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. 130

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

Chapter I General Provisions

Article 1

For the purpose of adapting to the development of modern international logistics industry and regulating the customs surveillance of bonded logistics centers (type B) and the imported or exported goods thereof and the business operations of enterprises that engage in bonded warehousing, the present Measures are formulated according to the Customs Law of the People's Republic of China and the relevant laws and regulations of the state

Article 2

The term "bonded logistics center (type B) (hereinafter referred to as logistics center)" refers to a concentrated supervision place of the customs as approved by the General Administration of Customs that is operated by one Chinese domestic enterprise with legal person status and where a number of enterprises enter to undertake the business operations of bonded logistics warehousing.

Article 3

Any of the following goods may be stored into logistics centers upon the approval of the customs:

(1)

Domestic export goods;

(2)

Through cargo and international relay cargo;

(3)

Goods as temporarily stored by foreign enterprises;

(4)

Export and import goods of processing trade;

(5)

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

(6)

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

(7)

Ordinary trade import 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 in a logistics center shall carry out its business operation of bonded logistics in accordance with the range of goods for storage and catalogues of commodities as approved by the customs.

Chapter II Establishment of Logistics Centers and the Enterprises Therein

Section I Establishment of Logistics Centers

Article 4

The establishment of a logistics center shall meet the following requirements:

(1)

The warehousing area of a logistics center shall not be less than 100,000 square meters when it is located in the eastern regions and it shall not be less than 50, 000 square meters when it is located in the mid-western regions;

(2)

It satisfies the requirements of supervision, planning and construction of logistics centers set forth by the customs;

(3)

The location is close to the traffic hubs of ports, airports and roads and shall be at inland places with big international logistics demand and convenient communications where customs offices are located and the collective customs supervision is easy to be carried out.

(4)

It has been recognized by the people's government at the provincial level that it complies with the overall planning of local economic development and satisfies the demands of the development of processing trades for bonded logistics;

(5)

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

(6)

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

Article 5

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

(1)

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

(2)

Its registered capital is not less than RMB50 million yuan;

(3)

It has the ability of performing daily administration of the enterprises in the logistics center; and

(4)

It has the ability to assist the customs in performing the supervision over the goods into or out of the logistics center and over the business operations of enterprises in the logistics center.

Article 6

An enterprise that operates a logistics center shall observe the following responsibilities and obligations:

(1)

To establish the administrative institution which takes charge of the daily administration of the logistics center;

(2)

To abide by the Customs Law and the relevant administrative provisions;

(3)

To abide by the laws, administrative regulations and the relevant provisions in such aspects as the land administration, planning, fire control, quality administration and environmental protection; and

(4)

To formulate and improve the management system of the logistics center and assist the customs in carrying out the supervision of the goods into or out of the logistics center and over the business activities of enterprises in the logistics center.

An enterprise that operates a logistics center shall not directly engage in any business activities of bonded warehousing logistics within the logistics center thereof.

Article 7

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

(1)

Application Form;

(2)

Opinion of the people's government at the provincial 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)

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

(8)

The certification of legal land use right of the logistics center and the geographic location map and plane planning map thereof.

Article 8

Inside the logistics center shall only establish warehouses, yards for pile and the workaround for customs supervision and shall not establish any commercial facilities for consumption.

Article 9

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

An enterprise shall apply to the General Administration of Customs for inspection and acceptance within 1 year after the approval is granted by the General Administration of Customs to establish a logistics center. The General Administration of Customs shall carry out the examination and inspection in accordance with the provisions of the present Measures in collaboration with such departments as the State Administration of Taxation and the State Administration of Foreign Exchange or those institutions as authorized.

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 B) upon Inspection (See Attachment 1 for the format) and the Registration Certificate of Bonded Logistics Centers (Type B) (See Attachment 2 for the format) to the enterprise and issue a signboard (See Attachment 5 for the sample) as well.

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

Article 10

Where an enterprise that has been approved to establish a logistics center fails to apply for the inspection and acceptance in time due to any justifiable reason, the term for inspection and acceptance may be extended upon the approval of the General Administration of Customs.

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

Section II Establishment of Enterprises in a Logistics Center

Article11

An enterprise in a logistics center shall meet the following qualifications:

(1)

It has the status of a legal person or is a branch of an enterprise outside the logistics center under any special circumstance;

(2)

For a legal-person enterprise, its registered capital shall be not less than RMB 5 million yuan; for any branch of an enterprise, its registered capital shall be not less than RMB 10 million yuan;

(3)

It has the ability to pay taxes to the customs and perform any other legal duties;

(4)

It establishes a computerized management system in line with the supervision requirement of the customs and gets connected to the customs; and

(5)

It has a special place to store the goods under the customs supervision within the logistics center.

Article 12

An enterprise that applies for entering a logistics center shall file a written application to the local administrative customs and submit the following documents that are affixed with the enterprise's seal:

(1)

Application Form (See Attachment 3 for the format);

(2)

Documents on the internal management system of the enterprise;

(3)

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

(4)

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

(5)

A photocopy of the taxation registration certificate;

(6)

Certification of its stocking holding structure (joint-venture and contractual enterprises) and the photocopies of the registration documents of all investment parties;

(7)

A photocopy of the certification of its opening bank;

(8)

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

(9)

The location map of the warehouse as rented, the layout of the warehouse and the leasing contract; and

(10)

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

Article 13

The application shall be reported to the customs directly affiliated to the General Administration of Customs for examination and approval after the competent customs accepted it..

The customs directly affiliated to the General Administration of Customs shall issue the Registration Certificate of Enterprises in Bonded Logistics Centers (Type B) of the Customs of the People's Republic of China (see attachment 4 for the sample) to the enterprise that has obtained the approval.

Chapter III Operation and Management of Logistics Centers

Article 14

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

Article 15

An enterprise in a logistics center may carry out the following business 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 services 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 16

An enterprise in a logistics center may not carry out any of the following business operations within the 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 import and export or any other goods as restricted by the state from being import and export 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 the logistics center.

Article 17

The person responsible for and personnel of the enterprise within the center and the enterprises that operates 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 to Logistics Centers and the Enterprises Therein

Article 18

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 and on-spot verification, etc..

Article 19

The customs shall carry out a network of supervision on logistics centers and the enterprises therein through computers. A logistics center and the enterprises therein shall establish a computerized management system that meets the qualifications of the customs supervision and get connected to the customs and 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 20

The competent customs shall carry out a distance supervision to logistics centers through the video supervision system.

Article 21

The valid term of the Registration Certificate of Bonded Logistics Centers (Type B) shall be 3 years.

An enterprise that operates a logistics center shall go to the customs directly affiliated to the 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 B).

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)

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; and

(3)

Any other certification documents as required by the customs.

An extension of 3 years may be granted to an enterprise that passes the examination.

Article 22

Where a logistics center needs to alter such matters as its name, address, area or ownership, an application shall be filed to and accepted by the customs directly affiliated to the General Administration of Customs and 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 the General Administration of Customs for archival filing.

Article 23

Where an enterprise in a logistics center needs to alter any matter, an application shall be filed to and accepted by the competent customs and reported to the customs directly affiliated to the General Administration of Customs for examination and approval.

Article 24

Where an enterprise that operates a logistics center fails to carry out its business operation for consecutive 12 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 the General Administration of Customs shall report it to the General Administration of Customs for dealing with the formalities for deregistration and withdraw the signboard and the Acceptance Certificate of Bonded Logistics Centers (Type B) upon Inspection.

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

Article 25

Where an enterprise in 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 entering the bonded logistics center, the competent customs shall report it to the customs directly affiliated to the General Administration of Customs to go through the formalities for deregistration and withdraw the Enterprise Registration Certificate of Bonded Logistics Center (Type B).

Article 26

The storage term for the bonded goods in a logistic center shall be 2 years. In case of justifiable reasons, an extension may be granted upon the approval of the competent customs, and the extension shall not exceed 1 year except special circumstances,.

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

Section I Goods as Transported between Logistics Centers and Border Beyond

Article 27

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

Article 28

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 clearly prescribed by the state,.

Article 29

Where any goods is transported from 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 in accordance with the following provisions:

(1)

Those goods as listed in Article 3 of the present Measures shall be given the bonded treatment; and

(2)

Where an enterprise in 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 the relevant provisions on and taxation policies of import goods.

Section II Goods as Transported between Logistics Centers and Domestic Places

Article 30

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 in accordance with other provisions of the customs.

Article 31

An enterprise in a logistics center may transport in or out goods batch by batch and make the monthly declaration collectively in accordance with the provisions of the customs upon the approval of the administrative customs. However, the collective declaration shall not be handled beyond the year.

Article 32

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 are subject to the 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 33

Any transportation of goods from domestic place 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 in accordance with the relevant provisions; as for the goods that are 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 competent customs. The tariff collected and import link taxes as levied by the customs on behalf of other authorities shall not be refunded.

It shall be handled in accordance with the following provisions unless there is any separate provision of laws and administrative regulations:

(1)

The customs shall sign and issue the certification page 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 domestic place into the logistics center for the self-use of the enterprise therein.

(2)

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

1.

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

3.

The transportation of goods between bonded logistics centers and between bonded logistics centers 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 34

The enterprises shall go through the formalities for export refunds in accordance with the relevant 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 in accordance with the relevant measures for the administration of foreign exchange by the State Administration of Foreign Exchange.

Article 35

For goods falls in the following categories, the tariff and import link taxes as levied by the customs on behalf of other authorities 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)

Documents as used for international shipping and aircraft; or

(3)

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

Article 36

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 where the policy of tax refund in the warehousing link of domestic goods is applied shall be governed by relevant provisions.

Section III Goods as Circulated among Enterprises in a Logistics Center

Article 37

The goods in a logistics center may be assigned or transferred between the enterprises therein and shall be subject to relevant customs formalities. Without the approval of the customs, no enterprise in a logistics center may unlawfully mortgage, pledge, keep or misuse the goods as stored or make any other disposal.

Chapter VI Legal Liabilities

Article 38

Where any damage or destruction is done to the bonded warehousing goods in the storage period, the enterprises in a logistics center shall pay the taxes of those goods as damaged or destroyed to the customs in accordance with law and shall be subject to the relevant legal liabilities except the case of force majeure.

Article 39

As for any violation of the present Measures, the customs shall give punishments in accordance with 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 40

Definitions of the following terms in the present Measures:

The term "enterprises in a logistics center" refers to the enterprises that have obtained the approval from the customs to enter a logistics center to carry out the business operations of bonded warehousing logistics.

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 41

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

Article 42

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

Attachment:

1.

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

2.

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

3.

Application Form for Enterprise Establishment of Bonded Logistics Centers (Type B)(Omitted)

4.

Enterprise Registration Certificate of Bonded Logistics Centers (Type B)(Omitted)

5.

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