Laws of the People's Republic of China

The General Administration of Customs

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

No.52

Provisions of the Customs of the People's Republic of China on Administration of Customs Agency Enterprises are hereby promulgated and shall come into force as of the day of September 1, 1995.

Director General of the General Administration of Customs, Qian Guanlin

July 6,1995

Provisions of the Customs of the People's Republic of China on Administration of Customs Agency Enterprises

Chapter I General Provisions

Article 1

These Provisions are formulated in accordance with the Customs Law of the People's Republic of China and the relevant laws and regulations with a view to strengthening the administration of the Customs declaration agencies.

Article 2

The term "the Customs agency enterprise" in these Provisions refers to the domestic legal person that engages in agency business of transportation of international goods and international means of transport, conducts on behalf of the client, the Customs declaration and duty payment of import and export goods, and goes through the procedures of registration and record.

Article 3

The Customs of the People's Republic of China shall be the competent department authorized to examine the qualification of the Customs agencies, and to be responsible for registration and record.

Article 4

When the Customs agency enterprise undertakes on behalf of the client to declare and pay duty to the Customs, the agency shall abide by the relevant laws and regulations of the Customs Law, and be responsible for the authenticity of names, sizes, prices and quantities of all declared goods, and undertake the corresponding legal liabilities.

Chapter II Qualification Examination and Registration

Article 5

The enterprises applying for registration of the Customs agency enterprise shall possess the following qualifications:

(1)

Engaging in the agency business of transportation of international goods and international means of transport approved by the competent department of the State Council;

(2)

The amount of registered capital exceeds RMB 1,500,000 Yuan;

(3)

Payment of guarantee of RMB 200,000 Yuan; and

(4)

Other conditions deemed necessary by the Customs.

Article 6

The local Customs Houses shall go through the procedures of registration on the strength of the Application for the Registration of the Customs Agency Enterprise and the original copy (or duplicate) of the following documents submitted by the Customs declaration agency, Certificate of Registration of Customs Agency Enterprise:

(1)

Documents of approval from the competent department of the State Council for the undertaking of agency business of international transportation of goods and international means of transport;

(2)

Business license verified and issued by the Office of Administration for Industry and Commerce;

(3)

Administration system of finance and account and information on accounting bookkeeping;

(4)

The capital verification report and the bank account number;

(5)

The legal representative, the chief in charge of the business of Customs declaration and the name, telephone, ID card number of the proposed agent; and

(6)

Other documents deemed necessary by the Customs.

Upon acquisition of the Certificate of Registration of the Customs Agency Enterprise, the agency thereof may engage in agency business of the Customs declaration.

Article 7

Impression of the seals of the legal representative, the chief in charge of the Customs declaration, and the Customs agent, as well as the special stamp for The Customs declaration shall all be recorded with the Customs.

Chapter III The Annual Audit and Registration of the Alteration

Article 8

The Customs shall adopt a system of annual audit on the Customs agency enterprise. The Customs agency enterprise shall, prior to Match 31 of each year, submit to the local Customs Houses "Report of Annual Audit" of the previous year for annual audit. Where the agency concerned has acquired the qualification of the Customs declaration and the entered the record of the Customs houses in other places, the agency thereof shall submit the record of passing the annual audit issued by the competent Customs to the recording Customs Houses for the procedures of annual audit.

"Report of annual audit" shall mainly include: annually business volume of the Customs declaration and analysis of business, mistakes committed in the Customs declaration and causes, information on observance of the relevant provisions of the Customs, operation and management.

In case of less than one year after registration, the agency thereof may not participate in the annual audit.

Article 9

Where the Customs agency enterprise needs to alter the name, legal representative, business premises, properties of the agency or the scope of business, the registered capital and other information recorded at the Customs, the agency thereof shall submit a written application to the local Customs for verification.

Article 10

In case of bankruptcy and dismissal, the agency concerned shall submit the written report to the local Customs. Upon going through the procedures of clearance, the customs shall cancel certificate of registration and refund the sum of the guarantee.

Chapter IV The Code of the Customs Declaration

Article 11

The Customs agency enterprise shall go through the formalities of the Customs declaration and payment of duty at various ports of the local Customs Houses. Under special circumstances, the agency concerned may, upon agreement between the Customs Houses after negotiating with the Customs at a higher level, and after verification and approval of the General Administration of Customs, engage in the business of the Customs declaration in other places.

Article 12

The Customs agency enterprise may only accept the entrustment of units authorized to import and export goods and handle the matters entrusted such as transportation of goods, the Customs declaration and duty payment.

Article 13

When the Customs agency enterprise declares at the Customs, it shall produce to the Customs the following documents:

(1)

Letter of authorization signed by legal representative of the agency concerned to handle matters of the Customs declaration and duty payment for this time and this time only;

(2)

Agreement of undertaking and shipping the import and export goods; and

(3)

Letter of authorization of the Customs declaration issued by the client. Letter of authorization shall specify the name of the client and the agent, serial number of the Customs registration, addresses, name of the Laws of China: Economic Law Art 13 legal representative, the matters entrusted, power and period, obligations of both parties and affixed with the seals of both parties.

Article 14

The Customs agency enterprise shall not in any form let any other party handle the matters of the Customs declaration of import and export goods and duty payment in its name.

Article 15

The Customs agency enterprise shall recruit clearance agent pursuant to the provisions of the Customs and undertake the legal liabilities for the declaration acts of the clearance agents.

Article 16

The Customs agency enterprise shall establish account books and keep business operational record of the Customs declaration in accordance with the requirements of the Customs on accounting book and business statements of import and export enterprises, and truthfully, accurately, and completely record all the activities of the Customs declaration and duty payment. The agency shall also completely keep the various documents, invoices, letters and faxes submitted by the client for inspection and examination by the Customs.

The Customs agency enterprise shall assist the Customs in contacting the client, and submit the relevant recorded documents of the client concerning the Customs declaration and duty payment pursuant to the requirements of the Customs.

Chapter V Legal Liability

Article 17

With regard to any one of the following acts, the Customs shall suspend the declaration rights of the Customs agency enterprise for a period of six months:

(1)

Acts in violation of the provisions of supervision and control of the Customs;

(2)

Where administration on the Customs agents is not strict and qualification of many clearance agents has been revoked;

(3)

Delaying payment of duty payable or failing to fulfill the obligation of duty payment;

(4)

Failure to pass the annual audit of the Customs or delaying the participation of the annual audit without having gained the prior approval of the Customs;

(5)

Violation of Article 14 and Article 16 of these Provisions;

(6)

Where declaration rights are suspended due to other causes.

Article 18

With regard to any one of the acts, the Customs shall cancel the declaration rights of the Customs declaration agency and go through the relevant procedures in accordance with Article 10 of these Provisions:

(1)

Where the original situation changes to the extent that it fails to meet the qualifications listed in Article 5 of these Provisions:

(2)

One of serious acts listed in Article 17 of these Provisions;

(3)

Any acts of smuggling;

(4)

Where business license is revoked by Office of Administration for Industry and Commerce; and

(5)

Where declaration rights shall be cancelled due to other causes.

Article 19

The Customs agency enterprise shall be solely responsible for the economic disputes between the Customs agency enterprise and the client, caused by the suspension or the cancellation of the declaration rights by the Customs.

Article 20

Where the Customs agency enterprise violates the Customs Law of the People's Republic of China in the process of the Customs declaration and duty payment, the Customs shall settle the case in accordance with the provisions of Article 17 and Article 18 and the provisions of Rules for the Implementation of the Administrative Penalty of the Customs Law of the People's Republic of China. The Customs shall also investigate the criminal responsibility of the legal representative.

Where the Customs agency enterprise has failed to implement the decision of the Customs on the payment of additional duty and penalty within the period prescribed by the Customs, the Customs shall pursue the payment of the amount of duty payable and submit an application to the people's Court for enforcement according to law, or withhold directly from the sum of risk guarantee.

Chapter VI Supplementary Provisions

Article 21

Where the Customs agency enterprise applies for registration pursuant to these Provisions, the agency concerned shall pay the handling fee and the cost of production in pursuance of the provisions of the Customs.

Article 22

Qualification of the Customs declaration of the agency engaging in international delivery through post and entry and exit express mail shall be examined and issued pursuant to the other relevant provisions of the Customs. Registration of the Customs declaration and administration shall be handled in light of these Provisions.

Article 23

The General Administration of Customs is responsible for the interpretation of these Provisions.

Article 24

These Provisions shall enter into force as of September 1, 1995.