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Regular Workflow of the Customs on the Supervision and Control over the Import &

[2009-02-19]


() Declaration & Management
Article 25 of Customs Law prescribes that paper declaration form and electronic declaration form must be adopted in the Customs declaration formalities for the import & export goods. The consignee and consignor of the import & export goods or their agent must be holding the declaration documents while declaring to the Customs in the form of written and electronic data before the declaration expiry time in the declaration place specified by the Customs. As the Import/Export Goods Declaration Form and other declaration documents required by the Customs are the legal paperwork when the declaration unit declares to the Customs, the applicant must fill out the forms based on the fact. After preparing the declaration documents, the declarant must declare the data on the declaration form to the Customs in the form of electronic data, then hand in the written declaration documents in the specified time and place.

() Checkup and Verification of the Import & Export Goods
Checkup and verification refers to the practical examination on the goods to ensure the nature, conditions, quantity of the goods in conformity with the contents listed in the declaration documents of the import & export goods. This is an important part of the on-site supervision and control over the import & export goods by the Customs, and also a basic skill that the Customs person in charge of the supervision and control must grasp.

Only by checkup and verification can the Customs get knowledge of: if the actual conditions of the import & export goods conform to the contents on declaration; if there are illegal activities, e.g., deception on declaration, concealment on declaration, mixed hiding, secret carrying and smuggling. At the same time, it is necessary for the Customs to examine the goods so as to obtain the valid evidence for duty collection and the accurate classification of business statistics and price authorization.

() Clearance of Import & Export Goods
Goods clearance is the last step of the supervision and control over the entry and exit goods by the Customs. It refers to the behavior of the Customs that the entry and exit goods are approved to be taken out of the supervision and control site or shipped out of the territory after a serial of procedures, e.g. document review, checkup and verification, going through the procedures of duty collection and guarantee. In appearance, goods clearance is only a kind of representing form of the Customs sealing on the relevant transportation documents and returning to the declarant. In reality, goods clearance must be preconditioned by the Customs going through the procedures of duty collection or guarantee after document review and checkup. In terms of the common import & export goods, the Customs formalities have all been concluded on clearance because the duty has been paid according to the regulations. However, for the duty-exempted or duty-reduced, bonded, temporarily-permitted import & export goods, either the customs duty can be exempted temporarily or favorable duty-free policies can be enjoyed in the specified conditions, therefore, the customs formalities have not been concluded on clearance. In such case, there will be two different conditions of the import & export goods after the clearance. The common import & export goods is at the disposal of the party concerned (the export goods is still under the supervision and control until it leaves the territory); the duty-exempted or duty-reduced, bonded, temporarily-permitted goods can be disposed by the party concerned in the specified scope (use, storage, processing). The customs formalities cannot be concluded until the expiry time of supervision and control and canceling on verification.

Only by confirming that the import & export goods are legally "qualified" for the Customs clearance through thorough re-verification of the on-site supervision and control formalities and the documents of declaration, checkup and verification, duty collection, can the person in charge of clearance stamp the "clearance" seal on the relevant documents, i.e. bill of lading, bill of freight, shipping order, etc.

Source: Shanghai Customs, PRC
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