Laws of the People's Republic of China

State Council

Decree of the State Council of the People's Republic of China

No. 416

Regulations of the Origin of Imported - Exported Goods of PRC were adopted by 61st Standing Conference of the State Council on August 18, 2004. The said Regulations are hereby promulgated and come into effect as of January 1, 2005.

Wen Jiabao, Premier of the State Council

September 3, 2004

Regulations of the Origin of Imported - Exported Goods of PRC

Article 1

The Regulations are formulated for the purposes of determining correctly the origin of imported - exported goods, implementing all kinds of trade measures and promoting the development of foreign trade.

Article 2

The said Regulations apply to non-preferential trade measures, such as implementing most-favoured-nation treatment, anti-dumping and anti-subsidy, safeguarding measures, management of origin mark, limit on countries and tariff quota, and determining the origin of imported - exported goods by government purchasing and trade statistics.

The said Regulations do not apply to the determination of origin of imported and exported goods in implementing preferential trade measures. The concrete measures will be formulated later in accordance with the international treaties and agreements the People's Republic of China has concluded or taken part in.

Article 3

If the goods are purchased in only one country (region), this country (region) is determined as the origin. If the goods are produced in more than two countries (regions), the country (region) that makes final substantive changes is determined as the origin.

Article 4

The goods obtained in only one country referred to in Article 3 of these Regulations mean:

1.

The animals born and raised in the country (region);

2.

The animals captured, fished and collected in the field of the country (region);

3.

Unprocessed goods of live animals obtained in the country (region);

4.

Plants and the products of plants harvested in the country (region);

5.

The minerals excavated in the country (region);

6.

Other natural goods obtained in the country (region) except for the goods mentioned in item 1 to 5 of this Article;

7.

The waste and scrap materials produced by production that have to be thrown aside or collected as materials in the country (region);

8.

The goods collected in the country (region) that can't be restored or repaired, or the parts or materials recycled from the goods;

9.

Aquatic animals and other goods obtained by the ships with the flag of the country legally in the sea area outside its territorial waters;

10.

The products obtained from processing the goods listed in item 9 of this Article in the processing ship which flies a flag of the country legally;

11.

The goods obtained from the seabed or subsoil of seabed outside the territory sea where the country has special rights of excavation;

12.

The products produced from the goods listed in item 1 to 11 of this Article in the country (region).

Article 5

When the goods are determined whether they are obtained in only one country (region), following little processing or treatment is not considered:

1.

Processing or treatment for transportation or storage;

2.

Processing or treatment for being convenient for loading and unloading;

3.

Processing or treatment for selling goods, such as packing and etc.

Article 6

The standard of determining substantive change specified in Article 3 of the Regulations takes the change of tariff classification as basic criterion. If the change of tariff classification does not show substantive change, it takes ad valorem percentage, production or processing procedures as replenished standard. The concrete standard is formulated later by General Administration of Customs of the People's Republic of China together with Ministry of Commerce and General Administration of Quality Supervision, Inspection and Quarantine.

The change of tariff classification referred to in Item 1 of this Article means some changes have taken place in some classification of tax category of obtained goods in Import and Export Tariff of the People's Republic of China after the original materials of other country (region) are manufactured or processed in a certain country (region).

Ad valorem percentage referred to in item 1 of this Article means certain percentage of value-added part exceeds the value of obtained goods after the original materials of other country (region) are manufactured or processed in a certain country (region)

Manufacture or processing procedures referred to in item 1 of this Article means the main procedures of basic characteristics of goods obtained after manufacture or processing in a certain country (region).

Before Rules of Coordinating Non-preferential Origin are implemented, the concrete standard of determining substantive changes of origin of imported and exported goods will be formulated later in accordance with actual conditions by General Administration of Customs of the People's Republic of China together with the Ministry of Commerce and General Administration of Quality Supervision, Inspection and Quarantine.

Article 7

The origin of sources of energy, factory buildings, equipments, machines and tools being used during goods production, and the origin of materials that does not comprise material ingredients or parts of goods do not interfere the determination of the origin of the goods.

Article 8

If the packing, packing materials and containers imported and exported with the goods are classified together with the goods in Import and Export Tariffs of the People's Republic of China, the origin of packing, packing materials and containers do not affect the determination of the origin of the goods in them. The origin of the packing, packing materials and containers are not determined exclusively. The origin of the goods in them is deemed the origin of the packing, packing materials and containers.

If the packing, packing materials and containers imported and exported with the goods in them are not classified together with the goods in Import and Export Tariff of the People's Republic of China, the origin of the packing, packing materials and containers is determined in accordance with the said Regulations.

Article 9

If the accessories, spare parts, tools and guidebooks imported and exported with the goods in accordance with varieties and quantities allocated normally are classified together with the goods in Import and Export Tariffs of the People's Republic of China, the accessories, the origin of spare parts, tools and guidebooks do not infect the determination of the origin of the goods. The origin of the accessories, spare parts, tools and guidebooks will not be determined exclusively and the origin of the goods is deemed the origin of the accessories, spare parts, tools and guidebooks.

If the accessories, spare parts, tools and guidebooks imported and exported with the goods are classified together with the goods in Import and Export Tariffs of the People's Republic of China, but they exceed the varieties and quantity allocated normally, or they are not classified together with the goods in Import and Export Tariffs of the People's Republic of China, the origin of the accessories, spare parts, tools and guidebooks should be determined in accordance the provisions of these Regulations.

Article 10

If the goods are processed or treated for avoiding the provisions of anti-dumping, anti-subsidy and safeguard measures, the customs may not consider the processing and treatment while determining the origin of the goods.

Article 11

The consignees of the imported goods should declare exactly the origin of the imported goods in accordance with the standard of determining the origin specified in the said Regulations when they go through the declaration formalities in the customs in accordance with the Customs Law of the People's Republic of China and related provisions. If the origin of the same lot of goods is different, the origin should be declared separately.

Article 12

Before the import of the imported goods, if the consignees of the imported goods or other persons related to the imported goods have proper reasons, they may make a written application to the customs for pre-determination of the origin of the goods being imported. The applicants should submit the materials required by the determination of the origin to the customs in accordance with the provisions.

The customs should make pre-determination to the origin of the imported goods and promulgate it in accordance with the provisions of the said Regulations within 150 days as of the date of receipt of the application for pre-determination of the origin and all necessary materials.

Article 13

The customs should examine and determine the origin of the imported goods after accepting the application.

As for the goods that the origin has been pre-determined, when they are actually imported within 3 years as of the date of making a pre-determination, if the actual imported goods conform to the goods described by pre-determination after the customs' examination and no change has taken place in the standard of determining the origin specified by the Regulations, the customs will not re-determinate the origin of the imported goods. If the actual imported goods do not conform to the goods of pre-determination after the examination of the customs, the custom should re-examine and determine the origin of the imported goods in accordance with the provisions of the Regulations.

Article 14

While examining and determining the origin of the imported goods, the customs may ask the consignees of the imported goods to submit the origin certificate of the imported goods and examine it. If necessary, the customs may request related organs of goods exporting country to examine the origin of the goods.

Article 15

In response to the written application of foreign trade dealers, the customs may make the administrative arbitration in advance of determining the origin of the goods being imported and publish it in accordance with Article 43 of the Customs Law of the Peoples' Republic of China.

The same administrative arbitration should apply to the import of same goods.

Article 16

The state implements the management of the origin mark. If the goods or their packing have origin mark, the origin described by the origin mark should be as the same as the origin determined in accordance with the said Regulations.

Article 17

The consignors of the exported goods may apply for obtaining origin certificate of the exported goods to General Administration of Quality Supervision, Inspection and Quarantine, China Council for Promoting International Trade and its sub-councils (hereinafter referred to as "certification organs".

Article 18

If the consignors of the exported goods apply for obtaining the origin certificate of the exported goods, they should go through the formalities of registration, declare the origin of exported goods correctly in accordance with the provisions and provide the materials for issuing the origin certificate of the exported goods to the certification organs.

Article 19

After accepting the application of the consignors of exported goods, the certification organs should examine and determine the origin of the exported goods in accordance with the provisions, issue the origin certificate of the exported goods. If the exported goods are not produced in the territory of the People's Republic of China, certificate organs should refuse to issue the origin certificate of the exported goods.

The concrete measures on issuing the origin certificate of the exported goods will be formulated later by General Administration of Quality Supervision, Inspection and Quarantine together with other related departments and organs of the State Council.

Article 20

In response to the request of related organs of the goods importing country (region), the customs and certificate organs may examine the origin of the exported goods and send the feedback to related organs of the importing country (region) in time.

Article 21

The materials and information that are used to determine the origin of the goods may be provided in accordance with related provisions or with the permission of the units or individuals who provided the materials and information. The customs and certification organs should keep secret about the materials and information.

Article 22

If any one who acts contrary to the provisions of the said Regulations should be punished in accordance with the provisions of Foreign Trade Law, Customs Law and Implementation Regulations of Administrative Punishment of the Customs of the People's Republic of China.

Article 23

Any one who obtains origin certificate by cheating with false materials, or falsifies, sells, buys or steals the origin certificate will be punished by imposing a fine of more than 5 thousand yuan or less than 10 thousand yuan by the customs. Any one who obtains the origin certificate by cheating, or falsifies, sells, buys or steals the certificate as the origin certificate that the customs grants clearance should be imposed a fine below the equivalence of the amount of the goods. If the amount of the goods is below 5 thousand yuan, a fine of 5 thousand yuan should be imposed. If any one has illegal earnings, the illegal earnings should be seized by import-export inspection and quarantine organs and the customs. Anyone who commits a crime should be ascertained criminal responsibility in accordance with laws.

Article 24

If the origin mark of the imported goods does not conform to the origin determined in accordance with the Regulations, the customs will instruct to correct it.

If the origin of the exported goods does not conform to the origin determined in accordance with the Regulations, the customs and import-export inspection and quarantine organs will instruct to correct it.

Article 25

If any staffs responsible for determining origin of imported or exported goods act contrary to the procedures of the Regulations to determine the origin, or leak commercial secret, or abuse their power, dereliction of duty, embezzlement and malpractices, they should be ascertained administrative sanction. If any one obtains illegal earnings, the illegal earnings should be seized. If any one commits a crime, he should be ascertained criminal responsibility.

Article 26

The meaning of following terms in the said Regulations:

"Obtaining" means capturing, fishing, collecting, harvesting, excavating, processing or production.

"Origin of the goods" means the country (region) that obtains a certain good determined in accordance with the Regulations.

"Certificate of origin" means written document issued by the exported country (region) in accordance with the rules of origin and related requirements. It describes clearly in which country (region) the listed goods are produced.

"Origin mark" means the words and graph on the goods or on the packing, which is used to indicate the origin of the goods.

Article 27

The said Regulations come into effect as of January 1, 2005. Rules of Origin of Exported Goods of the People's Republic of China promulgated by the State Council on March 8, 1992 and Temporary Rules of Origin of Imported Goods of the Customs of the People's Republic of China promulgated by General Administration of the Customs on December 6, 1986 are abolished at the same time.