GACC Decree No. 225 on Customs Measures for Enterprise Credit Management

On September 4, 2014, the General Administration of Customs of China (GACC) has adopted the Provisional Measures of the Customs of the P. R. China on Management of Enterprise Credit, which are hereby promulgated and are to come into force on December 1, 2014.



Chapter 1 General Provisions

Article 1. In order to promote the construction of social credit system and enterprise import-export credit management system, these Measures are formulated according to the Customs Law of the P. R. China and other relevant laws and administrative regulations.

Article 2. These Measures are applicable to Customs collection, registration and publicity of enterprise credit information and to Customs identification and management over enterprise credit standing.

Article 3. China customs will, according to enterprise credit standing, classify enterprises into certified enterprise, generally creditable enterprise and dishonest enterprise.

Article 4. The certified enterprises are China Customs' authorized economic operators (AEO). China Customs may carry out mutual recognition of AEO with foreign customs authorities and grant clearance convenience to mutually recognized AEOs.

Article 5. China Customs will set up cooperation mechanisms with other China's administrations and foreign customs authorities in terms of credit system construction.

Chapter 2 Enterprise Credit Information Collection and Publicity

Article 6. The Customs shall collect the following enterprise information to set up enterprise credit information management system:
(1) Enterprises registration information with the Customs;
(2 Enterprises import and export operating information;
(3) AEO mutual recognition information;
(4) Enterprises information in other administrative departments;
(5) Other enterprise import and export related information.

Article 7. The Customs shall, on the premise of protecting state secrets, trade secrets and personal privacy, publicize the enterprise credit information as below:
(1) Enterprises registration information with the Customs;
(2) Customs confirmation of enterprise credit standing;
(3) Administrative penalty information on enterprises;
(4) Other public information.
Customs administrative penalty information shall be publicized for 5 years.

Article 8. Where citizens, legal persons or other organizations believe the publicized information are not accurate, they may raise objections to the Customs on the strength of relevant evidences. The Customs shall, from the date of receipt of objections, make review of the publication within 20 days.

Chapter 3 Enterprise Credit Standing Identification Norms and Procedure

Article 9. The certified enterprises shall comply with the "Customs Certified Enterprises Standards" which are divided into general standards and advanced standards.

Article 10. Where an enterprise is under the following circumstances, the Customs will identify it as dishonest:
(1) Smuggling crime or smuggling acts;
(2) A non-broker declarer, more-than-twice within one year, violates customs regulations more than one thousandth of its previous-year total of declaration forms and is imposed Customs administrative penalty of over CNY 100,000, or is imposed the administrative penalty totaling more than one million China yuan; a customs broker, within one year, violates customs regulations more than five 10-thousandths of its previous-year total of declaration forms or is imposed Customs administrative penalty totaling more than CNY 100,000;

(3) Default in tax payable and fines payable;
(4) In the previous quarter, customs declaration error rate higher than the national average rate over the same period one or more times;
(5) Through field visits, enterprise registration information is confirmed inaccurate;
(6) Being suspended by the Customs from declarations;
(7) Being suspected of smuggling and violating customs regulation and investigation;
(8) Seeking improper benefits under the guise of customs or other firms;
(9) Making fraud and forgery of business credit information;
(10) In other circumstances that are identified as dishonest.

Article 11 An enterprise under one of the following circumstances will be identified by Customs as generally creditable enterprise:

(1) Initial registration of the enterprise;
(2) Certified enterprises no longer meet the conditions of Article 9, and do not apply to the circumstances listed in Article 10;
(3) A dishonest enterprise is under management over one year, without recurrence in the provisions of Article 10.

Article 12 Where an enterprise applies to the Customs for credit certification, the Customs shall conduct certification over it in accordance with Customs Standards on Enterprise Certification.

Article 13 The Customs shall make a certification conclusion within 90 days upon receipt of a written certification application. Under special circumstances, the Customs certification time-limit may be prolonged by 30 days.

Article 14 Where an enterprise is under one of the following circumstances, the Customs shall terminate its certification:
(1) Being suspected of smuggling or violation and subjected to customs investigation;
(2) Being initiative to withdraw its application for certification;
(3) Other circumstances for the termination.

Article 15 The Customs will dynamically adjust its identification of enterprises credit standing.

As regards advanced certified enterprises, the Customs shall conduct re-certification over them every three years; as regards ordinary certified enterprises, the Customs shall conduct the re-certification from time to time. The enterprises failed in the re-certification shall no longer be put under the certification management and shall not apply for the certification within one year; If an enterprise meets ordinary certification standards however, it may be put under the ordinary certification management.

If an enterprise is managed as dishonest for one year and has no recurrences as specified in Article 10, the Customs shall re-classify it into generally creditable enterprises.

One year after the dishonest enterprise is re-classified as generally creditable, it may apply to the Customs for credit certification.

Chapter 4 Management Principles and Practices

Article 16 Ordinary certified enterprises may be accorded the following management measures:
(1) Lower rate of import and export goods inspection;
(2) Simplification in import and export document examination;
(3) Priority in import and export clearance formalities;
(4) Other management principles and practices permitted by the General Administration of Customs.

Article 17 Advanced certified enterprises will additionally be accorded the following management measures:
(1) Prior release of goods before determining the import and export commodity classification, customs valuation, origin or other formalities;
(2) Appointing customs coordinator for the enterprise;
(3) For processing-trade enterprises, exemption from bank deposit account system;
(4) Clearance conveniences for the AEOs mutual recognized at home and abroad.

Article 18 Dishonest enterprises shall be subject to the following management measures:
(1) Higher rate of import and export goods inspection;
(2) Intensified examination of import and export documents;
(3) Intensified supervision in processing trade operations;
(4) Other management principles and practices required by the General Administration of Customs.

Article 19 Advanced certified enterprises may enjoy more preferential measures than ordinary certified enterprises.

Where certified enterprises are suspected of smuggling and under investigation, the Customs shall suspend preferential measures and manage them as generally creditable enterprises.

Article 20 Where an enterprise has change in its name or customs registration code, Customs identification of its credit and Customs management measures on it shall continue to apply.

Under one of the following circumstances, adjustments shall be made in accordance with the following principles:
(1) After an enterprise split-off, the remainder enterprise shall inherit the main rights and obligations of original enterprise, applicable to customs credit identification and management measures, and other split-off enterprises shall be regarded as the initially registered enterprises;
(2) After an enterprise dissolution, the separated enterprises shall be regarded as initially registered enterprises;
(3) After an enterprise merger, the combined remainder enterprise shall be applicable to customs credit identification and management measures;
(4) After new corporate merger, the combined enterprise shall be regarded as initially registered enterprise.

Chapter 5 Supplementary Provisions

Article 21 The crime of smuggling identified in credit standing shall be identified from the effective time of criminal verdict.

The acts of smuggling and other regulatory violations shall be identified from the issue time of Customs administrative penalty approval.

Article 22 The meanings of the terms herein:

"Penalty amount" refers to the total amount of customs penalty due to the violation of customs regulations, including fines, confiscation of illegal income or confiscation of goods.
"Default in tax payable and fines payable" refers to the failure to pay duties and taxes and failure to pay fines or confiscations by more than three months after the expiration of the pay deadline.
"1 year" refers to consecutive 12 months.
"Year" means a calendar year.
"AEO" refers to the enterprises participating in international movement of goods and certified by the Customs.

Article 23 These Measures shall be construed by the General Administration of Customs of China (GACC).

Article 24 These Measures shall enter into effect on December 1, 2014 along with simultaneous repeal of China Customs Measures on Enterprise Classification released by GACC Decree No.197 on November 15, 2010.