Laws of the People's Republic of China

No. 159

The Provisions of the Customs of the People's Republic of China on the Procedures for Handing Administrative Penalty Cases have been deliberated and adopted at the executive meeting of the General Administration of Customs on February 14, 2007. They are hereby promulgated and shall enter into force as of July 1, 2007. Director Mou Xinsheng

March 2, 2007

Provisions of the Customs of the People's Republic of China on the Procedures for Handing Administrative Penalty Cases Contents Chapter I General Rules

Chapter II General Provisions

Chapter III Case Investigation

Section 1 Case Filing

Section 2 Interrogation and Inquiry

Section 3 Check and Examination

Section 4 Testing and Authentication

Section 5 Inquiry about Deposits and Remittances

Section 6 Detention and Security

Section 7 Suspension and Termination of Investigations

Chapter IV Decisions on Administrative Penalty

Section 1 Case Examination

Section 2 Notification, Reexamination and Hearing

Section 3 Treatment Decisions

Chapter V Implementation of Decisions on Administrative Penalty

Chapter VI Procedures for Handling Simple Cases

Chapter VII Supplementary Rules Chapter I General Rules

Article 1

In accordance with the Administrative Penalty Law of the People's Republic of China, the Customs Law of the People's Republic of China, the Regulation of the Customs of the People's Republic of China on Implementing Administrative Penalties (hereinafter referred to as the Regulation on Implementing Customs Administrative Penalties) and other related laws and administrative regulations, the present Provisions are formulated in order to regulate the procedures for customs houses to dispose of administrative penalty cases and protect the lawful rights and interests of citizens, legal persons and other organizations.

Article 2

Unless it is otherwise prescribed by any law or administrative regulation, the handling of administrative penalty cases by customs houses shall be subject to the present Provisions.

For the investigation into smuggling crimes by customs houses and the handling of public security administrative penalty cases by public security organs, the Law of the People's Republic of China on Public Security Administrative Penalties and the Provisions Concerning the Procedures for Handling Administrative Cases by Public Security Organs shall apply.

Article 3

For handling of administrative penalty cases by customs houses, the principles of justness, openness, timeliness and facilitating people shall be followed.

Article 4

For handling administrative penalty cases in a place where any minority ethnic group or by several minority ethnic groups reside, the language commonly used in the local place shall be used for interrogating and inquiring.

An interpreter shall be provided where any related party does not know the language commonly used in that place.

Article 5

The state secrets, business secrets, customs secrets or personal privacy it has access to during the process of handling administrative penalty cases shall be kept secret by the customs.

Chapter II General Provisions

Article 6

Where the customs house finds that any illegal act ought to be handled by any other administrative organ or the criminal investigation organ, it shall make a case forwarding letter, and forward the case to the competent administrative organ or the criminal investigation organ to be treated in a timely manner.

Article 7

There shall be at least 2 or customs officers (hereinafter referred to as case handlers) for handling an administrative penalty case when making investigations and collecting evidence, and their law enforcement certificates shall be shown to the parties involved or related persons.

Article 8

A case handler shall withdraw under any of the following circumstances, and any party involved or the agent thereof has the right to apply for his withdrawal:

(1)

He is a party involved or a close relative thereof;

(2)

He himself or any of his close relatives has an interest in the case; or

(3)

He has any other relationship with any party involved, which so may affect impartial disposal of the case.

Article 9

The withdrawal of a case handler shall be determined by the director of the customs house directly under the General Administration of Customs or the subordinate customs house he belongs to.

Article 10

Where any case handler requires for withdrawal, he shall submit a written application and give the reasons.

Where any circumstance under which a case handler should withdraw arises, but he fails to apply for withdrawal, and the party involved and the agent thereof also fail to do so, the director of the customs house entitled to determine his withdrawal may order him to withdraw.

Where any party involved or the agent thereof requires the withdrawal of a case handler, he shall submit an application and give the reasons. In the case of an oral application, the customs house shall make a record.

Article 11

As regards an withdrawal application submitted by the party involved or the agent thereof, the customs house shall, within 3 working days, make a decision and notify the decision to the applicant in written form.

In case any party involved or the agent thereof is dissatisfied with the rejection of an withdrawal application by the customs house, he may, within 3 working days upon receipt of the written notice, apply for review for one time to the customs house that has made the decision, which shall make a review decision within 3 working days and inform the applicant of the decision.

Article 12

Before a decision on withdrawal is made by the customs house, the case handler may not stop the handling of the administrative penalty case. Whether the activities relevant to the case as made by the said case handler before the decision on withdrawal is made are effective or not shall be determined by the customs house that makes the decision on withdrawal by considering the circumstances of the case.

Article 13

The withdrawal of the person making the testing, appraiser or interpreter shall be subject to Articles 8 through 12 of the present Provisions.

Article 14

The types of evidence for customs houses to handle administrative penalty cases mainly include:

(1)

documentary evidence;

(2)

physical evidence;

(3)

audio-visual materials, and electronic data;

(4)

witnesses' testimony;

(5)

testing reports and authentication conclusions;

(6)

statements of the parties involved; and

(7)

record of check and inspection.

Any item of evidence may not be taken as the basis for determining facts before it is verified upon investigation.

Article 15

The physical evidence and documentary evidence as gathered by the customs house shall be original. In case it is really difficult to gather the originals, the pictures, videos and photocopies thereof sufficiently reflecting the contents or forms of the originals may be taken, and the customs house may designate or entrust related entities or individuals to appropriately keep the originals.

For collecting the originals of physical evidence and documentary evidence, the customs house shall make a list with the date of collection indicated, and ask entities or individuals involved to affix their seals or signatures upon confirmation.

For collecting the reproductions, photocopies or transcripts of the original documentary evidence kept by entities or individuals involved, the sources thereof and the time of collection shall be indicated and the seal or signature of the entity or individual involved shall be affixed upon verification.

For collecting the pictures and videos of the original physical evidence as kept by entities or individuals involved, a written explanation about the production process and the storage place of originals shall be attached, and the entities or individuals involved providing the originals shall affix their seals or signatures on the written explanations.

In case the entities or individuals involved providing the originals refuse to affix their seals or signatures, the case handlers shall state the circumstance clearly.

Article 16

When collecting electronic data or such audio-visual materials as videos and visuals, etc., the customs house shall collect their original carriers. In case it is really difficult to gather original carriers, duplicates thereof may be gathered, provided that production methods, production time, producers, objects of proof as well as the storage places of the original carriers shall be indicated, and the seals or signatures of the entities or individuals involved shall be affixed upon confirmation.

As regards the gathered duplicates of electronic data or audio-visual materials, etc., the customs house shall carry out the evidence conversion, timely print electronic data into paper materials if possible, add attach written records to the audio materials' vocal contents, and ask entities or individuals involved to affix their seals or signatures upon confirmation.

Article 17

Unless it is otherwise prescribed by any law, where an illegal act has not been found within two years, no administrative penalty may be imposed any more.

The time limit as prescribed in the preceding paragraph shall be calculated as of the date of the occurrence of the illegal act; while it shall be calculated as of the day when the illegal act terminates in case the illegal act is in a state of continuity or incessancy.

Article 18

Time limits shall be calculated on the basis of the hour, day, month or year. The hour or day when a time limit starts may not be included. The first working day after the holiday or rest day shall be the expiration day of the time limit, if the expiration day is a statutory holiday or rest day.

The time limit shall exclude the time spent on the way. In case the delivery to the post has been conducted prior to the expiry of a statutory time limit, it may not be regarded as overdue.

Article 19

Where any party involved misses the time limit by virtue of an insurmountable cause or any other justified cause, he can, within 10 days after the said cause is eliminated, apply to the customs house for postponing the time limit, and whether his application will be permitted shall be determined by the customs house.

Article 20

Administrative legal documents shall be directly served to the addressee himself by the customs house. Where the addressee is an unavailable citizen, his adult family member living together with him shall sign and accept the legal document; in the case of a legal person or any other organization, the legal representative of the legal person or the main principal of any other organization, or the person in charge of the mails of this legal person or organization shall sign and accept it; and where the addressee has entrusted an agent for accepting legal document, the legal document may be served to this agent for signature and acceptance.

Where an administrative legal document is served directly, the addressee's signature or seal shall be affixed on the receipt of service and the date of receipt shall be indicated. The date of receipt indicated in the receipt of service shall be the date of service.

Article 21

Where the addressee himself or his adult family member living together reject accepting an administrative legal document or reject affixing his signature or seal, the addressor shall invite the witnesses to be present at the scene, explain the situation, illustrate the causes for refusal and the date on the receipt of service, affix the signatures or seals of themselves and the witnesses, and leave the administrative legal document at the addressee's domicile, then the administrative legal document shall be deemed as having been served.

Article 22

In case it is difficult to directly serve an administrative legal document, the customs house may entrust another customs house to conduct the service or serve by post.

Where the customs house entrusts another customs house to conduct the service, a power of attorney shall be given to the entrusted customs house, which shall show the power of attorney to the parties involved.

As regards service by post, a receipt of service shall be attached, and the date of service shall be the date of receipt as indicated in the receipt of service; and if the receipt of service has not been posted back, the date of service shall be the date of receipt indicated in the receipt of registered letter or the inquiry letter.

Article 23

As regards the service of administrative legal documents by the customs house to foreigners, stateless persons, foreign enterprises or organizations having a domicile within the territory of the People's Republic of China, Articles 20 through 22 of the present Provisions shall apply.

The customs house shall, if available, serve the administrative legal documents directly to foreigners, stateless persons, foreign enterprises or organizations with no domicile within the territory of the People's Republic of China. Where the addressee has entrusted an agent for accepting legal documents, the customs house may serve directly to the agent or the representative office, or the branch or business agent entitled to accept the service of legal documents as set up within the territory of the People's Republic of China. Where the customs house objects to the entrustment, the power of attorney as notarized by the notary organ may be required to be provided.

In the case of any difficulty in directly serving an administrative legal document, where the service by post is permitted by the law of the addressee's country, the administrative legal document may be served by post.

As regards the service of legal documents to Hong Kong, Macao and Taiwan by the customs house, the service of administrative legal documents to foreigners, stateless persons, foreign enterprises or organizations with no domicile within the territory of the People's Republic of China shall be referred to.

Article 24

Where the addressee is a serviceman, the documents shall be delivered to him via the political organ at or above the regimental level under his working army.

Where the addressee is imprisoned or reeducated through labor, the documents shall be delivered to him via the prison or the place of labor reeducation where he is serving his term.

The date of service shall be the date of receipt as filled in the receipt of service by the addressee.

Article 25

Where a document can not be served by those service means as mentioned in Articles 20 through 24 of the present Provisions, the document shall be served by public notice.

Where served by public notice, the original of the administrative legal document shall be posted on the customs house's bulletin board. Where an administrative penalty decision is served by public notice, a public notice thereof shall also be publicized on the newspaper.

In the case of the service by public notice, sixty days after the date when the public notice is publicized, the service shall be deemed as successful. In the case of the service to a party involved without domicile within the territory of the People's Republic of China by public notice, six months after the public notice is publicized, the service shall be deemed as successful.

Where it is otherwise prescribed on the special methods of service in any law or administrative regulation or the international convention that our country has entered into or acceded to, such provisions shall prevail.

Article 26

In the case of authentic illegal facts and legal basis, an administrative penalty of a fine of 50 Yuan or less (for a natural person) or 1,000 Yuan or less (for a legal person or any other organization) or a warning may be imposed on the site in accordance with the related provisions in Section 1 of Chapter V of the Law of the People's Republic of China on Administrative Penalties.

Chapter III Case Investigation

Section 1 Case Filing

Article 27

Where the customs house finds any act committed by any citizen, legal person or any other organization, for which an administrative penalty should be given, it shall put the case on file and conduct investigations.

Article 28

Where the clues about an illegal act, which the customs house has accepted or founded, falls within any of the following circumstances upon verification, the customs house may not put the case on file:

(1)

No illegal fact exist;

(2)

The prescribed time limit for THE punishment of the illegal act has passed; or

(3)

Any other circumstance under which the case should not be put on file.

Where the customs house decides not to put a case on file, a notice of not filing the case shall be made, and timely noticed to the tip-off maker, the clues-transferring organ or the suspected offender who has surrendered himself to justice.

Section 2 Interrogation and Inquiry

Article 29

The case handlers shall interrogate suspected offenders or inquire witnesses separately, and inform them of their rights and their legal liabilities for falsely testifying.

A suspected offender or witness shall make statements and provide evidence according to the facts.

Article 30

A suspected offender may be interrogated at his work place or domicile, or at the customs house or a designated place as required by the case handlers.

The case handlers may inquire a witness at his work place or domicile, or may, if necessary, request him to the customs house or a designated place for the inquiry.

Article 31

For the interrogation or inquiry, transcripts thereof shall be made.

The items on the transcripts of interrogation or inquiry shall be completely filled in pursuant to the provisions, and the time for commencing and ending the interrogation or inquiry shall be indicated, and the case handlers shall affix their signatures on the transcripts.

The transcripts shall be submitted to the person being interrogated or inquired for verification or be read out to him on the site. After the person being interrogated or inquired have verified the transcripts to be free from any mistake, he shall put his signature or fingerprint to each page of the transcripts. Where he rejecting affixing his signature or fingerprint, the case handlers shall record the situation down in the transcripts. Where there is any mistake or omission in the transcripts, the person being interrogated or inquired shall be allowed to make corrections or supplementations, and his signature or fingerprint shall be affixed at the places of corrections or supplementations.

Article 32

When a deaf or dumb person is being interrogated or inquired, a person who knows the gestures of the deaf and dumb people shall be present at the scene, and the transcripts shall indicate the basic information about the deaf or dumb person being interrogated or inquired.

When a foreigner or stateless person who does not know the language of China is being interrogated or inquired, an interpreter shall be provided for him; where the person being interrogated or inquired knows the language of China and no interpreter is needed, he shall issue a written statement, and the case handlers shall indicate it in the transcripts of interrogation or inquiry.

The name, employer and vocation of an interpreter shall be indicated in the transcripts of interrogation or inquiry. And his name shall be affixed on the transcripts of interrogation or inquiry.

Article 33

When a suspected offender or witness is interrogated or inquired for the first time, the customs house shall inquire his name, birth date, place of permanent residence, current address, type and number of identity card, employer, educational background, whether any criminal or administrative penalties has been imposed on him, etc.; and shall inquire his main family members, etc. when necessary.

When a suspected offender or witness under 18, his parent or any other guardian shall be called to be present at the scene. In case it is impossible to notify them or they fail to be present at the scene after being notified, such situation shall be indicated in the transcripts.

Article 34

Where a person being interrogated or inquired requires for providing written statements by himself, it shall be allowed, and the case handlers may also request the person being interrogated or inquired to write down his statements by himself when necessary.

Where a person being interrogated or inquired provides written statements by himself, his signature shall be affixed on his written statements and the time, and place for writing down the statements as well as the subject for such statement shall be indicated. After having received the written statements, the case handlers shall record down the date of receipt, and affix their signatures for confirmation.

Article 35

When interrogation or inquiry is made, audio or video records, in addition to written transcripts, may be made if necessary.

Article 36

The case handlers shall carefully hear the statements of the suspected offender and the witness, and set the record straight.

Any case handler may not obtain statements by such illegal means as violence, menace, lure, fraud, etc..

Section 3 Inspection and Examination

Article 37

When the case handlers check transport vehicles and places or examine goods and articles, transcripts of inspection or examination shall be made. The transcripts shall bear the signatures of the case handlers and the parties involved or their agents; and where any party involved or the agent thereof is not present at the scene or rejects affixes his name or seal, the case handlers shall indicate the situation in the transcripts, and ask the witnesses to sign or seal.

Article 38

When a suspected smuggler is under the case handlers' inspection, the inspection shall be carried out by two or more case handlers with identical sex to the person being inspected at a covered place or outside the sight of others than inspectors.

The inspection of the body of a suspected smuggler may be carried out under a doctor's assistance, and if necessary, a professional inspection may be made at a medical institution.

Section 4 Testing and Authentication

Article 39

Where, during the process of investigating a case, it is necessary to draw samples of related goods or articles for testing or authentication, the samples shall be drawn by the customs house or by a testing or authentication institution entrusted by the customs house. At the time of drawing samples, the parties involved or their agents shall be present at the scene; and where any party involved or its agent is not present at the scene, witnesses shall be invite by the customs house to be present at the scene.

The samples as drawn shall be sealed for confirmation, and the transcripts on drawing samples shall be made, and the signatures or seals of the case handlers, the staff members of the testing or authentication institution entrusted by the customs house, the parties involved or agents thereof as well as the witnesses shall be affixed.

The samples as drawn by the customs house shall be sent to the testing or authentication institution for testing or authentication in a timely manner.

Article 40

In case related goods or articles will be sold off or discharged by the customs house in the first place, the customs house shall draw the samples thereof in duplicate or more; and the number of samples and the quantity of each sample shall be enough for determining the features of related goods or articles.

Article 41

The testing or authentication shall be carried out by the customs house's testing and authentication institution or any other state-recognized institution as entrusted by the customs house. Related materials shall be provided by the holder or owner thereof as required for the testing or authentication.

Article 42

A person conducting the testing or authentication shall issue a testing report or an authentication conclusion after testing or authentication.

The trustor, matters entrusted for testing or authentication, related materials provided for the testing or authentication institution, basis for testing or authentication, scientific technical means as adopted, testing or authentication institution, instructions about the qualification of the persons who carry out the testing or authentication, shall be indicated in a testing report or an authentication conclusion, and signatures of the persons who carry out the testing and authentication as well as the seal of the testing or authentication institution shall be affixed Where an authentication conclusion is drawn by analysis, the analysis process shall be indicated.

Article 43

Where any party involved is dissatisfied with the testing report or authentication conclusion, he may apply for a new testing or authentication; and a new testing or authentication shall be conducted if the customs house finds upon examination that there are justifiable reasons for a new testing or authentication.

The testing or authentication expenses shall be assumed by the customs house. However, when any party involved applies for a new testing or authentication, the testing or authentication expenses shall be assumed by the customs house if the original testing or authentication conclusion has been altered,, otherwise, the testing or authentication expenses shall be assumed by the applicant for the new testing or authentication.

Section 5 Inquiry about Deposits and Remittances

Article 44

In case, when investigating a smuggling case, the case handlers inquire about the deposits or remittances of a suspected entity or individual in financial institutions or postal service enterprises, the approval of the director of the customs house directly under the General Administration of Customs or the subordinate customs house authorized by it shall be obtained.

Article 45

When inquiring about the deposits or remittances of a suspected entity or individual in financial institutions or postal service enterprises, the case handlers shall show their law enforcement identities and present a customs notice on assistance for inquiry.

Section 6 Detention and Security

Article 46

The case handlers shall, when detaining any goods, articles, transport vehicles, other properties, account books, documents or other materials, show their law enforcement certificates, make a detention voucher and serve it to the parties involved, inform the parties involved of the reasons and basis for detention as well as their rights on the site.

A detention voucher shall indicate the names, specifications, quantities and weights, etc. of the detained goods, articles, transport vehicles or other properties. In case it is impossible to determine the name, specifications, quantities and weights, etc. of the detained goods, articles, transport vehicles or other properties, external features thereof shall be described as particularly as possible. The signatures or seals of the case handlers, the parties involved or their agents as well as the keeper shall be affixed to a detention voucher; and where any party involved or the agent thereof is not present at the scene or rejects affixing his signature or seal, the case handlers shall indicate such situation in the detention voucher, and ask the witnesses to sign or seal.

The goods, articles, transport vehicles, other properties, account books, documents or other materials that have been legally detained by the customs house may be sealed with a customs mark. The parties involved or their agents and the keeper shall keep them appropriately after the customs mark has been affixed.

Article 47

The term for the customs house to detain goods, articles, transport vehicles, other properties, account books, documents or other materials may not exceed one year. For satisfying the needs of investigating a case, the term may, upon approval by the director of the customs house directly under the General Administration of Customs or the subordinate customs house authorized by it, be prolonged for one year or less. However, the term for reconsideration or litigation may not be included.

Article 48

Where the detained goods or articles that are dangerous, fresh, perishable, easy to decay, expire or deteriorate or are unfit for a long-term storage, or whose owner applies for advance sale need to be sold off in advance before the people's court renders a judgment or the customs house makes an administrative penalty decision, the approval of the director of the customs house directly under the General Administration of Customs or the subordinate customs house authorized by it shall be obtained.

The customs house shall, prior to the sale, notify the owner of goods, articles or transport vehicles to be sold off in advance. Where the notification could not be made prior to the sale, the customs house shall, after they have been sold off, notify it to the owner of goods, articles or transport vehicles.

Article 49

For discharging the detention of goods, articles, transport vehicles, other properties, account books, documents or other materials, a notice on discharging detention shall be made by the customs house and served to the parties involved. The signatures or seals of the case handlers, the parties involved or their agents as well as the keeper shall be affixed to a notice on discharging detention; and where any party involved or its agent is not present at the scene or rejects affixing his signature or seal, the case handlers shall indicate such situation in the notice on discharging detention, and ask the witnesses to sign or seal.

Article 50

In case it is impossible or inconvenient to detain the goods, articles or transport vehicles suspected of being involved in a violation, the case handlers shall make a voucher on receipt of security and serve it to the party involved or the person in charge of transport vehicles, if the party involved or the person in charge of transport vehicles provides the security to the customs house. The voucher on receipt of security shall be affixed with the signatures or seals of the case handlers, the parties involved, the person in charge of transport vehicles or their agents.

After the security is received, the goods, articles or transport vehicles involved may be photographed or videoed for archival filling.

Article 51

Where the customs house discharges the security in accordance with law, it shall make and issue a notice on discharging security and serve it to the parties involved or the person in charge of transport vehicles. The signatures or seals of the case handlers, the parties involved, the person in-charge of transport vehicles or their agents as well as the keeper shall be affixed to a notice on discharging security. Where any party involved, the person in charge of transport vehicles or his agent is not present at the scene or rejects affixing his signature or seal, the case handlers shall indicate such situation in the notice on discharging security, and ask the witnesses to sign and seal.

Article 52

The personal detention of suspected smugglers shall be carried out in accordance with the procedures as provisioned in the Provisions of the Customs of the People's Republic of China on the Implementation of the Personal Detention.

Section 7 Suspension and Termination of Investigations

Article 53

Where, when handling an administrative penalty case, the customs house finds that the illegal act conducted by a party involved should be transferred to another administrative department or the criminal investigation department for disposal after the case has been put on file, it shall immediately transfer the case.

The investigation thereof shall be suspended as of the day when the customs house transfers the case to another administrative department or the criminal investigation department.

Article 54

Where an administrative penalty case in which the customs house has suspended the investigation falls within any of the following circumstances, the investigation shall be resumed:

(1)

Another administrative department or the criminal investigation department has handled the case as been transferred by the customs house, and an administrative penalty still needs to be made by the customs house; or

(2)

Another administrative department or the criminal investigation department refuses to accept the case or impose no criminal liability, and the case has been returned to the customs house for treatment.

Article 55

Where an administrative penalty case falls within any of the following circumstances upon investigation, the investigation may be terminated:

(1)

The illegal facts are clear, the legal formalities are complete, and the evidence for determining the penalty is abundant;

(2)

No illegal fact has been found out;

(3)

Any party involved, as a natural person, dies;

(4)

Any party involved, as a legal person or any other organization, terminates, there is no successor to its rights and obligations, and no other related party can be investigated;

(5)

Another administrative department or the criminal investigation department has handled the case as transferred by the customs house, and no administrative penalty is needed to be made by the customs house; or

(6)

Any other circumstance under which the investigation of the case ought to be terminated.

Chapter IV Administrative Penalty Decisions

Section 1 Case Examination

Article 56

As regards an administrative penalty case in which the investigation has been finalized, the customs house shall conduct an examination on it. Without examination, the customs house may not make a decision on withdrawing the case, not giving an administrative penalty or giving an administrative penalty, etc.

Article 57

When examining an administrative penalty case, the customs house shall examine whether the illegal facts of the case under examination are definite, whether the evidence for deciding the verdict is objective and enough, whether the procedures for obtaining the evidence are legal and appropriate, and whether there exist circumstances for not giving an administrative penalty or for giving a minor, mitigated or heavier penalty, as well as propose opinions on the applicable laws and on the handling of the case.

Where the illegal facts of a case are not definite, the evidence is not enough or the investigation procedures are illegal, the case shall be returned for complementary investigations.

Article 58

An offender under the age of 14 shall be exempted from administrative punishment, but the guardian thereof shall be ordered to offer him strict custodian education. The administrative punishment imposed on him shall be extenuated or mitigated for an offender more than 14 years old but less than 18 years old.

Article 59

No administrative punishment may be imposed on a mental patient who commits a violation at a time when he is unable to recognize or control his own conduct, however, his guardian shall be ordered to take him in strict custody and give him medical treatment. An administrative punishment shall be imposed on an intermittent mental patient who commits a violation at a time when he is mentally normal.

Section 2 Notification, Reexamination and Hearing

Article 60

The customs house shall, before making an administrative penalty decision, inform the parties involved of the facts, reasons and basis for such decision as well as their rights.

The customs house shall, before making such administrative penalty decisions as suspending the related business or the customs declaration business, canceling the customs registration or the practicing qualification for customs declaration, imposing a fine of 10,000 Yuan or more to a citizen or a fine of 100,000 Yuan or more to a legal person or any other organization, confiscating the related goods, articles or transport vehicles for smuggling, etc., inform the parties involved of their rights to requires a hearing.

The customs house shall, when performing the notification obligation, make and circulate a written administrative penalty notice, and serve it to the parties involved.

Article 61

Unless by virtue of any force majeure or any other justifiable reason as recognized by the customs house, the party involved shall, within three working days upon receipt of the written administrative penalty notice, apply for written statements, defenses and hearing, otherwise, it shall be regarded that the party involved has given up such rights.

Where any party involved makes statements or defenses orally on the site, the customs house shall make transcripts, and ask the party involved to sign or seal for confirmation.

The customs house may make an administrative penalty decision directly, if the parties involved have waived the right to request for written statements, defenses and hearing. The waiver shall be recorded down, and be confirmed by the signatures or seals of the parties concerned or their agents.

Article 62

After receiving the written statements and defenses made by the parties involved, the customs house shall reexamine them; in case the facts, reasons or evidence proposed by any party involved are established, the customs house shall adopt them.

Article 63

The customs house may not impose a heavier penalty to any party involved by virtue of his defenses, except that any new illegal fact has been found.

Article 64

Where the facts, reasons, basis and degree in the former penalty has been changed upon reexamination, the customs house shall, according to Articles 60 through 63 of the present Provisions, make a new administrative penalty notice.

Article 65

A hearing shall be handled in accordance with the Measures of the Customs of the People's Republic of China for the Hearings about Administrative Penalties if any party involved applies.

Section 3 Treatment Decisions

Article 66

The director of the customs house shall, in light of different examination results to administrative penalty cases, make any of the following decisions:

(1)

Where there is an actual violation and an administrative punishment should be given, an administrative punishment decision shall be made in light of the seriousness of the circumstances and the consequences;

(2)

A decision of not giving an administrative punishment shall be made where no administrative punishment may be given;

(3)

The case shall be cancelled under any circumstance prescribed in Item (2), (3) or (4) of Article 55 of the present Provisions;

(4)

The illegal gains or properties shall be confiscated where the requirements for confiscation prescribed in Item (2), (4) or (5) of Article 62 of the Regulation on Implementing Customs Administrative Penalties are satisfied; or

(5)

The case shall be transferred to the criminal investigation department for treatment where any crime may be involved in the illegal act.

For making an administrative penalty decision, the customs house shall ensure that the illegal facts are clearly ascertained, the evidence for determining the verdict is conclusive and abundant, the nature of the illegal act is exactly determined, the laws are correctly applied, and the procedures for handling the case are legal, and the penalty degree is reasonable and appropriate.

Article 67

For imposing a relatively serious administrative penalty for complicated circumstances or serious illegal act, the case trial committee of the customs house shall conduct a collective discussion and make a decision.

Article 68

The customs house shall make and circulate an administrative penalty decision letter or a decision letter of not giving an administrative penalty when such decision is made.

Article 69

A written administrative penalty decision shall indicate the contents as follows:

(1)

Basic information about the parties involved, containing their name, their customs registration codes, customs registration codes for customs declarers, and their addresses, etc.

(2)

Facts and proofs for the violation of laws, administrative regulations or rules;

(3)

Type and basis for the administrative penalty;

(4)

Method and time limit for the implementation of the administrative penalty;

(5)

Means and time limit for applying for administrative review or lodging an administrative lawsuit in the case of being dissatisfied with the administrative penalty decision; and

(6)

Name and seal of the customs house that has made the administrative penalty decision and the date of decision.

Article 70

A written decision of not giving an administrative penalty shall indicate the contents as follows:

(1)

Basic information about the parties involved, containing their name, their customs registration codes, customs registration codes for customs declarers, and their addresses, etc.

(2)

Facts and proofs for the violation of laws, administrative regulations or rules;

(3)

Basis for not giving an administrative penalty;

(4)

The ways and time limit for applying for administrative review or lodging an administrative lawsuit in the case of being dissatisfied with the decision of not giving an administrative penalty; and

(5)

Name and seal of the customs house that has made the decision of not giving an administrative penalty and the date of decision.

Article 71

After a written administrative penalty decision has been announced, it shall be delivered to the parties involved on the site; and where any party involved is not present at the scene, the customs house shall, within seven days, serve it to the party involved.

Article 72

Where the related goods, articles, illegal proceeds, transport vehicles or equipment specially made are confiscated in accordance with Article 62 of the Regulation on Implementing Customs Administrative Penalties, the customs house shall make a confiscation list and serve it to the party involved whose properties have been confiscated.

Where the illegal facts of smuggling are basically clear, but it is impossible to find out the party involved, the customs house shall make and circulate a public notice on confiscation for three months before making a confiscation list, and order the party involved to go through relevant customs formalities at the designated customs house within the term of public notice. Where still no party involved presents to go through related customs formalities at the designated customs house upon expiration of the term of public notice, the customs house may, in accordance with Item (4) of Paragraph 1 of Article 62 of the Regulation on Implementing Customs Administrative Penalties, confiscate related goods.

Article 73

The name, specifications, quantities or weights, etc. of related confiscated goods, articles, illegal proceeds, transport vehicles or specially made equipment shall be indicated in a confiscation list. Where the related goods, articles, illegal proceeds, transport vehicles or equipment specially made have any major and obvious feature or flaw, the case handlers shall indicate such situation on the confiscation list.

Article 74

A confiscation list shall be signed or sealed by the case handlers, the person whose properties have been confiscated or his agent.

Where the person whose properties have been confiscated or his agent rejects affixing his name or seal, or the person whose properties have been confiscated can not be found out, but there is any witness on the site, the customs house shall ask the witness to sign or seal.

The case handlers shall indicate the reasons on the confiscation list for without the signature or seal of the person whose properties have been confiscated.

A confiscation list made and issued in accordance with Item (4) of Paragraph 1 of Article 62 of the Regulation on Implementing Customs Administrative Penalties shall be served by public notice.

Chapter V Implementation of Decisions on Administrative Penalty

Article 75

The parties involved shall, after the customs house has made an administrative penalty decision, implement it within the time limit as prescribed in the written decision on administrative penalty.

The General Administration of Customs shall separately formulate the procedures for implementing such administrative penalty decisions of suspending related business or practice, canceling the registration or canceling the practicing qualification for customs declaration, etc..

Article 76

An application shall be made in written form if a party involved applies to postpone the payment of a fine or pay it by installments by virtue of actual economic difficulties.

After receiving of an application for the postponement of the payment of a fine or the payment of a fine by installments, the customs house shall make a decision on whether to approve the application within 10 working days, and make and issue a notice and send it to the parties involved.

Where the customs house approves the postponement of the payment of a fine or the payment of a fine by installments, it shall inform the institution for collecting fines in time.

Article 77

Where the postponement of the payment of a fine or the payment of a fine by installments is approved, the time limit for implementation may not be more than 180 days as of the expiration of the time limit for implementation as prescribed in the written decision on administrative penalty.

Article 78

Where a party involved fails to implement a decision on administrative penalty within the time limit, the following measures may be adopted by the customs house:

(1)

Where the party involved fails to pay a fine within the time limit, a penalty at the daily rate of 3 % of the amount of the fine shall be given; and

(2)

Where the party involved fails to implement the customs penalty decision and does not apply for review or bring an action with the people's court, the customs house may convert the goods, articles and transport vehicles as detained or the security provided by the party involved into money for payment, or may apply for compulsory enforcement to the people's court.

Article 79

The customs house shall, before adopting the measures of imposing additional fine and converting properties into money for payment as prescribed in Article 78 of the present Provisions, make and issue a written notice on implementation, and send it to the parties involved.

Article 80

Where any party involved subject to customs penalty or legal representative or main principal thereof fails to pay off a fine or the money equivalent to the value of goods, articles and transport vehicles for smuggling as recovered before he goes abroad, nor has he provided a security equivalent to the value of aforesaid money, the customs house may make an assistance letter for prevention of going abroad, and inform the exit administrative department to prevent him from going abroad.

As regards an assistance letter for prevention from going abroad, the written administrative penalty decision and other related administrative legal documents shall be attached, and the name, sex, birth date, type and number of the entry and exit certificate of the person who is prevented from going abroad shall be indicated, if he is a foreigner or stateless person, his English name shall be indicated in addition.

Article 81

The customs house shall make an assistance letter on removing the prevention from going abroad, and inform the exit administrative department, if the party involved or its legal representative or main principal pays off the fine or the money equivalent to the value of goods, articles and transport vehicles for smuggling as recovered, or he has provided the security equivalent to the value of aforesaid money.

Article 82

In case there is still remnant value after the security provided by the party involved is converted into money for payment or the goods, articles and transport vehicles as detained are converted into money for payment, the remnant value shall be returned in a timely manner, or the detention of properties shall be discharged and the security shall be removed in a timely manner.

Article 83

Where a party involved fails to go through the formalities for returning related goods, articles, transport vehicles or other properties at the customs house without any justified reason within three months as of the service of a written notice on removing the detention by the customs house, the customs house may sell off the related goods, articles, transport vehicles or other properties, and keep the money from the sale. After the storage fees and other related fees arising as of the day when the written notice on discharging the detention has been served have been deducted from the money generated from sale, if there is still remnant money, the party involved shall, within one year after the customs house has served the written notice on discharging the detention, go through related formalities at the customs house, otherwise, the customs house will turn over the remnant money to the state treasury.

Article 84

Where a party involved fails to go through the formalities for returning related properties or right certificates at the customs house without any justified reason within one year after the customs house has served a written notice on removing the security, the customs house will sell off related properties or right certificates and convert them into money, and turn the money generated therefrom over to the state treasury.

Article 85

For applying for compulsory enforcement to the people's court, the customs house shall submit a written application for enforcement, and provide other materials as required by the people's court.

Article 86

An application for compulsory enforcement to the people's court shall comply with the Interpretation of the Supreme People's Court on Several Matters about Implementing the Administrative Procedure Law of the People's Republic of China, and be submitted within the following time limits:

(1)

Within 180 days after 3 months as of the service of a written administrative penalty decision, if the parties involved have not applied for administrative review or lodged a lawsuit with the people's court after the written administrative penalty decision has been served;

(2)

Within 180 days after 15 days as of the service of a written reconsideration decision, if the parties involved have not lodged an administrative lawsuit after the written review decision has been served;

(3)

Within 180 days after 15 days as of the service of a paper of judgment, if the parties involved have not lodged an appeal after the administrative judgment of the first instance is made;

(4)

Within 180 days after 10 days as of the service of a written ruling, if the parties involved have not lodged an appeal after the administrative ruling of the first instance is made; or

(5)

Within 180 days as of the service of the administrative judgment of the second instance.

Article 87

If a party involved is split up or merged, or its asset is reorganized, etc. after it has violated the Customs Law of the People's Republic of China, and a fine, a penalty of confiscation of illegal proceeds or recovery of the money equivalent to the value of goods, articles and transport vehicles for smuggling is imposed, the legal person or organization succeeding to its rights and obligations shall be taken as the person subject to execution.

Article 88

The enforcement shall be suspended under any of the following circumstances:

(1)

The penalty decision may be illegal or inappropriate;

(2)

The people's court rules to suspend the enforcement for an application for compulsory enforcement filed to it;

(3)

The administrative review organ or the people's court considers it necessary to suspend the enforcement; or

(4)

Any other circumstance under which the enforcement ought to be suspended.

For suspending the enforcement in accordance with Item (1) of the preceding paragraph, the approval of the director of the customs house directly under the General Administration of Customs or the subordinate customs house as authorized thereby shall be obtained.

The enforcement shall be resumed after the circumstance for suspending the enforcement disappears.

Article 89

The enforcement shall be terminated under any of the following circumstances:

(1)

The legal document on which the enforcement is based is revoked;

(2)

Any party involved, as a natural person, dies;

(3)

Any party involved, as a legal person or any other organization, terminates, there is no successor of its rights and obligations, and there is no other property available for enforcement;

(4)

The customs house still can not finish the implementation by various measures after two years upon expiration of the time limit for implementation as provisioned in the customs administrative penalty decision, except where an application has been filed for compulsory enforcement to the people's court;

(5)

For an application for compulsory enforcement to the people's court, the customs house still can not finish the implementation after two years as of the suspension of the enforcement made by the people's court ;

(6)

The people's court rules to terminate the enforcement for an application for compulsory enforcement filed to it; or

(7)

Any other circumstance under which the enforcement ought to be terminated.

Chapter VI Procedures for Handling Simple Cases

Article 90

As regards the cases with clear illegal facts and minor illegal circumstances arising at the scene of the business of post delivery, express mails, goods storage, bonded supervision, etc. or any other business under customs supervision, the procedures for handling simple cases may be adopted by the customs house, except for cases that shall be governed by the procedures as provided for in Article 26 of the present Provisions.

Article 91

As regards the cases for which the procedures for handling simple cases is adopted, the customs may directly make and circulate an administrative penalty notice upon on-the-site investigations, and require the parties involved or their agents to sign for it on the site.

Article 92

The customs house may make an administrative penalty decision on the site under any of the following circumstances:

(1)

The parties involved waive the right to make statements, defense or require for a hearing on the site; or

(2)

The parties involved make statements and defenses on the site, and upon reexamination of the customs house on the site, the parties involved or their agents accept the reexamination opinions.

That the parties involved have waived the right to make statements, defense or to require for a hearing on the site, or made statements and defenses on the site, and whether they accept the reexamination opinions or not shall be written down, and shall be confirmed by the parties involved through affixing their names or seals.

Where an administrative penalty decision is made on the site, the customs house shall make and issue a written administrative penalty decision, and give it to the parties involved on the site.

Article 93

During the process of applying the procedures for handling simple cases, the customs house may not make an administrative penalty decision on the site under any of the following circumstances, and shall handle the case in accordance with the provisions on general procedures:

(1)

As regards the statements or defenses made by the parties involved, the customs house can not reexamine on the site;

(2)

After the customs house reexamines on the site, the parties involved still holds objection to the reexamination opinions;

(3)

The parties involved require the customs house for hearing on the site; or

(4)

The customs house believes it necessary to conduct further investigations and evidence collection.

Chapter VII Supplementary Rules

Article 94

Where any case handler neglects his duties, resorts to frauds for private purposes, abuses his powers, exert or accepts properties or money from others, sanctions shall be given according to law; and where a crime is established, criminal liabilities shall be investigated.

Article 95

When any administrative penalties is imposed upon foreigners, stateless persons, foreign enterprises or organizations by customs houses, the present Provisions shall apply.

Article 96

The General Administration of Customs shall be responsible for the interpretation of the present Provision.

Article 97

The present Provisions shall enter into force as of July 1, 2007.