Administrative Measures of the Customs of the People's Republic of China for the Reduction and Exemption of Import and Export Duties
Administrative Measures of the Customs of the People's Republic of China for the Reduction and Exemption of Import and Export Duties
Administrative Measures of the Customs of the People's Republic of China for the Reduction and Exemption of Import and Export Duties
Order of the General Administration of Customs No. 245
December 21, 2020
The Administrative Measures of the Customs of the People's Republic of China for the Reduction and Exemption of Import and Export Duties, which were adopted upon deliberation at the executive meeting of the General Administration of Customs on December 11, 2020, are hereby promulgated and shall come into effect as of March 1, 2021. The Administrative Measures of the Customs of the People's Republic of China for the Reduction and Exemption of Import and Export Duties (Order of the General Administration of Customs No. 179) promulgated by the General Administration of Customs on December 29, 2008 shall be repealed simultaneously.
Ni Yuefeng, Director
Administrative Measures of the Customs of the People's Republic of China for the Reduction and Exemption of Import and Export Duties
Chapter I General Provisions
Article 1 These Measures are formulated in accordance with the Customs Law of the People's Republic of China (hereinafter referred to as the "Customs Law"), the Regulations of the People's Republic of China on Import and Export Duties as well as relevant laws and administrative regulations with a view to regulating the administration of the reduction and exemption of import and export duties by the Customs, protecting the legitimate rights and interests of administrative counterparts and optimizing the business environment.
Article 2 Except as otherwise provided for by laws or administrative regulations, matters concerning the reduction/exemption of import/export duty or import-related domestic taxes (hereinafter referred to as "duty reduction/exemption") shall be subject to administration by the Customs in accordance with these Measures.
Article 3 An applicant for the reduction/exemption of import/export duty (hereinafter referred to as "duty reduction/exemption applicant") shall apply to the competent Customs for handling such relevant businesses as review and confirmation of duty reduction/exemption, guarantee for payment of tax on as well as follow-up management of goods entitled to duty reduction/exemption.
A duty reduction/exemption applicant shall, when applying to the competent Customs for handling duty reduction/exemption-related business, submit complete and valid application materials filled out in a standardized manner as required, and assume corresponding legal liability for the authenticity, accuracy, completeness and standardization thereof.
Chapter II Review and Confirmation of Duty Reduction and Exemption
Article 4 A duty reduction/exemption applicant shall, when applying for reduction/exemption of import/export duty on pertinent goods under relevant preferential policies on import/export duty, prior to the declaration of import/export of goods, obtain supporting materials on its qualification for entitlement to preferential policies on import/export duty under relevant policies, and apply to the competent Customs to go through the formalities for review and confirmation of duty reduction/exemption on the strength of the following materials:
1. Application Form for Import/Export Duty Collection/Exemption;
2. supporting materials such as corporate certificate of a public institution or state authority establishment document, corporate registration certificate of a social organization, corporate registration certificate of a private non-enterprise entity, and corporate registration certificate of a foundation; and
3. import/export contract, invoice as well as product information and materials on pertinent goods.
Article 5 The competent Customs shall, within ten working days from the date of acceptance of an application for review and confirmation of duty reduction/exemption, review whether the subject qualification of the pertinent duty reduction/exemption applicant, investment project and relevant situation of imported/exported goods comply with relevant preferential policies on import/export duty, issue opinions on confirmation of import/export duty collection/reduction/exemption, and produce and issue a Notice of the Customs of the People's Republic of China on Confirming the Collection or Exemption of Import/Export Duty (hereinafter referred to as the "Notice on Confirming the Import/Export Duty Collection/Exemption").
Under either of the following circumstances, where the competent Customs cannot issue confirmation opinions within the time limit prescribed in Paragraph 1 of this article, it shall state the reasons therefor to the duty reduction/exemption applicant:
1. there is no definite preferential policy on import/export duty or as the administrative responsibilities of other departments are involved, it is required to further consult with pertinent departments for verification of relevant information; or
2. it is required to conduct testing and appraisal, etc., of the goods, so as to determine whether they comply with relevant preferential policies on import/export duty.
Under either of the circumstances prescribed in the second paragraph of this article, the competent Customs shall, within ten working days from the date of elimination of such circumstance, issue opinions on confirmation of import/export duty collection/reduction/exemption, and produce and issue a Notice on Confirming the Import/Export Duty Collection/Exemption.
Article 6 Where a duty reduction/exemption applicant needs to change or cancel the Notice on Confirming the Import/Export Duty Collection/Exemption already issued, it shall, within the validity period of such Notice, file an application with the competent Customs with relevant materials attached thereto.
Upon review, in the case of compliance with relevant provisions, the competent Customs shall make the change or cancelation; and if such change is made, produce and issue a new Notice on Confirming the Import/Export Duty Collection/Exemption.
Article 7 The validity period of the Notice on Confirming the Import/Export Duty Collection/Exemption shall not exceed six months. Each duty reduction/exemption applicant shall, within the validity period, go through the formalities for declaration of relevant imported/exported goods with the Customs at the place of declaration; and if it is impossible to go through the formalities therefor within the validity period, thus requiring an extension thereof, the applicant shall file an application with the competent Customs to go through the formalities for extension within the validity period. The Notice on Confirming the Import/Export Duty Collection/Exemption may be extended once for a period not exceeding six months.
The Notice on Confirming the Import/Export Duty Collection/Exemption shall, if unused by the expiry of its validity period, be subject to termination of validity. Where a duty reduction/exemption applicant needs to import/export any of the goods set out in the Notice on Confirming the Import/Export Duty Collection/Exemption under the entitlement to duty reduction/exemption, it shall apply to the competent Customs to go through the formalities for review and confirmation of duty reduction/exemption anew.
Article 8 Except as otherwise provided for in relevant preferential policies on import/export duty or the implementing measures thereof, the Customs shall reject any application filed by a duty reduction/exemption applicant for making up the formalities for review and confirmation of duty reduction/exemption after the collection of duty on and release of imported/exported goods.
Chapter III Guarantee for Payment of Tax on Goods Entitled to Duty Reduction and Exemption
Article 9 Under any of the following circumstances, a duty reduction/exemption applicant may apply to the Customs to go through the formalities for release of pertinent goods in advance on the strength of a guarantee for the payment of tax:
1. it is clearly prescribed in relevant preferential policies on import/export duty or the implementing measures thereof;
2. the competent Customs has accepted the application for confirming duty reduction/exemption but not yet completed the handling thereof;
3. relevant preferential policies on import/export duty have been approved by the State Council but the specific implementing measures thereof have not yet been defined, while the competent Customs can confirm that the duty reduction/exemption applicant falls within the scope of those entitled to such policies; or
4. it falls under any other circumstance approved by the General Administration of Customs (“GAC”).
Article 10 Where a duty reduction/exemption applicant needs to go through the formalities for the release of pertinent goods in advance on the strength of a guarantee for the payment of tax, it shall file an application with the competent Customs prior to declaration of the goods for import/export with relevant materials attached thereto.
The competent Customs shall, within five working days from the date of acceptance of the application, issue an opinion on whether to approve the guarantee. In the case of compliance with the circumstances provided for in Article 9 hereof, the competent Customs shall produce and issue a Notice of the Customs of the People's Republic of China on Approving the Guarantee for Payment of Tax on Goods Entitled to Duty Reduction or Exemption (hereinafter referred to as the "Notice on Approving Guarantee") and notify the Customs at the place of declaration; and otherwise, produce and issue a Notice of the Customs of the People's Republic of China on Disapproving the Guarantee for the Payment of Tax on Goods Entitled to Duty Reduction or Exemption.
Article 11 The Customs at the place of declaration shall, on the strength of the Notice on Approving Guarantee issued by the competent Customs, as well as property and rights legally recognized by the Customs provided by a duty reduction/exemption applicant, handle the formalities for the guarantee for the payment of tax on goods entitled to duty reduction/exemption as required.
Article 12 The period of guarantee for payment of tax on goods entitled to duty reduction/exemption as determined in the Notice on Approving Guarantee shall not exceed six months, which may be extended once by the competent Customs for a period not exceeding six months. Where necessary, further extension under exceptional circumstances shall be subject to consent upon review by the relevant Customs directly under the GAC.
Where the period of the guarantee for the payment of tax on goods entitled to duty reduction/exemption expires while the relevant circumstance provided for in Article 9 hereof survives, the competent Customs may, in light of such situations as the possible duration of such survival, extend the period of guarantee for the payment of tax accordingly and inform the duty reduction/exemption applicant thereof, while notifying the Customs at the place of declaration to handle the formalities for extending the period of guarantee for the payment of tax for the relevant duty reduction/exemption applicant.
Article 13 Where a duty reduction/exemption applicant obtains a Notice on Confirming the Import/Export Duty Collection/Exemption prior to the expiry of the period of guarantee for the payment of tax on goods entitled to duty reduction/exemption and has already gone through the relevant formalities for tax collection/reduction/exemption with the Customs, the Customs at the place of declaration shall lift such guarantee.
Chapter VI Management of Goods Entitled to Duty Reduction and Exemption
Article 14 Except as otherwise provided for by the GAC, the duration of supervision of goods entitled to import duty reduction/exemption shall be:
1. vessels and airplanes: eight years;
2. motor vehicles: six years; and
3. other goods: three years.
The duration of supervision shall start from the date of release of goods for import.
Except as otherwise provided for by the GAC, within the duration of customs supervision, a duty reduction/exemption applicant shall keep and use goods entitled to import duty reduction/exemption as required by the Customs and accept customs supervision in accordance with the law.
Article 15 Within the duration of customs supervision, a duty reduction/exemption applicant shall, prior to June 30 of each year (inclusive of the current day), submit a Report on the Use of Goods Entitled to Duty Reduction or Exemption to the competent Customs to report the status of use of goods entitled to duty reduction/exemption. In the case of failure to make the submission within the prescribed time limit, the Customs shall, in accordance with relevant provisions, include it in the directory of abnormal credit information.
Where a duty reduction/exemption applicant applies to the Customs for the handling of such relevant businesses as review and confirmation of duty reduction/exemption, guarantee for the payment of tax on as well as follow-up management of goods entitled to duty reduction/exemption without reporting the status of use of its goods entitled to duty reduction/exemption in accordance with the preceding paragraph, the Customs shall reject it, unless such duty reduction/exemption applicant makes a supplementary report thereof.
Article 16 Within the duration of customs supervision, goods entitled to duty reduction/exemption shall be used at the place with the consent upon review by the competent customs. Except as otherwise provided for in relevant implementing measures of preferential policies on import duty, where it is necessary to change the place of use of goods entitled to duty reduction/exemption, a duty reduction/exemption applicant shall file an application with the competent Customs and state the reasons therefor; and with the consent upon review by the competent Customs, the place of use may be changed.
Where any goods entitled to duty reduction/exemption need to be moved out of the jurisdiction of the competent Customs for use, the relevant duty reduction/exemption applicant shall file an application with the competent Customs to go through off-site supervision procedures with the relevant materials attached thereto.
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Order of the General Administration of Customs No. 245
December 21, 2020
The Administrative Measures of the Customs of the People's Republic of China for the Reduction and Exemption of Import and Export Duties, which were adopted upon deliberation at the executive meeting of the General Administration of Customs on December 11, 2020, are hereby promulgated and shall come into effect as of March 1, 2021. The Administrative Measures of the Customs of the People's Republic of China for the Reduction and Exemption of Import and Export Duties (Order of the General Administration of Customs No. 179) promulgated by the General Administration of Customs on December 29, 2008 shall be repealed simultaneously.
Ni Yuefeng, Director
Administrative Measures of the Customs of the People's Republic of China for the Reduction and Exemption of Import and Export Duties
Chapter I General Provisions
Article 1 These Measures are formulated in accordance with the Customs Law of the People's Republic of China (hereinafter referred to as the "Customs Law"), the Regulations of the People's Republic of China on Import and Export Duties as well as relevant laws and administrative regulations with a view to regulating the administration of the reduction and exemption of import and export duties by the Customs, protecting the legitimate rights and interests of administrative counterparts and optimizing the business environment.
Article 2 Except as otherwise provided for by laws or administrative regulations, matters concerning the reduction/exemption of import/export duty or import-related domestic taxes (hereinafter referred to as "duty reduction/exemption") shall be subject to administration by the Customs in accordance with these Measures.
Article 3 An applicant for the reduction/exemption of import/export duty (hereinafter referred to as "duty reduction/exemption applicant") shall apply to the competent Customs for handling such relevant businesses as review and confirmation of duty reduction/exemption, guarantee for payment of tax on as well as follow-up management of goods entitled to duty reduction/exemption.
A duty reduction/exemption applicant shall, when applying to the competent Customs for handling duty reduction/exemption-related business, submit complete and valid application materials filled out in a standardized manner as required, and assume corresponding legal liability for the authenticity, accuracy, completeness and standardization thereof.
Chapter II Review and Confirmation of Duty Reduction and Exemption
Article 4 A duty reduction/exemption applicant shall, when applying for reduction/exemption of import/export duty on pertinent goods under relevant preferential policies on import/export duty, prior to the declaration of import/export of goods, obtain supporting materials on its qualification for entitlement to preferential policies on import/export duty under relevant policies, and apply to the competent Customs to go through the formalities for review and confirmation of duty reduction/exemption on the strength of the following materials:
1. Application Form for Import/Export Duty Collection/Exemption;
2. supporting materials such as corporate certificate of a public institution or state authority establishment document, corporate registration certificate of a social organization, corporate registration certificate of a private non-enterprise entity, and corporate registration certificate of a foundation; and
3. import/export contract, invoice as well as product information and materials on pertinent goods.
Article 5 The competent Customs shall, within ten working days from the date of acceptance of an application for review and confirmation of duty reduction/exemption, review whether the subject qualification of the pertinent duty reduction/exemption applicant, investment project and relevant situation of imported/exported goods comply with relevant preferential policies on import/export duty, issue opinions on confirmation of import/export duty collection/reduction/exemption, and produce and issue a Notice of the Customs of the People's Republic of China on Confirming the Collection or Exemption of Import/Export Duty (hereinafter referred to as the "Notice on Confirming the Import/Export Duty Collection/Exemption").
Under either of the following circumstances, where the competent Customs cannot issue confirmation opinions within the time limit prescribed in Paragraph 1 of this article, it shall state the reasons therefor to the duty reduction/exemption applicant:
1. there is no definite preferential policy on import/export duty or as the administrative responsibilities of other departments are involved, it is required to further consult with pertinent departments for verification of relevant information; or
2. it is required to conduct testing and appraisal, etc., of the goods, so as to determine whether they comply with relevant preferential policies on import/export duty.
Under either of the circumstances prescribed in the second paragraph of this article, the competent Customs shall, within ten working days from the date of elimination of such circumstance, issue opinions on confirmation of import/export duty collection/reduction/exemption, and produce and issue a Notice on Confirming the Import/Export Duty Collection/Exemption.
Article 6 Where a duty reduction/exemption applicant needs to change or cancel the Notice on Confirming the Import/Export Duty Collection/Exemption already issued, it shall, within the validity period of such Notice, file an application with the competent Customs with relevant materials attached thereto.
Upon review, in the case of compliance with relevant provisions, the competent Customs shall make the change or cancelation; and if such change is made, produce and issue a new Notice on Confirming the Import/Export Duty Collection/Exemption.
Article 7 The validity period of the Notice on Confirming the Import/Export Duty Collection/Exemption shall not exceed six months. Each duty reduction/exemption applicant shall, within the validity period, go through the formalities for declaration of relevant imported/exported goods with the Customs at the place of declaration; and if it is impossible to go through the formalities therefor within the validity period, thus requiring an extension thereof, the applicant shall file an application with the competent Customs to go through the formalities for extension within the validity period. The Notice on Confirming the Import/Export Duty Collection/Exemption may be extended once for a period not exceeding six months.
The Notice on Confirming the Import/Export Duty Collection/Exemption shall, if unused by the expiry of its validity period, be subject to termination of validity. Where a duty reduction/exemption applicant needs to import/export any of the goods set out in the Notice on Confirming the Import/Export Duty Collection/Exemption under the entitlement to duty reduction/exemption, it shall apply to the competent Customs to go through the formalities for review and confirmation of duty reduction/exemption anew.
Article 8 Except as otherwise provided for in relevant preferential policies on import/export duty or the implementing measures thereof, the Customs shall reject any application filed by a duty reduction/exemption applicant for making up the formalities for review and confirmation of duty reduction/exemption after the collection of duty on and release of imported/exported goods.
Chapter III Guarantee for Payment of Tax on Goods Entitled to Duty Reduction and Exemption
Article 9 Under any of the following circumstances, a duty reduction/exemption applicant may apply to the Customs to go through the formalities for release of pertinent goods in advance on the strength of a guarantee for the payment of tax:
1. it is clearly prescribed in relevant preferential policies on import/export duty or the implementing measures thereof;
2. the competent Customs has accepted the application for confirming duty reduction/exemption but not yet completed the handling thereof;
3. relevant preferential policies on import/export duty have been approved by the State Council but the specific implementing measures thereof have not yet been defined, while the competent Customs can confirm that the duty reduction/exemption applicant falls within the scope of those entitled to such policies; or
4. it falls under any other circumstance approved by the General Administration of Customs (“GAC”).
Article 10 Where a duty reduction/exemption applicant needs to go through the formalities for the release of pertinent goods in advance on the strength of a guarantee for the payment of tax, it shall file an application with the competent Customs prior to declaration of the goods for import/export with relevant materials attached thereto.
The competent Customs shall, within five working days from the date of acceptance of the application, issue an opinion on whether to approve the guarantee. In the case of compliance with the circumstances provided for in Article 9 hereof, the competent Customs shall produce and issue a Notice of the Customs of the People's Republic of China on Approving the Guarantee for Payment of Tax on Goods Entitled to Duty Reduction or Exemption (hereinafter referred to as the "Notice on Approving Guarantee") and notify the Customs at the place of declaration; and otherwise, produce and issue a Notice of the Customs of the People's Republic of China on Disapproving the Guarantee for the Payment of Tax on Goods Entitled to Duty Reduction or Exemption.
Article 11 The Customs at the place of declaration shall, on the strength of the Notice on Approving Guarantee issued by the competent Customs, as well as property and rights legally recognized by the Customs provided by a duty reduction/exemption applicant, handle the formalities for the guarantee for the payment of tax on goods entitled to duty reduction/exemption as required.
Article 12 The period of guarantee for payment of tax on goods entitled to duty reduction/exemption as determined in the Notice on Approving Guarantee shall not exceed six months, which may be extended once by the competent Customs for a period not exceeding six months. Where necessary, further extension under exceptional circumstances shall be subject to consent upon review by the relevant Customs directly under the GAC.
Where the period of the guarantee for the payment of tax on goods entitled to duty reduction/exemption expires while the relevant circumstance provided for in Article 9 hereof survives, the competent Customs may, in light of such situations as the possible duration of such survival, extend the period of guarantee for the payment of tax accordingly and inform the duty reduction/exemption applicant thereof, while notifying the Customs at the place of declaration to handle the formalities for extending the period of guarantee for the payment of tax for the relevant duty reduction/exemption applicant.
Article 13 Where a duty reduction/exemption applicant obtains a Notice on Confirming the Import/Export Duty Collection/Exemption prior to the expiry of the period of guarantee for the payment of tax on goods entitled to duty reduction/exemption and has already gone through the relevant formalities for tax collection/reduction/exemption with the Customs, the Customs at the place of declaration shall lift such guarantee.
Chapter VI Management of Goods Entitled to Duty Reduction and Exemption
Article 14 Except as otherwise provided for by the GAC, the duration of supervision of goods entitled to import duty reduction/exemption shall be:
1. vessels and airplanes: eight years;
2. motor vehicles: six years; and
3. other goods: three years.
The duration of supervision shall start from the date of release of goods for import.
Except as otherwise provided for by the GAC, within the duration of customs supervision, a duty reduction/exemption applicant shall keep and use goods entitled to import duty reduction/exemption as required by the Customs and accept customs supervision in accordance with the law.
Article 15 Within the duration of customs supervision, a duty reduction/exemption applicant shall, prior to June 30 of each year (inclusive of the current day), submit a Report on the Use of Goods Entitled to Duty Reduction or Exemption to the competent Customs to report the status of use of goods entitled to duty reduction/exemption. In the case of failure to make the submission within the prescribed time limit, the Customs shall, in accordance with relevant provisions, include it in the directory of abnormal credit information.
Where a duty reduction/exemption applicant applies to the Customs for the handling of such relevant businesses as review and confirmation of duty reduction/exemption, guarantee for the payment of tax on as well as follow-up management of goods entitled to duty reduction/exemption without reporting the status of use of its goods entitled to duty reduction/exemption in accordance with the preceding paragraph, the Customs shall reject it, unless such duty reduction/exemption applicant makes a supplementary report thereof.
Article 16 Within the duration of customs supervision, goods entitled to duty reduction/exemption shall be used at the place with the consent upon review by the competent customs. Except as otherwise provided for in relevant implementing measures of preferential policies on import duty, where it is necessary to change the place of use of goods entitled to duty reduction/exemption, a duty reduction/exemption applicant shall file an application with the competent Customs and state the reasons therefor; and with the consent upon review by the competent Customs, the place of use may be changed.
Where any goods entitled to duty reduction/exemption need to be moved out of the jurisdiction of the competent Customs for use, the relevant duty reduction/exemption applicant shall file an application with the competent Customs to go through off-site supervision procedures with the relevant materials attached thereto.
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