Laws of the People's Republic of China

General Administration of Customs

Order of the General Administration of Customs of People's Republic of China

No. 129

The Interim Measures of the Customs of the People's Republic of China for the Administration of Bonded Logistics Centers (Type A), which were deliberated and adopted at the executive meeting of the General Administration of Customs on June 6, 2005, are hereby promulgated and shall come into force as of July 1, 2005.

Director General Mou Xinsheng

June 23, 2005

Interim Measures of the Customs of the People's Republic of China for the Administration of Bonded Logistics Centers (Type A)

Chapter I General Provisions

Article 1

For the purpose of adapting to the development of modern international logistics and regulating the administration of bonded logistics centers (type A), the import and export of goods and business operations of those bonded warehousing logistics enterprises by the customs, the present Measures are formulated according to the Customs Law of the People's Republic of China and the relevant laws and administrative regulations of the state.

Article 2

The term "bonded logistics centers (type A) (hereinafter referred to as logistics centers) " as mentioned in the present Measures refers to the customs supervision places as approved by the General Administration of Customs, which are operated by legal person enterprises within the territory of China to exclusively undertake business operations of bonded warehousing logistics.

Article 3

The logistics centers shall, be classified into public logistics centers and self-use logistics centers on the basis of their service ranges.

The term "public logistics centers" refers to the customs supervision places that are operated by the legal person enterprise within the territory of China, which exclusively undertake the business operation of warehousing logistics and provide a comprehensive service of bonded warehousing logistics services to the society.

The term "self-use logistics centers" refers to the customs supervision places that are operated by the legal person enterprises that only provide bonded warehousing logistics services to themselves or internal group members thereof.

Article 4

Goods that fall in the following categories may be stored into logistics centers upon approval of the customs:

(1)

Domestic export goods;

(2)

Transit goods and international transfer goods;

(3)

Goods as temporarily stored by foreign enterprises;

(4)

Export and import goods for processing trade;

(5)

Materials supplied for international shipping and aircrafts and parts and components for maintenance of international ships and aircrafts;

(6)

Imported consignments of parts and components for maintenance of foreign products;

(7)

Ordinary trade goods that have not gone through customs clearance; or

(8)

Any other goods as approved by the customs that haven't gone through the customs clearance.

An enterprise that operates logistics center shall carry out its business operation of bonded warehousing logistics according to the range of goods for storage and catalogues of commodities as approved by the customs.

Chapter II Establishment of Logistics Centers

Article 5

The logistics centers shall be established in those places with large international logistic demand and convenient communications where the customs supervision is convenient to be carried out.

Article 6

An enterprise that operates a logistics center shall satisfy the following qualifications:

(1)

It has been registered by the administrative department of industry and commerce and has the status of a legal person;

(2)

Its registered capital shall be not less than RMB 30 million yuan;

(3)

It has the ability to pay taxes to the customs and to handle any other legal liabilities;

(4)

It has a business place for goods storage and has the right of land use of the business place. Where the entity leases any land or place from any other person for business operation, the leasing term shall be not less than 3 years;

(5)

Where an entity engages in any storage of commodities subject to special licensing, it shall hold the prescribed special license;

(6)

Where an entity operates a self-use logistics center, the annual import and export amount (including the deep processing carry-over) in eastern regions shall not be less than US $0.2 billion and that in the mid-western regions shall not be less than US $50 million; and

(7)

It shall have a management system that meets the requirements of the customs supervision and an accounting system that pursuant to the provisions of the Accounting Law.

Article 7

An enterprise that operates a logistics center shall satisfy the following qualifications when applying for the establishment of a logistics center:

(1)

It meets the requirements of supervision, planning and construction of logistics centers by the customs;

(2)

The warehousing area of a public logistics center (including a yard) shall be not less than 20,000 square meters when it is located in the eastern regions and shall be not less than 5, 000 square meters when it is located in the mid-western regions;

(3)

The warehousing area of a self-use logistics center shall be not less than 4,000 square meters when it is located in the eastern regions and shall be not less than 2, 000 square meters when it is located in the mid-western regions;

(4)

It shall establish a computerized management system that meets the requirements of the customs supervision, provide terminal equipments for the query of data by the customs, and get connected to the customs through the platform of "electronic port" in light of the certification means and data standards as prescribed by the customs in order to realize the data exchange and information pooling between the customs and such departments as state taxation and foreign exchange on an uniform platform;

(5)

It shall establish such supervision and office facilities as safety segregation facilities, video supervision and control system that comply with the requirements of the customs supervision; and

(6)

It shall observe such laws, administrative regulations, rules and relevant provisions of the state in as land administration, planning, fire control, security, quality inspection and environmental protection.

Article 8

An enterprise that applies for the establishment of any logistics center shall file a written application to the customs directly affiliated to General Administration of Customs and submit the following materials that are affixed with the enterprise's seal:

(1)

Application Form (See Attachment 1 for the format);

(2)

Opinion of the people's government at the municipal (districted municipality) level (enclosed with the feasibility report)

(3)

A photocopy of the enterprise's constitution;

(4)

A photocopy of the business license of the enterprise as a legal person;

(5)

A photocopy of the identity certification of the legal representative thereof;

(6)

A photocopy of the taxation registration certificate;

(7)

A photocopy of the certification of its opening bank;

(8)

Such credit certification documents as the capital verification report as provided by an accounting firm;

(9)

Documents on the internal management system of a logistics center;

(10)

The certification document verifying its location selection complies with the overall planning of land use and its geographic location map and plane planning chart; and

(11)

A photocopy of the registration certificate of declaration operation by a declaration entity.

Article 9

An application for the establishment of a logistics center shall be filed to and accepted by the customs directly affiliated to General Administration of Customs and shall be reported to the General Administration of Customs for examination and approval.

Article 10

An enterprise shall apply to the customs directly affiliated to General Administration of Customs for inspection and acceptance within 1 year as of the approval as granted by the General Administration of Customs for its establishment of a logistics center. The customs directly affiliated to General Administration of Customs shall carry out the examination and inspection according to the provisions of the present Measures in collaboration with such departments as taxation and foreign exchange at the provincial level.

Where a logistics center is accepted as eligible upon inspection, the General Administration of Customs shall verify it and issue the Acceptance Certificate of Bonded Logistics Centers (Type A) upon Inspection (See Attachment 2 for the format) and the Registration Certificate of Bonded Logistics Centers (Type A) (See Attachment 3 for the format) to the enterprise and issue a signboard of bonded logistics center (type A) (See Attachment 4 for the sample) as well.

Only after it passes the inspection and acceptance shall a logistics center carry out its business operation.

Article 11

Where an enterprise that has been granted the approval for the establishment of a logistics center fails to apply for the inspection and acceptance in timely due to any justifiable reason, the term for inspection and acceptance may be extended upon the approval of the customs directly affiliated to General Administration of Customs. However, the extension shall be not more than 6 months. In case of any special situation requiring a second extension, it shall be reported to the General Administration of Customs for approval.

Where an enterprise that has been granted the approval for the establishment of a logistics center fails to apply for the inspection and acceptance within the time limit for no justifiable reason or fails to pass the inspection and acceptance, it shall be deemed as withdrawing its application for establishment of a logistics center.

Chapter III Operation and Management of Logistics Centers

Article 12

A logistics center shall not be subleased or lent to any other entity for operation, neither shall any sub-warehouse center be set up.

Article 13

An enterprise that operates a logistics center may carry out the following operations:

(1)

Bonded warehousing of import or export goods and any other goods that haven't gone through the customs clearance;

(2)

Provision of circulating simple processing and value-adding service for stored goods;

(3)

Global purchase and international allocation and distribution;

(4)

Transit trades and international transfer business; and

(5)

Any other international logistic business operation as approved by the customs.

Article 14

An enterprise that operates a logistics center may not carry out any of the following business operations in its logistics center:

(1)

Commercial retail;

(2)

Production, processing and manufacture;

(3)

Maintenance, renovation and dismantlement;

(4)

Storage of any goods as prohibited by the state from being imported and exported or any other goods as restricted by the state from being imported and exported that may harm public security, public sanitation or health, public morality or order;

(5)

Any other goods that shall not enjoy any bonded policy as expressively prescribed by laws and administrative regulations; or

(6)

Any other business operation that is irrelevant to logistics centers.

Article 15

The person responsible for and the personnel of a logistics center shall be familiar with the relevant laws and administrative regulations of the customs and shall abide by the provisions on the customs supervision.

Chapter IV Customs Supervision of Logistics Centers

Article 16

The customs shall carry out a dynamic supervision and control of the goods, articles and transportation vehicles into or out of a logistics center by such means as networking supervision, video supervision and control, on-spot verification, etc..

Article 17

The customs shall carry out a network of supervision on logistics centers through computers. A logistics center shall establish a computerized management system that meets the requirements of the customs and get connected to the customs, form complete and authentic electronic data for the import, export, transfer and storage of goods for the purpose of ensuring that the customs may conduct such supervisory work as the inquiry, statistics, collection, exchange and verification of the data of relevant business operations.

Article 18

The administrative customs shall carry out a distance supervision of logistics centers through the video supervision system.

Article 19

The valid term of the Registration Certificate of Bonded Logistics Centers (Type A) is 2 years.

An enterprise that operates a logistics center shall go to the customs directly affiliated to General Administration of Customs to go through the formalities of applying for the postponement of examination 30 days before the expiration of each valid term of the Registration Certificate of Bonded Logistics Centers (Type A).

Where an enterprise that operates a logistics center applies for the postponement of examination, it shall submit the following documents that are affixed with the seal of the enterprise.

(1)

A photocopy of the balance sheet and income statement of the current year, which have been audited by an accounting firm;

(2)

The original of the Declaration Registration Certificate;

(3)

A photocopy of the business license that has been pasted with the mark of passing the annual inspection of the current year by the administrative department of industry and commerce and a photocopy of the business license of the enterprise as a legal person;

(4)

The report on the business operation of import and export by the enterprise; and

(5)

Any other materials as required by the customs.

An extension of 2 years may be granted to an enterprise that passes the examination.

Article 20

Where a logistics center needs to alter such matters as name, address, warehousing area of its operator, the relevant enterprise shall file an application to the customs directly affiliated to General Administration of Customs and it shall be reported to the General Administration of Customs for examination and approval. Any other matter regarding alteration shall be reported to the customs directly affiliated to General Administration of Customs for archival filing.

Article 21

Where an enterprise that operates a logistics center fails to carry out its business operation for consecutive 6 months without any justifiable reason, it shall be deemed that the said enterprise has revoked its application for the establishment of a logistics center. The customs directly affiliated to General Administration of Customs shall report it to the General Administration of Customs for dealing with the formalities for deregistration and withdraw the Acceptance Certificate of Bonded Logistics Centers (Type A) upon Inspection and Registration Certificate of Bonded Logistics Centers (Type A).

Where an enterprise that operates a logistics center terminates its business operation due to any reason, the logistics center shall file a written application and go through the formalities for writing-off and return the Acceptance Certificate of Bonded Logistics Centers (Type A) upon Inspection and Registration Certificate of Bonded Logistics Centers (Type A) upon the examination and approval of the General Administration of Customs.

Article 22

The storage term for the bonded goods in the logistic center shall be 1 year. In case of justifiable reasons, an extension may be granted and the extension shall not exceed 1 year except special circumstances.

Chapter V Customs Supervision of Goods into or out of Logistics Centers

Section I Goods as Transported between Logistics Centers and Borders Beyond

Article 23

Any goods that is transported between a logistics center and border beyond shall be subject to the relevant formalities at the customs in charge of the logistics center. Where a logistics center and a port are not subject to the administration of the same customs, the relevant formalities shall be handled in the port customs upon the approval of the administrative customs.

Article 24

Where any goods is transported between a logistics center and border beyond, no administration of import or export quota or licensing shall be applied except for those goods that are subject to the passive export quota control or any international treaty as attended and concluded by the People's Republic of China or unless it's otherwise prescribed clearly by the state,.

Article 25

Where any goods is transported from a border beyond into a logistics center, the tariff and import link taxes levied by the customs on behalf of other authorities thereof shall be handled according to the following provisions:

(1)

Those goods as listed in Article 4 of the present Measures shall be given the bonded treatment;

(2)

Where an enterprise that operates a logistics center imports office appliance, transportation tools and life consumption articles, etc. for self-use, or machines, loading or unloading equipment, management equipment, etc. that are required by comprehensive logistics services, the relevant formalities shall be gone through in accordance with relevant provisions on and taxation policies of import and export goods.

Section II Goods as Transported between Logistics Centers and Domestic Places

Article 26

Where any goods in a logistics center is collected across customs areas, the formalities thereof may be handled at the customs in charge of the logistics center or the relevant formalities may be handled according to other provisions of the customs.

Article 27

An enterprise may transport in or out goods batch by batch and make the monthly declaration collectively according to the provisions of the customs upon the approval of the administrative customs. However, the collective declaration shall not be handled across the year.

Article 28

Any transportation of goods from a logistics center into domestic places shall be deemed as an import and the formalities for import declaration shall be gone through in accordance with the actual trading forms and the actual situations; where the goods is subject to licensing administration, the relevant enterprise shall provide effective license certificates to the customs; where any import or export goods is subject to collective declaration, the tariff rate and foreign exchange rate as applied on the day when the customs accepts the declaration of each import or export of goods shall be applied.

Article 29

Any transportation of goods from domestic places into a logistics center shall be deemed as an export and the formalities for export declaration shall be handled. Where the export tariff is required, it shall be paid according to the relevant provisions; as for the goods that is subject to the licensing administration, the effective license certificates of export shall be provided to the customs.

For the goods transported from a domestic place into a logistics center that was imported earlier, the domestic consignor shall go through the formalities for declaration at the customs and the goods shall be subject to the inspection and release of the administrative customs. The tariff collected and import link taxes levied by the customs on behalf of other authorities shall not be refunded.

The formalities shall be gone through according to the following provisions unless it is otherwise governed by laws and administrative regulations:

(1)

The customs shall sign and issue the certification of the declaration form of export goods for the handling of export refund under any of the following circumstance:

1.

The goods as transported from a domestic place into a logistics center has gone through the formalities for declaration;

2.

For any export goods in transit, the customs at the consignment place has received the return receipt of transit verifying that the transit goods has entered the logistics center from the customs in charge of the logistics center; or

3.

Domestic machines, loading or unloading equipment, management equipment, inspection and testing equipment, etc. that are transported from a foreign country into the logistics center for the self-use of the enterprise.

(2)

The customs shall not sign and issue the certification of the declaration form of export goods for the handling of export refund under any of the following circumstances:

1.

Articles for daily use and transportation vehicles that are transported from a domestic place into the logistics center for the self-use of the enterprise that operates the logistics center;

2.

Machines, loading or unloading equipment, management equipment, inspection and testing equipment, etc. that are transported from a domestic place into a logistics center for the self-use of the enterprise that operates the logistics center; or

3.

The transportation of goods between bonded logistics centers and between bonded logistics center and such special customs supervision areas or customs supervisory bonded places as export processing areas, bonded logistics parks or areas, logistics centers (type B), and export supervisory warehouses where the policy of tax refund in the warehousing link of domestic goods is applied.

Article 30

The enterprises shall go through the formalities for export refunds according to the measures for the administration of tax collection by the State Administration of Taxation and shall go through the formalities for the receipt and payment of foreign exchange according to the relevant measures for the administration of foreign exchange by the State Administration of Foreign Exchange.

Article 31

For goods falls in the following categories, the tariff and import link taxes as levied by the customs on behalf of other authorities as an agent may be exempted in the transportation into the territory of China by way of entering a logistics center:

(1)

Parts and components that are used for free maintenance of relevant foreign products within the guaranteed period and that are in conformity with the relevant provisions on non-compensated goods;

(2)

Materials as used for international shipping and aircraft; or

(3)

Any other tax-free goods as prescribed by the state.

Article 32

The transportation of goods between bonded logistics centers and such special customs supervision areas or customs supervisory bonded places as bonded areas, export processing areas, bonded logistics parks or areas, logistics centers (type A or B), bonded warehouses and export supervisory warehouses shall be governed by relevant provisions.

Chapter VI Legal Liabilities

Article 33

Where any damage or destruction is done to the bonded warehousing goods in the storage period, the enterprise that operates a logistics center shall pay the taxes of those goods damaged or destroyed to the customs according to law and shall bear relevant legal liabilities except the case of force majeure.

Article 34

As for any violation of the present Measures, the customs shall make punishments according to the Customs Law of the People's Republic of China and the Regulation on the Implementation of Administrative Sanctions of the Customs of the People's Republic of China. Where a crime is constituted, the violators shall be subject to criminal liabilities according to law.

Chapter VII Supplementary Provisions

Article 35

Definitions of terms in the present Measures:

The term "circulating simple processing and value-adding services" refers to the general term of such simple supplementary operations as grading and classification, dismantling and selecting, separate packing, measuring, combination package, fixing films, adding shipping marks, mark labeling, changing package and assembling.

The term "international transfer goods" refers to the goods that are consigned from abroad, reloaded onto transportation vehicles sailing on international navigation lines in a transfer port and continuously transported to the designated port of a third country or district thereafter.

Article 36

The power of interpreting the present Measures shall remain with the General Administration of Customs.

Article 37

The present Measures shall come into force as of July 1, 2005.

Attachment:

1.

Application Form for Bonded Logistics Centers (Type A)(Omitted)

2.

Acceptance Certificate of Bonded Logistics Centers (Type A) upon Inspection (Omitted)

3.

Registration Certificate of Bonded Logistics Centers (Type A)(Omitted)

4.

Signboard of Bonded Logistics Centers (Type A)(Omitted)