WORLD TRADE  
ORGANIZATION   
G/VAL/N/1/CHN/4 
7 June 2004 
 (04-2447) 
Committee on Customs Valuation Original:   English 
  
NOTIFICATIONS UNDER ARTICLE 22 OF THE AGREEMENT ON 
IMPLEMENTATION OF ARTICLE VII OF THE GENERAL 
AGREEMENT ON TARIFFS AND TRADE 1994 
 
PEOPLE'S REPUBLIC OF CHINA 
 
 The following communication, dated 3 June 2004 is being circulated at the request of the 
delegation of the People's Republic of China  
_______________ 
  Pursuant to Article 22 of the Agreement on Im plementation of Article VII of GATT 1994, and in 
accordance with the Decision of the Committee on  Customs Valuation of 12 May 1995, I have the 
honour to notify the Committee on Customs Valuation of the following regulations in China regarding 
Customs valuation: 
 
  Regulations of the People’s Republic of  China on Import and Export Duties1 
 
 The above-mentioned administrative measure is  authentic in the Chinese language only.  
_______________ 
  
  
                                                      
1 In English only. G/VAL/N/1/CHN/4 
Page 2  
 
 Regulations of the People’s Republic of China 
on Import and Export Duties 
 
(Adopted at the 26
th Executive Meeting of the State Council on 29 October 2003, promulgated by 
Decree No. 392 of the State Council of the People’s Republic of China on 23 November 2003, and 
effective as of 1 January 2004 ) 
 
Chapter I General Provisions 
  
 Article 1  These Regulations are formulated in accordance with the relevant provisions of the 
Customs Law of the People’s Republic of China (herei nafter referred to as the Customs Law) for the 
purposes of implementing the policy of opening to the outside world and promoting the development 
of foreign economic relations and fo reign trade and the national economy. 
  Article 2  Unless otherwise provided for by laws or administrative regulations, the Customs 
shall, in accordance with these Regulations, collect import or export duties on all goods permitted by 
the People’s Republic of China to be imported into or exported out of the Customs territory and all 
inward articles. 
  Article 3  The State Council shall formulate the Customs Import and Export Tariff of the 
People’s Republic of China (hereinafter referred to as the Tariff) and the Flat Duty Rates on  Inward 
Articles of the People’s Republic of China (hereinaft er referred to as the Flat Duty Rates on Inward 
Articles), providing for tariff items, tariff headings and duty rates, which c onstitute component parts 
of these Regulations. 
  Article 4  The State Council shall establish the Tariff Commission, which is responsible for 
making adjustment to and interpretation of tariff items , tariff headings and duty rates in the Tariff and 
the Flat Duty Rates on Inward Articles and implem enting such adjustment and interpretation after 
they are submitted to and approved by the State Co uncil; determining the goods  subject to temporary 
duty rates and the rates and duration thereof; determining tariff quota rates; determining the 
imposition of anti-dumping duty, countervailing duty, safeguard duty, retaliatory duty or other tariff 
measures; determining the application of duty rates under special circumstances; and performing other 
functions and responsibilities prescribed by the State Council. 
  Article 5  The consignee of import goods, the consi gnor of export goods and the owner of 
inward articles are duty payers. 
 
 Article 6  The Customs and staff members thereo f shall fulfil the responsibility of duty 
collection in accordance with the stat utory authority and procedure, saf eguard State interests, protect 
lawful rights and interests of duty payers, and receive supervision according to law. 
  Article 7  A duty payer has the right to request the Customs to keep confidential its 
commercial secrets, and the Customs shall keep c onfidential such secrets fo r the duty payer according 
to law. 
  Article 8  The Customs shall, in accordance with th e relevant provisions, reward units and 
individuals that inform against violations of thes e Regulations or provide assistance in investigating 
such violations, and be responsib le for keeping secrets concerned. 
  G/VAL/N/1/CHN/4 
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 Chapter II   Composition and Application of Duty Rates 
 on Import and Export Goods 
  
 Article 9  Duty rates on import goods are composed of most-favoured-nation duty rates, 
conventional duty rates, special preferential duty rates,  general duty rates, tariff quota duty rates, etc. 
Temporary duty rates may apply to import goods within a specific time limit. 
  Duty rates on export goods are designed to collect export duty. Temporary duty rates may 
apply to export goods within a specific time limit. 
 
 Article 10  The most-favoured-nation duty rates shall apply to import goods originated from 
members of the World Trade Organization that are subject to the common application of the most-favoured-nation clause, import goods originat ed from countries or regions with which the 
People’s Republic of China has concluded a bilatera l trade agreement for reciprocally granting of 
most-favoured-nation treatment, and import goods or iginated from the Customs territory of the 
People’s Republic of China. 
  The conventional duty rates shall apply to im port goods originated from countries or regions 
with which the People’s Republic of China has conc luded a regional trade agreement that comprises 
preferential duty clauses. 
 
 The special preferential duty rates shall appl y to import goods originated from countries or 
regions with which the People’s Republic of China has concluded a trade agreement that comprises 
special preferential duty clauses. 
  The general duty rates shall apply to import goods originated from countries or regions other 
than those specified in Paragraphs 1, 2 and 3 of th is Article or to the impor t goods of undetermined 
origins.  
  Article 11  Where there are temporary duty rates on import goods to which the most-
favoured-nation duty rates are applicable, such te mporary duty rates shall apply; where there are 
temporary duty rates on import goods to which the conventional duty rates or preferential duty rates 
are applicable, the lower duty rates shall apply; temporary duty rates shall not apply to import goods 
to which the general duty rates are applicable. 
  Where there are temporary duty rates on export  goods to which the export duty rates are 
applicable, such temporary duty rates shall apply.  
 
 Article 12 Where the quantity of import goods that are subject to tariff quota administration 
in accordance with the provisions of the State is within the tariff quota, the tariff quota duty rates shall 
apply; if such quantity exceeds the tariff quota, th e application of the duty rates shall be governed by 
the provisions of Article 10 or 11 of these Regulations. 
 
 Article 13  Where anti-dumping, countervailing or saf eguard measures are adopted on import 
goods in accordance with the provisions of the rele vant laws or administrative regulations, the 
application of duty rates of such import goods sha ll be governed by the relevant provisions of the 
Regulations of the People’s Republic of China on Anti-Dumping, the Regulations of the People’s 
Republic of China on Countervailing Measures, and the Regulations of the People’s Republic of 
China on Safeguards.  
  Article 14  Where any country or region, in violation of the trade agreements or other relevant 
agreements that it concludes or accedes to with th e People’s Republic of China, unilaterally adopts 
measures affecting normal trade such as imposition of prohibition or restriction or surcharge of duties G/VAL/N/1/CHN/4 
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 in the trade with the People’s Republic of China,  retaliatory duty may be imposed on import goods 
originated from such country or region and retaliatory duty rates may apply.    The goods and countries subject to retaliato ry duty, as well as the rates, duration and 
collection measures of retaliatory duty shall be determined and published by the Tariff Commission of 
the State Council.  
  Article 15 For any import or export goods, the duty ra tes implemented on the date when the 
Customs accepts the declaration for import or  export of such goods shall apply.  
 
 Where, upon verification and approval of the Cust oms, the declaration is made prior to entry 
of import goods, the duty rates implemented on the da te of declaration of the means of transport 
carrying such goods for entry shall apply. 
  The date for application of the duty rates on goods for the transport under Customs transit 
shall be separately provided for by the General Administration of Customs. 
  Article 16  Where duty needs to be paid under any of the following circumstances, the duty 
rates implemented on the date when the Customs acce pts the declaration for duty payment shall apply: 
 
 (1)  where bonded goods are, with approval, not to be re-transported out of the Customs 
territory; 
 (2)  where goods subject to duty reduction or exemption are, with approval, to be 
transferred or diverted to other purposes; 
 (3) where goods permitted to temporarily enter or leave the Customs territory are, with 
approval, not to be re-transported ou t of or into the Customs territory; 
 (4) where the duty on import goods on lease is to be paid by instalments.  
 
 Article 17  In the recovery or refund of duties on import or export goods, the duty rates to 
apply shall be determined in accordance with the pr ovisions of Article 15 or  16 of these Regulations. 
  Where there is a need to pursue the payment of duties unpaid due to the duty payer’s violation 
of relevant provisions, the duty rat es implemented on the date when such  violation occurs shall apply; 
if it is impossible to ascertain the date when such  violation occurs, the dut y rates implemented on the 
date when the Customs finds such violation shall apply.   
Chapter III Determination of Customs Value of Import and Export Goods 
 
 Article 18  The customs value of import goods shall be determined by the Customs on the 
basis of the transaction value which complies with the conditions specified in Paragraph 3 of this 
Article, as well as the costs of transport, charges asso ciated with transport, an d the cost of insurance 
incurred prior to unloading of such goods at the port or place of entry within the Customs territory of 
the People’s Republic of China.  
 
 The transaction value of import goods is the pr ice actually paid or payable for the import 
goods by the buyer when sold by the seller for export to the Customs territory of the People’s 
Republic of China, adjusted in  accordance with the provisions of Articles 19 and 20 of these 
Regulations, including the price paid directly and indirectly. 
 
 The transaction value of import goods shall comply with the following conditions: 
  (1) there are no restrictions as to the disposition or use of the goods by the buyer other 
than restrictions which are imposed by laws or administrative regulations, restrictions  G/VAL/N/1/CHN/4 
 Page 5 
 
 
 which limit the geographical area in which th e goods may be resold, or restrictions 
which do not substantially affect the value of the goods;  
 (2) the transaction value of such goods is not  subject to some condition or consideration 
such as tie-in sale for which a value cannot be determined with respect to the goods 
being valued; 
 (3) no part of the proceeds of any subsequent  resale, disposal or use of the import goods 
by the buyer will accrue directly or indirectly  to the seller, or appropriate adjustment 
can be made to the proceeds, if any, in accordance with the provisions of Articles 19 
and 20 of these Regulations;  
 (4) the buyer and seller are not related or, al though the buyer and seller are related, such 
relationship does not affect the transaction value.  
 
 Article 19  The following costs shall be added to the customs value of import goods: 
 
 (1)  commissions and brokerage incurred by the buyer, except buying commissions;  
 (2)  the cost of containers treated as be ing one for customs purposes with the goods in 
question, which is incurred by the buyer; 
 (3)  the cost of packing incurred by th e buyer, whether for labour or materials; 
 (4)  the value, apportioned as appropriate, of such goods as materials, components, parts, 
tools, dies, moulds, consumed materials and similar items, and such services as development, design and associated servi ces undertaken elsewh ere than in the 
Customs territory of the People’s Republic of China where supplied by the buyer free 
of charge or at reduced cost for use in  connection with the production and sale for 
export of the import goods to the Customs territory of the People’s Republic of 
China;  
 (5)  royalties and license fees related to th e import goods that the buyer must pay, as a 
condition for sale of such goods to the Cust oms territory of the People’s Republic of 
China;  
   (6)  the value of any part of the proceeds of  any subsequent resale, disposal or use of the 
goods that accrues directly or indirectly to the seller. 
 
 Article 20  The customs value of import goods shall not include the following taxes and 
charges that are specified in the price of such import goods at the time of importation: 
 
 (1) charges for construction, erection, asse mbly, maintenance, or technical assistance, 
undertaken after importation on import goods su ch as industrial plant, machinery or 
equipment; 
 (2) the costs of transport, charges associated  with transport, and the cost of insurance 
incurred after unloading of import goods at the port or place of entry within the Customs territory; 
 (3) import duty and other internal taxes.  
 Article 21  Where the transaction value of import goods does not comply with the conditions 
prescribed in Paragraph 3 of Article 18 of these Re gulations, or it is impossible to determine the 
transaction value, the Customs shall, after acqua inting itself with the relevant information and 
consulting over price with the duty payer, determine the customs value of the import goods in accordance with the following va lues in their given order: 
 
 (1)  the transaction value of identical goods so ld for export to the Customs territory of the 
People’s Republic of China and exported at or about the same time as the goods being 
valued; G/VAL/N/1/CHN/4 
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  (2)  the transaction value of similar goods sold  for export to the Customs territory of the 
People’s Republic of China and exported at or about the same time as the goods being 
valued;. 
 (3)  the unit price at which the import goods or identical or similar import goods are sold 
in the greatest aggregate quantity, at or about the time of importation of the goods 
being valued, to an unrelated buyer in the fi rst sale, with all items  specified in Article 
22 of these Regulations deducted; 
 (4)  the computed value which consists of th e total sum of the followi ng items: the cost or 
value of materials, components and parts, and fabrication or other processing employed in producing the import goods; an amount for profit and general expenses 
equal to that usually reflected in sales of goo ds of the same class or kind as the import 
goods being valued to the Customs territory of the People's Republic of China; the 
costs of transport, charges associated with  transport, and the cost of insurance 
incurred prior to unloading of import goods at the port or place of entry within the 
Customs territory; 
 (5)  the value determined on a reasonable basis. 
  The duty payer may, after providing relevant information or data to the Customs, make a 
request to reverse the order of the application of  items (3) and (4) of the preceding paragraph.  
 
 Article 22  In determining the customs value of import goods in accordance with item (3) of 
Paragraph 1 of Article 21 of these Regulations, th e items that shall be deducted are as follows: 
 
 (1) either profit and general expenses or co mmissions usually paid in the first sale of 
import goods of the same class or kind within the Customs territory of the People’s Republic of China; 
 (2) the costs of transport, charges associated  with transport, and the cost of insurance 
incurred after unloading of import goods at the port or place of entry within the Customs territory; 
 (3) import duty and internal taxes.  
 Article 23 The customs value of import goods on lease shall be the rental determined by the 
Customs. 
  Where the duty payer requests to pay the duti es in a lump sum, it may choose to have the 
customs value determined in accordance with the provi sions of Article 21 of these Regulations or take 
total rental determined by the Customs as the customs value.  
 
 Article 24  The customs value of goods which are tran sported out of the Customs territory for 
processing with the declaration thereof made to the Customs at the time of departure and re-transported into the Customs territory within the time limit set by the Customs shall be determined 
on the basis of the charges on overseas processing, th e cost of materials, components and parts, the 
costs of the re-transport, charges associated with  re-transport, and the cost of insurance for the 
re-transport.  
  Article 25  The customs value for mechanic appliances, means of transport or any other goods 
which are transported out of the Customs territory fo r repairs with the declaration thereof made to the 
Customs at the time of departure and re-transported into the Customs territory within the time limit set 
by the Customs shall be determined on the basis of the charges on the repairs and the cost of 
materials, components and parts used for the repairs. 
  Article 26  The customs value of export goods shall be determined by the Customs on the 
basis of the transaction value thereof and the costs of transport, charges associated with transport, and  G/VAL/N/1/CHN/4 
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 the cost of insurance incurred prio r to loading of such goods at th e port or place of departure within 
the Customs territory of the People’s Republic of China. 
  The transaction value of export goods is the tota l amount of the price that shall be charged by 
the seller, directly or indirectly, from the buyer for the goods sold for export. 
 
 The export duty shall not be added to the customs value of export goods. 
  Article 27  Where it is impossible to determine the transaction value of export goods, the 
Customs shall, after acquainting itself with the rele vant information and consulting over price with the 
duty payer, determine the customs value of expor t goods in accordance with the following values in 
their given order: 
 
 (1)  the transaction value of identical goods so ld for export to the same country or region 
of importation and exported at or about the same time as the goods being valued;  
 (2)  the transaction value of similar goods sold for export to the same country or region of 
importation and exported at or about the same time as the goods being valued; 
 (3)  the computed value which consists of th e total sum of the followi ng items: the cost or 
value of materials, components and part s and fabrication or other processing 
employed in producing the identical or si milar goods within the Customs territory; 
normal profit and general expenses; the costs of transport, charges associated with 
transport, and the cost of insurance incurred within the Customs territory; 
 (4)  the value determined on a reasonable basis.  
 Article 28  The additions or deductions of costs, char ges or taxes to or from the customs value 
in accordance with the provisions of these Regulati ons shall be made on the basis of objective and 
quantifiable data.  
 
Chapter IV  Duty Collection on Import and Export Goods 
 
 Article 29  Declaration of import goods shall be made  to the Customs at the port or place of 
entry by the duty payer within 14 days from the date of declaration of entry of the means of transport; 
declaration of export goods shall, unless otherwise sp ecially approved by the Customs, be made to the 
Customs at the port or place of departure by the du ty payer after the arrival of the goods at the 
Customs Surveillance Zone and 24 hours prior to lo ading thereof. Import or export goods in transit 
shall be dealt with in accordance with the provisi ons of the General Administration of Customs. 
 
 An advance declaration may be made by the duty payer with the approval of the Customs 
before the arrival of import goods. The specific meas ures therefore shall be separately formulated by 
the General Administration of Customs.  
  Article 30  The duty payer shall make a truthful decl aration to the Customs in accordance with 
the law and provide, as required by the Customs, the relevant information or data needed for 
determination of customs value, classification of g oods, determination of origin, or adoption of anti-
dumping, countervailing, or safeguard measures. When necessary, the Customs may require the duty 
payer to make a supplementary declaration. 
  Article 31  The duty payer shall classify the declared import or export goods into the 
corresponding tariff headings in accordance with the terms of the headings, the general rules for the 
classification, and the notes to sections, chapters or  sub-headings as well as other explanatory notes to 
classification, which are prescribed in the Tariff. The Customs shall verify and determine the goods 
classification according to law.  G/VAL/N/1/CHN/4 
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  Article 32  The Customs may require the duty payer to provide the information or data needed 
for goods classification and, when necessary, organize laboratory analysis or inspection. The results 
of the analysis or inspection shall, after being confirmed by the Customs, be taken as the grounds for 
goods classification. 
 
 Article 33  The Customs may, in order to verify the truth and accuracy of the declared value, 
examine or copy the contracts, invoices, accounts, certificates for foreign exchange payment and settlement, bills, records, documents, business corre spondences, audio and visu al products related to 
import and export goods and other materials reflec ting the relationship and transaction between the 
buyer and the seller. 
 
 Where the Customs has doubts about the value declared by the duty payer and the duties 
involved are of a large amount, the Customs may, upon the approval of the director of the Customs office directly under the General Administration of Customs or the director of a Customs office subordinate to and authorized by the former and on the strength of the Notice for Assistance in 
Account Inquiry with the format unified by the Ge neral Administration of Customs and credentials of 
relevant staff members, inquire about the fund tr ansactions through the unit accounts opened at banks 
or other financial institutions by the duty payer, a nd inform the banking regulatory agency of relevant 
information.  
  Article 34 Where the Customs has doubts about the va lue declared by the duty payer, the 
Customs shall inform the duty payer in writing of the grounds for such doubts and require the duty 
payer to provide a written explanation and the releva nt information and data within a specified time 
limit. 
  If the duty payer fails to provide explanation and relevant informati on and data within the 
specified time limit or the Customs still has reasonable doubts about the truth or accuracy of the 
declared value, the Customs may refuse to accept the declared valu e and determine the customs value 
in accordance with the provisions of  Chapter III of these Regulations. 
  Article 35  Upon determination of the customs va lue of import or export goods by the 
Customs, the duty payer may request the Customs in writing to provide a written explanation as to 
how the customs value of import or export goods is determined. The Customs shall provide the 
written explanation to th e duty payer accordingly. 
  Article 36  The duty on import or export goods shall be collected in the form of ad valorem  
duty, specific duty, or other forms prescribed by the State.  
 
The calculation formula for ad valorem  duty is: Duty Payable=Customs Value × Duty Rate 
 The calculation formula for specific duty is: Du ty Payable = Quantity of Goods × Unit Duty 
  Article 37  The duty payer shall pay the duties at a designated bank within 15 days after the 
date of issuance of the memorandum of duty paym ent by the Customs. In case of any payment in 
arrears, 0.05% of the total amount of the overdue du ties shall be charged as a fine for late payment per 
day from the date when the delayed payment occurs. 
  The Customs may publish the information about the arrearages on duties by duty payers. 
 
 The Customs shall issue a duty-memo for duti es collected or receipt for fines for late 
payment. The format of the duty-memo or receipt shall be prescribed by the General Administration of Customs. 
  G/VAL/N/1/CHN/4 
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  Article 38  The Customs shall collect duties and fines for late payment in terms of RMB. 
  Where the transaction value of import or export goods and associated costs are computed in a 
foreign currency, such foreign currency shall be converted into RMB at the basic exchange rate 
published by the People's Bank of China for the ca lculation of customs value. Where such basic 
exchange rate is not available for the foreign cu rrency in question, the customs value shall be 
converted into RMB in accordance with the relevant provisions of the State. The date when the 
exchange rate applies shall be prescribed by the General Administration of Customs. 
  Article 39  Where the duty payer cannot pay duties with in the time limit due to force majeure 
or adjustments to the State’s taxation policy, such  time limit may be extended upon the approval of 
the General Administration of Customs, but in an y case the extension shall not exceed six months. 
 
 Article 40  Where there is an obvious indication that the duty payer of import or export goods 
is transferring or concealing the dutiable goods or other property in the specified time limit for duty 
payment, the Customs may order the duty payer to provide a bond; if the duty payer fails to do so, the 
Customs may take protective measures for duty co llection in accordance with the provisions of 
Article 61 of the Customs Law. 
 
 Where the duty payer or the guarantor thereof fails to pay the duties within three months from 
the date of expiration of the time limit for duty pa yment, the Customs may take compulsory measures 
in accordance with the provisions of Article 60 of the Customs Law. 
  Article 41 Where the materials, components and parts for processing trade are imported in 
bond in accordance with the provisions of the State, but such import materials, components and parts or the finished products made thereof are not expo rted within the specified  time limit, the Customs 
shall collect import duties in accord ance with the relevant provisions. 
  Where the import duty has been collected on materials, components and parts for processing 
trade upon entry in accordance with the provisions of  the State and such materials, components and 
parts or the finished products made thereof are expor ted within the specified time limit, the Customs 
shall refund the duties previously collected in accordance with the relevant provisions. 
 
 Article 42  Where the following goods are permitted by the Customs to temporarily enter or 
leave the Customs territory and a cash deposit of an amount equivalent to that of the duties payable or 
a bond in another form has been provided to the Cu stoms by the duty payer upon entry or departure, 
the duties of such goods may be temporarily exempt ed, on the condition that such goods shall be re-
transported out of or into the Customs territory with in six months from the date of entry or departure. 
Upon the request of the duty payer, the Customs ma y extend the time limit for re-transportation out of 
or into the Customs territory in  accordance with the provisions of the General Administration of 
Customs: 
 
 (1)  goods for display or use at exhibitio ns, fairs, meetings or similar events; 
  (2)  items for performance or contest in cultural or sports exchange; 
 (3)  apparatus, equipment or items for pr ess, cinematography or television programs; 
  (4)  apparatus, equipment or items fo r scientific research, pedagogical or medical 
activities; 
 (5)  means of transport and special purpose motor vehicles for functions specified in 
Items (1) through (4) of this Paragraph; 
  (6)  samples;   (7)  apparatus and tools for installation, adjustment or test of equipment;  (8)  containers of goods;  (9)  other goods intended for non-commercial purposes.  G/VAL/N/1/CHN/4 
Page 10  
 
  Where the goods permitted to temporarily enter or leave the Customs territory in Paragraph 1 
are not re-transported out of or into the Customs terri tory within the specified time limit, the Customs 
shall collect duties according to law.  
 Import duty on the goods permitted to temporar ily enter the Customs territory other than 
those that are temporarily exempted from duties as prescribed by Paragraph 1 shall be computed on 
the basis of the customs value of such goods and the proportion of the time when such goods remain 
inside the Customs territory to the time of depr eciation. The specific measures therefore shall be 
provided for by the General Administration of Customs. 
 
 Article 43  No import duty shall be collected on expo rt goods re-transported into the Customs 
territory in the same state within one year from th e date of exportation due to  problems with quality or 
specifications. 
  No export duty shall be collected on import go ods re-transported out of the Customs territory 
in the same state within one year from the date  of importation due to problems with quality or 
specifications.  
  Article 44  Where, due to damage, shortage, poor qua lity or unconformity to specifications of 
import or export goods, the consignor  or carrier of such goods or the insurance company provides, 
free of charge, identical import or export goods as compensation or replacement, no duties shall be 
collected on such identical goods. Where the original import or export goods that are replaced free of 
charge are not re-transported out of or into the Cu stoms territory, the Customs shall re-collect duties 
thereon in accordance with the relevant provisions. 
  Article 45 The following  import and export goods shall be exempted from duties: 
 
 (1)  goods of a single consignment on which the duties are estimated to be not more than 
RMB 50 yuan; 
  (2)  advertising matter and sampl es, which are of no commercial value; 
  (3)  goods and materials, which are rendered  gratis by international organizations or 
foreign governments; 
  (4)  goods lost prior to Customs release; 
  (5)  fuels, stores, beverages and provisio ns for use en route loaded on any means of 
transport, which is in transit across the frontier. 
 
 The duties on goods damaged prior to Cust oms release may be deducted in accordance with 
the degree of damage confirmed by the Customs. 
  The Customs shall, in accord ance with the relevant provisions, grant duty reduction or 
exemption to other goods that are subject to du ty reduction or exemption prescribed by law. 
  Article 46  Duty reduction or exemption granted to import and export goods of special areas 
or special enterprises or for special uses, as well as temporary duty reduction or exemption, shall be 
governed by the relevant provisions of the State Council.  
  Article 47 Any reduction or exemption of taxes collected on import goods by the Customs on 
behalf of other government departments shall be g overned by the provisions of relevant laws and 
administrative regulations. 
  Article 48  Where the duty payer is to import or export goods granted duty reduction or 
exemption, the duty payer shall, unless otherwise prescribed, go through the formalities with the Customs for approval of duty reduction or exemp tion by presenting relevant documents as required  G/VAL/N/1/CHN/4 
 Page 11 
 
 
 before such goods are imported or exported. The duty reduction or exemption shall be granted if the 
Customs confirms such goods as qualified through examination.  
  Article 49  Where the import goods which are granted duty reduction or exemption and the 
use of which are under the Customs control are di verted to other purposes within the duration of 
Customs control and therefore the recovery of duti es is needed, the import duty shall be recovered by 
the Customs on the basis of the value of import goods depreciated accord ing to the time after 
importation. 
  The duration of the Customs control over import goods granted special duty reduction or 
exemption shall be prescribed by the General Administration of Customs. 
  Article 50 Under any of the following circumstances,  the duty payer may, within one year 
from the date of duty payment, apply for a refund of duties by stating the reasons therefore in writing 
to the Customs and providing the original duty- memo and the relevant information and data: 
 
  (1)  where any goods, on which the import duty has been collected, are re-transported out 
of the Customs territory in the original  state due to problems with quality or 
specifications; 
 (2)  where any goods, on which the export duty  has been collected, are re-transported into 
the Customs territory in the original state due to problems with quality or 
specifications and all internal taxes re funded for export have been repaid;  
     (3)  Where any goods, on which the expor t duty has been paid, are re-declared to the 
Customs as shut-out cargo because they ar e not loaded for export due to certain 
reasons. 
 
 The Customs shall, within 30 days from the da te of accepting an application for duty refund, 
ascertain the relevant facts and notify the duty paye r to go through the refund formalities. The duty 
payer shall go through the refund formalities within three months from the date of receipt of the 
notification. 
 
    Where duties shall be refunded in accordance with the provisions of other relevant laws and 
administrative regulations, the Customs shall refund duties accordingly. 
 
 Article 51  Where the Customs finds that duties are short-collected or not collected on a 
consignment of import or export goods after the rele ase, the Customs shall recover the duties payable 
from the duty payer within one year from the date  of the duty payment or the release. If the 
short-collected or non-collected duties are attributable to the duty payer’s violation of the provisions, 
the Customs may pursue the payment of the unpaid du ties within three years from the date of the duty 
payment or the release, and impose a fine for late  payment of 0.05% of the short-collected or non-
collected duties per day from the date of the duty payment or the release. 
  Where the Customs finds that the short-collection or non-collection of duties on goods under 
Customs control is attributable to the duty payer’ s violation of the provisions, the Customs shall 
pursue the payment of the unpaid duties within thr ee years from the date of the duty payment or the 
release, and impose a fine for late payment of 0.05 % of the short-collected or non-collected duties per 
day from the date of the duty payment or the release. 
 
 Article 52  Upon finding any over-collection of dutie s, the Customs shall immediately notify 
the duty payer to go through the refund formalities.  
  Upon finding any over-collection of duties, the duty payer may, within one year from the date 
of duty payment, request in writing the Customs to refund the over-collected duties together with the G/VAL/N/1/CHN/4 
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 interest for the corresponding period computed at th e current deposit interest rate of the bank. The 
Customs shall, within 30 days from the date of accepting the application for duty refund, ascertain the 
relevant facts and notify the duty paye r to go through the refund formalities. 
  The duty payer shall go through the refund form alities within three months from the date of 
receipt of the notification. 
  Article 53  Where the refund of duties or interest incurred therefrom under Articles 50 and 52 
of these Regulations involves refund from the Stat e treasury, such refund shall be governed by the 
provisions of the laws and administrative regulations on administration of the State treasury. 
 
 Article 54  Where a Customs broker that is commissioned by a duty payer to go through the 
formalities for declaration and duty payment in th e name of the duty payer violates the relevant 
provisions and thus causes the short-collection or non-collection of duties, the Customs broker shall bear the joint and several liability with the duty payer for payment of the short-collected or non-
collected duties and fines for late payment.  
  Where a Customs broker is commissioned by a duty payer to go through the formalities for 
declaration and duty payment in the name of the Customs broker, the Customs broker shall bear the joint and several liability with th e duty payer for duty payment. 
 
 Where, except due to force majeure, goods unde r Customs control are damaged, destroyed or 
irrecoverably lost during the period of Customs contro l, the person who is obliged to keep such goods 
shall bear the corresponding liability for duty payment. 
  Article 55  Where a duty payer that is in arrears with duty payment comes under 
circumstances such as merger or division, the duty pa yer shall, prior to the merger or division, notify 
the Customs and pay off the duties. If the duty payer fails to pay off the duties when it is merged, the 
legal person or other organization that results fro m the merger shall continue to fulfil the duty 
payment obligation that has not been fulfilled. If the duty payer fails to pay off the duties when it is divided, the legal person or other organization that  results from the division shall bear the joint and 
several liability for fulfilling the duty paym ent obligation that has not been fulfilled. 
 
 Where a duty payer, during the period of Cu stoms control over goods granted duty reduction 
or exemption or bonded goods, comes under circumst ances such as merger, division or any other form 
of asset restructuring, the duty payer shall make a re port thereon to the Customs. Those that need to 
pay duties in accordance with the relevant provisions  shall pay off the duties according to law. Those 
that may continue to enjoy duty reduction or ex emption or bond treatment in accordance with the 
relevant provisions shall go throu gh the formalities for change of the duty payer with the Customs.  
  Where a duty payer is in arrears with the payment of duties or, during the period of Customs 
control over goods granted duty reduction or exem ption or bonded goods, comes under circumstances 
such as dissolution, disbandment, bankruptcy or any other statutory form of termination, the duty 
payer shall make a report thereon to the Customs prio r to the liquidation. The Customs shall collect all 
the duties payable from the duty payer according to law.   
Chapter V Collection of Flat Duty on Inward Articles 
 
 Article 56  The import duty on inward articles and taxes collected by the Customs on behalf 
of other government departments for importation of su ch articles are amalgamated into the flat duty, 
which shall be collected by the Customs according to law. 
  G/VAL/N/1/CHN/4 
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  Article 57 Inward articles for personal use the aggregat e value or quantity of which is within 
the quota prescribed by the General Administration of  Customs shall be exempted from flat duty.  
  The flat duty on inward articles for persona l use that exceed the quota prescribed by the 
General Administration of Customs but are still within  a reasonable quantity sha ll be paid by the duty 
payer of such inward articles in accordance with the relevant provisions prior to the release. 
  Where inward articles exceed the reasonabl e quantity for personal use, the relevant 
formalities shall be gone through in accordance with that of import goods. 
 
 The duty on inward articles that are deemed as import goods by the Tariff Commission of the 
State Council for duty collection shall be collect ed in accordance with the provisions of the 
Chapters II through IV of these Regulations. 
  Article 58  The duty payer of inward articles refers to the person who carries articles into the 
Customs territory, the addressee of inward postal ite ms, or the recipient of articles imported in any 
other ways. 
  Article 59  The duty payer of inward articles may go through the formalities for duty payment 
on its own or commission an agent to go through such formalities. The agent commissioned shall 
abide by all the provisions of th is Chapter on the duty payer. 
 
 Article 60  Flat duty shall be collected in terms of ad valorem  duty. 
 
    The calculation formula of flat duty is: Flat Duty Payable= Customs Value ×Flat Duty Rate  
 Article 61  The Customs shall determine the classification, customs value and applicable duty 
rate of inward articles in accordance with the Flat Duty Rates on Inward Articles, and the 
Classification Table of Inward Articles of the Peopl e's Republic of China and Customs Value Table of 
Inward Articles of the People's Republic of China th at are formulated by the General Administration 
of Customs. 
 
 Article 62  The flat duty rate and customs value implemented on the date when the Customs 
issues the memorandum of duty payment shall apply to inward articles.   
  Article 63  The reduction, exemption, recovery, pursuit and refund of flat duty and the 
collection of flat duty on inward articles permitted to be temporarily transported into the Customs 
territory shall be governed by the relevant provi sions of these Regulations on collection of import 
duty on goods.   
Chapter VI Supplementary Provisions 
 
 Article 64  Where the duty payer or guarantor has objec tions to the Customs’ determination of 
the duty payer or customs value; goods classification; determination of origin, applicable duty rates or 
exchange rates; duty reduction, exemption, recovery or refund; collection of fines for late payment; or 
determination of the manner and place of duty collec tion; it shall pay the duties and may apply to the 
Customs at the next higher level for administrative reconsideration according to law; if the duty payer 
or guarantor refuses to accept the decision of admini strative reconsideration, it may lodge a lawsuit to 
the people’s court according to law. 
  Article 65  Tax collection by the Customs on behalf  of other government departments for 
importation shall be governed in accordance with the provisions on administration of duty collection. G/VAL/N/1/CHN/4 
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  Article 66 The penalty for  violation of the provisions of these Regulations shall be imposed 
in accordance with the provisions of the Cust oms Law, the Rules for the Implementation of 
Administrative Penalty under the Customs Law of th e People’s Republic of China and other relevant 
laws and administrative regulations. 
 
 Article 67  These Regulations shall be effective as of  1 January 2004. The Regulations of the 
People’s Republic of China on Import and Export Duties revised and promulgated by the State 
Council on March 18, 1992 sha ll be simultaneously repealed. 
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