Decree of the General Administration of Customs of the People’s Republic of China on Issuing the Decision of the General Administration of Customs of the People’s Republic of China to Amend Certain Rules

Urgent Decree No.240 of 2018 by the GACC

Guangdong Sub-Administration of the GACC; Supervising Office of the GACC in Tianjin, Supervising Office of the GACC in Shanghai; all Customs offices (former Entry-Exit Inspection and Quarantine Bureau) and academies directly under the GACC; all departments of the GACC, disciplinary inspection organizations at the GACC, all enterprises and public institutions in Beijing that are directly under the GACC; the Editorial Office of the Gazette of the State Council and the Gazette Office of the Ministry of Commerce,

Annex 11

Measures of the General Administration of Customs of the Peoples Republic of China for Supervision of the Entry and Exit of Articles for Self-Use of Non-Resident Long-Term Visitors

Chapter I General Provisions

Article 1 For the purpose of regulating the Customs administration of the entry and exit of articles for self-use of non-resident long-term visitors, in accordance with the Customs Law of the Peoples Republic of China and other relevant laws and administrative regulations, the Measures are formulated.

Article 2 The entry or exit of articles for the self-use of non-resident long-term visitors shall comply with the Catalogue of Articles for Self-Use of Non-Resident Long-Term Visitors (hereinafter referred to as “Catalogue of Articles”) and shall be limited to reasonable amount for self-use. The Catalogue of Articles shall be formulated and issued by the GACC separately. Resident staff members may import motor vehicles, with one vehicle for one person, while other non-resident long-term visitors are prohibited from importing motor vehicles.

A non-resident long-term visitor or the enterprise entrusted by the visitor for handling Customs clearance may fulfill customs clearance formalities for entry and exit of articles for self-use at the competent Customs office or port Customs office. A resident staff member shall fulfill Customs clearance formalities at the competent Customs for the inbound motor vehicle.

The Customs office may check the relevant articles for self-use during clearance to prevent the entry or exit of prohibited articles.

After release of articles for self-use, the Customs office may conduct spot checks over the use of such articles by conducting on-site verification and other means.

Article 3 Non-resident long-term visitor may not declare the entry of articles for self-use until he or she has obtained the certificate of long-term residence within the territory of China. The Customs shall exempt tax on articles for self-use that are declared for first-time entry of territory, with motor vehicles permitted to enter the territory according to the present Provisions and the 20 commodities that should be taxed in accordance with the state provisions excluded. Taxes shall be collected on articles for self-use that are redeclared for entering the territory without exception.

The Customs shall collect tax on taxable inbound articles for self-use of a non-resident long-term visitor according to relevant provisions of the Regulation of the Peoples Republic of China on Import and Export Duties.

Taxes shall be exempted from inbound tax-free articles for self-use of a non-resident long-termvisitor included in any convention between governments.

Chapter II Supervision over Inbound Articles for Self-use

Article 4 When declaring the entry of articles for self-use, a non-resident long-term visitor shall complete the Declaration Form of the Customs of the Peoples Republic of China for the Entry or Exit of Articles for Self-Use (hereinafter referred to as the “Declaration Form”), and submit his or her identity certificate, long-term residence certificate, bill of lading or shipping document, packing list and other relevant documents. Individuals from Hong Kong, Macau or Taiwan shall also provide residence certificate issued by the public security authority at the place of his or her domicile.

When declaring the entry of a motor vehicle, a resident staff member shall complete the Declaration Form for Imported Goods, and submit the documents prescribed in the preceding paragraph.

Article 5 Where any inbound motor vehicle is seriously damaged due to accidents, force majeure or other reasons, or loses use value due to wear and tear or expired service life, a resident staff member may, after discarding it as useless, and with the certificate of revocation of motor vehicles issued by the public security authorities in charge of traffic control, redeclare the entry of 1 motor vehicle upon the approval of the competent Customs in charge of handling the formalities for closing a motor vehicle case.

Where an inbound motor vehicle is lost, stolen or sold to other individuals or the supervision period expires, etc., the resident staff member shall not redeclare the entry of the motor vehicle.

Article 6 A resident staff member shall apply to competent Customs for receiving the Notice on Receiving or Revoking the License Plate of the Entry/Exit Vehicles under Supervision of the Customs of the Peoples Republic of China (hereinafter referred to as the Notice on Receiving or Revoking the License Plate) and completes the formalities of applying for and receiving the license plate for the motor vehicle within 10 working days from the day when the Customs release the inbound motor vehicle. For a tax-free inbound motor vehicle, the resident staff member shall also apply to the competent Customs for the Registration Certificate of Vehicles under Supervision of the Customs of the Peoples Republic of China (hereinafter referred to as the Registration Certificate of Vehicles) within 10 working days as of the receipt of the above-mentioned notice with the Driving Permit of Motor Vehicles, issued by the public security authorities in charge of traffic control.

Chapter III Supervision over Outbound Articles for Self-use

Article 7 A non-resident long-term visitor shall fill in the Declaration Form and provide his or her identity certificate, certificate of long-term residence, bill of lading or shipping document, packing list and other relevant certificates when declaring the exit of the inbound articles for self-use.

A resident staff member shall complete the formalities of applying to public security authorities in charge of traffic control for revoking the license plate as of the receipt of the Registration Certificate of Vehicles from the Customs when declaring the exit of the inbound motor vehicles for self-use.

Chapter IV Follow-up Supervision over Inbound Tax-Free Motor Vehicles

Article 8 An inbound motor vehicle of a resident staff member exempted from taxation according to Paragraph 3, Article 3 of the Measures shall be deemed as a motor vehicle under supervision of the Customs and follow-up supervision shall be conducted by the competent Customs during a supervision period of 6 years from the day when the Customs releases the vehicle.

Inbound motor vehicles shall not be transferred, sold, rent, mortgaged, pledged or disposed of by any other means during the supervision period by the Customs without approval by the Customs.

Article 9 Annual examinations by the Customs shall be implemented on the inbound motor vehicles of resident staff members under the supervision of the Customs. Resident staff members shall drive the inbound motor vehicles under supervision of the Customs within prescribed time to the designated places according to notice by the competent Customs, and they shall complete the formalities of the Customs’ annual examination upon providing identity certificates, certificates of long-term residence, the Registration Certificate of Vehicles and the Driving Permit of Motor Vehicles. The competent Customs shall affix its annual examination seal on the Registration Certificate of Vehicles after the annual examination is passed.

Article 10 When the term of a resident staff member expires, upon approval by the competent Customs, he or she may transfer his or her motor vehicle under Customs supervision to other resident staff members or resident offices, or sell it to specified businesses. The transferee’s quota for inbound motor vehicles is reduced accordingly.

Where the transferee also enjoys tax-free right on his or her inbound motor vehicles, the transferred motor vehicles shall be exempted from taxation and shall be under supervision by the competent Customs of the transferee for the rest of supervision period.

Article 11 When a resident staff member transfers his or her inbound motor vehicles that are under supervision, the transferee shall submit the Application Form for Transfer of Official/Personal Vehicles of the Customs of People’s Republic of China (hereinafter referred to as the Application Form for Transfer) with signature and stamps of the transferer and the transferee and other relevant certificates to the competent Customs of the transferee. Upon review and endorsement by the competent Customs of the transferee, the Application Form for Transfer shall be forwarded to the competent Customs of the transferer. The transferer shall complete the formalities to revoke the license plate at thepublic security authorities in charge of traffic control with the Notice on Receiving or Revoking the License Plate issued by the competent Customs of the transferer. After the competent Customs of the transferer finishes the formalities to cancel the vehicle registration, it shall forward the original documents of the vehicle’s entry and issue the receipt of the Application Form for Transfer to the competent Customs of the transferee. The transferee shall apply to thepublic security authorities in charge of traffic control for the motor vehicle license with the Notice on Receiving or Revoking the License Plate issued by the competent Customs of the transferee. The transferee shall pay the tax on the motor vehicles to be taxed to the competent customs in accordance with the law.

When an inbound motor vehicle of a resident staff member is to be sold, the specified businesses shall submit the Application Form for Transfer signed by the resident staff member to the competent Customs of the resident staff member. After the Application Form for Transfer is reviewed by the competent Customs, the specified businesses shall complete the formalities of revoking the license plate according to the preceding paragraph and pay the due tax to the competent Customs.

Article 12 When the Customs supervision period of a motor vehicle expires, the resident staff member shall apply to the competent Customs for lift of supervision with the Application Form for Lifting Customs Control over Official/Personal Vehicles and the Driving Permit of Motor Vehicles. Upon approval of the application, the competent Customs shall issue the Certificate for Lifting Customs Control over Vehicles under Supervision of the Customs of the People’s Republic of China and the resident staff member shall fulfill relevant formalities at the public security authorities in charge of traffic control with the Certificate.

Article 13 Where the motor vehicle within the supervision period by the Customs is determined by a court to pay off the debts of others or is lost or stolen, the original owner of the motor vehicle shall apply to the Customs to go through the formalities for lifting the Customs supervision over the motor vehicle and pay taxes arising therefrom in accordance with the law.

Article 14 When the term of a resident staff member expires, he or she shall fulfill the formalities at the competent Customs to close the case of his or her motor vehicles under supervision of the Customs before he or she leaves the Chinese territory.

Chapter V Legal Liability

Article 15 Breaches of the Measures that constitute acts of smuggling, acts against regulations by the Customs or other acts against the Customs Law shall be punished in accordance with the Customs Law of the People’s Republic of China and the Rules of Administrative Penalties for the Implementation of the Customs Law of the Peoples Republic of China by the Customs. Acts that constitute crimes shall be investigated for criminal liability according to law.

Chapter VI Supplementary Provisions

Article 16 The meanings of the following terms in the Measures:

“Non-resident long-term visitors” refer to foreign nationals, individuals from Hong Kong S.A.R., Macau S.A.R. and Taiwan and overseas Chinese who reside in the Chinese territory continuously for at least one year after entering the border upon approval by public security administrations before returning back to their overseas permanent residence.

“Resident staff members” refer to the non-resident long-term visitors as follows:

1. Staff members of permanent resident offices established within the territory by overseas enterprises, news agencies, economic, trade and cultural associations and other overseas legal persons upon approval by competent departments of the Peoples Republic of China and filed at the Customs;

2. Individuals of foreign invested enterprises registered at the Customs;

3. Experts who conduct long-term work in China.

“Identity certificates” refer to certificates issued by competent departments of the Peoples Republic of China, such as the Work Certificate for Permanent Resident Offices of Foreign (Regional) Enterprises and the Work Permit for Foreigners in the Peoples Republic of China, passports for border entry and exit, the Mainland Travel Permit for Hong Kong and Macau Residents, the Mainland Travel Permit for Taiwan Residents, etc.

“Certificates of long-term residence” refer to certificates with the validity period of at least one year that allow long-term residence within the Chinese territory, such as the Work Permit for Foreigners in the Peoples Republic of China, the Mainland Travel Permit for Hong Kong and Macau Residents, the Mainland Travel Permit for Taiwan Residents, etc.

“Competent Customs offices” refer to the Customs at the residence of non-resident long-term visitors that are directly under the GACC or their authorized subordinates.

“Articles for self-use” refer to articles and motor vehicles needed by non-resident long-term visitors for daily use that comply with the Catalogue of Articles.

“Motor vehicles” refer to motorcycles, sedans, off-road vehicles and passenger cars with less than 9 seats.

“The 20 commodities” refer to televisions, video cameras, video recorders, video players, audio equipment, air conditioners, refrigerators, washing machines, cameras, photocopiers, private branch exchanges, microcomputers, telephones, radio paging systems, fax machines, electronic calculators, printers and word processors, furniture, lamps and cooking materials.

Article 17 The Measures are not applicable to articles brought into the Chinese territory by staff members of foreign embassies and consulates in China and staff members of the representative offices of the United Nations and its organizations as well as other international organizations that have signed agreements with the Chinese government. Those articles shall be governed by other relevant laws and administrative regulations.

Article 18 The documents prescribed in the Measures shall be formulated and issued by the GACC separately.

Article 19 The General Administration of Customs shall be responsible for the interpretation to the Measures.

Article 20 The Measures shall come into effect on August 1^st, 2004. The regulatory documents listed in the Annex shall be simultaneously abolished.

Annex: the list of abolished documents (omitted)