CUSTOMS LAW OF THE PEOPLES REPUBLIC OF CHINA
The Customs Law of the People’s Republic of China (P.R.C.), as amended in 2004, provides the framework governing the import and export of goods in the P.R.C. The Law governs the organization and administration of China Customs, and the specific regulations for its implementation include Chinese import and export licensing, collection of customs duties and tax revenues, protection of intellectual property rights, safeguarding state security, monitoring environmental regulations, and the imposition of anti-dumping duties.
The Customs Law provisions apply to all persons engaging in import and export activities—including individuals, legal persons, and other organizations—in China. The Law specifies the procedures and regulates activities such as the declaration of goods for inspection; payment of relevant taxes, including import and export duties and value-added tax; processing of transit, temporary entry, and bond operations; prompt collection and release of transit cargo; loading and unloading of ships; and port management.
The law also specifies obligations concerning the documentation of goods, including the preparation and submission of cargo manifests and entry and exit declarations, as well as the submission of particulars of deposits or payments made and remunerations to foreign vessels trading in China. The regulations provide a duty-paid zone and duty-free zone program, allowing importers to postpone the payment of duties on goods imported and temporarily stored in such zones. Furthermore, exceptions may be granted to certain declaration conditions, prorating and deferment of customs duties, and the granting of public interests and special protection to certain goods.
The purpose of the Customs Law is to facilitate legitimate trade and protect the country’s economy and national security. It is an inclusive legislation under which all persons must comply when engaging in international trade activities. Violators of the Customs Law are subject to criminal and civil penalties, and in some circumstances, administrative sanctions. The penalties for violations as specified include confiscation of goods, suspension and revocation of operation permits, and fines of up to five times the tax due.
The Customs Law is an integral aspect of the trade policy of the P.R.C. and is encompassed by other provisions such as the Foreign Trade Law, the Administrative Measures on the Supervision and Control of Export Taxes, and the Rules on the Supervision and Control of the Export and Import of Counterfeit Products. Since its implementation in 1986, the Customs Law of the People’s Republic of China has maintained the country’s efficient and competitive trading environment, ensuring an updated and secured channel for necessary imports and exports.
