Laws of the People's Republic of China

PROVISIONS OF THE GENERAL ADMINISTRATION OF CUSTOMS OF
THE PEOPLE'S REPUBLIC OF CHINA ON THE ADMINISTRATION
OF INBOUND AND OUTBOUND GOODS AT THE ECONOMIC AND
TECHNOLOGICAL DEVELOPMENT ZONES

 (Promulgated by the General Administration
of Customs on April 26, 1988)

SUBJECT: CUSTOMS

ISSUING-DEPT: GENERAL CUSTOMS ADMINISTRATION

ISSUE-DATE: 04/26/1988

IMPLEMENT-DATE: 05/15/1988

LENGTH: 1394 words

TEXT:

[Article 1] The present Provisions have been formulated, in accordance with the "Customs Law of the People's Republic of China" and the relevant State provisions concerning the Economic and Technological Development Zones with a view to promoting the construction and development of the Economic and Technological Development Zones.

[Article 2] The present Provision shall apply to the Economic and Technological Development Zones (hereinafter referred to as ETDZs) established at the coastal port cities with the approval by the State.

[Article 3] Foreign trade enterprises and productive enterprises engaged in the import business within ETDZs shall go through the registration procedures with local Customs offices by presenting the ratification documents issued by the State departments in charge and business licenses issued by the State departments in charge and business licenses issued by the State Administration for Industry and Commerce.

[Article 4] The consignees and consignors for inbound and outbound goods or agents entrusted shall fill in the import and export declaration forms with accurate information, and submit the verification permits and other relevant documents to the Customs offices.  Goods imported or exported through other port cities outside ETDZs shall be subject to the relevant Customs measures on the supervision and administration over goods transferred from one Customs office to another.

[Article 5] Enterprises entitled to the preferential treatment on importing and exporting goods at ETDZs shall open special account books and submit to the Customs offices regularly the written reports on the uses, sales and storage of imported goods as well as exported goods for Customs verifications.  The Customs shall also have the authority to inspect the conditions of inbound and outbound goods and examine the account books at the enterprises whenever there are needs.

The Customs, when deemed necessary, may station officials at the enterprises to supervise and handle the relevant Customs formalities.  The enterprises under supervision shall offer spaces and other necessary facilities on a free of charge basis.

[Article 6] With respect to goods imported for local uses by enterprises or institutions within ETDZs upon the approval by the State departments in charge, their Customs duties, import regulatory tax, and consolidated industrial and commercial tax (product tax or value-added tax) shall be levied in accordance with the following stipulations:

(1) Import of machinery, equipment and other materials for capital construction in ETDZs shall be exempt from import duty and other taxes.

(2) Import of construction materials, production and management equipment, fuel for production uses, vehicles and other transport means, office appliances, and spare parts for maintaining and repairing the imported vehicles at reasonable quantity by the enterprises in ETDZs shall be exempt from import duty and other relevant taxes provided the imported goods are used only by the enterprises themselves.

(3) Import of construction materials, transport means, office appliances, and management equipment by the administrative organs and other government-owned enterprises shall also be subject to the same tax treatment as stated in stipulation (2) provided the imported goods are consumed by the importers themselves.

(4) Import of raw materials, spare parts, components and packaging materials by the enterprises in ETDZs for their own export production, beverages for tourists and catering services, and feedstuff for export aquiculture involving foreign investment shall all be exempt from import duty and other relevant taxes.

(5) Except for the imported goods covered in stipulations (1), (2), (3) and (4), import of other goods to ETDZs shall be subject to import duty and other taxes in accordance with relevant regulations.

[Article 7] Finished goods made of duty-free import materials and parts shall be exempt from or levied with import duty and other relevant taxes in accordance with the stipulations of Article 6 in case these finished goods are transferred from inland areas where they are produced to ETDZs for sales or processing purposes.

[Article 8] Export products manufactured by enterprises in ETDZs shall be exempt from export duty.

Products processed in ETDZs with China-made materials, parts or semifinished goods may be regarded as products manufactured in ETDZs by the Customs and shall be exempt from import duty upon presentation of certificates issued by relevant departments in charge provided the products are verified to have undergone materials processing and have over 20% value added.

Enterprises in ETDZs entrusted as export agents for or purchasing export products from enterprises outside ETDZs shall be subject to relevant State regulations.  Export products subject to export duty shall the duty levied in accordance with relevant regulations.

[Article 9] Goods subject to tax reduction or exemption shall only be used in ETDZs.  They shall not be shifted for other uses, transferred, sold or leased to other areas outside ETDZs without officials approvals and completion of Customs formalities.

[Article 10] Approval documents issued by the departments in charge shall be submitted to the Customs for verifications when the duty-free imported machinery, equipment and infrastructural appliances are transported to other inland areas after completion of replacement projects by enterprises in ETDZs or completion of construction projects contracted by Chinese enterprises from inland areas.  Upon examination by the Customs, duties may be pursued and transfer approval may be granted in accordance with respective circumstances.

[Article 11] Import of goods and materials by enterprises engaged in processing operation in ETDZs shall be subject to the "Measures of the General Administration of Customs of the People's Republic of China on the Administration of Materials and Parts Required to be Imported for the Fulfillment of Product Export Contracts by Foreign Investment Enterprises" and "Measures of the General Administration of Customs of the People's Republic of China on the Administration of Inbound and Outbound Goods for the Processing-with-Imported-Materials Operation."

Enterprises in ETDZs, when selling at domestic market their finished goods made of or assembled with duty-free imported materials or parts upon the approval of relevant departments, shall go through the import formalities of the Customs.  Duties will then be levied on the materials and parts contained.  Duty-free imported materials and parts to be sold or used in ETDZs shall be subject to the stipulations of Article 6 for tax exemption or taxation.  In case the owners or agents of the finished goods concerned do not make clear declarations about the categories, quantities and values of the materials and parts imported, the Customs will tax against the value of the finished goods.

[Article 12] Enterprises in ETDZs shall submit the approval documents issued by local authorities and processing contracts to the Customs to apply for the "Registration Handbook" provided the imported materials or parts of the enterprises concerned are to be transported outside ETDZs for processing operations.  Processed goods shall be shipped back to the ETDZs during the contract term and the enterprises shall present the Registration Handbook to the Customs for verification and cancellation on month after the expiry of contracts.

[Article 13] Customs declaration shall be made at the Customs in case the imported goods are transferred temporarily from inland areas to ETDZs for production uses.  Permission for shipping back the goods to inland areas shall be issued upon verification by the Customs.  The goods, provided no Customs declaration is done, shall be regarded as other goods imported from ETDZs to inland areas when the goods concerned are returned to the areas they come from.

[Article 14] Any violation against the present Provisions and other relevant Customs regulations shall be handled by the Customs in accordance with the "Customs Law of the People's Republic of China".

[Article 15] The present Provisions shall enter into force on May, 1988.