GACC Decree No. 230

On 22 September 2016, the General Administration of Customs of China (GACC) adopted the “Measures of Implementing the ‘Regulations on Customs Inspection of the P. R. China’”, which are hereby promulgated and to enter into force on 1 November 2016.


YU Guangzhou
China Customs Minister
September 26, 2016

 

Chapter 1 General Provisions

Article 1 These Measures are formulated for effective implementation of the “Regulations on Customs Inspection of the P. R. China” (hereinafter as “Customs Inspection Regulations”) in accordance with the Customs Law of the P. R. China, etc.

Article 2 The firms or organizations directly related to import/export goods include the following:

(1) The firms or organizations engaged in foreign trade;

(2) The firms engaged in foreign processing trade;

(3) The firms engaged in bonded business;

(4) The firms or organizations using or dealing with the goods imported with tax relief;

(5) The firms engaged in customs brokerage;

(6) Actual consignor and consignee of export and import goods;

(7) Others in direct relation to import/export of goods

Article 3 The Customs shall conduct inspection over the import/export activities as below undertaken by importers/exporters:

(1) Import/export declarations;

(2) Payment of import/export duties and other charges;

(3) Submission and verification of import/export licenses and other documents;

(4) Import/export-related data records and information keeping;

(5) Bonded goods import, usage, storage, repair, processing, sale, transport, exhibition and re-export;

(6) Usage and management of the goods imported with tax relief;

(7) Other import/export activities

Article 4 The Customs may conduct various modes of trade investigations in industrial associations, government agencies, and enterprises to collect the following information:

(1) Government regulatory information;

(2) Specific industries or enterprises’ statuses, trade practices, manufacturing and operation, market structure, etc.;

(3) Specific commodities-related prices and technical indicators/parameters including composition, ingredient, grade, function, usage, technical process, working principle, etc.

(4) Other information relating to import/export
 

Chapter 2 Management of Accounts and Documents

Article 5 Importers/exporters shall, according to China’s Accounting Law, make and keep accounting books, vouchers, reports and other documents to record and reflect import/export activities in a truthful accurate detailed way.

Article 6 Importers/exporters shall, within the time limited by Article 2 of Customs Inspection Regulations, safe-keep declaration documents, import/export documents, contracts and other relevant information or data (electronic and paper).
 

Chapter 3 Implementation of Customs Inspection

Article 7 Local Customs Houses with the inspectee are responsible for customs inspection. The GACC or an upper Customs may designate lower-level Customs to conduct cross-districts inspections.

Article 8 Customs inspection shall be enforced by qualified inspectors, who shall show Inspection Certificate to the inspectee.

Article 9 Three days before the inspection, the Customs shall issue Inspection Notice to the inspectee. Where the inspection is made without prior notice, the Customs shall issue Inspection Notice to the inspectee at the start of the inspection.

Article 10 Customs inspectors under any of the following circumstances shall be avoided from appearance:

(1) The inspector is a close relative of the inspectee;

(2) The inspector or his close relatives have certain interest relationship with the inspectee;

(3) The inspector or his close relatives have other influential relationship with the inspectee.

Article 11 When Customs inspectors are verifying the inspectee’s accounts or documents, the inspectee or his representatives shall be present to help as required by the inspectors.

Article 12 The inspectee with information technology shall provide electronic information of accounts and documents.

Article 13 Where the inspectee documents are verified and duplicated at external venues, the inspector and inspectee shall jointly complete and sign Inspection Transfer Form.

Article 14 When the inspector conducts inspection in the inspectee’s venues, the inspectee or his representatives shall be present to help; the inspector shall make Inspection Result Record and sign it together with the inspectee.

Article 15 Where applicable, the inspector shall make written inquiry to the inspectee’s representatives or staff, which shall be signed jointly by the inquirer, the recorder and the inquired.

Article 16 The inspector may collect trade information or documents from the entities in business dealings with the inspectee.

Article 17 The Customs may, by sending “Assistance Notice”, request banks and other financial institutions to provide deposit information of the inspectee.

Article 18 Where the inspectee is found to potentially transfer, conceal, tamper with, or destroy account books and documents, the inspector may seal up and detain those account books, documents and relevant data storage media.
Where the inspectee’s import/export goods are suspected of law breaking, the inspector may seal up and detain those import/export goods.

Article 19 Where the inspectee behaves as what are specified by Articles 30 and 31 of Customs Inspection Regulations, the Customs inspector shall issue “Correction Notice” to the inspectee for specific corrections within time limit and then shall inspect correction results.
Where the inspectee fails to correct within time limit, the Customs may lower the inspectee’s rating.

Article 20 Where the inspectee is suspected of law breaking or tax evasion, the Customs inspector shall make written inquiry to the inspectee; the inspectee shall, within seven days upon receipt of written inquiry, make corresponding reply in writing.

Article 21 After finishing the inspection, the Customs inspector shall make Inspection Report to governing Customs Administration. The Customs Administration shall, within 30 days upon receipt of Inspection Report, make “Customs Inspection Conclusion” to the inspectee.

Article 22 Under any of the following circumstances, Customs inspection may be terminated:

(1) Whereabouts of the inspectee is unknown;

(2) The inspectee is terminated without any undertaker of its rights and obligations.

Article 23 Where the inspectee does not keep account books as required or makes its account books transferred, concealed, altered or destroyed, the Customs inspector shall inform local governmental finance department of the situation.

Article 24 The Customs inspector may entrust professional investigations to accounting firm or tax accountant firm, and the investigation conclusions may be used as relevant evidences.

The conclusions drawn by professional agencies entrusted by the inspectee may also be used as reference for Customs inspection.
 

Chapter 4 Active Disclosure

Article 25 Where importers/exporters actively report their violations and accept Customs penalty, Customs inspector may regard it as active disclosure, but excluding any of the following circumstances:

(1) Before their report, the Customs has grasped their violation information;

(2)  Before their report, the Customs has notified the inspectee to receive inspection;

(3)  Their report has utterly false contents or conceals other violations.

Article 26 Regarding the active disclosure aforesaid, enterprises shall be obligated to submit proofs such as their account books and documents that are truthful, accurate and integral.

Article 27 Regarding an enterprise actively disclosing its violations, the Customs shall make lighter and lenient penalty or punishment; where violation is slight and timely rectified, the Customs may impose no penalty or punishment.

Where an enterprise actively discloses its tax evasion and timely makes up the tax short-paid, the Customs may levy less or no overdue fine concerned.
 

Chapter 5 Supplementary Provisions

Article 28 The “day” indicated herein refers to natural day. The date on which a document is delivered or a period begins shall not be included in the period. Where the last day of a period is rest day or holiday, the period shall be extended till the first workday following the rest day or holiday.

Article 29 Where the inspectee refuses to sign/seal for an inspection document, the inspection document may be signed by a witness and at least two inspectors and be left in the inspectee’s venue.

Article 30 Where the inspectee refuses to sign/seal for evidence materials, the refusal information shall be indicated on the materials with signature of at least two inspectors from the Customs.

During the inspection, if the inspectee or its representative fails to be present, Customs inspector shall make written indication of inspection subject and date along with at least two inspectors’ signature.

Article 31 The “sign/seal” mentioned herein refers to the inspectee’s signature or official seal.

Article 32 The inspection document mentioned herein is subject to separate requirements by the GACC.

Article 33 These Measures shall be construed or interpreted by the GACC.

Article 34 These Measures shall enter into force on 1 November 2016, along with repeal of their older version provided in GACC Decree No. 79 of 11 January 2000.