Provisions of the Customs of the People's Republic of China on Administration of Customs(2)

Chapter III The Annual Audit and Registration of the Alteration

Article 8 The Customs shall adopt a system of annual audit on the Customs agency enterprise. The Customs agency enterprise shall, prior to Match 31 of each year, submit to the local Customs Houses Report of Annual Audit of the previous year for annual audit. Where the agency concerned has acquired the qualification of the Customs declaration and the entered the record of the Customs houses in other places, the agency thereof shall submit the record of passing the annual audit issued by the competent Customs to the recording Customs Houses for the procedures of annual audit.

　　Report of annual audit shall mainly include: annually business volume of the Customs declaration and analysis of business, mistakes committed in the Customs declaration and causes, information on observance of the relevant provisions of the Customs, operation and management.

　　In case of less than one year after registration, the agency thereof may not participate in the annual audit.

Article 9 Where the Customs agency enterprise needs to alter the name, legal representative, business premises, properties of the agency or the scope of business, the registered capital and other information recorded at the Customs, the agency thereof shall submit a written application to the local Customs for verification.

Article 10 In case of bankruptcy and dismissal, the agency concerned shall submit the written report to the local Customs. Upon going through the procedures of clearance, the customs shall cancel certificate of registration and refund the sum of the guarantee.

Chapter IV The Code of the Customs Declaration

Article 11 The Customs agency enterprise shall go through the formalities of the Customs declaration and payment of duty at various ports of the local Customs Houses. Under special circumstances, the agency concerned may, upon agreement between the Customs Houses after negotiating with the Customs at a higher level, and after verification and approval of the General Administration of Customs, engage in the business of the Customs declaration in other places.

Article 12 The Customs agency enterprise may only accept the entrustment of units authorized to import and export goods and handle the matters entrusted such as transportation of goods, the Customs declaration and duty payment.

Article 13 When the Customs agency enterprise declares at the Customs, it shall produce to the Customs the following documents:

(1) letter of authorization signed by legal representative of the agency concerned to handle matters of the Customs declaration and duty payment for this time and this time only;

(2) agreement of undertaking and shipping the import and export goods; and

(3) letter of authorization of the Customs declaration issued by the client. Letter of authorization shall specify the name of the client and the agent, serial number of the Customs registration, addresses, name of the Laws of China : Economic Law Art 13 legal representative, the matters entrusted, power and period, obligations of both parties and affixed with the seals of both parties.

Article 14 The Customs agency enterprise shall not in any form let any other party handle the matters of the Customs declaration of import and export goods and duty payment in its name.

Article 15 The Customs agency enterprise shall recruit clearance agent pursuant to the provisions of the Customs and undertake the legal liabilities for the declaration acts of the clearance agents.

Article 16 The Customs agency enterprise shall establish account books and keep business operational record of the Customs declaration in accordance with the requirements of the Customs on accounting book and business statements of import and export enterprises, and truthfully, accurately, and completely record all the activities of the Customs declaration and duty payment. The agency shall also completely keep the various documents, invoices, letters and faxes submitted by the client for inspection and examination by the Customs.

　　The Customs agency enterprise shall assist the Customs in contacting the client, and submit the relevant recorded documents of the client concerning the Customs declaration and duty payment pursuant to the requirements of the Customs.

to be continued