the Customs on the spot of the port; on the other hand, the enterprises shall provide cooperation therefor. The Customs at the places of export and import shall strengthen the contact and cooperation with the competent customs and shall forwardly contact the competent customs to timely solve any problems occurring during the course of going through convenient clearance measures. If the Customs at the places of export and import dissent from each other, they shall firstly handle the inconsistency according to the opinions of the competent customs to ensure timely customs clearance.

Article 8 The enterprises that apply convenient clearance measures shall lay stress on law-abiding consciousness, earnestly perform all undertakings, consciously abide by all provisions on the customs and management of foreign trade and economy, and strive to safeguard their good credit. In addition, they shall strengthen internal management to prevent their internal personnel from misusing convenient clearance measures to smuggle or engage in illegal activities. In case of violation of the Customs provisions, they shall consciously assist the Customs in handling the relevant matters and accept the punishment by the Customs.

Article 9 As to the enterprises whose export volumes are not more than $100 million, but that meet all the requirements as prescribed in Article 2 hereof, if they do need to apply relevant convenient clearance measures under special circumstances, they may officially apply to the competent customs to do so in written form. When written applications are made, they shall report their relevant information with reference to the Form for Filing and Approval. If the competent customs directly under the General Administration of Customs of China examine and approve their applications based on their application information in concert with the foreign economic and trade commission (department, bureau) of the provinces, autonomous regions, municipalities directly under the Central Government or municipalities specifically designated in the state plan where they are located, the competent customs directly under the General Administration of Customs of China shall transfer their applications to the General Administration of Customs of China for approval in concert with the Ministry of Foreign Trade and Economic Cooperation.

Article 10 The Provisions shall come into force as of the date of promulgation.

Appendices: 1. Form for Filing and Approval of the Application of Convenient clearance measures by a Large-scale High-tech Enterprise

2. Letter of Guarantee for Liabilities for Application of Convenient clearance measures

Appendix 1  Form for Filing and Approval of the Application of Convenient clearance measures by a Large-scale High-tech Enterprise

          Customs                                                           Date:

Appendix 2 

To adapt to the production and operation way of large-scale high-tech enterprises and meet the requirements for the supervision by the Customs to support the development of high-tech industry, according to the provisions of the Circular of the General Administration of Customs and the Ministry of Foreign Trade and Economic Cooperation on Several Issues on Supporting the Development of High-tech Industry (Shu Ting Fa [2001] No.279), with the approval of Party A in concert with the foreign economic and trade commission (department, bureau) and under the entrustment of the General Administration of Customs and the Ministry of Foreign Trade and Economic Cooperation, Party A hereby executes the Letter of Guarantee for Liabilities for Application of Convenient clearance measures (hereinafter referred to as the "Letter ") upon the request of Party B, which will be applicable if Party B handles the customs clearance formalities for its imported and exported goods at all the Customs all over the country; provided that if the parties agree that this Letter of Guarantee is valid and enforceable only within the customs area of Party A, the agreement will prevail. Party B promises to strictly observe the national laws and administrative regulations and the rules of the Customs, perform the obligations under this Letter of Guarantee and bear corresponding legal liabilities. Party A promises to coordinate all Customs to provide customs clearance conveniences for the goods legally imported or exported by Party B as required by this Letter of Guarantee to the extent permitted by the laws, administrative regulations and the rules of the Customs.

Article 1 (Pre-classification, etc.)

According to the relevant rules of the Customs, Party B may apply to Party A for prior determination of commodity category, dutiable value or origin of the imported or exported goods prior to declaration thereof.

The decision of prior determination of the commodity category, dutiable value or origin of the imported or exported goods made by Party A is valid within the customs area of Party A.

Party B shall ensure that the actual conditions of the imported or exported goods subject to the prior determination of commodity category, dutiable value or origin of the imported or exported goods made by Party A will be in conformity with the descriptions made when Party B applies to Party A.

As to the imported or exported goods of Party B which often go through other customs, if their commodity category or origin need to be determined in advance, Party B may, according to the provisions on "Administrative Ruling" in Article 43 of the Customs Law, apply to the General Administration of Customs for an Administrative Ruling to be applied at all the Customs all over the country. Party A will provide corresponding assistance.

Article 2 (Declaration in Advance)

For the imported or exported goods meeting the following requirements, Party B may apply simple clearance measures after declaration in advance:

1. within three days after the departure of imported goods and prior to the arrival thereof at the port, or within three days after exported goods are transported to the place under the supervision of the Customs;

2. the name, specifications, quantity and other declaration items of the imported and exported goods can be determined.  

If Party B handles the declaration formalities in advance and delivers the relevant documents and has obtained the approval from the Customs, it may directly handle the formalities of inspection and release at the site of customs clearance upon arrival of its goods.

If the goods can't be imported or exported for some reason after Party B makes declaration to the Customs in advance, Party B shall apply for revocation of the declaration at the site of customs clearance within three days after it knows.

If the goods imported or exported are inconsistent with the contents of original declaration in advance, Party B shall apply to the Customs for modification of the declaration before it goes through the formalities of document delivery for verification and the formalities of inspection and release at the site of customs clearance.

Article 3 (Networked Declaration)

Party B may handle formal customs declaration formalities with the Customs by using the China E-port platform at its office.

The Customs will send an electronic return receipt if no error is found upon examination of the electronic data in the declaration form, notifying Party B to handle the formalities of document delivery for verification and the formalities of inspection and release at the site supervised by the Customs. If the conditions permit, taxes and fees may be paid by electronic transfer to the Customs which connect the computers with the networks of designated banks. After the Customs issue a notice of electronic payment to Party B, Party B may request the inspection and release of its goods upon the presentation of the electronic return receipt of bank transfer.

Article 4 (Expedited Customs Clearance)

The Customs shall establish a convenient customs clearance office to handle the formalities of inspection and release of the imported or exported goods for Party B in priority.

During the working hours as specified by Party A, Party B may reserve with the site supervised by the Customs to handle customs clearance procedures during off-work hours and holidays.

Article 5 (Rapid Transit across Customs Districts)

Except for the goods that can only be imported and exported through the ports designated by the state, the Customs shall, upon Party B's request, give priority to Party B in going through rapid transit formalities for import or export of its goods through different domestic ports.

Party B shall ensure that the transit of imported and exported goods will be shipped to the site designated and supervised by the Customs in time and in whole. Without the permission of the Customs, the goods must not be opened, picked up, transported, reequipped, mortgaged, pledged, transferred, changed in mark, used for other purposes or disposed of in other ways. Party B shall take effective measures to supervise and restrain the enterprises authorized by it to engage in declaration, transportation, warehousing and so on so that they will observe and execute the above provisions, and bear corresponding legal liabilities for violation of the provisions by any of such enterprises.

Article 6 (Visiting Inspection and Release)

Where Party A requires that the imported and exported goods need to be inspected, but it is inconvenient to inspect them at the clearance site of Party A, Party A may, upon Party B's request, dispatch its personnel to go to the place where Party B is located to inspect them in combination with loading/unloading or production.

Article 7 (Guarantee-based Inspection and Release)

Except for the restrictions set by the state on the inbound/outbound goods and other circumstances that the laws or administrative regulations provide for under which no security shall be created, before the commodity category and assessment are determined, valid declaration documents are provided and taxes and fees are settled (or other customs formalities are completed), after Party B fills in a "List of Guarantee-based Inspection and Release of Imported (Exported) Goods", it may apply to the Customs for handling the formalities of inspection and release in advance upon presenting this Letter of Guarantee.

Party B shall submit supplementary documents or information, make up the tax deficiency or go through other supplementary customs formalities as required during the time limit prescribed by the Customs.

Article 8 (Self-declaration and Declaration through an Agent)

Party B may go through customs declaration and tax payment formalities by itself or by entrusting a customs broker registered with the consent of the Customs to do so.

Where Party B entrusts an agent to make "declaration in advance", it shall transmit its electronic power of attorney through Network 17999 to China E-port as required by the Customs, and sign the declaration form that has been filled in by the agent in electronic form. When the agent entrusted by Party B handles the formalities of "guarantee-based inspection and release" with the Customs, Party B shall transmit its electronic power of attorney through Network 17999 to China E-port as required by the Customs, and sign and seal a "List of Guarantee-based Inspection and Release of Imported (Exported) Goods". Party B shall bear all obligations of tax payment and customs formalities completed by its agent with respect to imported or exported goods and bear corresponding legal liabilities.

Article 9 (Basic Obligations of Party B)

Party B shall enhance its law-abiding consciousness, consciously observe the provisions of the Customs, earnestly perform all undertakings, cooperate with the Customs in inspection, strengthen internal management, strengthen the supervision over the enterprises authorized by it to engage in declaration, transportation, warehousing and so on, and guard against smuggling or illegal activities carried out by internal and external personnel who take the advantage of the conveniences provided by Party A.

If Party B finds that the imported or exported goods released by the Customs are inconsistent with the contents of declaration during the process of loading/unloading, warehousing and production and so on, it shall report immediately to the Customs and go through the supplementary customs formalities.

Article 10 (Management of Account Books and Materials)

Party B shall establish, prepare and keep account books, accounting vouchers, accounting statements and other accounting data in accordance with the law, and ensure that they can authentically, accurately and completely record and reflect the relevant information on the imported and exported goods; it shall properly keep the declaration documents, import and export licenses, contracts, invoices and other materials directly relevant to the imported and exported goods within the statutory time limit for verification by the Customs.

If Party B keeps accounts on computers, it shall provide Party A with the accounting software, operating instructions and other relevant materials, and open its system for computer accounting and management to Party A for verification by Party A.

Article 11 (Obligations of Reporting Economic Conditions)

If Party B's operation or economic condition changes significantly due to its reorganization, liquidation, deteriorating financial status, etc., or if it is punished by any related law enforcement authority due to any violations of the state laws, regulations or rules, it shall report to Party A in time.

Article 12 (Suspension and Resumption of Convenient clearance measures)

If Party B falls under any of the following circumstances, Party A may suspend Party B's application to one or more convenient clearance measures as determined in this Letter of Guarantee:

1. it fails to establish, prepare or keep the relevant books or materials by law, or make untrue record or its management is disordered;

2. it fails to go through supplementary customs formalities within the time limit prescribed by the Customs;

3. it lends its IC card specially for declaration, or another person uses its IC card specially for declaration under its name;

4. it fails to report to Party A immediately after it loses its IC card specially for declaration;

5. it defers paying taxes or does not implement the decision of administrative penalty by the Customs;

6. its IC card specially for declaration is misused or material declaration errors are committed by it for many times due to its disordered internal management;

7. its credit or financial status deteriorates seriously.

If Party B makes rectification or improvement within the prescribed time limit, Party A shall resume its application to convenient clearance measures as determined in this Letter of Guarantee.  

Article 13 (Cancellation of Convenient clearance measures)

If Party B falls under any of the following circumstances, Party A is entitled to cancel Party B's application of one or more convenient clearance measures as determined in this Letter of Guarantee:

1. it smuggles;

2. it violates the provisions of the Customs on supervision and the circumstances are serious;

3. it fails to make rectification or improvement within the prescribed time limit after Party A suspends its application of one or more convenient clearance measures as determined in this Letter of Guarantee.

Party A will not accept the application for convenient clearance measures made by Party B any longer within 6 months after the Customs make the decision of administrative penalty.

Article 14 (General Guarantee)

Party B is required to earnestly perform this Letter of Guarantee. It shall undertake its obligations of paying taxes, fines and the monies to be recovered and delivering the confiscated goods to the extent of all its assets to the Customs if it defers tax payment or does not accept the administrative penalty by the Customs.

Article 15 (Other Legal Liabilities)

The implementation of this Letter of Guarantee will not release Party B from its other obligations and liabilities as prescribed in the laws, administrative regulations and customs rules.

Article 16 (Effectiveness)

This Letter of Guarantee takes effect as of the date (Date:                   ) when it is accepted and filed by the General Administration of Customs and the Ministry of Foreign Trade and Economic Cooperation after it is signed and sealed by the parties.

[This Letter of Guarantee takes effect as of the date (Date:                   ) when it is approved by the General Administration of Customs and the Ministry of Foreign Trade and Economic Cooperation after it is signed and sealed by the parties.]

Article 17 (Validity and Extension)

This Letter of Guarantee is valid for one year as of its effective date. If no party expresses an intention to terminate this Letter of Guarantee, it will be extended automatically for one year each time.

Article 18 (Exceptions)

During the term hereof, any change in the state laws, administrative regulations and customs rules and normative documents that will directly affect the implementation of this Letter of Guarantee, if any, shall prevail. The parties shall timely modify this Letter of Guarantee through consultation in accordance with the above provisions.

Article 19 (Counterparts and Safe-keeping)

This Letter of Guarantee is made in quintuplicate with equal legal effect. Each of the General Administration of Customs, the Ministry of Foreign Trade and Economic Cooperation, the foreign economic and trade commission (department, bureau), Party A and Party B keeps one copy.

Party A:                          (Seal)               Party B:                          (Seal)

Representative:                (Signature)    Representative:                (Signature)

Date:                                                       Date: