GACC Decision On Amendments To Some Regulations (GACC Decree No. 218 on Amended Customs Regulations)

The General Administration of Customs (GACC) hereby releases its Decision On Amendments To Some Regulations, which was adopted on February 13, 2014 and shall enter into force from the issue date below.

China Customs Minister
March 13, 2014


GACC Decision On Amendments To Some Regulations

Based on China's state policies, the General Administration of Customs (GACC) has decided to make amendments to 15 sets of customs regulations, which are detailed below:

1. Amendments to China Customs Administrative Measures on Bonded Groups in Processing Trade With Imported Materials (issued with GACC Decree No.41):

(1) The Article 8 therein is amended as "Before a bonded group's import of materials, its leading firm shall request the customs to formulate relevant handbooks by submitting the authority-issued Approval Of Processing With Imported Materials together with their contract copies or order cards, and the customs shall issue corresponding Registration Handbooks with a seal of ‘Bonded Group Goods' on the upper-right corner thereof".

(2) The Article 10 therein is amended as "The customs may grant total bonded treatment to the materials imported in the name of a bonded group. The leading firm of the group shall make declarations to the customs. The imported materials shall be stored in specific bonded warehouses. The removal from the warehouses shall be subject to customs bonded supervision. The processing procedures of the bonded materials shall be under customs supervision as for bonded factories. The products after processed shall be exempted from export duties, and if they are under export license management, their export licenses shall be presented to the customs".

(3) The Article 14 therein is amended as "The bonded imported materials shall, within one year from the import dates, be processed into finished products for re-export. Under special circumstances, the leading firm shall undertake export deferral formalities with the customs, but the deferral shall not exceed one year, otherwise the customs shall dispose as per specific regulations."

2. Amendments to China Customs Administrative Measures on Non-Local Processing Trade (issued with GACC Decree No.74):

(1) The Article 5 therein is amended as "The non-local processing operators shall make non-local processing-trade declarations to the customs by submitting relevant authorities-issued Processing Trade Approval and Processors' Capacity Certificate."

(2) The Article 6 therein is amended as "local customs shall refer to Non-Local Processing Trade Receipts fed back by other customs in charge, if available; and if compliant, shall comment corresponding declaration forms and seal them together with the Processing Trade Approvals and the Processor's Capacity Certificates, and give all of them to the operators who shall use them to formulate processing trade handbooks with processors' customs houses."

(3) The Article 7 therein is amended as "the processors' customs shall conduct handbook formulations on the strength of operators-submitted Processing Trade Approvals, consigned processing contracts, processor's capacity certificates, and declaration forms; if the processors undertake the handbook formulation, they shall present the letter of consignment issued by the operators".

(4) The "application forms" in relevant annexes are changed to "declaration forms", and the "contract registration" is changed to "handbook formulation".

3. Amendments to China Customs Administrative Measures on Supervision of the Goods Transferred Across Customs Districts (issued with GACC Decree No.89):

The first paragraph, Article 8 therein is amended as "the customs-transferred goods' electronic data and paper documents shall have equal validity. As regards erroneous data, the declarations may be modified or revoked as per relevant regulations. As regards the transferred goods to be inspected, their declarations shall not be modified or revoked. "

4. Amendments to China Customs Measures on Disposal of Overdue Declarations, Mishandled Entry Goods & Relinquished Imports (issued with GACC Decree No.91):

The first paragraph, Article 3 therein is amended as "the mis-landed or over-landed entry goods shall belong to the responsibility of original transport principals to undertake direct return formalities with the customs within three months from the unloading date, or belong to the responsibility of consignees/consignors to undertake return or import formalities with the customs within three months from the unloading date".

5. Amendments to China Customs Regulations on Import/Export Declarations (issued with GACC Decree No. 103):

(1) Article 6 therein is amended as "the persons engaged in declaration formalities for import/export consignees/consignors or for commissioned customs brokers shall be the declarers registered with the customs authorities."

(2) The second paragraph, Article 10 therein is amended as "where the electronic declaration data after customs acceptance need to be returned to the declarers for modification, the declarers shall finish the modification and send back the data to customs within ten days; the declaration date shall be the same as the former accepted declaration; where the ten-day limit is exceeded, the former declaration shall be repealed and the importers/exporters shall re-declare to the customs, which shall adopt new declaration dates."

(3) Article 14 therein is amended as "after customs acceptance of import or export declarations, these declarations and their contents shall not be modified nor revoked; any prescribed special circumstances shall be compliant with relevant regulations on the modification and revocation."

6. Amendments to China Customs Measures on Processing-Trade Leftover Materials, Defective Goods, By-products & Damaged Bonded Goods (issued with GACC Decree No.111):

(1) Article 5 therein is amended as "The processing-trade firms applying for transferring leftover materials to another processing-trade contract shall be restricted to the same operator, the same processor, the same imported materials and the same trade mode; where appropriate, after customs verification of unit consumption, the firms may undertake the leftover material transfer.
Under any of the following circumstances, the firms shall deliver security deposit not more than the tax amount payable on the materials to transfer:

1) The same operator applies for transferring leftover materials to another processor;
2) The transferred amount reaches 50% and more of the actual imported amount under the processing-trade contract;
3) The processing-trade contract involved has been deferred for twice or more times.

Where different customs are involved, the security deposit shall be delivered to the transferee's customs.

The processing-trade firms may be exempted from the security deposit under any of the following circumstances:

1) Classified into A grade of processing trade;
2) Account transfer amount is not less than the tax amount payable on the materials to transfer;
3) Where a former firm is removed, merged, dissolved, reorganized, etc. and the current firm inherits the former's rights and obligations, the leftover materials' transfer may not be restricted to the same operator or processor or trade mode.

(2) The first paragraph, Article 8 therein is amended as "As regards the by-products without being re-exported, the processing-trade firms shall make true declaration to the customs during their handbook formulation or verification."

(3) The item (1), Article 9: "application for verification/cancel" is amended as "declaration for verification".

(4) Article 11 therein is amended as "As regards the leftover materials, defective goods or damaged goods unable to be sold domestically or returned, the processing-trade firms shall entrust the disposal/destruction thereof to legally qualified disposers, and the customs shall conduct the verification-cancel procedure on the strength of the certificates provided by such disposers.

Any revenue that the processing-trade firms acquire from the disposal shall be declared to the customs for the purpose of any applicable taxation on the revenue."

7. Amendments to China Customs Measures On Implementing the Administrative Permission Law of China (issued with GACC Decree No.117):

The item (1), Article 48 and Article 49 therein are deleted.

8. Amendments to China Customs Measures On Import & Export Goods Taxation (issued with GACC Decree No.124):

(1) The first paragraph, Article 24 therein is amended as "Where the taxpayers cannot pay as scheduled owing to force majeure or state policy changes, they shall, before the imports and exports, apply in writing to local customs for deferral of tax payment on the strength of relevant certificates and their payment plans."

(2) The first paragraph, Article 25 therein is amended as "Local customs shall, within 30 days upon their receipt of the deferral applications, verify the authenticity of relevant causes and determine their approval or disapproval as well as payment deadlines; in the case of failure to determine within 30 days, the customs may determine within 10 more days."

(3) The first paragraph, Article 26 therein is amended as "Where local customs disapprove the deferral of payment, they shall, within three workdays upon their determination, notify the taxpayers and meanwhile issue them the duty memorandums (or notices)."

9. Amendments to China Customs Measures On Levying Delayed Declaration Fees On Imports (issued with GACC Decree No.128):

(1) Article 6 therein is amended as "Where the importers fail to deliver paper-made declaration forms and documents within prescribed time-limit after sending electronic versions thereof, the customs shall revoke the electronic data processing; where the importers delay in their re-declarations, the starting date to levy delayed declaration fees shall be calculated as per Article 4 regulations herein; where the importers re-declare after former electronic declarations are revoked, the starting levy date shall be the 15th day from the date of revoking the former declarations."

(2) The item (4), Article 12 therein is amended as "where the delay in declaration arises from the problems with the customs and relevant judicial or administrative organs, …
"

(3) Article 14 therein is deleted, along with adjustment of other articles' sequences.

(4) Article 15 therein is amended as follow:

1) The item (3) therein is amended as "where the delay in declaration arises from the re-declaration after former electronic data are deleted by law, …"
2) The item (4) therein is amended as "where the imported goods are under direct return, …"

This article is thereby adjusted as Article 14 therein.

(5) Article 17 therein is amended as "In the case of legal off-days or holidays, the starting date to levy the delay fees shall extend to the first workday following the off-days or holidays or other adjusted dates". This article is thereby adjusted as Article 16 therein.

10. Amendments to China Customs Measures On Hearing Of Administrative Penalty (issued with GACC Decree No.145):

In Article 3 therein, the phrases of "suspension of declaration practice" and "disqualification of declaration practice" are deleted.

11. Amendments to China Customs Measures On Processing-Trade Unit Consumption (issued with GACC Decree No.155):

Article 4 therein is amended as "the processing-trade firms shall, during the course of handbook formulations, make registration with the customs for their unit consumption".

12. Amendments to China Customs Measures On Import & Export Commodity Classification (issued with GACC Decree No.158):

Article 13 therein is amended as "where any declared HS codes need to be changed, the regulations on declaration modification and revocation shall prevail."

13. Amendments to China Customs Regulations On Administrative Penalty Procedures (issued with GACC Decree No.159):

(1) In the second paragraph, Article 60, the phrases of "suspension of declaration practice" and "disqualification of declaration practice" are deleted.

(2) In the second paragraph, Article 75, the phrases of "or practicing" and "disqualification of declaration practice" are deleted.

14. Amendments to China Customs Regulations On Administrative Review (issued with GACC Decree No.166):

In the item (1), Article 9, the phrases of "or practicing" and "disqualification of declaration practice" are deleted.

15. Amendments to China Customs Measures On Centralized Declaration Of Import & Export Goods (issued with GACC Decree No.169):

Article 12 therein is amended as "where the consignees/consignors apply to modify or revoke their declared lists of centralized declaration, the regulations on declaration modification and revocation shall prevail".

This Decision shall enter into force from its issue date.

The regulations to re-promulgate with abovementioned amendments are listed in the Annexes below.

Annexes (omitted):

1. Customs Administrative Measures of the P. R. China on Bonded Groups in Processing Trade With Imported Materials;
2. Customs Administrative Measures of the P. R. China on Non-Local Processing Trade;
3. Customs Administrative Measures of the P. R. China on Supervision of the Goods Transferred Across Customs Districts;
4. Customs Measures of the P. R. China on Disposal of Overdue Declarations, Mishandled Entry Goods & Relinquished Imports;
5. Customs Regulations of the P. R. China on Import/Export Declarations;
6. Customs Measures of the P. R. China on Processing-Trade Leftover Materials, Defective Goods, By-products & Damaged Bonded Goods;
7. Customs Measures On Implementing the Administrative Permission Law of the P. R. China;
8. Customs Measures of the P. R. China On Import & Export Goods Taxation;
9. Customs Measures of the P. R. China On Levying Delayed Declaration Fees On Imports;
10. Customs Measures of the P. R. China On Hearing Of Administrative Penalty;
11. Customs Measures of the P. R. China On Processing-Trade Unit Consumption;
12. Customs Measures of the P. R. China On Import & Export Commodity Classification;
13. Customs Regulations of the P. R. China On Administrative Penalty Procedures;
14. Customs Regulations of the P. R. China On Administrative Review;
15. Customs Measures of the P. R. China On Centralized Declaration Of Import & Export Goods