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Measures of the People's Republic of China Governing the Customs Taxation of Import and Export Commodities Part II

  • Type : Regulation
  • Release Date : 2008-01-07

Chapter III   Collection of Duties on Special Import and Export Goods

 


Section I Compensation Goods of No Consideration


 


Article 29. In the case of importing compensation goods of no consideration, the importers are exempted from paying import duties and taxes involved in the importation process collected by the Customs on the behalf of others. In the case of exporting compensation goods of no consideration, the exporters are exempt from paying export duties.


 


Compensation goods of no consideration mentioned in the previous paragraph refer to import and export goods that are compensated or changed free of charge by the consignors, carriers or insurance companies due to damages, losses, shortage, poor quality or not being in conformity with the specifications discovered after the goods have been granted access by the Customs. The goods changed or compensated shall be the same as the original or in conformity with the provisions of the contract.


 


Article 30. Taxpayers shall, within the claim period specified in the original import and export contract and not exceeding three years counting from the day of import and export of original goods, declare to the Customs for handling import and export formalities for compensation goods of no consideration.


 


Article 31. Taxpayers, when declaring to import compensation cargos of no consideration, shall submit the following documents and certificates:


 


1. original Customs declaration for the imported goods;


 


2. export Customs declaration for the return of original goods out of the border or proof of abandoning the goods originally imported delivered to the Customs for treatment;


 


3. letter of payment of duties of the original goods imported or proof of duty collection and exemption;


 


4. claim agreement signed between parties to the trading.


 


In the case of importation of compensation goods due to shortage, the certificates and documents listed in (2) are not requested.


 


In cases where the Customs deems it necessary, the taxpayers are requested to provide proof of inspection or other related evidencing documents issue by qualified commodities inspection agencies, showing damages, shortage, poor quality or that they are not in conformity with specifications of the original goods imported.


 


Article 32. Taxpayers shall submit the following documents and certificates in order to declare for the exportation of compensation goods of no consideration:


 


1. original Customs declaration for exportation of goods;


 


2. importation Customs declaration for the return of goods originally exported;


 


3. letter of payment of duties of the originally exported goods or proof of duty collection and exemption;


 


4. claim agreement signed between parties to the trading.


 


In the case of exportation of compensation goods due to shortage, the certificates and documents listed in (2) are not requested.


 


In cases where the Customs deems it necessary, the taxpayers are requested to provide proof of inspection or other related evidencing documents issued by qualified commodities inspection agencies, showing damages, shortage, poor quality or goods which are not in conformity with specifications of the original goods exported.


 


Article 33. In cases where a taxpayer declares to import or export compensation goods of no consideration and the goods thus imported or exported are not entirely the same as the original ones transported out of or back into borders or in full conformity with what is specified in the contracts, he/she shall provide the Customs with reasons.


 


In cases where the Customs deems reasons given justified after verification, and the tariff lines involved have not been changed, it shall verify and confirm the duty paid price and calculate and collect duties according to the related provisions of the duty paid price of import and export commodities as verified and the exchange rate or tariff rate applicable to the original import and export commodities.


 


In cases where the duty payable is higher than the amount of duty that has been collected on the original import and export goods, the balance between the two shall be reclaimed from the taxpayers.


 


In cases where the duty payable is lower than the amount of duty already collected on the original import and export goods, and the consignor, carrier or insurance company of the original import and export goods has provided compensation payment for goods at the same time, the Customs shall return the duty accordingly which has been collected on the part of compensation money. In cases where no compensation money is paid, the difference between duties will not be returned.


 


In cases where the goods are declared by a taxpayer for importation or exportation as compensation or for change free of charge, if the tariff lines are not the same as those of the original ones, the related provisions on compensation goods of no consideration shall not apply, and the Customs shall collect duties according to the related general provisions governing the importation and exportation of goods.


 


Article 34. In cases where a taxpayer declares to import or export compensation goods of no consideration, and the changed goods originally imported are not returned abroad and not abandoned and delivered to the Customs for treatment, or the original exported goods that are changed are not transported into the country, the Customs shall revalue and collect duties on the original import and export goods according to the tariff rate and exchange rate applicable on the day when the Customs accepts the declaration for the importation or exportation of compensation goods of no consideration and related provisions.


 


Article 35. In cases where the originally imported goods that are being changed are transported abroad, no export duties shall be collected.


 


In cases where the originally exported goods that are being changed are transported into the country, no import duties and duties involved in the importation process collected by the Customs on behalf of others shall be collected.


 


Section II Leased Imported Goods


 


Article 36. A taxpayer importing leased goods shall go to the local Customs to handle the formalities related to the declaration for importation and payment of duties, unless otherwise specified.


 


A taxpayer declaring to import leasing goods shall provide the leasing contract and other related documents to the Customs.


 


In cases where the Customs deems it necessary, the taxpayer shall provide guarantee for payment of duties.


 


Article 37. Imported leasing goods shall be under the Customs' monitoring between the day when the leased goods enter into the country and the day when the Customs formalities have been completed after the lease is over.


 


In the case of paying rent in one go, the taxpayer shall handle duty payment formalities and pay duties at the time of declaring importation of leased goods.


 


In the case of paying rent in installments, the taxpayer shall, at the time of declaring the importation of leased goods, handle taxation formalities and pay duties accordingly on the rent to be paid as the first installment. For payment of rent thereafter, the taxpayer shall declare to the Customs for the handling of taxation formalities no later than the 15th day after each payment of rent.


 


In cases where taxpayers fail to declare for duty payment within the specified period of time, the Customs shall collect duties accordingly in line with the tariff rate and exchange rate applicable on the 15th day after each payment of rent by the taxpayers. The Customs shall also collect an arrearage of 5/10,000 of the overdue tax payment on a daily basis between the day of expiration of the period allowed for the declaration for handling taxation formalities and the day of declaration of payment of duties by the taxpayers.


 


Article 38. The Customs shall conduct monitoring over the imported leasing goods, urge taxpayers to declare to the Customs for duty payment periodically, and ensure the payment of duties collected into the treasury promptly and in full.


 


Article 39. Taxpayers shall apply to the Customs to handle and complete the monitoring formalities within 30 days upon the expiration of the leasing period of the imported leasing goods, and transport the imported goods out of the country.


 


In cases where it is necessary to purchase or continue to lease the imported goods, the taxpayers shall declare to the Customs to handle related formalities no later than the 30th day upon the expiration of the period of lease of the imported goods.


 


For imported leasing goods that are kept and purchased, the Customs shall examine, verify, and identify the duty paid price, and collect duties payable according to the related provisions governing the examination and verification of the duty paid price of imported goods and the exchange rate and tariff rate applicable to the goods purchased on the day when the Customs accepts the declaration for the handling of purchase related formalities.


 


In the case of continued lease of imported goods, the taxpayers shall provide a contract of renewal of lease to the Customs and handle taxation related formalities in line with the provisions of articles 36 and 37 of this set of measures.


 


Article 40. In cases where taxpayers fail to declare to the Customs to handle formalities related to the keeping and purchase of imported leasing goods within the period specified in item 1 of article 39 of this set of measures, the Customs shall, in addition to identifying through examination and verification the duty paid price and collecting payable duties according to the related provisions governing the examination and verification of the duty paid price of imported goods and the exchange rate and tariff rate applicable to the goods on the 30th day after the expiration of the period of lease, collect an arrearage of 5/10,000 of the overdue tax payment on a daily basis between the 30th day upon the expiration of the leasing period and the day of declaration of payment of duties by the taxpayers.


 


In cases where taxpayers fail to declare to the Customs for the handling of formalities related to the continued lease of imported goods within the period specified in item 1 of article 39 of this set of measures, the Customs shall, in addition to collecting duties payable on imported goods continuing to be leased according to the provisions of article 37 of this set of measures, collect an arrearage of 5/10,000 of the overdue tax payment on a daily basis between the 30th day upon the expiration of the leasing period and the day of declaration of payment of duties by the taxpayers.


 


Article 41. In cases where the lease is terminated before the expiration of the period of lease for imported leasing goods, the date of expiration of the lease is the date on which the lease period is over.


 


Section III Temporary Entry and Exit Goods


 


Article 42. Temporary entry or exit goods as approved by the Customs shall be subject to administration of the Customs according to related regulations.


 


Article 43. Temporary entry and exit goods listed in item 1 of article 42 of the Tariffs Regulation are exempted from paying duties temporarily within the period specified by the Customs.


 


In cases where temporary entry and exit goods mentioned above are not transported abroad or into the country upon the expiration of the specified period, taxpayers shall declare to the Customs, before the expiration of the specified period of time, to handle import and export and duty payment formalities. The Customs shall collect duties according to the competent regulations.


 


Article 44. For temporary entry and exit goods not mentioned in item 1 of article 42 of the Tariffs Regulations, the Customs shall examine, verify, and identify the duty paid price, and collect duties on a monthly basis according to the related provisions governing the examination and verification of the duty paid price of imported and exported goods and the exchange rate and tariff rate applicable to the goods on the day when the Customs accepts the declaration for the importation and exportation of the goods. The Customs may also collect duties on the goods when they are transported abroad or into the country within the specified period of time. The period of collection of duties is 60 months. In the case of less than 1 month but exceeding 15 days, it will be taken as 1 month.


 


In cases where it is less than 15 days, no duty is collected. The period of collection of duties starts to count from the day when the goods are granted access.


 


The formula for the monthly collection of duties is: monthly duties = total tariff x (1/60)


 


Monthly taxes involved in the importation process and collected by the Customs on behalf of others: total taxes involved in the importation process x (1/60)


 


In cases where temporary entry and exit goods mentioned in paragraph 1 of this article are not transported abroad or into the country upon the expiration of the specified period of time, taxpayers shall declare to the Customs for the handling of import and export and duty payment formalities and pay the residual duties before the expiration of the specified period of time.


 


Article 45. In cases where temporary entry and exit goods fail to be transported abroad or into the country within the specified period of time, and the taxpayers fail to declare to the Customs for the handling of import and export and duty payment formalities before the expiration of the specified period of time, the Customs shall, in addition to collecting duties payable as regulated, collect an arrearage of 5/10,000 of the overdue tax payment on a daily basis between the expiration of the specified period and the day of declaration of payment of duties by the taxpayers.


 


Article 46. Specified period mentioned in articles 43 to 45 in this set of measures includes the extended period of time approved by the Customs for the transportation of temporary entry and exit goods abroad or into the country.


 


Section IV Entry and Exit Repair Goods and Outgoing Processing Goods


 


Article 47. Taxpayers, when handling the importation declaration formalities for incoming goods for repair, shall submit the repair contract of the goods (or original export contract that contains clauses of repair guarantee) to the Customs, and provide guarantee of import duties to the Customs, or have the goods under the Customs administration as bonded goods. Incoming goods for repair shall be transported abroad within the period of time specified by the Customs.


 


In cases where there is a need to import raw materials and spare parts for the incoming goods for repair, the taxpayers shall, at the time of handling import declaration formalities for raw materials or spare parts, submit to the Customs the repair contract of the goods (or original export contract that contains clauses of repair guarantee), import declaration for incoming goods for repair (except under circumstances where a declaration for importation is also made at the same time with the incoming goods for repair), and provide guarantee of import duties to the Customs, or have the goods under the Customs administration as bonded goods. Incoming goods for repair shall be transported abroad within the period of time specified by the Customs. Imported raw materials and spare parts can only be used to repair the incoming goods for repair and raw materials and spare parts that remain shall be transported out of border together with the incoming goods for repair.


 


Article 48. Taxpayers, at the time of handling export declaration formalities for the transportation of incoming goods for repair and the leftover raw materials and spare parts out of the country, shall submit to the Customs the original import declaration of the goods and incoming raw materials and spare parts and repair contract (or original export contract that contains clauses of repair guarantee) and other certificates. The Customs shall, on the strength of that, handle formalities related to the release of guarantee for duties from taxpayers, which was provided at the time of entry of the goods and raw materials and spare parts. In the case of administration by the Customs as bonded goods, the related provisions governing bonded goods shall be followed.


 


In cases where it is not possible to transport the incoming goods for repair out of the border within the period specified by the Customs due to justifiable reasons, the taxpayers shall give explanations to the Customs before the expiration of the specified period of time and apply for an extension of transportation out of border.


 


Article 49. In cases where incoming goods for repair fail to be transported abroad within the period allowed by the Customs (including extension period, same below), the Customs shall exercise administration over the goods in line with the taxation regulations governing normal import and export goods, and transfer the guarantee of duties provided by the taxpayers at the time of goods entry into duties.


 


Article 50. Taxpayers, at the time of handling export declaration formalities for outgoing repair goods, shall provide the Customs with the repair contract (or original import contract that contains clauses of repair guarantee) of the goods. Outgoing repair goods shall be transported back into the country within the period of time specified by the Customs.


 


Article 51. Taxpayers, at the time of handling import declaration formalities for the transportation of outgoing repair goods into the border, shall provide the Customs with the original export declarations and repair contract ( or original import contract that contains clauses of repair guarantee) of the goods, repair invoices and other certificates.


 


The Customs shall examine, verify, and identify the duty paid price, and collect duties according to the related provisions governing the examination and verification of the duty paid price of imported goods and the exchange rate and tariff rate applicable to the goods on the day when the Customs accepts the declaration for the transportation of the goods into the country.


 


In cases where it is not possible to transport the outgoing repair goods into the country within the period specified by the Customs due to justifiable reasons, the taxpayers shall give explanations to the Customs before the expiration of the specified period of time and apply for an extension of transportation of the goods into the country.


 


Article 52. In cases where outgoing repair goods are transported out of the border beyond the period allowed by the Customs, the Customs shall collect import duties in line with the taxation administrative regulations governing normal import goods.


 


Article 53. Taxpayers, at the time of handling export declaration formalities for outgoing processing goods, shall provide the Customs with the consigned processing contract of the goods.


 


In cases where outgoing processing goods are subject to export duties, taxpayers shall provide the Customs with a guarantee of export duties. Outgoing processing goods shall be transported out of the border within the period allowed by the Customs.


 


Article 54.  Taxpayers, at the time of handling import declaration formalities for the transportation of outgoing processing goods into the country, shall provide the Customs with the original export declaration and consigning processing contract, processing invoice and other certificates of the goods.


 


The Customs shall examine, verify, and identify the duty paid price, and collect import duties according to the related provisions governing the examination and verification of the duty paid price of imported goods and the exchange rate and tariff rate applicable to the goods on the day when the Customs accepts the declaration for the transportation of the goods into the country, and handle formalities related to the release of guarantee for duties from taxpayers, which was provided at the time of exit of the goods.


 


In cases where it is not possible to transport the outgoing processing goods into the country within the period specified by the Customs due to justifiable reasons, the taxpayers shall give explanations to the Customs before the expiration of the specified period of time and apply for an extension of transportation of the goods into the country.


 


Article 55. For outgoing processing goods failing to be transported into the country within the period allowed by the Customs, the Customs shall exercise administration over the goods according to the general rules governing taxation of import and export goods, and transfer the guarantee for duties provided by taxpayers into duties at the time of exit of the goods. For outgoing processing goods that are being transported into the country, the Customs shall collect import duties according to the general rules governing taxation of import goods.


 


Article 56. Period specified by the Customs and period allowed by the Customs mentioned in articles 47 to 55 in this set of measures shall be identified by the Customs according to the entry and exit repair goods, related provisions of the contract of outgoing processing goods and the actual conditions.


 


Section V Returned Goods


 


Article 57. In cases where exported goods are returned in their original status into the country within one year, starting from the day when the export goods are granted access due to quality or specification reasons, the taxpayers shall, at the time of handling import declaration formalities, submit related certificates and documents and evidencing documents as requested. Upon confirmation by the Customs, original export goods that are transported into the country are exempt from paying import duties and taxes involved in the importation process collected by the Customs on behalf of others.


 


Article 58. In cases where imported goods are returned in their original status out of the border within one year, starting from the day when the import goods are granted access due to quality or specification reasons, the taxpayers shall, at the time of handling export declaration formalities, submit related certificates and documents and evidencing documents as requested. Upon confirmation by the Customs, original import goods that are transported out of the border are free from paying export duties.




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