Laws of the People's Republic of China

   Article 1. These Rules have been made in accordance with the Provisional Customs Law of the People's Republic of China and the spirit of Document No. 211 (1980) promulgated by the State Council, for the purpose of facilitating the importation and exportation of the goods and materials needed for the cooperative exploration and exploitation of the offshore petroleum of our country.

   Article 2. The Customs shall, in accordance with the documents and contracts (including sub-contracts--the same hereinafter) approved by the State Council or its authorised organs, exercise supervision and control over all the goods and materials imported and exported by the oil companies for the exploration and exploitation of the offshore petroleum of our country.

After the determination of an engineering project, the oil company concerned should immediately submit the above-mentioned documents and contracts to the local Customs and the Customs of entry and exit. It should also, before entry, submit for Customs inspection, the manifest of the goods and materials and equipment (including the supplementary manifest) corresponding with the import plan verified and approved by the competent organ. These goods and materials, if verified by the Customs to be for productive purpose within the scope of the engineering project, may be imported upon the approved manifest, without applying for a separate import licence (but the import of machinery equipment should still be reported, beforehand, to the specific authorizing department for approval). Import licences issued by foreign trade control organs should be submitted for verification with regard to goods and materials outside the scope of the engineering project, goods and materials not for direct productive purpose and imported by the oil company in accordance with a temporary plan, and goods and materials covered by import licence according to relevant State provisions.

   Article 3. At the time of importation and exportation of the goods and materials, the oil company or its agent should fill out the Declaration Form of Imports (Exports) in duplicate, and submit it together with the invoices, packing list and other relevant papers and documents to the Customs for the completion of Customs formalities of entry and exit.

In the case of the goods and materials imported or exported at the places other than the place where the company is located, the declarant should fill out the Declaration Form of Imports (Exports) in triplicate, and declare to the Customs of entry in the case of importation, and to the local Customs in the case of exit, for the completion of the transhipment formalities. The declarant should entrust the forwarding agent with delivering the Customs Cover, along with the cargo in question, to the Customs of destination or exit. The forwarding agent must keep intact the Customs seals affixed by the Customs on the cargo or on the means of conveyance.

   Article 4. At the time of Customs examination of the import and export cargoes, the cargo-owner or his agent must be present and unpacking the goods himself. In case the cargo needs to be examined at places other than the places under Customs supervision and control, permission should be sought from the Customs beforehand, and special fees paid in accordance with the Customs regulations.

   Article 5. Cargoes imported (including those imported by means of lease) within the duty-exemption limits approved by State organs shall be released duty-free by the Customs; the portion of import cargo in excess of the above-mentioned limits shall be released, only after the Customs duties and industrial and commercial (consolidated) tax have been levied by the Customs in accordance with the regulations.

Goods and materials imported temporarily may be accorded duty-free treatment, provided that the oil company concerned completes the declaration formalities with the local Customs and guarantees to re-ship them abroad within six months. In this case, the oil company should pay a cash deposit not less than the total amount of the payable duties and undertake to re-ship the goods and materials abroad within the stipulated time-limit. The deposit shall be refunded on re-shipment abroad of the goods and materials. If, owing to special circumstances, the goods and materials imported temporarily cannot be re-shipped abroad within the prescribed time-limit, the oil company should apply to the Customs for extension. If the re-shipment is still not undertaken within the extended time-limit, the oil company should, in accordance with the present Rules, go through Customs formalities for entry, and pay Customs duties and the industrial and commercial (consolidated) tax.

   Article 6. Import goods and materials may be delivered only after completion of the Customs formalities, or with the special permission of the Customs; the export goods and materials may be loaded and shipped abroad only after completion of the Customs formalities and under the Customs supervision and control.

   Article 7. The commission warehouses set up by foreign businessmen at the oil bases shall be dealt with by the Customs in accordance with the Provisional Rules Governing the Supervision and Control over Bonded Cargo and Bonded Warehouses. But if the goods and materials for sale on commission and the spare parts and components for use in maintenance are to be turned into importation, the levying of, or the exemption from, the duty on them shall be dealt with in accordance with Article 5 of the present Provisional Rules.

   Article 8. Import goods and materials which are not declared to the Customs or on which the Customs duty is not paid within three months from the date of the declared entry of the means of conveyance, shall be dealt with by the Customs in accordance with the relevant provisions.

   Article 9. For foreign engineers and technicians who come to China on exploration and exploitation business, the competent departments should submit regularly to the Customs the lists of their names in quadruplicate, which will be sent respectively to the Customs at the port of entry, the local Customs, and the Guangzhou and Kowloon Customs. They shall be treated by the Customs according to the regulations concerning the control of import and export baggage and articles carried, and articles imported and exported by post, by foreign engineers and technicians who are invited to come to work in China.

Baggage and articles carried by our engineers and technicians on entering and leaving the Chinese territories on business, shall be dealt with in accordance with the State Council-approved Regulations Concerning the Entry and Exit of the Baggage and Articles Carried by Our Workers Who Go to Work Abroad; and the provisions in the Supplementary Circular to Document No. 517 (79) promulgated jointly by the Ministry of Foreign Trade, the Ministry of Foreign Affairs, the Ministry of Economic Relations with Foreign Countries and the Ministry of Finance.

   Article 10. The following cases shall be dealt with by the Customs each on its merits, in accordance with the relevant provisions of the Provisional Customs Law of the People's Republic of China:

(1) False declaration;

(2) The units concerned taking delivery of or loading the import and export goods and materials not yet released by the Customs;

(3) Smuggling through the means of import and export goods and materials;

(4) Sale, without permission, of the goods and materials which have been released duty-free by the Customs;

(5) The goods and materials imported temporarily on Customs verification and approval, being not re-shipped abroad within the prescribed time-limit, and not redeclared for the completion of the Customs formalities in accordance with the relevant regulations;

(6) Unauthorizedly breaking Customs Cover, or Customs seals, or losing Customs Cover;

(7) Other cases in violation of the Customs regulations.

   Article 11. Whenever deemed necessary for the work, the Customs may set up working offices or station officers at the offshore exploration and exploitation bases. The oil companies and sub-companies should provide free office and living accommodation, and extend living facilities.

   Article 12. The present Provisional Rules shall come into force on October 1, 1981.