Laws of the People's Republic of China

REGULATIONS OF THE CUSTOMS OF THE PEOPLE'S REPUBLIC OF
CHINA ON APPLYING FOR GUARANTEE FOR IMPORT AND EXPORT GOODS

  (Issued on July 1, 1987 by
the General Customs Administration)

 

 

 

SUBJECT: CUSTOMS

ISSUING-DEPT: GENERAL CUSTOMS ADMINISTRATION

ISSUE-DATE: 07/01/1987

IMPLEMENT-DATE: 07/01/1987

LENGTH: 1189 words

TEXT:

[Article 1] This set of regulations is formulated according to the "Customs Law of the People's Republic of China" with a view to promoting China's foreign economic relations and trade and its scientific, technological and cultural exchanges with foreign countries, strictly carrying out its Customs supervision and management rules and regulations, ensuring the State tax revenue and providing legal conveniences for the import and export of goods.

[Article 2] What the following terms appearing in this set of regulations mean:

(1) Guarantee--the legal behavior by way of making a deposit or submitting a written pledge to the Customs to guarantee that the obligations so committed will be performed within a set period.

(2) Guarantor--the legal person who undertakes the legal responsibilities for the import and export of goods and for paying Customs duties.

(3) Deposit--a guarantee in the form of cash the guarantor pays to the Customs.

(4) Letter of guarantee or written pledge--a document of guarantee the guarantor submits to the Customs according to the requirements of the Customs and in which explicit rights and obligations are setforth for the guarantor and the Customs.

(5) Customs formalities completed--the Customs returns the deposit to the guarantor and declares void the letter of guarantee submitted by the guarantor thus ending all the commitment after the stipulated obligations have all been performed within the set period.

[Article 3] The Customs may accept applications for guarantee in the following cases after examination:

(1) Temporary import and export goods;

(2) Those goods whose import and export are controlled by the State and the licenses for their import or export have been approved but, for some reason, are not yet available for submission to the Customs;

(3) Relevant bills or certificates (such as receipts, dispatch lists and contracts, etc.) for the import and export goods cannot be presented to the Customs while making declarations when the goods have arrived at the port and urgently need to be claimed or sent out."" The Customs is requested to clear the goods first and the relevant bills or certificates for the goods will be submitted at a later date;

(4) Applications for tariff reduction or exemption have been made to the Customs and formalities are being carried out, but the goods have arrived and need urgently to be claimed or sent out."" The customs is requested to postpone the formalities for paying import and export duties;

(5) Within the agreement of the Customs, the goods which have not been cleared by the Customs need to be kept temporarily in a place outside the supervision and management zone of the customs; and

(6) Special cases with the approval of the General Administration of Customs.

[Article 4] The Customs will not accept guarantee in the following cases:

(1) To import or export goods that are restricted by the State without having obtained the necessary import or export licenses; and

(2) Import and export gold, silver, endangered species of animals and plants, historical relics, Chinese and Western medicines, foodstuffs, sports and hunting guns and ammunitions and civil-use explosives and devices, radio appliances and materials and confidential equipment and etc. for which the State has special import and export regulations and the importer or exporter cannot furnish to the Customs the document or certificate of approval by the relevant authoritative departments.

[Article 5] The guarantor should apply to the Customs that handles the import and export formalities of goods for the guarantee and go through the customs formalities in fulfilling his/her obligations under the guarantee at the same Customs.

[Article 6] There are two kinds of guarantee: making a deposit and submitting a letter of guarantee.

The guarantor who submits the letter of guarantee must be a Chinese legal person.

When the person who makes the Customs declarations (declarer) applies for guarantee for temporary import goods by submitting a letter of guarantee, the case will be handled in accordance with "The Regulations of the Customs of the People's Republic of China Concerning the Supervision and Management of the Temporary Import Goods"

[Article 7] The declarer shall make a deposit when he/she wants the Customs to release his/her importer goods in advance if he/she has applied for reduction or exemption of Customs duties and his/her application is still in the process of approval at that time."" The deposit shall be equivalent in value to the total sum of import duties on the imported goods.

With the agreement of the Customs, the declarer may use the deposit as a substitute of Customs duties when he/she goes through the Customs formalities in clearing his/her imported goods within the guarantee period."" In case of any difference between the two amounts, the declarer shall make up for the balance or the Customs shall refund the declarer the amount of deposit in excess of the Customs duties that should be paid.

The customs shall issue the declarer a "Deposit Receipt by the Customs of the People's Republic of China" after it has received a deposit from the latter."" After the declarer has completed the Customs formalities, he/she shall collect a refund of the deposit from the customs by submitting the said receipt.

If the declarer asks to pay the Customs duties for his/her goods at a later date by presenting a letter of guarantee, he/she should have the guarantee from a higher authority of the unit that has approved the deferral or a bank at which the declarer has opened an account.

[Article 8] In case of guarantee in the form of letter of guarantee, the guarantor shall prepare the letter of guarantee according to the requirements stipulated by regulations of the Customs."" Each letter of guarantees shall be in duplicate and the guarantor should affix his/her seal on both copies."" One copy of the letter of guarantee shall be submitted to the Customs and the other shall be kept by the declarer who shall complete the Customs formalities with that copy of letter of guarantee.

[Article 9] The declarer must complete the Customs formalities before expiration of the guarantee period.

If the declarer fails to do so, the customs may handle the case in accordance with the following regulations with reference to situations of each case:

(1) The deposit will be taken as Customs duties and the Customs can order the declarer to go through the import or export formalities and impose a fine;

(2) Order the guarantor to pay the Customs duties or tell the bank to deduct from the guarantor's account a sum equivalent to the amount of the due customs duties and impose a fine; and

(3) Suspend or deprive the declarer of his/her Customs declaration right.

[Article 10] Owners of the import and export goods shall go through the relevant formalities in accordance with the said regulations when they apply for guarantee.

[Article 11] This set of the said regulations shall come into force on July 1, 1987.