Letter of Guarantee for Liabilities of Application of Speedy Customs Formalities

 No.: G. D. B. [200X] No. ______

In order to be in keeping with the large-scale high-tech companies' manufacturing and operating way and to meet the customs' supervisory requirements, to support the development of high-tech industry, according to the prescriptions of the Circular of the General Administration of Customs and the Ministry of Foreign Trade and Economic Cooperation Concerning Several Issues for Supporting High-tech Industry Development (Sh.T.F. [2001] No.279), upon the request of Party B, with the approval of Party A together with _______Commission (Department, Bureau) of Foreign Trade and Economic Cooperation, and under the entrustment of the General Administration of Customs and the Ministry of Foreign Trade and Economic Cooperation, the two parties draft out this Letter of Guarantee, which shall be applied to Party B's customs formalities at all the customs all over the country for imported and exported goods; but if this Letter of Guarantee stipulates for validity and enforceability only within the area of Party A, the stipulations shall be observed. Party B promises to observe laws and administrative regulations and customs rules, perform the obligations stipulated by this Letter of guarantee, and bear the corresponding legal liabilities; Party A promises to work with all customs to provide customs clearance convenience to Party B's legally imported and exported goods, within the permissive scope of laws, administrative regulations and customs rules.

Article 1 (Including Customs Classification in Advance, etc.)

According to the relevant customs rules, Party B may apply to Party A to confirm in advance the classification, price duty paid or origin of the imported and exported goods before declaration.   

The decision of Party A of confirming in advance the classification, price duty paid or origin of the imports and exports is valid within the area of Party A.  

Party B shall ensure that the real condition of the imports and exports confirmed in advance on classification, price duty paid and origin by Party A be in accordance with the particulars furnished in Party B's application.  

If Party B's imported and exported goods which usually go through other customs need to be confirmed in advance on classification or origin, Party B may apply to the General Administration of Customs for a Administrative Ruling to be applied at all the customs all over the country according to the prescriptions of Article 43 of the Customs Law concerning "Administrative Ruling". Party A shall provide assistance in it.  

Article 2 (Customs declaration beforehand)

For imported and exported goods meeting the following conditions, Party B can apply the following speedy customs clearance procedures for customs declaration beforehand:  

(1) Upon shipping and before arrival of the imported goods, and within 3 days before the exported goods are shipped into the premises under supervision and control of the customs;   

(2) Declaration items that can be determined for the imported and exported goods, such as name of goods, specification and quantity.  

When Party B handles the customs declaration formalities in advance, submits the relevant documents and passes the customs approval, the acceptance formalities are handled directly at the site for customs clearance upon arrival of goods.  

When the goods are unable to be imported or exported upon Party B’s customs declaration to the customs, Party B should apply to the customs clearance site for cancellation of the item of declaration within 3 days upon knowing that.  

In case of inconsistency between the actual import and export of goods and the content formerly declared, Party B should apply to the customs for modification of the declaration before going through the formalities of handing over documents and checking goods at the site of customs clearance.    

Article 3 (Declaring customs on the interconnected networks)

Party B can declare customs through the China Electronic Port Platform, and, at the business venue of the enterprise, go through the formalities for formally declaring customs at the customs office of the place of Party B’s office.  

The customs sends back an electronic receipt after examining and approving the electronic data of the customs declaration forms, and then notifies Party B to go through the formalities of handing over documents and checking goods at the site of customs clearance. If the conditions allow, the customs may have the duties paid electronically through the designated networks of the banks interconnected with the customs, and the customs may, after having sent to Party B an electronic notice for paying duties, check the goods according to the electronic receipt issued by the bank concerned.  

Article 4 (Emergent Customs Clearance)

The customs shall establish a speedy clearance office to give Party B priority in going through formalities of examination and release for its imports and exports.  

Party B may contact Party A's supervisory office during Party A's working hours to prearrange for clearance formalities to be conducted at festivals and holidays and non-working hours.

Article 5 (Speed Transfer of Customs)  

Upon Party B's request, the customs shall give priority to Party B in going through speedy customs transfer formalities for its goods imported and exported through different domestic ports except those designated by the State that can only be imported and exported through particular ports.

Party B shall ensure that the imports and exports for customs transfer be delivered to the customs' designated supervisory site in time and wholly. Without the customs' permission, the goods must not be taken apart, picked up, transported, refitted, mortgaged, impawned, transferred, changed of marks, displaced for other use or disposed of in other ways. Party B shall take effective measures to control and supervise its entrusted companies engaged in declaration, transport, warehouse, etc. on observing and carrying out the above prescriptions, and shall bear corresponding liabilities for the violating acts of its entrusted companies engaged in declaration, transport, warehouse, etc..

Article 6 (Visiting Examinations)

Upon Party B's request, Party A may dispatch personnel to go to the place where Party B is located to conduct examination associated with the process of loading or manufacturing on the imports and exports that are not convenient to be examined at Party A's customs clearance site.

Article 7 (Releases on Guarantee)  

Before confirming the classification and assessment of the goods, submitting the effective declaration forms, and paying the taxes and fees or going through other customs formalities, Party B may apply in advance to the customs for formalities of examination and release against this letter of guarantee and upon completion of the Guarantee Release List for Imported (Exported) Goods, except the imports and exports restricted by regulations and those which can not be guaranteed according to laws and administrative regulations.  

Party B shall bring forward supplementary documents or information, pay supplementary taxes or go through other supplementary customs formalities within the time limit prescribed by the customs.

Article 8 (Self Declaration and Declaration with Entrustment)  

Party B may go through customs declaration and tax payment formalities by itself/himself, or entrust the customs declaration companies approved to be registered at the customs to conduct the formalities of customs declaration and tax payment.

If Party B entrusts deputies with the "customs declaration in advance", it shall transfer its entrustment through Network 17999 to China Electronic Ports in accordance with customs rules, and sign in electronic form on the declaration forms prepared by the deputies. If Party B entrusts deputies with the "release on guarantee", it shall transfer its entrustment through Network 17999 to China Electronic Ports in accordance with customs rules, and sign and stamp on the List of Imports (Exports) Released on Guarantee. Party B shall bear all its deputies' obligations of paying taxes and going through customs clearance formalities, and bear the corresponding legal liabilities

Article 9 (Party B's Fundamental Obligations)  

Party B shall put emphasis on law-abiding consciousness, observe the customs rules and regulations, perform various undertakings, cooperate with the customs in examination, be strict with internal management, enhance supervision on its entrusted companies engaged in declaration, transport, warehouse, etc., and guard against smuggling activities carried out by internal and external personnel who take the advantage of the convenience provided by Party A.  

If Party B finds that the imported or exported goods are not in accordance with the particulars furnished in customs declaration during the process of loading, storage and manufacture, it shall report immediately to the customs and go through the supplementary custom formalities.

Article 10 (Management of Account Books and Materials)  

Party B shall establish, work out and keep account books, accounting vouchers, fiscal statement and other accounting documents in accordance with law, and ensure their verity, accuracy and completeness in recording and reflecting the relevant aspects of the imported and exported goods; it shall keep well the customs declaration documents, import and export permit, contracts, original receipts and other relevant documents concerning the imported and exported goods to be ready for the customs' examination.

If Party B keeps accounts by computer, it shall provide Party A with the accounting software, users' book and other relevant documents; it shall open its computer accounting system to Party A for examination and ratification.

Article 11 (Obligation of Reporting on Economic Condition)  

If Party B's operating or economic condition changes enormously due to recombination, liquidation, deteriorating fiscal status, etc., or if it is punished by relevant law enforcement organizations due to violation of laws, regulations and rules, it shall report to Party A in time.

Article 12 (Suspension and Renewal of Speedy Customs Formalities)  

If Party B is under any of the following circumstances, Party A is entitled to suspense Party B's application of one or several items of the speedy customs formalities confirmed in this Letter of Guarantee.

(1) Party B fails to establish, work out or keep the relevant account books or documents or make untrue record with disordered management;

(2) Party B fails to go through supplementary customs formalities within the customs' prescribed time limit;

(3) Party B lends its appropriative IC card specially used for customs declaration to others or lets its IC card used by others as their own;  

(4) Party B fails to immediately report to Party A when it loses its IC card specially used for declaration;  

(5) Party B is behind in payment of taxes or does not implement customs' punishment;

(6) Party B misuses its IC card specially used for declaration due to its disordered internal management, and commits serious mistakes in customs declaration for many times;

(7) Party B’s credit or fiscal status deteriorates seriously.

If Party B has made rectification or improvement within a prescribed time limit, Party A shall renew its application of various speedy customs formalities confirmed in this Letter of Guarantee.

Article 13 (Recall of Speedy Customs Formalities)  

If Party B is under any of the following circumstances, Party A shall be entitled to recall Party B's application of one or several items of speedy customs formalities:

(1) Smuggles;

(2) Violates the customs supervision rules and the circumstances are serious;

(3) Does not make rectification or improvement within the prescribed time limit after suspension of application of one or several items of speedy customs formalities confirmed in this Letter of Guarantee;

Party A shall not accept any of Party B's application of speedy customs formalities within 6 months from the customs' decision of punishment.

Article 14 (General Guarantee)  

Party B shall carry out this Letter of Guarantee in earnest way, and shall undertake to the customs all its obligations of payment of taxes and fines, seizure of goods and recovery of money with all of its assets, if it is behind in payment or does not implement the customs' administrative punishment.

Article 15 (Other Legal Liabilities)  

The implementation of this Letter of Guarantee shall not exclude Party B from undertaking any other liabilities and responsibilities prescribed by laws, administrative regulations and customs rules.

Article 16 (Effectiveness of this Letter of Guarantee)

This Letter of Guarantee shall take effect upon the date (__ Year ___ Month ___ Day) when it is signed and stamped by two parties and accepted for record by the General Administration of Customs and the Ministry of Foreign Trade and Economic Cooperation.

(This Letter of Guarantee shall be valid upon the date (___ Year ___ Month ___ Day) when it is signed and stamped by two parties and approved by the General Administration of Customs and the Ministry of Foreign Trade and Economic Cooperation.)

Article 17 (Effective Time and Renewal of this Letter of Guarantee)  

This Letter of Guarantee shall be valid for one year from its effective date. If the two parties do not put forward any termination of this Letter of Guarantee, its effective time shall be renewed automatically, one year for one renewal.

Article 18 (Exceptions)  

Within the effective time of this Letter of Guarantee, if any changes of laws, administrative regulations and customs rules and norms directly affect the implementation of the provisions of this Letter of Guarantee, the laws, administrative regulations, customs rules and norms shall be observed first. The two parties shall negotiate to modify this Letter of Guarantee in time in accordance with the above provisions.

Article 19 (Copies of Letter of Guarantee and Keeping of Them)

This Letter of Guarantee is made in quintuplicate with the same legal effect. The General Administration of Customs, the Ministry of Foreign Trade and Economic Cooperation, the Commission (Department, Bureau) of Foreign Trade and Economic Cooperation, and the two parties shall all keep one copy respectively.