GACC Decree No. 204 on Pipeline-Imported Energy Supervision

The General Administration of Customs hereby announces China Customs Measures On Supervision Of Importing Energy Resources Through Pipelines, which shall enter into force as of December 1, 2011.

YU Guangzhou
Minister of China Customs
October 24, 2011



Article 1 These Measures are formulated in accordance with the Customs Law of the P. R. China.

Article 2 With respect to the import of energy resources through cross-border pipelines, the metering stations within China territory (hereinafter as the metering stations) shall be the venues under the supervision by China Customs. 

Article 3 The pipeline operators shall abide by state regulations on operation of the metering stations, computation and declaration of the pipeline transportation data. 

Article 4 The pipeline operators shall submit the documents below to local customs for registration formalities:

(1) Form of Registration (see the annex);

(2) Corporate business license;

(3) Corporate organization code certificate;

(4) Other documents required.

Article 5 The metering facilities and software shall be compliant with customs supervisory requirements and be subject to officially-authorized metrological verifications and calibrations. 

The pipeline operators shall submit to governing customs the valid verification/calibration proofs issued by officially-authorized metrological verification agencies.

Article 6 The pipeline operators shall, before the formal operation of a metering station, provide relevant pipeline metrological parameter data to the governing customs. 

Upon the approval by the governing customs, the pipeline metrological parameters may be adjusted to specific needs.

Article 7 The customs may impose sealing marks onto pipeline facilities and metering equipment’s bypass outlets, flow-meters, flow computer cabinets and other key positions.

The customs may remove the sealing marks after receiving relevant written request from the pipeline operators, and shall re-impose the sealing marks when the removal reasons disappear.

In the event of security emergency, the pipeline operators may conduct in advance and notify the customs timely; when the emergency ends, the pipeline operators shall immediately report in writing to the customs.

Article 8 The pipeline operators shall transmit electronic data of the metering task and paper reports on entry metering to the governing customs as per customs requirements.

In the case of inability to transmit the electronic data, the pipeline operators shall immediately notify the governing customs; based on the customs permission, they shall submit within a time limit the paper reports on entry metering, and re-transfer the electronic data when feasible later. 

When the customs conduct onsite inspection, the pipeline operators shall be present to offer necessary assistance.

Article 9 Before completion of customs clearance, the pipeline-imported energy resources shall be under customs supervision and be prohibited from sale, mortgage, pledge or other disposals without customs approval. 

Before the formal operation of the metering stations, the pipeline operators shall report to the governing customs the water or nitrogen quantity and disposal for opening pipelines as well as the energy loss and consumption.

Article 10 Where the pipeline operators receive and re-export equipment such as pipe cleaners, they shall be subjected to the customs measures on temporary entry-exit goods.

Article 11 Based on customs approval, the import consignees shall, during 1st-14th each month, regularly declare the energy resources imported in one previous month and pay appropriate tax and duties to the customs.

Where the consignee declaration is overdue, the customs shall levy relevant Delayed Declaration Fee.

In their declarations, the consignees shall submit the entry metering reports issued by the pipeline operators, the import licenses and other necessary documents besides import declaration forms. 

Article 12 The consignees seeking period-fixed declarations shall provide valid guarantee to the customs.

Based on customs approval, the consignees seeking period-fixed declarations also may apply to the customs for an overall guarantee for their period-fixed declarations. 

Article 13 The pipeline-imported energy resources shall be subjected to taxation at the duty rates and exchange rates that are effective on the date of customs acceptance of the import declarations.

Article 14 Where the energy resources are mixed in transportation from different countries of origin, the consignees shall declare the respective import quantity from each country of origin within the time intervals of the period-fixed declarations.

The customs may require the consignees to submit the Certificates of Origin or other origin-certifying documents.

Article 15 The customs may conduct test of the samples collected from the imported energy resources, and the pipeline operators shall offer necessary assistance. 

Article 16 Where the pipelines cannot normally transport or they restart transportation for some reasons, the pipeline operators shall immediately report to the governing customs. 

Article 17 The involved consignees and pipeline operators shall keep well their accounting books, declaration forms and other documents for the purpose of customs audit. 

Article 18 Any violation of these Measures and China Customs Law and Regulations shall be subjected to China Customs administrative penalty or even to criminal liability.

Article 19 The "energy resources" herein refer to the crude petroleum oil and/or natural gas imported through pipelining transportation.

Article 20 These Measures shall be construed by the General Administration of Customs of China (GACC).

Article 21 These Measures shall enter into force on December 1, 2011.