Regulation of Origin of Import and Export Goods to the Peoples Republic of China
Introduction
This Regulation is promulgated by the State Council pursuant to the Law of the Peoples Republic of China on Import and Export Commodity Inspection.
Article 1 (Purpose and Scope)
The purpose of this Regulation is to strengthen the administration on the origin of import and export goods in the Peoples Republic of China (hereinafter referred to as China), to protect the legitimate interests of domestic producers and foreign traders, and to facilitate friendly economic and trade cooperation between China and other countries or regions.
This Regulation shall apply to the origin of the goods in international trade that are imported into or exported from China.
Article 2 (Definition)
In this Regulation,
(1) origin of goods means the place, country or region where the goods are wholly obtained or produced or where the last substantial transformation occurs;
(2) substantial transformation means to change the identity by means such as processing or assembly;
(3) wholly obtained means that the goods are produced in a certain place, country or region, and all of its components are grown, extracted, harvested, caught, bred, or produced in that place, country or region;
(4) sub-assembly means the combination of the components and the assembly of the components in a certain pattern as determined by the trademark and list;
(5) local content means the total value of the portion originating in a certain place, country or region against the total value of the product.
Article 3 (Qualification of Origin)
3.1 There are two kinds of origin qualification for goods imported or exported from China, i.e. origin of goods and country of origin or region. The origin of goods shall generally prevail.
3.2 The origin of goods shall be determined in accordance with the Rules of Origin stipulated in this Regulation or its implementing rules.
Article 4 (Standard of Origin)
4.1 The origin of goods shall be determined based on the standard of substantial transformation or local content.
4.2 When the standard of substantial transformation is applied to determine the origin of goods, the place where or the country or region to which the last substantial transformation occurs shall be deemed as the origin of goods.
4.3 When the standard of local content is applied to determine the origin of goods, the place, country or region where the origin of major components of the product not exceeding two thirds of its total value exceeds the total value of all other components shall be deemed as the origin of goods.
Article 5 (Rules of Origin)
5.1 Specific rules of origin shall be formulated for goods imported and exported from China in accordance with the standard of substantial transformation, the standard of local content, or their combination.
5.2 The rules of origin are set forth in Annex I and may be amended or supplemented by relevant departments of the State Council upon the approval of the State Council.
Article 6 (Inspection and Verification)
6.1 China shall establish an inspection and verfication system with necessary measures relative to the import and export goods in accordance with the laws and regulations concerning the administration of import and export commodities, commodities inspection and the determination of origin of goods.
6.2 China shall, in accordance with its own laws and regulations, inspect and verify the origin of goods imported or exported from China.
Article 7 (Sanctions for Infringement)
7.1 Any act that is in violation of the provisions of this Regulation by importers or exporters or any other organization or individual shall be subject to sanctions in accordance with the relevant laws and regulations of China.
7.2 Where any false declaration or documentation is provided for inspection or for the determination of origin of goods, the importers or exporters shall be liable for all the losses incurred thereby.
Article 8 (Miscellaneous)
8.1 Supervision and administration departments of the State Council shall be responsible for the enforcement of this Regulation.
8.2 This Regulation shall enter into force on the date of its promulgation. The Regulation of Origin of Imported and Exported Goods of the Peoples Republic of China as promulgated on November 30, 1990 shall be repealed simultaneously.
Annex I
Rules of Origin
