Laws of the People's Republic of China

the General Administration of Customs

Order of the General Administration of Customs of the People's Republic of China

No. 37

The Measures for the Administration on Goods, Conveyances, Luggage and Postal Articles Entering and Leaving the Shanghai Pudong New Area of the People's Republic of China are promulgated here, and shall come into force as of November 1, 1992.

Dai Jie, the Director

October 7, 1992

The Measures for the Administration on Goods, Conveyances, Luggage and Postal Articles Entering and Leaving the Shanghai Pudong New Area of the People's Republic of China

Chapter I General Provisions

Article 1

For the purpose of promoting the exploitation and development of Shanghai Pudong New Area, safeguarding national sovereignty and interests and strengthening the supervision and control of the Customs, the present Measures are formulated according to the Customs Law of the People's Republic of China and other relevant laws and regulations.

Article 2

The present Measures shall apply to the Shanghai Pudong New Area (hereinafter referred to as the New Area) which was established upon the authorization of the State. The Customs shall set up offices in the New Area to perform its functions.

Article 3

All enterprises and institutions in the New Area may go through the Custom formalities after they have registered with the Customs for records upon the strength of the approval documents obtained from the competent departments in charge together with their business licences (for enterprise use only) issued by the Administration of Industry and Commerce and other relevant documents.

Article 4

For the goods, luggage, postal articles and conveyances entering or leaving the New Area, the consignors, consignees or their agents and the persons in charge of the conveyances shall declare truthfully to the Customs and shall be subject to supervision and control by the Customs.

Article 5

The duty-free and duty-reduced goods and articles imported by enterprises, institutions and administrative organs in the New Area shall be used only in the New Area. Without permission of the Customs, such goods and articles shall not be transported out of the New Area.

Article 6

The enterprises in the New Area shall, according to relevant laws and regulations of the State, set up accounting items, account books and statistical tables and reports, which meet the requirements for Customs checking. In addition, they shall submit periodically to Customs for inspection their statements on the use, sale and storage of their imported and exported goods.

When necessary, the Customs may assign Customs officers in the New Area to exercise supervision and control, while the enterprises concerned shall freely provide the Customs officers with office places and necessary facilities.

Chapter II Tariff Preference for Import and Export Goods

Article 7

Customs duties and consolidated industrial and commercial taxes (product taxes or value added taxes) on the goods imported by enterprises, institutions and administrative organs in the New Area for use therein shall be assessed in accordance with the following provisions:

(1)

Machine, equipments and other construction materials imported for basic construction in the New Area shall be exempted from import duties and taxes.

(2)

Building materials and equipments, fuel for production and vehicles for production and transportation of reasonable quantity, office supplies as well as the spare parts for the machine, equipments and vehicles mentioned above, which are imported therein by enterprises in the New Area for self use, shall be exempted from import duties and taxes.

(3)

Building materials, vehicles, office supplies, management equipments imported in reasonable quantity by the institutions and administrative organs in the New Area for self use shall be handled in light of clause 2 of this Article.

(4)

Raw materials, parts, components and packing materials imported into the New Area for manufacturing export goods shall be exempted from duties and taxes.

(5)

Seeds, plants, breeder, fodder and medication for the protection of plants and animals necessary to be imported to promote export products manufactured by the plant-culture and aquaculture industries shall be exempted from import duties and taxes.

(6)

Food and condiments, which need going through the process of cooking and processing and are imported by tourist and restaurant business in the New Area, shall be exempted from import-duties and taxes.

(7)

The goods not included in those listed in the above six clauses of this article shall be subject to import duties and taxes according to regulations, when imported by enterprises and administrative organs in the New Area.

Article 8

Products manufactured for export by enterprises in the New Area shall be exempted from export duties.

Where any product processed for export in the New Area with materials or semi-finished products from outside of the New Area should be subject to export duties, and its values increased over 20% after substantive processing, it may be deemed as products manufactured in the New Area and be exempted from Customs duties, with the recognition and approval by the Customs.

Article 9

Finished products, which are purchased by the administrative organs, enterprises and institutions upon the approval by the Customs and are made from imported duty-free materials, parts and components, shall be treated accordingly either by exempting them from duties and taxes or making them to supplement the duties and taxes exempted according to Article 7 of the present Measures.

Chapter III Supervision and Control over Imported and Exported Goods

Article 10

As for the goods imported into and exported from the New Area, the consignors, consignees or their agents shall fill in the Import and Export Declaration Forms, declare the truth information to the Customs and hand in for inspection their import and export licenses and other relevant certificates as required by the relevant regulations prescribed by the State. The Customs shall conduct supervision and control over the foresaid goods according to Laws and compile Customs statistics tables thereof. In case such goods are imported or exported through ports outside the New Area, they shall be handled in accordance with the Measures for Supervision and Control over Customs Transit Goods.

Article 11

Enterprises in the New Area, when importing duty-bond materials, parts and components, shall register with the Customs for a record upon the strength of the processing contracts and the approval documents obtained from the competent departments. The Customs, after examining such documents and contracts, shall issue to the applying enterprises registration handbooks. Where the foresaid materials, parts and components are processed and assembled outside the New Area, the enterprise concerned shall, after examination and approval by the Customs, go through the registration procedures with the Customs upon the strength of its registration handbooks. The products after processing shall be transported back to the New Area in light of the time limit specified in the contract, and the enterprises concerned shall go through the write-off formalities with the Customs by submitting to the Customs its registration handbooks within one month after the performance of the contract.

Article 12

Finished products processed and assembled with duty-bond imported materials, parts and components shall be re-exported. When these goods are to be sold on domestic markets upon the approval of the competent departments, the enterprises concerned shall go through the import formalities at the Custom office which will collect import duties upon the materials, parts and components as repayment of the duties exempted. If the owners or agents of the goods cannot declare clearly the names, quantity and value of the imported materials, parts and components mentioned above, customs duties shall be collected on the basis of the finished products concerned.

Article 13

When imported duty-free or duty-reduced goods in the New Area need to be transferred, exchanged or used for other purposes, approval from the Customs must be obtained in advance and relevant Customs formalities be finished.

Article 14

Bonded warehouse in the New Area for storing duty-bond goods shall be handled according to the Measures of the Customs of the People's Republic of China for Supervision and Control Over Duty-bond Warehouses and the Goods in Storage.

Chapter IV Supervision and Control over the Conveyances, Luggage and Postal Articles Entering and Leaving the New Area

Article 15

When the conveyances that enter or leave the New Area arrive at or depart from the New Area, the persons in charge or their agents shall declare truthfully to the Customs and be subject to Customs supervision and inspection.

Article 16

Luggage carried into or out of the New Area by individuals and postal articles entering or leaving the New Area shall be treated separately according to the Measures of the Customs of the People's Republic of China for Supervision and Control over Inward and Outward Postal Articles.

Article 17

Persons from abroad, who needs to import household necessities (not including motor cars) and resides permanently in the New Area, may apply to the Customs for permission. If the application is examined and approved by the Customs, such imported articles shall be exempted from import duties and released after examination provided that they are for personal use only and in reasonable quantity.

Chapter V Supplementary Provisions

Article 18

Any action, which violates the present Measures and constitutes an offense of smuggling or violates the Customs regulations concerning Customs supervision and control, shall be dealt with according to the Customs Law of the People's Republic of China and the Detailed Rules of the Customs of the People's Republic of China for the Implementation of Administrative Penalty.

Article 19

Any other matter not specifically covered by the present Measures shall be handled according to the relevant Customs laws and regulations.

Article 20

The Customs shall exercise supervision and control on the Waigaoqiao Bonded Zone of the New Area in accordance with the Measures of the Customs of the People's Republic of China for the Control over the Goods, Conveyances and Personal Article Entering and Leaving the Shanghai Waigaoqiao Bonded Zone.

Article 21

The interpretation of the present Measures shall remain with the General Administration of the Customs.

Article 22

The present Measures shall come into force as of November 1, 1992.