G/VAL/N/1/CHN/6  
 
12 April 2018  
(18-2253) Page: 1/19 
Committee on Customs Valuation  Original: English  
 
NOTIFICATIONS UNDER ARTICLE 22 OF THE AG REEMENT ON  
IMPLEMENTATION OF AR TICLE VII OF THE GEN ERAL  
AGREEMENT ON TARIFFS  AND TRADE 1994  
CHINA 
The following submission, dated 11 April 2018 is being circulated at the request of the delegation 
of China.  
 
_______________  
 
 
 
  G/VAL/N/1/CHN/6  
 
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  Decree No. 213 of the General Administration of Customs  
of the People's Republic of China  
The Rules of the General Administration of Customs of the People's Republic of China Regarding 
Determination of Customs Value of Imported and Ex ported Goods , which were deliberated and 
adopted at the executive meeting of  the General Administration of Customs on 9 December 2013, 
are hereby promulgated and shall come into force as of 1 February 2014.  
Minister  
General Administration of Customs  
The People's Republic of China  
_______________  
The Rules of the General Administration of Customs of the People's Republic of China 
Regarding Determination of Customs Value of Imported and Exported Goods  
CHAPTER I - GENERAL PROVISIONS  
Article 1  These  rules are formulated in accordance with the Customs Law of the People's Republic 
of China (hereinafter referred to as the Customs Law) and the Regulations of the People's Republic 
of China on Import and Export Duties,  for the purpose of proper determinati on of the Customs 
value of imported and exported goods.  
Article 2  Customs shall determine the Customs value of imported and exported goods pursuant 
to the principles of objectivity, fairness and uniformity.  
Article 3  The determination of Customs value of  imported and exported goods shall be subject to 
these Rules.  
Whereas, these Rules are not applicable to the determination of Customs value of bonded goods 
for domestic sale, passengers' personal effects, personal postal articles and other belongings for 
personal use which are allowed to be brought into the Customs territory, and the calculation of 
dutiable value of imported or exported goods or personal articles under suspicion of smuggling.  
Article 4  Customs shall, in accordance with relevant provisions  of laws and regulations, keep 
confidential all information which is by nature confidential or which is provided on a confidential 
basis for the purposes of customs valuation, and shall not disclose such information outside 
Customs, unless otherwise provid ed for by laws or administrative regulations.  
Upon written request, the duty payer may ask Customs to keep confidential its commercial secrets 
by providing a specific list of the contents that need to be covered. However, he shall not refuse to 
provide Cu stoms with pertinent information by reason of commercial confidentiality.  
CHAPTER II - CUSTOMS VALUE OF IMPORTED GOODS  
Section I - Methods of Determination on Customs Value of Imported Goods  
Article 5  The Customs value of imported goods shall be determine d by Customs on the basis of 
the transaction value, including the costs of transport and other charges associated therewith, and 
the cost of insurance incurred prior to unloading of the goods at the port or place of entry within 
the Customs territory of th e People's Republic of China.  
Article 6  Where the transaction value of the imported goods is inconsistent with the provisions as 
prescribed in Section II, or it is impossible to determine the transaction value, Customs shall, after 
inquiring about relevan t information and consulting with the duty payer, determine the Customs 
value by applying the following methods in a sequential order:  
(a) transaction value of the identical goods;  
(b) transaction value of the similar goods;  
(c) deductive value;  G/VAL/N/1/CHN/6  
 
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  (d) comput ed value; and  
(e) reasonable means.  
At the request of the duty payer, the order of the application of item (c) and item (d) in the 
preceding paragraph could be reversed, provided that sufficient information has been submitted to 
the Customs  
Section II - Transaction Value Methods  
Article 7  The transaction value of the imported goods is the price actually paid or payable by the 
buyer for the goods when sold by the seller for export to the Customs territory of the People's 
Republic of China, adjusted in acco rdance with the provisions of Section III of this Chapter. 
Payment for the price may be made either directly or indirectly.  
Article 8  The transaction value of the imported goods shall be subject to the following terms:  
(a) that there are no restrictions a s to the disposition or use of the imported goods by the buyer 
other than restrictions which are imposed by laws and regulations or to limit the 
geographical area for resale or do not have substantial effect on the value of the goods;  
(b) that the price i s not subject to some condition or consideration for which a value cannot be 
determined with respect to the imported goods being valued;  
(c) that no part of the proceeds of any subsequent resale, disposal or use of the imported goods 
by the buyer will accr ue directly or indirectly to the seller, or where there are proceeds, but 
an appropriate adjustment can be made in accordance with the provisions of paragraph 1(d) 
of Article 11; and  
(d) that the buyer and seller are not related, or where the buyer and seller are related, that the 
relationship did not influence the transaction value under the provisions of Articles 17 
and 18.  
Article 9  Any of the following cases shall be deemed to be restric tions as to the disposition or use 
of the imported goods by the buyer:  
(a) the imported goods can only be for displays or complimentary presentations;  
(b) the imported goods can only be sold to the designated third party;  
(c) the imported goods can only b e sold to the seller or the designated third party after being 
processed to finished products; and  
(d) other cases of restrictions on disposition or use of the imported goods examined and 
determined by Customs.  
Article 10  It shall be deemed that the price  of the imported goods is subject to some condition or 
consideration for which the transaction value cannot be determined in any of the following cases:  
(a) the price of the imported goods established on condition that the buyer shall buy other 
goods from seller in specified quantities;  
(b) the price of the imported goods established on condition that the buyer shall sell other 
goods to the seller; and  
(c) other cases examined by Customs and deemed as condition or consideration to which the 
price is subject  and for which a value cannot be determined.  
Section III - Adjustments of Transaction Value  
Article 11  In determining the Customs value of the imported goods on the basis of the 
transaction value, the following costs or value, to the extent that they are  not included in the price 
actually paid or payable for the goods being valued, shall be added:  
(a) the costs incurred by the buyer:  
(i)  commissions and brokerage, except buying commissions;  
(ii)  the cost of containers which are treated as being one wi th the goods in question; and  
(iii)  the cost of packing whether for labour or materials.  G/VAL/N/1/CHN/6  
 
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  (b)  the value, apportioned as appropriate, of the following goods or services where supplied 
directly or indirectly by the buyer to the seller free of charge or at r educed cost for use in 
connection with the production and sale for export of the imported goods to the Customs 
territory of the People's Republic of China:  
(i)  materials, components, parts and similar items incorporated in the imported goods;  
(ii)  tools,  dies, moulds and similar items used in the production of the imported goods;  
(iii)  materials consumed in the production of the imported goods; and  
(iv)  engineering, development, artwork, design work, and plans and sketches undertaken 
elsewhere than in the Customs territory of the People's Republic of China and 
necessary for the production of the imported goods.    
(c)  royalties and license fees related t o the goods being valued that the buyer must pay, either 
directly or indirectly, except in either of the following cases:  
(i)  royalties and license fees that are not related to the imported goods being valued; and  
(ii)  royalties and license fees that are  not paid as a condition for the sale of the goods in 
question to the Customs territory of the People's Republic of China.  
(d)  the value of any part of the proceeds of any subsequent resale, disposal or use of the 
imported goods that accrues directly or i ndirectly to the seller.  
For the above -mentioned value and costs, the duty payer shall provide Customs with information 
on the basis of objective and quantifiable data. Where such information is not available, Customs 
shall consult with the duty payer and determine the Customs value by using the methods 
prescribed under the provisions of Article 6.  
Article 12  When determining the value of goods/services (assists) supplied by buyer to be added 
to the Customs value of the imported goods as provided in paragr aph 1(b) in Article 11 of  these 
Rules, the following calculation methods shall be used accordingly:  
(a) if the goods (assists) are bought from an unrelated third party by buyer, the value added 
shall be the purchase price;  
(b) if the goods (assists) are p roduced by the buyer or obtained from a related third party, the 
value added shall be the production cost;  
(c) if the goods(assists) are obtained on lease by the buyer, the value added shall be the lease 
cost borne by the buyer; and  
(d) the value of tools,  dies, moulds and similar items used in the production of the imported 
goods shall include the charges of engineering, development, artwork, design work, and 
plans and sketches.  
Where the goods have been used by the buyer before being provided to the selle r, the value added 
shall be the depreciated value calculated in accordance with generally accepted accounting 
principles adopted in the People's Republic of China.  
Article 13  Royalties and license fees shall be deemed to be related to the imported goods when 
falling into one of the following situations:  
(a) Royalties and license fees are paid for the rights of patent or know -how, where the imported 
goods fall into any one of the following situations:  
(i) goods containing patent or know -how; 
(ii) goods pro duced under patent or know -how; or  
(iii) machine and/or equipment specially designed and/or manufactured to perform the 
patented process or know -how. 
(b) Royalties and license fees are paid for the right of trademark, where imported goods fall into 
any of the following situations:  
(i)  imported goods bearing trademark;  G/VAL/N/1/CHN/6  
 
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  (ii)  imported goods that can be resold directly with the trademark affixed after 
importation; or  
(iii)  goods that contains the right of trademark as being imported, and could be resold 
with the trademark affixed after minor processing.  
(c)  Royalties and license fees are paid for the copyright, where imported goods fall into any one 
of the following situations:  
(i)  imported goods containing software, words, music, pictures, images and other  similar 
contents, which are in forms of magnetic tapes and disks, CDs and other similar 
media; or  
(ii)  imported goods containing other copyrighted contents.  
(d)  Royalties and license fees are paid for the rights to distribute, resell or other similar ri ghts 
owned by the seller of the imported goods in the Customs territory of the People's Republic 
of China, where imported goods fall into one of the following situations:  
(i)  goods that could be sold directly after importation; or  
(ii)  goods that could b e resold directly after minor processing.  
Article 14  Where, without payment of royalties and license fees, the buyer cannot buy the 
imported goods or where that transaction will not be concluded under the terms and conditions set 
forth in the sales agreem ent, the payment of royalties and license fees shall be deemed as a 
condition of the sale of the imported goods to the Customs territory of the People's Republic of 
China  
Article 15  In determining the Customs value of the imported goods, the following tax es and 
charges shall not be added to the Customs value of the imported goods concerned, provided that 
they have been enumerated separately:  
(a) charges for construction, erection, assembly, maintenance, technical assistance undertaken 
after importation of goods such as industrial plant, machinery and equipment, excluding the 
warranty charges;  
(b) the cost of transport, insurance and other charges incurred after unloading the goods at the 
port of entry or place of importation  within the Customs territory of the People's Republic of 
China;  
(c) import duties, taxes on and in connection with importation collected by the Customs and 
other internal taxes;      
(d) charges for reproduction of the imported goods in the Customs territory of the People's 
Republic of C hina; or  
(e) charges for technical training within and outside of the Customs territory of the People's 
Republic of China and study tour out of the Customs territory of the People's Republic of 
China.  
The interest charge shall not be added to the Customs v alue provided it meets the following 
conditions at the same time:  
(a) interest charges are duly incurred under a financing arrangement for the purpose of 
purchasing of the imported goods by buyer;  
(b) the financing arrangement in question was made in wri ting; 
(c) the interest charges are distinguished from the price actually paid or payable for the goods; 
and 
(d) the duty payer can demonstrate that the claimed rate of interest does not exceed the level 
for such transactions prevailing in the country where , and at the time when the finance was 
provided, and the price actually paid or payable for the imported goods being valued closely 
approximates to the price of identical or similar imported goods without the financing 
arrangement.  
  G/VAL/N/1/CHN/6  
 
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  Section IV - Related P arties  
Article 16  The buyer and seller shall be deemed to be related in any of the following 
circumstances:  
(a) they are the members of the same family;  
(b) they are officers or directors of one another's businesses;  
(c) one party directly or indirectly controls the other party;  
(d) both of them are directly or indirectly controlled by a third party;  
(e) together they directly or indirectly control a third party;  
(f) one party directly or indirectly owns, controls or holds 5%  or more of the outstanding voting 
stock or shares of the other party;  
(g) one party is an employee, officer or director of the other party; or  
(h) the buyer and seller are legally recognized partners in business.    
Where the buyer and seller are associa ted in business with each other in that one is the sole 
agent, sole distributor or sole concessionaire of the other, they, if falling into the criteria of the 
foregoing paragraphs, shall also be deemed to be related.  
Article 17  Where the seller and the bu yer are related, it shall be deemed that the relationship did 
not influence the price of imported good when the duty payer can demonstrate that such value 
closely approximates to the one of the following prices occurring at or about the same time:   
(a) the transaction value in sales to unrelated buyers of identical or similar goods for export to 
the Customs territory of the People's Republic of China;  
(b) the Customs value of identical or similar goods as determined under Article 22;  
(c) the Customs value of identical or similar goods as determined under Article 24.  
In applying the foregoing tests, due account shall be taken of demonstrated differences in 
commercial levels, quantity levels, and costs incurred by the seller in sales in which the seller and 
buyer are not related and that are not incurred by the seller in sales in which the seller and the 
buyer are related.  
Article 18  Having examined the circumstances surrounding the sale, where it can be shown that 
the price of the imported goods has been set tled in a manner consistent with the normal business 
practice ，Customs may determine that the price has not been influenced by the relationship.  
Section V - Valuation Methods Other Than Method of Transaction Value  
Article 19  The method of  transaction value  of identical goods refers to the valuation method 
applied by Customs to determine the Customs value of the imported goods on the basis of the 
transaction value of identical goods imported at or about the same time for the sale to the 
Customs territory of the People's Republic of China as the goods being valued.   
Article 20  The method of  transaction value of similar goods refers to the valuation method 
applied by Customs to determine the Customs value of the imported goods on the basis of the 
transaction value of similar goods imported at or about the same time for the sale to the Customs 
territory of the People's Republic of China as the goods being valued.   
Article 21  In applying the method of  transaction value of identical or similar goods, the 
transa ction value of identical or similar goods in a sale at the same commercial level and in 
substantially the same quantity as the goods being valued shall be used to determine the Customs 
value of the imported goods. When using the above -mentioned value, an a djustment shall be 
made to take account of differences in costs and charges between the imported goods and the 
identical or similar goods in question arising from differences in distances and modes of transport 
on the basis of objective and quantifiable da ta. 
If, in applying the foregoing paragraph, no such transaction value of identical or similar goods is 
found, the transaction value of the identical or similar goods sold at a different commercial level 
and/or in different quantities could be used. When u sing the above -mentioned value, an 
adjustment shall be made to take account of differences in prices, costs or other charges G/VAL/N/1/CHN/6  
 
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  attributable to commercial level, quantity, and/or distance and modes of transport on the basis of 
objective and quantifiable data.  
Article 22  In determining the Customs value of the imported goods by application of the method 
of transaction value of identical or similar goods, the transaction value of the identical or similar 
goods produced by the same manufacturer shall be used in the first place.  
Where the transaction value of the identical or similar goods of the same manufacturer is not 
found, the transaction values of the identical or similar goods of other manufacturers in the same 
country or its region can be used.  
If more th an one transaction value of identical or similar goods is found, the lowest value shall be 
used to determine the Customs value of the imported goods.  
Article 23  Deductive  value method refers to the valuation method applied by Customs to 
determine the Customs value of the imported goods on the basis of the resale price in the 
Customs territory of the People's Republic of China of the imported goods or identical or similar 
imported goods, after deduction of costs and charges incurred within the Customs territory of the 
People's Republic of China, provided that the imported goods or identical or similar imported goods 
are sold:  
(a) at or about the time of importation of the go ods being valued;  
(b) in the condition as imported;  
(c) in the first sale within the Customs territory of the People's Republic of China;  
(d) to an unrelated party within the Customs territory of the People's Republic of China; and  
(e) in the greatest agg regate quantity.  
Article 24  In determining Customs value of the imported goods by application of deductive value 
method, the following items shall be deducted:  
(a) profit, general expenses (either direct or indirect) and commissions usually paid, which ar e 
incurred in connection with first sales within the Customs territory of the People's Republic of 
China of imported goods of the same class or kind as the goods in question;  
(b) the cost of transport, charges associated with transport and the cost of insu rance incurred 
after unloading of such goods at the port or place of entry within the Customs territory of 
the People's Republic of China;  
(c) import duties, taxes collected by the Customs on behalf of other government department at 
importation of goods an d other domestic taxes.  
Where neither the goods being valued nor the identical and similar goods are sold within the 
Customs territory of the People's Republic of China in the condition as imported, at the request of 
the duty payer, the price of the goods after further processing shall be used to determine the 
Customs value, provided other conditions set in Article 22 are satisfied, however, the value added 
for such processing shall be deducted.  
The added value resulting from further processing provided in  the preceding paragraph shall be 
calculated on the basis of objective and quantifiable data relating to the cost of process, with 
criteria and methods accepted by the industry and other industrial practice.  
In determining the items to be deducted under th is Article, principles and methods applied shall be 
consistent with the generally accepted accounting principles adopted in the People's Republic of 
China.  
Article 25  Computed value method refers to the valuation method applied by Customs to 
determine th e Customs value of the imported goods on the basis of the sum of the following 
items:  
(a) the cost or value of raw materials and processing employed in producing the imported 
goods;  G/VAL/N/1/CHN/6  
 
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  (b) the profit and general expenses (either direct or indirect) of the goo ds of the same class or 
kind as the imported goods being valued which are sold for export to the Customs territory 
of the People's Republic of China; and  
(c) the cost of transport, insurance and other charges incurred prior to unloading the goods at 
the po rt or place of entry within the Customs territory of the People's Republic of China.   
In determining the Customs value of the imported goods under the foregoing paragraph, Customs 
may conduct on -site verification of the information provided by the produce r of the goods in 
another country with the agreement of the producer and notification in advance to the 
governments of the country or the region in question.  
In determining the values or costs under the first paragraph of this article, principles and meth ods 
applied shall be consistent with the generally accepted accounting principles applied in the country 
or the region where the goods are produced.  
Article 26  Reasonable means refers to the valuation method applied by Customs to determine 
the Customs va lue of the imported goods on the basis of objective and quantifiable data in 
accordance with the principles prescribed in Article 2, when the Customs value of the imported 
goods cannot be determined by application of transaction value method, transaction v alue method 
of identical or similar goods, deductive value method, and computed value method.  
Article 27  In applying reasonable means, no Customs value shall be determined on the basis of:  
(a)  the selling price in the Customs territory of the People's Re public of China of the goods 
produced wherein;   
(b)  the higher one of the alternative prices;  
(c)  the selling price of the goods on the domestic market of the country of exportation;  
(d)  the price of identical or similar goods computed other than the v alues or costs prescribed in 
Article 25;  
(e)  the selling price of the goods for export to a third country or region other than the People's 
Republic of China; and  
(f)  minimum Customs values, arbitrary or fictitious values.     
CHAPTER III - CUSTOMS VALUE  OF SPECIAL IMPORTED GOODS  
Article 28  The Customs value for machines, tools, means of transport or any other goods, which 
are transported out of the Customs territory of the People's Republic of China for repair purposes 
with the declaration thereof made to the Customs at the time of departure and consequently 
returned to the People's Republic of China within the time limit set by the Customs, shall be 
determined on the basis of the charges of the repairs and the cost of materials, components and 
parts use d in the course of the repairs.  
Where the goods have been shipped back at a time exceeding the time limit specified by Customs, 
the Customs value shall be determined under the provisions of Chapter II of these Rules.  
Article 29  The Customs value of goods which are transported out of the Customs territory of the 
People's Republic of China for outward processing with the declaration thereof made to the 
Customs at the time of departure and returned to the Customs territory within the time limit 
specified by t he Customs, shall be determined on the basis of the costs of overseas processing and 
the cost of materials and parts used in the course of processing, and the cost of transport, charges 
associated therewith and the cost of insurance of re -importation.  
Wher e the goods have been returned at a time exceeding the time limit specified by Customs, the 
Customs value shall be determined under the provisions of Chapter II of the Rules.  
Article 30  The Customs value of the temporarily imported goods, when they are su bject to 
import duties and taxes, shall be determined under the provisions of Chapter II of these Rules. 
Where the goods for temporary admission are sold for home use with special approval from 
Customs, the Customs value shall be determined on the basis of  the purchasing price for home 
use. G/VAL/N/1/CHN/6  
 
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  Article 31  The Customs value of the imported goods on lease shall be determined in accordance 
with the following means:  
(a) the Customs value of the imported goods on lease with payment in form of rental charges 
shall be determined on the basis of the rental charges during the time period together with 
the interest charges thereof added;  
(b) the Customs value of the leased goods which are purchased for home use shall be 
determined on the basis of the purchasing price;  
(c) where the duty payer applies for a lump sum payment of duties and taxes, it may choose to 
have the customs value determined in accordance with the provisions of Article 6 of these 
Measures or take total rental determined by the Customs as the customs va lue. 
Article 32  The Customs value of the goods which were duty -exempted or duty -reduced and are 
subject to recovery of Customs duties and taxes, shall be determined on the basis of the value of 
the goods examined at the time of original importation, deduc ting the value depreciated. 
The formula shall be expressed as follows:  
Customs value = Customs value examined at the time of entry   
The period of time elapsed between the entry of the goods  
and the recovery of duties (in term of month)  
×   (1  -   ------ ---------------------------------------------------------------------- ) 
Statutory years of Customs control ×12  
In the above formula, the period of time elapsed between the entry of the goods and the recovery 
of duties shall be calculated in term of month. If the time is less than a month but more than 15 
days, it shall be calculated as a month; if the time is less than 15 days, it shall not be calculated.  
Article 33  When there is no transaction value, as for imported goods by way of barter, 
consignment, do nation and presentation etc., Customs shall determine the Customs value by 
application of the methods prescribed in Article 6 after having consulted with the duty payer.  
Article 34  The Customs value of imported carrier media bearing software for data proc essing 
equipment shall be determined on the basis of the value or cost of the carrier  media itself, in 
either of the following cases:  
(a) where the value or cost of the carrier  media and the value of the software contained therein 
are listed separately; or  
(b)     where  duty payer  can either furnish documentary evidences to prove the cost or value of the 
imported carrier media itself, or the value of the software, even though value of software so 
loaded is not distinguished from the cost or the value of the  carrier media.  
The provisions of this Article shall not be applicable to the carrier media containing beaux -arts, 
photography, sound, cinematographic or video recordings, games, and electronic publications  etc.. 
CHAPTER IV - CALCULATION OF THE COSTS OF TRANSPORT AND OTHER CHARGES 
ASSOCIATED THEREWITH, AND THE COST OF INSURANCE IN THE CUSTOMS VALUE OF 
IMPORTED GOODS  
Article 35  The cost of transport and other charges associated therewith for imported goods shall 
be calculated on the basis of charges that are actually paid or payable. Where the cost of transport 
and other charges associated therewith is unascertainable, however, Customs shall calculate the 
cost for transportation on the basis of the normal transporta tion cost at the time of importation.  
Where the vehicles themselves are treated as imported goods and transported by using their own 
power, no cost of transport and other charges associated therewith shall be added to the Customs 
value in determining Custo ms value.  G/VAL/N/1/CHN/6  
 
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  Article 36   The cost of insurance for imported goods shall be calculated in the fact that the 
charges are actually paid. If the insurance for imported goods is unascertainable or does not occur 
in practice, Customs shall calculate the cost of ins urance on the basis of 3‰ of the sum of C & F. 
The formula shall be expressed as follows:  The cost of insurance = (Cost of Goods + Freight) 
×3‰.  
Article 37  For goods imported by mail, the postage alone shall be treated as the costs of 
transport and other  charges associated with transport, and the cost of insurance.  
CHAPTER V - CUSTOMS VALUE OF EXPORTED GOODS  
Article 38  The Customs value of exported goods shall be determined by Customs on the basis of 
the transaction value, including the inland costs of t ransport and other charges associated 
therewith, and the cost of insurance incurred prior to loading of the goods at the port or place of 
departure within the Customs territory of the People's Republic of China.  
Article 39  The transaction value of exporte d goods shall be the total value collected or to be 
collected, directly or indirectly by the seller from the buyer for the goods when sold for export to 
the outside of the Customs territory of the People's Republic of China.  
Article 40   The following dutie s and charges shall not be added to the Customs value of exported 
goods:  
(a)     export duty; and  
(b)   the costs of transport and other charges associated therewith, and the cost of insurance 
which are incurred after loading of the export goods at the por t or place of departure within 
the Customs territory of the People's Republic of China but listed separately in the payment 
of the goods  
Article 41  Where the Customs value of exported goods cannot be determined, Customs shall, 
after having inquired about relevant information and consulted with the duty payer, determine the 
Customs value by applying the following methods in the given order:  
(a)  transaction value of the identical goods exported to same country or region at or about the 
same time;  
(b)  transaction value of the similar goods exported to same country or region at or about the 
same time;  
(c)  value calculated on the basis of cost, profit and general expenses (either direct or indirect) 
for producing the identical or similar product and charges associated with the transport and 
cost of insurance within the Customs territory; and  
(d)    value determined by reasonable means.  
CHAPTER VI - EXAMINATION AND VERIFICATION OF CUSTOMS VALUE  
Article 42  When making declarations to Customs, the duty payer sh all submit truthful and 
accurate documents including invoice, contract, bill of loading, and packing list etc. according to 
the provisions of the Rules.  
Required by Customs, the duty payer shall also furnish Customs with legal payment instruments 
related t o transaction and other supplemental commercial documents, information or data, in 
written or electronic forms, reflecting the truth and accuracy of the transaction value.  
Where there are any adjustments prescribed under the provisions of Section III of Ch apter II of 
these Rules in the sale of goods, or where there are any costs of transport or other charges 
associated therewith under the provisions of Article 35, the duty payer shall make a declaration to 
Customs accordingly based on the facts.  
Where the v alue of foregoing adjustments, the cost of transport and associated charges need to be 
apportioned, the duty payer shall do it on the basis of objective and quantifiable data, and at the 
same time provide Customs with proof of the apportionment.  G/VAL/N/1/CHN/6  
 
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  Article 43   To examine and verify the truth or accuracy of the declared value, Customs may 
exercise the following authorities to check the declared value,  
(a) to examine and copy the contracts, invoices, account books, certificates for foreign 
exchange settlement an d/or payment, bills, business correspondences, audio or video 
products in relation to the imported and exported goods and other commercial documents, 
written information and electronic data reflecting the relationship and transaction activities 
between the  buyer and the seller;  
(b) to inquire into the facts related to Customs value of the imported or exported goods by 
interviewing the duty payer of imported or exported goods and citizens, legal persons and 
other organizations having monetary and transaction  relationship with the duty payer;  
(c) to examine the goods or take samples of the goods for examination or laboratory test;  
(d) to enter into the duty payer's premise and storage facilities to examine the goods and 
operations relating to imported or expor ted goods;  
(e) with approval of a director general of Customs districts directly under the General 
Administration of Customs of PRC or of a director of local Customs authorized by the former 
and by showing Notice of Account Inquiry of Customs of People's R epublic of China 
(See Attachment 1) and Customs officers' identity cards, to inquire information relating to 
transfer of money of the company accounts opened with the bank or other financial 
institution by the duty payer, and notify the banking supervisor agency of relevant 
information; and  
(f)    to inquire of national tax authorities the information concerning the payment of internal 
taxes in relation to the imported and exported goods.  
When Customs exercises the above authorities, the duty payer and rele vant citizens, legal persons 
and other organizations are obligated to provide truthful information, and submit relevant 
documentary evidence in written or electronic forms. No refusal, delay, concealment is allowed.     
Article 44  Where the Customs has do ubts about the truth or accuracy of the value declared by 
the duty payer, or considering the relationship between the buyer and seller did influence the 
price, Customs shall issue Notice to Query Declared Value by Customs of People's Republic of 
China (her einafter referred as Notice to Query Declared Value; see Attachment 2) and notify the 
duty payer or his agent of the grounds for doubts in written form. The duty payer or his agent 
shall, within 5 working days from the date of receipt of Notice to Query De clared Value, provide 
related documents or other evidence in writing that could demonstrate the truth or accuracy of the 
declared value or the declared value not being influenced by the relationship between the buyer 
and seller.  
If having due cause for not  being able to provide the above -mentioned information within the time 
limit, the duty payer or his agent may, in written form, apply to Customs for extension prior to the 
expiration of the time limit  
Except under special circumstances, the extension shall  not exceed 10 working days.  
Article 45  Once the Notice to Query Declared Value is issued, Customs shall, after having a 
process of valuation consultation with the duty payer, determine the Customs value of the 
imported or exported goods by application of  the methods listed in Article 6 or Article 41 of these 
Rules, in any of the following cases:  
(a) where the duty payer or his agent fails to provide further explanation within the time limit;  
(b) where Customs, after examining the document or evidences pro vided by the duty payer or 
his agent, still has reasonable doubts about the truth or accuracy of the declared value; or  
(c) where Customs still, after examining the documents or evidences provided, has reasonable 
doubts that the relationship between the bu yer and seller did influence the transaction 
value.  
Article 46  Where after examination, Customs determines that imported goods have no 
transaction values, then valuation inquiry may not be made; Customs shall determine the Customs 
value by application of the methods laid down in Article 6 of these Rules after having valuation 
consultation with the duty payer.  G/VAL/N/1/CHN/6  
 
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  Where after examination, Customs determines that the exported goods have no transaction value, 
valuation inquiry may not be made; Customs shall deter mine the Customs value by application of 
the methods laid down in Article 41 of these Rules after having valuation consultation with the 
duty payer.  
Article 47  Where valuation consultation is required under the provisions of these Rules, Customs 
shall iss ue Notice of Valuation Consultation of Customs of People's Republic of China (hereinafter 
referred to as Notice of Valuation Consultation, see Attachment 3). The duty payer shall, within 5 
working days from the date of receipt of Notice of Valuation Consul tation, engage in the valuation 
consultation with Customs. Where the duty payer has engaged in valuation consultation with 
Customs within the time limit, Customs shall complete a Record Sheet for Valuation Consultation 
by Customs of People's Republic of Ch ina (see Attachment 4).  
Where the duty payer fails to respond within the time limit, it is deemed that he has given up its 
right of valuation consultation, and Customs may directly determine the Customs value of the 
imported or exported goods by applicatio n of the methods laid down in Article 6 or Article 41 of 
these Rules.  
Article 48  In the following cases, upon written request by the duty payer, Customs may neither 
launch a valuation inquiry nor conduct valuation consultation, and thus determine the Cust oms 
value of the imported or exported goods by application of the methods laid down in Article 6 or 
Article 41:  
(a) where goods are imported or exported in split shipments under the same contract and 
Customs has determined the Customs value of goods in one  of the previous shipment;  
(b)    where the Customs value of imported or exported goods is below 100,000 CNY or the total 
amount of the Customs duty and other import taxes levied by Customs is below 
20,000  CNY; or  
(c)    where imported or exported goods ar e those by nature of hazardous goods, fresh and live 
products, perishable goods, vulnerable goods, wasted and used goods, etc.  
Article 49  Where, in the course of determining the Customs value of imported and exported 
goods by Customs, the duty payer shall  be able to withdraw them from Customs after providing 
guarantee according to the relevant rules and regulations.   
Article 50   After the determination of the Customs value of imported or exported goods by 
Customs, the duty payer may request in written for m for an explanation in writing from Customs 
as to how the Customs value of his goods was determined. Once so requested, Customs shall issue 
Notification of Determination of Customs Value by Customs of People's Republic of China (see 
Attachment 5).  
CHAPTER  VII - SUPPLEMENTARY PROVISIONS  
Article 51  For the purposes of these Rules, the terms and expressions are defined as follows:  
"Customs territory"  means the Customs territory of the People's Republic of China.  
"Customs value"  means the value for the purpose of levying Customs duties.  
"Buyer" means any natural person, legal person or other organization that buys goods by fulfilling 
his payment obligation, assuming title and bearing the risk of loss for the imported goods, and a s 
such obtaining incomes. Accordingly, buyer of imported goods means anyone who buys imported 
goods into the Customs territory of the People's Republic of China.  
"Seller" means any natural person, legal person or other organization that sells goods. 
Accord ingly, seller of imported goods means anyone who sells imported goods into the Customs 
territory of the People's Republic of China.  
"Sold for export to the Customs territory of the People's Republic of China" means the act 
of actually bringing the imported  goods into the Customs territory of the People's Republic of G/VAL/N/1/CHN/6  
 
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  China, transferring the ownership or title of the goods and risks by the seller to the buyer, and 
making payment therefor by the buyer to the seller.  
"Price actually paid or payable" means the t otal payments actually made or to be made as a 
condition of sale of the imported goods, by the buyer to the seller, or by the buyer to a third party 
to satisfy an obligation of the seller.  
"Indirect payment" means that upon the seller's request, the total  payment made, or to be 
made, in whole or in part, by the buyer to the third party; or the payment made to offset the 
differences involved in other financial activities between the buyer and seller.  
"Buying commissions" means any fees paid by a buyer to t he buyer's agent for the service in 
the purchase of the imported goods.  
"Brokerage fees" means any service fee paid by the buyer to the broker on behalf of the 
interests of both the buyer and the seller for the service in the purchase of the imported goods.  
"Identical goods" means goods produced in same country or region, which are the same i n all 
respects, including physical characteristics, quality and reputation. However, minor differences in 
appearance would not preclude goods otherwise conforming to the definition from being regarded 
as identical.  
"Similar goods" means goods produced in same country or region which, although not alike in all 
respects, have like characteristic and like component materials which enable them to perform the 
same functions and to be commercially interchangeable.  
"About the same time" means within 45 days befo re or after the date of declaration of the 
imported goods being valued. In determining Customs value of the imported goods by application 
of deductive value method, if imported goods and identical or similar goods were not sold within 
the Customs territory  within 45 days before or after the date of declaration of the imported goods, 
the time limit for the sale within the Customs territory may be extended to 90 days before or after 
the date of declaration of the imported goods.  
"Generally accepted accounting  principles"  means any accounting principles, norms and 
methods generally recognized in relevant countries or regions, including accrual method, matching 
method, historical cost method and division of revenue expenditure method and capital 
expenditure meth od, which are related to the value of the goods.  
"Royalties and license fees" means any fees paid by the buyer of the imported goods to the 
licensor or authorized person for the license and/or transfer of rights in connection with the 
copyrights, patents,  trademarks, know -how and distribution.  
"Charge for technical training" means all the expenses borne by the buyer of imported goods 
for technical training offered by the seller or a third party related, to personnel assigned by the 
buyer, including salary  and tuition, boarding and lodging, traffic and medicare.  
 "Software" means any programs or documents used by data processing equipments under the 
provisions of Regulations Regarding Protection of Computer Software.  
"Know -how"  means any undisclosed knowled ge, experience, methods, techniques and skills 
concerning technological process, formula, product design, quality control, examination and test, 
marketing management, etc., expressed in forms of blueprints, models, technical data and 
standards.  
"Minor pro cessing" means diluting, mixing, sorting out, primary assembling, repacking, and 
other similar processing.  
"goods of the same class or kind" means goods which fall within a group or range of goods 
produced by a particular industry or industry sector, and includes identical or similar goods.  
"Carrier media" means magnetic tapes, magnetic discs and optical discs.  G/VAL/N/1/CHN/6  
 
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  "Valuation examination"  means that for the purpose of determining the Customs value of 
imported or exported goods, Customs exercises its legal auth orities prescribed in Article 43 to 
check out whether the declared value of the imported goods is true or accurate and whether the 
relationship between the buyer and seller did influence the transaction price by examining 
documents, verifying data, inspect ing physical goods and other related account books.  
"Valuation consultation" means that when applying the valuation methods other than the 
transaction value method, on the basis of keeping confidential of the commercial secret,  Customs 
offers to exchange i nformation and data with the duty payer for the purpose of determining the 
Customs value.  
"Prior to unloading" means prior to the act of unloading.  
"Prior to loading" means prior to the act of loading.  
Article 52  The duty payer who dissents from the decis ion made by the Customs on the Customs 
valuation of goods in question shall pay duties and taxes first according to relevant administrative 
decisions made by Customs, and may submit an appeal for administrative reconsideration of the 
case to a higher level  of the customs administration in accordance with the law. Should the duty 
payer refuse to accept the decision on the appeal, he may appeal to the judiciary by bringing the 
case to the People's Court.  
Article 53  Any action in violation of the Rules which constitutes smuggling or violates Customs 
administrative regulations or violates the Customs Law  shall be dealt with by Customs in 
accordance with the Customs Law and the Implementing Regulations on Imposing Administrative 
Penalties under the Customs Law o f the People's Republic of China . Where the violation constitutes 
a crime, it shall be subject to criminal penalty according to relevant laws.  
Article 54  General Administration of Customs of the People's Republic of China is entitled to 
interpret and cons true these Rules.  
Article 55  The Rules shall be effective as of 1 February 2014,  whereupon the  Rules of General 
Administration of Customs of the People's Republic of China Regarding Determination on Customs 
Value of Imported and Exported Goods promulgated in the form of  Decree No. 148 of the General 
Administration of Customs on 18 March 2006 shall b e repealed simultaneously.  
  G/VAL/N/1/CHN/6  
 
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  ANNEX I  
Notice of Bank Account Inquiry of  
×××× Customs of the People's Republic of China  
Serial number:________________ __ 
____________________ (Bank Name)  
According to Article 33 of "Regulations of the People's Republic of China on Import and Export 
Duties", for the purpose of verifying the truth and accuracy of the declared value of 
imported/exported goods, Customs need t o inquire about fund transfers of the bank account of 
________________ (Company Name). Customs officers __________________________ (names) 
are dispatched for this purpose. Please provide assistance accordingly.  
___ mm ___ dd _____ yyyy    (seal)  G/VAL/N/1/CHN/6  
 
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  ANNEX II  
Notice to Query Declared Value of  
×××× Customs of the People's Republic of China  
Serial number:__________________  
According to Article 34 of "Regulations of the People's Republic of China on Import and Export 
Duties", the Customs shall verify the transact ion information regarding the commodities of 
_______________ (Declaration Form No. ______________) declared by your company 
on__(mm) __(dd)___(yyyy), due to the following reasons:  
 There exists a difference between your declared value and price information readily available 
to Customs;  
 The buyer and the seller are related, and such relationship may have influenced the 
transaction value;  
 There exist conflicts or questions between different declaration documents in relation to 
price related items.  
 Other reasons to doubt the truth and accuracy of the declared value. Detailed description:  
___________________________________________________  
Please provide relevant documents within 5 days upon receipt of this notice and assist Customs to 
obtain further unders tanding on the information in connection with the transaction value of the 
import/export commodities.  In the following cases, the customs value will be re -determined:  
1)  It is made clear relevant documents are unable to be provided;  
2)  Relevant documen ts fail to be provided within time limit; or  
3)  Relevant documents provided are insufficient to prove the truth or accuracy of the declared 
value, or to prove that the transaction value is not influenced by the relationship between 
the buyer and the sell er. 
The relevant documents are listed as follows:  
 Explanation of the transaction conditions in writing (reasons for applying a low price; 
compositions of the price; functions played by each party engaged in the transaction);  
 Price Declaration Form for Impo rt Goods of the PRC Customs;  
 Contracts, agreements or purchasing orders;  
 Business correspondence;  
 Invoice issued by the manufacturer;  
 Freight invoice;  
 Policy of Insurance;  
 Letter of credit;  
 Certificate of foreign exchange settlement and payment (records of  the payment of foreign 
currency);  
 Accounting books;  
 Domestic sales vouchers;  
 Commodity inspection certificate;  
 Commodity description and specification;  
 Others:  
 
Customs Seal _______________________           
Signature (Customs officer):  ___________________                  __mm  __ dd ____ yyyy 
Signature (receiver of the notice): __________ _____  __mm  __ dd ____ yyyy 
  G/VAL/N/1/CHN/6  
 
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  ANNEX III  
Notice of Valuation Consultation of  
×××× Customs of the People's Republic of China  
Serial number:__________________  
_______________ _________ (Importer Name) : 
After review of the declared value of your imported/exported goods, it is decided that the declared 
value of commodity ____________ declared by your company (Declaration Form 
No. ______________) on (dd)  ___ (mm)  ___ (yyyy) ______  is not acceptable and Customs would 
re-determine the Customs value. To protect the lawful rights and interests of import and export 
taxpayers, Customs will conduct valuation consultation with your company according to Article 21 
and Article 27 of  "Regulat ions of the People's Republic of China on Import and Export Duties". 
Please go to ______________________________  (location) for consultation with Customs within 
5 working days upon receipt of this notice. The information exchanged in consultation will be u sed 
as the basis for Customs to re -determine the Customs value.  Please be noted that if your 
company fails to be present for consultation within prescribed time limit, the Customs value of 
imported or exported goods will be determined based on the informa tion readily available to 
Customs.  
×××× Customs  
(Signature) receiver of the notice    ___ （mm）____(dd)____ （yyyy） G/VAL/N/1/CHN/6  
 
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  ANNEX IV  
Record Sheet for Valuation Consultation of  
××××Customs of the People's Republic of China  
Serial number:__________________  
After review of the declared value of your imported/exported goods, Customs determine it is not 
acceptable and the Customs value should be re -determined. According to Article 21/27 of 
Regulations of the People's Republic of China on Import and Export Duties, in order to obtain 
information necessary for determination of Customs value and to protect legitimate right of the 
taxpayer, Customs shall conduct consultation with your company. Information provided will be 
used to determine the Customs value of imported/exp orted goods. Untruthful information will 
result in legal liability.  
Location of Consultation    Time of Consultation    
Declaration Number    Date of Import/Export    
Name of Commodity    
Basic Information of Duty Payer   
Name    Gender    Position    
ID Number    Telephone Number    
Address    
Method of 
Transaction Value of 
the Identical or 
Similar Goods  Can the duty payer provide the transaction value of identical or similar goods?  
 
YES□                                      NO□  
Deductive Value 
Method  Can the duty payer provide resale price of the imported goods or identical or similar 
imported goods in connection with first sale within the Customs territory of the 
People's Republic of China?  
 
YES□                                      NO□  
 
Can the duty payer provide information regarding profit and general expenses in 
connection with first sales within the Customs territory of the People's Republic of 
China of imported goods of the same class or kind as the goods in question?  
 
YES□                                      NO□ 
 
Computed Value 
Method  Can the duty payer provide production cost of the goods in question?  
 
YES□                                      NO□  
 
Can the duty payer provide information regarding profit and general expenses of the 
goods of the  same class or kind as the imported goods being valued, which are sold 
for export to the Customs territory of the People's Republic of China? Or the profit 
and general expenses of identical or similar goods as imported goods, which are 
produced within the Customs territory of the People's Republic of China (in case of 
exportation)?  
 
YES□                                      NO□  
 
Fallback Method  Can the duty payer provide further information?  
 
 YES□                                      NO□  
 
Price information provided by duty payer:  
Price information readily available to Customs ： 
Result of consultation ： 
Signature (Customs officer):           ___（mm）____(dd)____ （yyyy） 
Signature (duty payer/authorized person):   ___（mm）____(dd)____ （yyyy） G/VAL/N/1/CHN/6  
 
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  ANNEX V 
Notification of Determination of Customs Value by  
××××Customs of the People's Republic of China  
Serial number:__________________  
________________________ Importer  
Import/export port  Declaration No.  Declaration Date  
Commodity Name  HS Code  Customs Supervision Mode  
Specifications  Origin  
Declared Unit Price  Terms of Delivery  Quantity & Units  
Consignee/Consignor  Contract No.  
 
According to  _______  (specific Article or Articles) of the Rules of People's Republic of China regarding 
Determination on Customs Value of Imported and Exported Goods (hereinafter referred to as the Valuation 
Rules), the declared value of your imported/exported goods is not a ccepted. Meanwhile, according to the 
_________  (specific Article) of the Valuation Rules, Customs re -determined the Customs value of your 
imported/exported goods on the basis of  ___________  (valuation method ). 
 
   ___ mm ___ dd ______  yyyy          (seal)  
 
__________