WORLD TRADE  
ORGANIZATION   
G/VAL/N/1/CHN/5 
11 April 2008 
 (08-1704) 
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 14 March 200 8 is being circulated at the request of the 
delegation of the People's Republic of China.  
_______________ 
 
  Pursuant to Article 22 of the Agreement on Implementation of Article VII of GATT 1994, 
and in accordance with the Decision of the Co mmittee on Customs Valuation of 12 May 1995, the 
following administrative measure in China regardin g customs valuation is notified to the Committee 
on Customs Valuation: 
  Decree of the Customs General Administration of the People’s Republic of China, No. 148 of 
2006: The Rules regarding Determination on Cust oms Value of Imported and exported Goods. 
 
 
 The above-mentioned administrative measure is  authentic in the Chinese language only.  
 
_______________ 
 
  
 G/VAL/N/1/CHN/5 
Page 2  
 
    
Decree of General Administration of Customs  
People’s Republic of China 
 
No. 148 
 March 28, 2006 
 
The Revised Customs Rules Regarding Dete rmination on Customs Value of Imported 
and Exported Goods  has been ratified by the Working Meeting of the Executives of the 
General Administration of Customs on March 8,  2006 and is hereby publicized.  The Revised 
Rules shall come into force as from May 1, 2006, whereupon  the Rules of General 
Administration of Customs of the People’s Republic of Chi na Regarding Determination on 
Customs Value of Imported and Exported goods pr omulgated in the form  of Decree No.95 of 
the General Administration of Customs on D ecember 31, 2001 and the Customs Regulations 
of the People’s Republic of China Regarding De termination on Customs Value of Royalties 
and License Fees Related to th e Imported Goods promulgated in the form of Decree No.102 
of the General Administration of Customs on May 30, 2003 shall be invalid. 
MU Xinsheng 
                                                             (Signature) 
Commissioner                                                                 General Administration of Customs  
The People’s Republic of China 
 
 
 
The Rules Regarding Determination on Customs Value  
of Imported and Exported Goods 
 
Chapter I 
General Provisions 
 
Article 1    For the purpose of determining the Cust oms value of imported and exported goods 
with legitimacy, these Rules are fo rmulated in accordance with the Customs Law of the People’s 
Republic of China  and the Regulations of the People's Republic of China on Import and Export 
Duties. 
 
Article 2    Customs shall determine the Customs va lue of imported and exported goods pursuant 
to the principles of objectivity, fairness and uniformity.            
Article 3   The determination of Customs value of im ported and exported goods shall be subject 
to these Rules.   Whereas, these Rules are not applicable to  determine the Customs value of passenger 
personal effects, personal postal ar ticles and other belongings for pe rsonal use allowed to be brought 
into the Customs territory, or to  calculate the dutiable value of the 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 
the commercial information provided by the  duty  payer properly, especially once involved with 
business confidentiality and shall not disclose such  information outside Customs, unless otherwise 
provided for by laws or administrative  regulations.   G/VAL/N/1/CHN/5 
 Page 3 
 
 
   Upon written request, the duty payer may ask Cust oms to keep confidential of its commercial 
secrets  by making a specific list of the contents that n eed to be covered. However, he shall not refuse 
to provide Customs with pertinent informa tion by excuse 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  determined by Customs on the basis of 
the transaction value, including the costs of transport and other char ges 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 the People's Republic of China.  
Article 6 Where the transaction value of the imported goo ds is incompliant with the provisions 
as prescribed in Section II, or it is impossible to determine the transaction value , Customs shall, after 
inquiring relevant information and consulting over price with the duty payer, determine the Customs 
value by applying the following me thods in its sequential orders: 
 (a) transaction value of the identical goods; 
(b) transaction value of the similar goods; 
(c) deductive value; (d) computed 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 revers ed, 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 for export to the Customs territory of the People’s Republic of 
China adjusted in accordan ce 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 as to the disposition or use of the imported goods by the buyer 
other than restrictions which are imposed by la ws and regulations or to limit the geographical 
area for resale or do not have substan tial effect on the value of the goods;  
(b) that the price is not subject to some cond ition 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 accrue 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 Article 17.  
 G/VAL/N/1/CHN/5 
Page 4  
 
  Article 9   The disposition or use of the imported good by the buyer shall be deemed to be 
restricted in any of the following cases:  (a) the imported goods can only be for di splays or complimentary presentations; 
(b) the imported goods can only be sold to the specific third party;  
(c) the imported goods can only be sold to the seller or the specific third party after being 
processed to finished products; and 
(d) other cases of restriction 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; 
(c) other cases after examined by Customs, treated as the price of the goods concerned influenced 
by some condition or consideration fo r which a value cannot be determined. 
 
Section III  
Adjustable items 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 broke rage, except buying commissions;  
 (ii)  the cost of containers which are tr eated as being one with the goods in question; 
 (iii)  the cost of packing wh ether for labour or materials. 
 
(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 reduced 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 simila r 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; 
(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 to the goods be ing 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 rela ted 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. 
  G/VAL/N/1/CHN/5 
 Page 5 
 
 
  (d)  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. 
  For the above-mentioned value and costs, th e duty payer shall provide Customs with 
information on the basis of objective and quantifiable data. Where such information is not available, 
Customs shall consult over price with the duty paye r and determine the Customs value by the methods 
prescribed under the provisions of Article 6.  Article 12    When the value of goods/service(assists) supplied by buyer  added to the Customs 
value of the imported goods as provided in paragraph 1(b) in Article 11 of  these Rules, one of the 
following methods of calculation for addition shall be used: 
 (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 produced by the bu yer 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 th e buyer, the value added sh all be the lease cost 
borne by the buyer;       
(d)    the value of tools, dies, moulds and si milar 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 be fore being provided to the seller, the value 
added shall be the depreciated value calculated in compliance w ith 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, 
provided:  (a) Royalties and license fees are paid for the right s 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 produced 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; (ii)  imported goods that can be resold directly with the trademark affixed after 
importation; or 
(iii)   goods that contains the right of tradem ark 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, CD s and other similar 
media; or 
(ii)  imported goods containing  other copyrighted contents. G/VAL/N/1/CHN/5 
Page 6  
 
   
(d)  Royalties and license fees are paid for the ri ghts to distribute, resell or other similar rights 
owned by the seller of the imported goods in the Customs territory of the People’s Republic 
of China, where imported goods belong to either of the following cases: 
 
(i)  goods that could be sold directly after importation; or 
(ii)  goods that could be 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 agreement, the payment of roya lties and license fees shall be deemed as a condition 
for 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 taxes 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 on goods such as industrial pl ant, machinery and equipment, excluding the 
charges of guarantee; 
(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 importe d goods in the Customs territory of the People’s 
Republic of China; 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 th e Customs value 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 writing; 
(c) the interest charges are identified separately from the price actually paid or payable for the 
goods; and 
(d) the duty payer can demonstrate that the claime d 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 paya ble for the imported goods being valued closely 
approximates to the price of identical or similar imported goods without the financing 
arrangement. 
 
Section IV  
Related Parties  
 
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;  G/VAL/N/1/CHN/5 
 Page 7 
 
 
  (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 indirec tly owns, controls or holds 5 pe rcent 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 
(f) the buyer and seller are legally recognized partners in business.    
  If the buyer and seller are associated in business w ith each other in that one is the sole agent, 
sole distributor or sole concessionaire of the other,  they, if fall within the criteria of the foregoing 
paragraphs, shall be de emed to be related. 
 
Article 17   Where the seller and the buyer are related, it shall be deemed that the relationship did 
not influence the price of imported good when the dut y payer can demonstrate that such value closely 
approximates to the one of the following pri ces 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 si milar goods as determined under Article 22; 
(c) the Customs value of identical or si milar goods as determined under Article 24. 
  In applying the foregoing tests, due account sh all be taken of demonstrated differences in 
commercial levels, quantity levels, and costs incurre d by the seller in sales in which the seller and 
buyer are not related and that are not incurred by th e seller in sales in which the seller and the buyer 
are related.           
Section  V  
Valuation Methods Other Than Method of Transaction Value 
 
Article 18    The method of  transaction value of identical goods refers to the valuation method 
applied by Customs to determine the Customs va lue 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 19   The method of  transaction value of similar goods re fers to the valuation method 
applied by Customs to determine the Customs va lue 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 20     In applying the method of  transaction value of identical or similar goods, the 
transaction 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. In applying the above-men tioned value, an adjustment 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 fro m differences in distances and m odes of transport on the basis of 
objective and quantifiable data.   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. In a pplying the above-mentioned value, an adjustment 
shall be made to take account of  differences in prices, costs or other charges attributable to 
commercial level, quantity, and/or distance and m odes of transport on the basis of objective and 
quantifiable data.  G/VAL/N/1/CHN/5 
Page 8  
 
  Article 21    In determining the Customs value of the imported goods with the 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 manufact urer shall be used in the first place. 
  Where the transaction value of the identical or similar goods of the same manufacturer is not 
found, other transaction values of the identical or similar goods of other manufacturers in the same 
country or its region can be used.    If more than one transaction value of identical  or similar goods is found, the lowest value 
shall be used to determine the Cu stoms value of the imported goods. 
 
Article 22     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 th e 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 goods being valued; (b) in the condition as imported; (c) in the first sale within the Customs terri tory of the People’s Republic of China. 
(d) to an unrelated party within the Customs te rritory of the People's Republic of China and  
(e) in the greatest aggregate quantity. 
 Article 23    In determining Customs value of the imported goods with the application of deductive 
value method, the following items shall be deducted:  
(a) profit, general expenses (either direct or indirect) and commissions usually paid, which are 
incurred in connection with first sales within th e 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 insurance 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 Custom s on behalf of other government department at 
importation of goods  and 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 quantifia ble 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 this Article, principles and methods applied 
shall be consistent with the generally accepted acc ounting principles adopted in the People's Republic 
of China.   
Article 24   Computed value method refers to the valua tion method applied by Customs to determine 
the 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 pr ocessing employed in producing the imported goods;  G/VAL/N/1/CHN/5 
 Page 9 
 
 
  (b) the profit and general expenses (either direct or indirect) of the goods of the same class or 
kind as the imported goods being valued which are so ld for export to the Customs territory of 
the People’s Republic of China; 
(c) the cost of transport, insurance and other ch arges incurred prior to unloading the goods at the 
port 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 info rmation provided by the producer of the goods in 
another country with the agreement of the producer and notification in advance to the governments of 
the country or its region in question.  
 
 In determining the values or costs under the first paragraph of this article, principles and 
methods applied shall be consiste nt with the generally accepted accounting principles applied in the 
country or its region where the goods are produced.  
 
Article 25    Reasonable means refers to the valuation me thod applied by Customs to determine the 
Customs value of the imported goods on the basis of  objective and quantifiabl e data in consistency 
with the principles prescribed in Article 2, when  the Customs value of the imported goods cannot be 
determined with the application of transaction valu e method, transaction value method of identical or 
similar goods, deductive value method, and computed value method. 
 
Article 26  In applying reasonable means, no Customs va lue shall be determined on the basis of: 
 (a)  the selling price in the Customs territory of the People's Republic of China of the goods 
produced wherein.   
(b)  the higher of two 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 comput ed other than the values or costs prescribed in 
Article 24; 
(e)  the selling price of the goods for export to a third country or region other than the People’s 
Republic of China; 
(f)  minimum Customs values, arbitrary or fictitious values.     
 
Chapter III 
Customs Value of Special Imported Goods 
 
Article 27    Where the materials and parts for inward  processing or their finished products are 
subject to Customs duties, the Customs value sha ll be determined in accordance with the following 
provisions:  (a) the Customs value of the imported materials and parts attributed to inward processing with 
imported materials which are destined dutiabl e shall be determined on the basis of the 
transaction value of the materials and parts in question at the time of declaration of entry; 
(b) the Customs value of the materials and  parts or their finished products(including defective or 
substandard products) attributed to inward  processing with imported materials but for 
domestic sale shall be determined on the basis of the transaction value of the materials and parts at the first real time of importation. Where such value is un ascertainable, the Customs 
value shall be determined on the basis of the transaction value of the imported goods, which is 
identical or similar to the materials and parts in question, at or about the same time when 
Customs accepts the declaration for domestic sale; 
(c) the Customs value of the materials and parts or  their finished products (including defective or 
substandard products) attributed to inward  processing with supplied materials but for 
domestic sale shall be determined on the basis of the transaction value of the imported goods, G/VAL/N/1/CHN/5 
Page 10  
 
  which is identical or similar to the materials and  parts in question, at or about the same time 
when Customs accepts the declaration for domestic sale; 
 (d) the Customs value of the leftovers (scraps and wastes or residues) or by-products, which are 
attributable to processing by an inward processi ng enterprise, shall be determined on the basis 
of the domestic selling price determined by Customs. 
 
 Where the Customs value of the goods for in ward processing cannot be determined under the 
provisions of the foregoing paragraphs of this Article, Customs shall determine the Customs value 
with the application of reasonable means.  
Article 28    The Customs value of the finished produc ts (including defective or substandard 
products) which are sold to domestic  market by  processing enterprises in Export Processing Zones  
shall be determined on the basis of the transaction value of imported identical or similar goods at or 
about the same time when Customs accept s the declaration for domestic sale. 
 
 The Customs value of the leftover materials or  by-products produced in processing which are 
sold by processing enterprises in Export Processing Z ones for domestic sale shall be determined on 
the basis of the domestic selling price determined by Customs. 
 
 Where the Customs value of finished products (including defective or substandard products) 
and leftover materials or by-products produced in processing by processing enterprises in Export 
Processing Zones cannot be determined under the provi sions of the foregoing two paragraphs of this 
Article, Customs shall determine the Customs valu e with the application of reasonable means. 
 
Article 29    The Customs value of imported materials and parts or their finished products 
(including defective or substanda rd products) sold by processing enterprises from Bonded Areas for 
domestic sale shall be determined on the basis of th e transaction value of imported identical or similar 
goods at or about the same time when Custom s accepts the declarat ion for domestic sale. 
  Where the finished products, which is embodied with some of domestic materials and parts purchased within the Customs territory and made through the course of the inward processing with 
imported materials, is declared by a processing enterprise from a Bonded Area for domestic sale, the 
Customs value of such a finished product shall be determined on the basis of the value of the rest 
materials and parts purchased outside the Customs territory at the first real time of importation. Where such a value cannot be determined, the Customs value shall be determined on the basis of the 
transaction value of the goods identical or similar to the rest materials and part s at or about the same 
time when Customs accepts the declaration for domestic sale. 
 
 Where the finished product, which is embodied  with some of domestic materials and parts 
purchased within the Customs territory and made through the course of the inward processing with 
supplied materials, is declared by a processing en terprise from a Bonded Area for domestic sale, the 
Customs value of such a finished product shall be determined on the basis of the transaction value of 
the goods identical or similar to the materials and parts embodied therein and purchased outside the 
Customs territory at or about the same time when Customs accepts the declaration for domestic sale. 
 
 The Customs value of the leftover materials or  by-products attributable to processing which 
are sold by processing enterprises from Bonded Are as for domestic sale shall be determined on the 
basis of the domestic selling price determined by Customs.  
 
 Where the Customs value of the finished products (including defective or substandard products), leftover materials or by-products so ld by processing enterprises from a Bonded Area for 
domestic sale cannot be determined  under the provisions of the fore going four paragraphs of this 
Article, Customs shall determine the Customs valu e with the application of reasonable means.  G/VAL/N/1/CHN/5 
 Page 11 
 
 
  Article 30   For goods, excluding materials and parts for inward processing and the finished 
products made thereof, entering into the Customs territory from special Customs controlling areas and 
places such as a Bonded Area, Export Processing Zone, Customs Bonded Logistics Park or Customs Bonded Logistics Centre, when they are subject to import duties and taxes, the Customs value shall be 
determined on the basis of the selling price at th e time of entering the Customs territory from the 
above-mentioned areas and places.  
  Where the above-mentioned selling price does not contain costs and charges incidental to storage and transportation or other associated expe nses, incurred within the area, zone or warehouse 
thereof, those costs and charges or expenses shall be added on the basis of objective and quantifiable 
data.  
 
Article 31    The Customs value for machines, tools, means of transport or any other goods, which 
are transported out of the Customs territory for th e purposes of repair with the declaration thereof 
made to the Customs at the time of departure and consequently returned to  the Customs territory 
within the time limit set by the Customs, shall be de termined on the basis of the charges of the repairs 
and the cost of materials, components and parts used in the course of the repairs. 
 
 Where the goods fail to be shipped back with in the time limit speci fied by Customs, the 
Customs value shall be determined under th e provisions of Chapter II of these Rules. 
 
Article 32   The Customs value of goods which are transported out of the Customs territory 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 set by the 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 asso ciated therewith and the cost of insurance of 
re-importation. 
 
 Where the goods fail to be returned within th e time limit specified by Customs, the Customs 
value shall be determined under the provisions of Chapter II of the Rules. 
 
Article 33   The Customs value of the temporarily imported goods, when they are subject to 
import duties and taxes, shall be determined under th e provisions of Chapter II of these Rules. Where 
the goods for temporary admission are sold with special approval from Customs, the Customs value 
shall be determined on the basis of the purch asing price for home use determined by Customs. 
 
Article 34   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 determined by the Customs during the 
time period together with the interest charges thereof added; 
(b) the Customs value of the leased goods which ar e purchased for home use shall be determined 
on the basis of the purchasing price under an option of purchase; 
(c) where the duty payer applies for one-off paym ent of import duties and taxes, the Customs 
value may be determined either by the methods prescribed under the provisions of Article 6 at 
the request of the duty payer, or on the basi s of the total rental charges determined by 
Customs. 
 Article 35   The Customs value of the goods which we re duty-exempted or duty-reduced and are 
subject to recovery of Customs duties and taxes sha ll be determined on the basis of the value of the G/VAL/N/1/CHN/5 
Page 12  
 
  goods determined at the first real time of impor tation, deducting all the value depreciated. The 
formula shall be expressed as follows:                                                                                                             Customs value = Customs value dete rmined at the time of entry   
 
 The time accurately used before the re covery of duties (in term of months)  
               X       (1 -     -----------------------------------------               )                                                                                                                                                                 Statutory years of Customs control X 12    
  
 In the above formula, the time accurately u sed  before 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 36  When there is no transaction value, as for imported goods by way of barter, 
consignment, donation and presentation etc., Custom s shall determine the Customs value by the 
application of the  methods prescribed under the pr ovisions of Article 6 af ter having consulted over 
price with the  duty payer. 
 
Article 37  The Customs value of imported carrier media bearing software especially for data 
processing 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 documen tary 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. 
 
 Carrier media containing beaux-arts, phot ography, sound, cinematographic or video 
recordings, games, and electronic publications et c., shall not be applicable to the foregoing 
paragraphs. 
 
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 38  The cost of transport for imported goods sha ll be calculated on the basis of  charges 
that are actually paid. Where the cost of transpor t is unascertainable, however, Customs shall calculate 
the cost en facto for transportation or on the basis of the freight rate or freight amount for the carriage 
of the goods published by the Shipping Industry at the time of importation. 
 
 Where the vehicles themselves are treated as im ported goods and transported by using their 
own power, no cost of transport shall be added to  the Customs value in determining Customs value. 
 
Article 39   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 insura nce 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‰ 
  G/VAL/N/1/CHN/5 
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  Article 40 For goods imported by mail, postage alone shall be treated as the costs of transport 
and other charges associated with  tran sport, and the cost of insurance. 
 Article 41   Where goods are imported by railway or highway and transacted in the term of 
Delivered at frontier, Customs shall calculate the cost s of transport and other charges associated with  
transport, and the cost of insurance. on the b asis of 1% of the DAF value of the said goods.  
 
Chapter V 
Customs Value of Exported Goods 
 
Article 42   The Customs value of exported goods shall be determined by Customs on the basis of 
the transaction value, including the inland costs of transport and other charges associated therewith, 
and the cost of insurance incurred pr ior to loading of the goods at th e port or place of departure within 
the Customs territory of the People's Republic of China.    
Article 43   The transaction value of exported goods sha ll 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 44   The following duties, and charges shall not be added to the Customs value of 
exported goods: 
 
(a)     export duty; (b)   the costs of transport and other charges asso ciated therewith, and the cost of insurance which 
are incurred after loading of the export goods at the port or place of departure within the Customs territory of the People's Republic of Ch ina but listed separately in the payment of the 
goods; 
 (c) commissions incurred by the seller and lis ted separately in the payment of the goods. 
 Article 45   Where the Customs value of exported goods  cannot be determined, Customs shall, 
after having inquired relevant info rmation and consulted over price w ith the duty payer, determine the 
Customs value by applying the following methods in their 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 ch arges associated with th e transport and cost 
of insurance within the Customs territory; 
(d)   value determined by reasonable means.   
Chapter VI 
Examination and Verification of Customs Value 
 
Article 46   When making declarations to Customs,  the duty payer shall submit truthful and 
accurate documents including invoice, contract, bill  of loading, and packing list according to the 
provisions of the Rules. 
  Required by Customs, the duty payer shall also furnish Customs with legal payment 
instruments related to transaction and other supplem ental commercial documents , information or data, 
in writing or electronic, reflecting the truth and accuracy of the transaction value. G/VAL/N/1/CHN/5 
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   Where there are any of the adjustments of va lue prescribed under the provisions of Section III 
of Chapter II of these Rules in the sale of goods, th e duty payer shall make a declaration to Customs 
strictly according to the facts. 
 
 Where the foregoing adjustments of value need to be apportioned, the duty payer shall do it 
on the basis of objective and quantifiable criterion, a nd at the same time provide Customs with proof 
of the apportionment.   Article 47   To examine and verify the truth or accu racy of the declared value, Customs may 
exercise the following authorities to  check the declared value: 
 
(a) to examine and copy the contracts, invoi ces, account books, certificates for foreign exchange 
settlement and/or payment, bills, business corre spondences and faxes, a udio or video products 
in relation with the imported goods and ot her commercial bills, wr itten information and 
electronic data reflecting the relationship and transaction activities between the buyer and the 
seller; 
(b) to interview the duty payer of imported or exported goods and citizens, legal persons and 
other organizations having monetary and tran saction relationship with the duty payer to 
inquire into the matters concerning Custom s value of the imported or exported goods; 
(c) to examine the goods or take samples of the goods for examination or laboratory test; (d) to enter into the obligatory duty payer’s pr emise and storage facilities to examine the goods 
and operations relating to imported or exported goods; 
(e) with approval of director general of Customs districts directly under the General 
Administration of Customs of PRC or of director of local Customs authorized by the former and by showing Notice of Account Inquiry of  Customs of People’s Republic of China and 
Customs officers identity cards, to inquire  info rmation relating to collection and payment in 
the company accounts opened with the bank or ot her financial institution by the obligatory 
duty payer, and deliver the banking supervisor  agency about relevant information; and 
(f) to inquire of national tax authorities the situ ation and consequences concerning the payment 
of internal tax in relation to the imported and exported goods. 
  When Customs exercises the above authorities,  the duty payer and relevant citizens, legal 
persons and other organizations are obligated to pr ovide truthful informati on, and submit relevant 
documentary evidence in written or electronic forms. No  refusal, delay, concealment is allowed.     
  
Article 48   Where the Custom has doubts about the trut h or accuracy of the value declared by the 
duty payer, or considering the relationship betwee n the buyer and seller did influence the price, 
Customs shall issue Notice to Qu ery Declared Value by Customs of People’s Republic of China 
(hereinafter referred as Notice to Query Declared Valu e; 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 days from the date of receipt of Notice to Query Declared Value, provide  related documents or other evidence in writing 
that could demonstrate the truth or accuracy of th e 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 provi de the above-mentioned information within the 
time limit, the duty payer or his agent may, in wr itten form, apply to Customs for extension prior to 
the expiration of the time limit. 
 
 Except under special circumstances, the ex tension shall not exceed 10 working days. 
 
Article 49   Once the Notice to Query Declared Value is issued, Customs shall, after having a 
process of consultation over the price with the du ty payer, determine the Customs value of the  G/VAL/N/1/CHN/5 
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  imported or exported goods with th e application of the methods liste d in Article 6 or Article 45 of 
these Rules, in any of the following cases:  (a) where the duty payer or his agent fails to provi de further explanation within the time limit; 
(b)     where Customs, after ex amining the document or evidence provided 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 th e document or evidence provided, has reasonable 
doubts that the relationship between the buyer and seller did influence the transaction value. 
 
Article 50   Where  after examination, Customs determines that im ported goods have no 
transaction values, then valuation inquiry may not  be made. Customs shall determine the Customs 
value with the application of the methods laid dow n in Article 6 of these Rules after having consulted 
over price with the duty payer. 
 
 Where after examination, Customs determin es that the exported goods have no transaction 
value, valuation inquiry may not be made, and afte r having consulted over price with the duty payer, 
Customs shall determine the Customs value with the application of the methods laid down in 
Article 45 of these Rules. 
 
Article 51   When Customs notifies the  duty paye r to consult over price according to the 
provisions of these Rules, the duty payer shall, with in 5 days from the date of receipt of Notice of 
Valuation Consultation of Custom s of People’s Republic of Chin a, engage in the valuation 
consultation with Customs. Where the obligatory duty payer fails to response within the time limit, it 
is deemed that he has given up its right of valua tion consultation, and Customs may directly determine 
the Customs value of the imported or exported goods with the application of the methods laid down in 
Article 6 or Article 45 of these Rules. 
 
 When completing the valuation consultation with the duty payer, Customs shall issue a 
Record Sheet for Valuation Consultation by  Customs of People’s Republic of China. 
 
Article 52   In the following cases, upon written request by the  duty payer, Customs may not 
launch a valuation inquiry and not perform valuat ion consultation and thus determine the Customs 
value of the imported or exported goods with the app lication of the methods laid down in Article 6 or 
Article 45:  (a) where goods are imported or exported in rep eated 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 yuan RMB or the 
total amount of the Customs duty and other im port taxes levied by Customs is below 20,000 
yuan RMB; or 
(c)     where imported or exported goods are t hose by nature of hazardous goods, fresh live goods, 
perishable goods, vulnerable goods, wasted and used goods, etc. 
 
Article 53   In cases prescribed by Articles 27, 28 and 29 of these Rules, Customs may, after 
having a process of consultation over price with the duty payer, determine the Customs value of 
imported goods with the application of the methods laid down in Article 6 of these Rules without any 
valuation inquiry. 
 
 In cases prescribed by Articles 27, 28 and 29 of these Rules, Customs may, upon written 
request by the duty payer, determine the Customs va lue of imported goods with the application of the 
methods laid down in Article 6 of these Rules w ithout having a process of valuation consultation. 
 G/VAL/N/1/CHN/5 
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  Article 54     Where, in the course of determining the Cu stoms value of import and export goods by 
Customs, the duty payer shall be able to wit hdraw them from Customs after providing guarantee 
according to the relevant rules and regulations.    Article 55   After the determination of the Custom s value of imported or exported goods by 
Customs, the duty payer may, upon written request, ask for an explanation in  writing from Customs as 
to how the Customs value of his goods was dete rmined. Once so requested, Customs shall issue 
Notification of Determination of Customs Value by Customs of People’s Republic of China. 
 
Chapter VII 
Supplementary Provisions 
 
Article 56    For the purposes of these Rules, the term s and expressions are defined as follows: 
  “Customs territory”  referred to the Customs territory of the People’s Republic of China. 
 “Customs value”  means the value for the purpo se 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 b earing the risk of loss for the imported goods, 
and as 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. 
Accordingly, seller of imported goods means an yone 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 
China, transferring the ownership or title of the good s and risks by the seller to the buyer, and making 
payment therefore by the buyer to the seller. 
 “Price actually paid or payable” means the total payment, as a condition for the sale of the 
imported goods from the seller, directly  or indirectly made, or to be made, by the buyer to or for the 
benefit of the seller to the third party.   “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 ac tivities between the buyer and seller.  
 “Buying commissions” means any fees paid by a buyer to th e 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 th e service in the purchase of the imported goods.  
 “Identical goods” means goods produced in same country or region, which are the same in 
all respects, including physical characteristics, qua lity and reputation. However, minor differences in 
appearance would not preclude goods otherwise confor ming 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 charact eristic and like component material s which enable them to perform 
the same functions and to be commercially interchangeable.  
 "About the same time” means within 45 days before or after the date of entry of the 
imported goods being valued. In determining Cu stoms value of the imported goods with the 
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 entry of the imported goods 
being accepted, the time for sale within the Customs territory may be extended to 90 days before or 
after the date of entry of th e imported goods being accepted. 
 “Generally accepted accounting principles” refers to any accounting principles, norms and 
methods generally recognized in  relevant countries or regions, including accrual method, matching  G/VAL/N/1/CHN/5 
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  method, historical cost method and division of revenue expenditure method and capital expenditure 
method, which are related to the value of the goods.   “Royalties and license fees” means any fees paid by the buyer for the right to use copyrights, 
patents, trademarks, know-how and other right s relating to the imported goods. However, in 
determining Customs value, the fees for the right to reproduce the imported goods within the Customs 
territory shall not be added into the price actually paid or payable.  
 “Charge for technical training” means all the expenses solely to personnel assigned by the 
buyer, including salary and tuition, boarding and lodging, traffic and medicare, borne by the buyer of imported goods for technical training offered by seller or a third party related to him. 
 “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 knowledge, expe rience, methods, techniques and skills 
concerning technological process, formula, product design, quality control, examination and test, marketing management, etc., expressed in forms of bl ueprints, models, technical  data and standards.  
 “Minor processing” 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” refers to any goods falling into tariff heading 85.24 in The Customs Import 
and Export Tariff of the People’s Republic of China. 
 “Valuation examination”  means that for the purpose of determination of the Customs value 
of imported or exported goods, Cust oms exercises its legal authoriti es prescribed under the provisions 
of Article 47 in order to check out whether the declared value of the imported goods is true or 
accurate and whether the relationship between the bu yer and seller did influence the transaction price 
by examining documents, verifying data, inspecti ng physical goods and ot her related account books. 
 “Valuation consultation” means that when applying the valuation methods other than the 
transaction value method, on the basis of keeping commercial secret confidential,  Customs offers to 
exchange information and data with the obligatory duty payer for the purpose of determination of the 
Customs value. 
 
Article 57   The  duty payer who dissents from th e decision by the Customs on the Customs 
valuation shall pay duties and taxes first accordi ng to relevant administrative decisions made by 
Customs and may submit an appeal for reconsideration of the case to Customs at a higher level in 
accordance with the law. Should the duty payer refu se to accept the decision on the appeal, he may 
bring the case to the People’s Court. 
 
Article 58   Any action in violation of the Rules which constitutes smuggling or violates Customs 
administrative regulations shall be dealt with by Customs in accordance with the Customs Law of the 
People’s Republic of China and the Implementing Regulations on Imposing Administrative Penalties 
under the Customs Law of the People’s Republic of China . Where the violation constitutes a crime, it 
shall be subject to criminal penalty according to relevant laws. 
 
Article 59   General Administration of Customs of th e People’s Republic of China is entitled to 
interpret and construe these Rules.  
 Article 60   The Rules shall be effective as of 1 May 2006, where upon 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.95 of the General 
Administration of Customs on 31 December 2001 and the Customs Regulations of the People’s 
Republic of China Regarding Determination on Custom s Value of Royalties and License Fees Related 
to the Imported Goods promulgated in the form of Decree No .102 of the General Administration of 
Customs on 30 May 2003 shall be repealed simultaneously. 
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