Laws of the People's Republic of China

    In accordance with the provisions on the punishment of the crimes of
smuggling as stipulated in the Criminal Law of the People's Republic of China
and the Decision of the Standing Committee of the National People's Congress
Regarding the Severe Punishment of Criminals Who Seriously Sabotage the
Economy, the following supplementary provisions are made:

    1. Whoever smuggles opium and other narcotics, weapons and ammunition, or
counterfeit currency shall be sentenced to fixed-term imprisonment of not less
than seven years and shall concurrently be sentenced to a fine or confiscation
of property; if the circumstances are especially serious, the offender shall
be sentenced to life imprisonment or the death penalty and shall concurrently
be sentenced to confiscation of property; if the circumstances are relatively
minor, the offender shall be sentenced to fixed-term imprisonment of not more
than seven years and shall concurrently be sentenced to a fine.

    2. Whoever smuggles cultural relics, precious and rare species of
wildlife as well as the products thereof, gold, silver or other precious
metals forbidden by the state from being exported shall be sentenced to
fixed-term imprisonment of not less than five years, and shall concurrently
be sentenced to a fine or confiscation of property; if the circumstances are
especially serious, the offender shall be sentenced to life imprisonment or
the death penalty, and shall concurrently be sentenced to confiscation of
property; if the circumstances are relatively minor, the offender shall be
sentenced to fixed-term imprisonment of not more than five years, and shall
concurrently be sentenced to a fine.

    3. Whoever, for the purpose of making profits or dissemination, smuggles
pornographic movies, videotapes, magnetic tapes, pictures, publications or
other pornographic articles shall be sentenced to fixed-term imprisonment of
not less than three years and not more than ten years, and shall concurrently
be sentenced to a fine; if the circumstances are serious, the offender shall
be sentenced to fixed-term imprisonment of not less than ten years or life
imprisonment, and shall concurrently be sentenced to a fine or confiscation of
property; if the circumstances are relatively minor, the offender shall be
sentenced to fixed-term imprisonment of not more than three years or criminal
detention, and shall concurrently be sentenced to a fine.

    4. Those who smuggle goods and articles not specified in Articles 1-3 of
the present Provisions shall, in the light of the seriousness of the
circumstances, be punished in accordance with the following provisions:

    (1) Whoever smuggles goods and articles valued at not less than 500,000
yuan shall be sentenced to fixed-term imprisonment of not less than ten years
or life imprisonment, and shall concurrently be sentenced to a fine or
confiscation of property; if the circumstances are especially serious, the
offender shall be sentenced to the death penalty, and shall concurrently be
sentenced to confiscation of property.

    (2) Whoever smuggles goods and articles valued at not less than 150,000
yuan and less than 500,000 yuan shall be sentenced to fixed-term imprisonment
of not less than seven years, and shall concurrently be sentenced to a fine or
confiscation of property; if the circumstances are especially serious, the
offender shall be sentenced to life imprisonment, and shall concurrently be
sentenced to confiscation of property.

    (3) Whoever smuggles goods and articles valued at not less than 50,000
yuan and less than 150,000 yuan shall be sentenced to fixed-term imprisonment
of not less than three years and not more than ten years, and shall
concurrently be sentenced to a fine.

    (4) Whoever smuggles goods and articles valued at not less than 20,000
yuan and less than 50,000 yuan shall be sentenced to fixed-tern imprisonment
of not more than three years or criminal detention, and shall concurrently be
sentenced to a fine; if the circumstances are relatively minor or the value is
less than 20,000 yuan, the smuggled goods and articles and the illegal
proceeds thereof shall be confiscated by the Customs, and the offender may
concurrently be sentenced to a fine.

    Two or more persons who jointly smuggle shall be punished separately in
accordance with the value of the goods and articles each of them smuggles and
the role each of them plays in the crime. With respect to the ringleader of a
smuggling group, the punishment shall be given according to the total value of
the goods and articles smuggled by the group; with respect to other principal
offenders who join in the crime of smuggling, the punishment shall, if the
circumstances are serious, be given according to the total value of the goods
and articles jointly smuggled.

    Whoever repeatedly smuggles and goes unpunished shall be punished
according to the accumulated value of the smuggled goods and articles.

    5. Enterprises, institutions, state organs and public organizations that
smuggle goods and articles specified in Articles 1-3 of the present Provisions
shall be sentenced to a fine, and the persons directly in charge and other
persons directly responsible for the crime shall be punished according to the
provisions regarding the punishment of individuals who have committed the
crime of smuggling.

    Enterprises, institutions, state organs and public organizations that
smuggle goods and articles not specified in Articles 1-3 of the present
Provisions valued at not less than 300,000 yuan, shall be sentenced to a fine
and the persons directly in charge and other persons directly responsible for
the crime shall be sentenced to fixed-term imprisonment of not more than five
years or criminal detention; if the circumstances are especially serious,
causing major losses to the state, the offenders shall be sentenced to
fixed-term imprisonment of not less than five years and not more than ten
years; if the value is less than 300,000 yuan, the smuggled goods and articles
and the illegal proceeds thereof shall be confiscated by the Customs, and a
fine may be imposed, and the persons directly in charge and other persons
directly responsible for the crime shall be given administrative sanctions at
the discretion of the unit they belong to or of the competent authorities at a
higher level.

    Where the illegal proceeds from smuggling perpetrated by enterprises,
institutions, state organs or public organizations go to individuals, or where
smuggling is perpetrated in the name of enterprises, institutions, state
organs or public organizations while the illegal proceeds are shared out among
individuals, punishment shall be meted out according to the stipulations of
the present Provisions regarding the punishment of individuals who have
committed the crime of smuggling.

    6. Whoever commits any of the following acts of smuggling that
constitutes a crime according to the present Provisions shall be punished in
accordance with the provisions of Article 4 and Article 5:

    (1) without approval by the Customs and without having paid the overdue
customs duties, selling for profits without authorization, within the
territory of the People's Republic of China, authorized imported bonded goods
such as materials supplied by foreign clients for processing, parts supplied
by them for assembly or raw or processed materials, parts, finished products
or equipment for compensation trade; or

    (2) importing goods and articles under the guise of accepting donations,
or without approval by the Customs and without having paid the overdue customs
duties, selling for profits without authorization, within the territory of the
People's Republic of China, donated imported goods and articles or other
imported goods and articles specially designated for the reduction of or
exemption from duties.

    If the acts of smuggling specified in the preceding two paragraphs involve
a relatively small quantity or value and do not constitute a crime, the
smuggled goods and articles and the illegal proceeds thereof shall be
confiscated by the Customs and a fine may concurrently be imposed.

    7. Whoever commits any of the following acts shall be deemed to have
committed the crime of smuggling and shall be punished in accordance with the
relevant stipulations of the present Provisions:

    (1) directly and illegally purchasing from smugglers articles forbidden by
the state from being imported or directly and illegally purchasing from
smugglers other smuggled imported goods and articles, involving relatively
large quantities or values; or

    (2) transporting, purchasing and selling in inland seas and territorial
waters articles forbidden by the state from being imported or exported or
goods and articles subject to state restrictions on import and export,
involving relatively large quantities and values and without legal
certificates.

    If the acts of smuggling specified in the preceding two paragraphs involve
a relatively small quantity or value and do not constitute a crime, the
smuggled goods and articles and the illegal proceeds thereof shall be
confiscated by the Customs and a fine may concurrently be imposed.

    8. Whoever conspires with criminals committing smuggling by offering them
loans, funds, account numbers, invoices or certificates, or by providing them
with such conveniences as transportation, storage or mailing, shall be deemed
as an accomplice in the crime of smuggling and punished as such.

    9. Where enterprises or institutions under ownership by the whole people
or under collective ownership, state organs or public organizations, in
violation of the regulations on foreign exchange control, do not tranfer to
China the foreign exchange that has been gained outside China and should be
transferred to China, or do not deposit it in the banks designated by the
state, or illegally transfer their foreign exchange from China to foreign
countries, or illegally sell for profits the foreign exchange allocated to
them by the state, the foreign exchange control authorities shall, in
accordance with the regulations on foreign exchange control, force them to
change their foreign exchange into Renminbi and confiscate their illegal
gains, and may concurrently impose a fine on them; in addition, the persons
directly in charge and other persons directly responsible shall be given
administrative sanctions at the discretion of the unit they belong to or of
the competent authorities at a higher level; if the circumstances are serious,
in addition to forcing such units to change their foreign exchange into
Renminbi and having their illegal gains confiscated and imposing a fine on
them in accordance with the regulations on foreign exchange control, the
persons directly in charge and other persons directly responsible shall be
sentenced to fixed-term imprisonment of not more than five years or criminal
detention.

    Enterprises, institutions, state organs, public organizations or
individuals that illegally traffic in foreign exchange for profits, if the
circumstances are serious, shall be punished for crimes of speculation.

    10. Whoever shields smuggling with armed force shall be given a heavier
punishment in accordance with the provisions of Article 1 of the present
Provisions.

    Whoever, by means of violence or threat, resists the seizure of smugglers
or smuggled goods shall be punished for crimes of smuggling and of preventing
state personnel from carrying out their functions according to law as
stipulated in Article 157 of the Criminal Law and in accordance with the
provisions regarding the combined punishment for several crimes.

    11. State personnel who take advantage of their office to commit the
crime of smuggling shall be given a heavier punishment.

    12. Whoever commits the crime of smuggling shall, according to law, be
sentenced to confiscation of the smuggled goods and articles, the illegal
proceeds thereof and the means of transportation used in the smuggling and
owned by the offender or the unit to which he belongs.

    13. All the property confiscated and gains from fines or penalties in the
handling of cases of smuggling shall be turned over to the State Treasury.
Nobody shall be allowed to deduct a percentage from them or dispose of them
privately. Those who privately share out confiscated property and gains from
fines or penalties shall be punished as embezzlers.

    14. With respect to cases of smuggling in which criminal responsibility
is to be investigated according to law, the departments that have apprehended
those cases shall turn over to judicial organs the files on them along with
evidence such as the inventory and pictures of the smuggled goods and
articles; smuggled goods and articles, except for those that are not suitable
for long-term preservation and may, therefore, be disposed of according to the
relevant provisions, shall be sealed up on the spot and kept properly, so that
the judicial organs may check them at any time.

    15. For the purpose of the present Provisions, the value of the smuggled
goods and articles shall be calculated in accordance with the retail prices of
local state businesses at the times when the cases are discovered. If such
prices are hard to determine, they shall be assessed by the competent
authorities concerned.

    16. The present Provisions shall come into force as of the date of
promulgation.