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China Customs Interpretation: Interim Measures of People's Republic of China on

[2009-01-03]



On September 3, 2007, General Administration of Customs of the People's Republic of China (GAC) promulgated the Decree No.164 of the GAC, the Interim Measures of People's Republic of China on Administration of Bonded Port Areas of Customs (the Measures). The Measures went into effect on October 3, 2007. The implementation of the Measures indicates China has entered a legal based stage to develop, operate and manage bonded port areas. The Measures is hereby interpreted for the purpose of allowing enterprises and the general public to better understand the background, policies and functions of establishing bonded port areas, and major features and contents of the Measures.

  I. Significance of promulgating the Measures Bonded port areas are established as a result of the country's strategy to cultivate itself into an international shipping center and the Customs' efforts to integrate special supervision districts. The significance of promulgating the Measures rests in the following two aspects: First, it is to standardize and unify customs management for the sake of promoting healthy development of bonded port areas. As a brand-new supervision mode, bonded port areas differ from traditional "ports" and "districts" by integrating dual features of the two. It will surely hamper effective exertion of the competitiveness of bonded port areas integrating "ports" and "districts" and weaken its overall competitiveness, if we simply adopt the existing "port" and "district" management methods to separate port operations, bonded zone processing and bonded logistics service. Besides, since bonded port areas diversify in locations and situations, the Customs must establish a specific management method coping with the characteristics. The method will, from the very beginning, bring bonded port areas into legal-based tracks, direct and regulate enterprise operations and customs management, administer by law, enforce law under unified rules and guide practice. Second, it is to meet the needs of accelerating integration and development of customs special supervision districts. Bonded port areas enjoy all the policies and functions of bonded zones, export processing zones, bonded logistics parks and port customs clearance capacities. Establishing bonded port areas is a response to strategic needs of the country to cultivate international shipping centers and a beneficial experiment to promote integration of customs special supervision districts. It is of demonstration and guidance significance to facilitate the reform of "integrating functions and overlapping policies". Establishing bonded port area supervision modes and corresponding management methods is an important component of accelerating regional integration.
  II. Main contents and features of the Measures
In designing supervision modes and management systems, the Measures has absorbed experiences and lessons in managing all sorts of special districts over the years, and fully borrowed achievements in customs clearance operation reform in recent years. The Measures comprises six chapters and 47 articles in styles, representing the features of multiple concrete regulations and few procedure regulations.
(I) Definition and functions of bonded port areas
Article two of the Measures stipulates that "The term ‘bonded port area' as mentioned in these Measures refers to the areas under special custom supervision that have the functions of port, logistic and processing, etc. and are established within the port areas opened to the outside by the state and the specific areas adjacent to the said port areas upon approval of the State Council." This definition contains the four elements of bonded port areas, which are the nature, power of examination and approval, locations and functions.
(1) Bonded port areas are areas under special custom supervision. Close management is applied by the customs to bonded port areas. The supervision measures comprise logistics fences and information fences. Article 4 rules "The close management shall be implemented to bonded port areas. There shall be checkpoints, fences, video surveillance systems and other facilities meeting the requirements for customs supervision set up between a bonded port area and any other area within the customs territory of the People's Republic of China." Article 10 regulates "The customs house shall implement the computer network management system within the area."
(2) Bonded port areas are established in such a procedure in which provincial governments submit applications to the State Council, and State Council examines and approves the applications.
(3) Bonded port areas are set up at port areas opened to the outside world. This means bonded port areas are largely founded in ports, particularly seaports, opened to the outside world in coastal, riverside and border cities.
(4) Bonded port areas enjoy the three main functions of port, logistics and processing. Article 8 of the Measures makes detailed specifications on the functions, comprising nine factors of warehouses and logistics, foreign trade, international procurement, distribution and delivery, international transit, testing, after-sales service and maintenance, display of merchandize, research and development, processing, and manufacturing.
Source: Source: http://www.customs.gov.cn
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