GACC Announcement No.33, 2015 (on Promoting Lump-Sum Taxation Mode)

To facilitate trade process at lower clearance cost, the GACC has decided to promote customs taxation in a lump sum way across China, by which the Customs will levy the taxes payable on the goods imported/exported more than once in one lump sum. Relevant matters are hereby announced:

1. The applicable enterprises shall be the business units listed on an import/export declaration form and be compliant with the following requirements:

(1) A user of customs electronic payment system;
(2) Classified as general certified firm and above;
(3) Not less than 4 times of monthly tax payment in previous year;
(4) Application as required, providing necessary information for Customs verification, compliant with customs collection law/regulations with timely payment;
(5) No circumstances inappropriate to the lump-sum taxation

2. The banks, providing general guarantee for the applicable enterprises, shall be compliant with the following requirements:

(1) Having good credibility and bigger asset size;
(2) No circumstances such as withholding or delaying customs tax accounting;
(3) Undertaking guarantee for the enterprises' tax payable and overdue fine;
(4) Having guarantee verification mechanism with the Customs

3. An applicable enterprise shall apply to its local Customs District for the lump-sum taxation by submitting "Lump-Sum Taxation Applicant Assessment Report" (see Annex 2) with the list of one or more Customs Districts in charge.
Based on the application, local Customs District shall, within 15 workdays, conduct assessment of the enterprise credit and qualification, including guarantee application and enterprise registration; where necessary, the assessment may be extended for 15 workdays.

4. The applicant, after passing the credibility assessment, shall submit general guarantee to its local Customs District in favor of the local and other Customs Districts.

5. In application, the applicant shall select "Lump-Sum Taxation" mode to provide its general guarantee registry number. One declaration form shall only be provided with one general guarantee number.

6. Where the guarantee quota is deducted without other requirements such as inspection, the Customs may conduct onsite release from checkpoint.

7. Where the declaration is paper-based, an applicant shall submit paper declaration form within 10 days upon completion of goods clearance. Where there is less than 10 days left in a month, the paper form shall be submitted by the end of the month.

8. The applicant shall, before the 5th workday of each month, finish the tax payment for previous month in one lump sum and shall not choose e-pay guarantee any more.

9. Where the applicant fails to pay tax as per Article 8, the Customs may notify by issuing duty pay-in warrant; where the applicant fails to pay within the warrant period, the Customs may conduct conversion of guarantee money into tax or inform the guaranteeing bank of the tax payment.

10. Deduction and recovery of the lump-sum taxation quota shall only be relevant to tax payable; as regards delayed declaration fee and other fees, the applicant shall pay off prior to release of goods.

11. Where the applicant risks tax arrears, local Customs District may freeze the applicant's general guarantee registry and suspend the lump-sum taxation for it.

12. The applicant may apply to its local Customs District for alteration of its enterprise registry and general guarantee registry.

13. Under any of the following circumstances with the applicant, its local Customs District may disqualify the applicant from the lump-sum taxation by issuing a "Notice on Disqualification from Lump-Sum Taxation (see Annex 3):

(1) In violation of the Customs regulations specified in Article 1 herein;
(2) Within one natural year, failure for twice and more to timely pay tax as per Article 8 regulation;
(3) At risk of tax arrears

14. Governing Customs authorities will, at each year end, assess the applicant in terms of tax payment credibility; where the applicant is involved in any circumstances listed under Article 13, the Customs in charge may disqualify the applicant from the lump-sum taxation.

15. Under any of the following circumstances with a guaranteeing bank, the Customs in charge shall reject the letter of guarantee provided by the bank:

(1) Being insolvent;
(2) Withholding or delaying in customs tax accounting;
(3) Non-performance of guaranteed indemnity;
(4) Non-cooperation with Customs taxation

This Announcement shall enter into force on July 27, 2015.


Annex 1: Format of the Letter of General Guarantee (omitted)
Annex 2: Assessment Report on Lump-Sum Taxation Applicant (omitted)
Annex 3: Notice on Disqualification from Lump-Sum Taxation (omitted)


General Administration of Customs of China (GACC)
July 24, 2015