Laws of the People's Republic of China

    Article 1  These Regulations are formulated with a view to establishing
and perfecting the system of inspection conducted by the Customs,
strengthening the Customs' supervision and administration, maintaining the
normal order of import and export and the legitimate rights and interests of
the parties concerned, ensuring the tax revenue of the State, promoting the
development of foreign trade.

    Article 2  "Inspection conducted by the Customs" as referred to in these
Regulations means that the Customs exercises inspection, within 3 years from
the date of the release of the import or export goods or during the time of
the Customs' control, over the bonded goods, the import goods and articles
for which duties reduction or exemption is granted, the accounting books,
vouchers for the accounts, the Customs declaration documents and other
relevant materials (hereinafter referred to as accounting books, documents
and other relevant materials) and relevant import and export goods of the
persons under inspection, and supervises the authenticity and legality of
the import and export acts of the persons under inspection.

    Article 3  The Customs shall exercise inspection over the following
enterprises and units involved directly in import and export acts:

    1. The enterprises and units engaged in foreign trade;

    2. The enterprises engaged in foreign processing business;

    3. The enterprises engaged in bonded business;

    4. The enterprises engaged in utilizing or managing import goods with
Customs duties reduced or exempted;

    5. The enterprises engaged in declaration to the Customs;

    6. The other enterprises and units involved directly in import and
export acts, and stipulated by the General Customs Administration.