Measures of the General Administration of Customs for Cyber-Supervision and Administration of the Processing Trade Enterprises

Measures for Cyber-Supervision and Administration of Processing Trade Enterprises have been approved and passed by the administrative working conference on May 30, 2006.

It is now promulgated and shall be put into effect as from August 1, 2006.

Decree No.100 of the General Administration of Customs of the People's Republic of China, which is issued on March 19, 2003 shall be abolished at the same time.

Director of the General Administration of Customs: Mou Xinsheng

June 14, 2006

Article 1 For the purposes of regulating the customs' administration of the processing trade enterprises, these measures are formulated in accordance with the provisions of Customs Law of the People's Republic of China and other relative laws, administrative laws and regulations.

Article 2 The customs conducts Cyber-Supervision and Administration of the Processing Trade Enterprises refers to a mode of the customs' supervision and administration of the processing trade that the processing trade enterprises report to the customs the data of logistics, production, operation and etc. meeting with the requirements of the customs through a data exchange network or other computer network and the customs checks, calculates and verifies the data according to real objects.

Article 3 A processing trade enterprise conducting Cyber-Supervision and Administration (cyber-enterprise in short below) shall satisfy the following requirements:

1. Have qualifications for processing trade business;

2. Have registered in the customs;

3. Be a production enterprise.

The processing trade enterprises within the area under special supervision and administration of the customs and bonded supervision and administration places do not apply to these measures.

Article 4 Any processing trade enterprise that needs cyber-supervision and administration may submit an application to the competent customs. If, after examination and verification, it meets the requirements as stipulated in Article 3 of these measures, the customs shall carry out Cyber-Supervision and Administration to it.

Article 5 A cyber-enterprise shall, before reporting the data to the customs through data exchange network or other computer networks, conduct identity attestation for cyber-supervision and administration of the processing trade.

Article 6 A cyber-enterprise shall report to the customs the inventory list of materials to be imported, finished products to be exported and the corresponding number of the commodities needed for processing trade business, if necessary, provide corresponding materials for confirming the number of the commodities according to the request of the customs.

The competent customs shall, in light of the needs of supervision and administration, according to the requirements of the name and code of the commodities, and calculation unit, merge the commodities subject to grade of material number with the commodities subject to grade of item number or divide them, establishing a corresponding relationship of one-to-many or many-to-one

Article 7 A cyber-enterprises shall, before the import of the materials and export of the finished products, complete separately record and change formalities in the customs for the materials to be imported and the finished products to be exported.

A cyber-enterprise shall complete record and change formalities for per unit cost according to relative rules of the General Administration of the customs.

Article 8 The customs shall, according to the materials for record submitted by the cyber-enterprise, establish an electronic account and carry out administration of electronic account to the cyber-enterprises. The electronic account includes electronic account book and electronic handbook.

The electronic account book is an electronic account, regarding an enterprise as a unit, established by the customs for a cyber-enterprise. The cyber-enterprise conducting the administration of electronic account book shall establish only one electronic account book. The customs shall, according to the production status of the enterprise and the needs of the customs' verification and administration, set the period for the cancellation after verification, and according to the period, carry out the administration of cancellation after verification to the cyber-enterprise conducting administration of electronic account book.

The electronic handbook is an electronic account, regarding the processing trade contract as a unit, established by the customs for a cyber-enterprise. The cyber-enterprise conducting the administration of electronic handbook shall establish an electronic handbook for each processing trade contract. The customs shall, according to the period of validity of the processing trade contract, set the date for the cancellation after verification, carry out the administration of periodic cancellation after verification to the cyber-enterprise conducting electronic handbook administration.

Article 9 A cyber-enterprise shall report the data of the logistics, stock and production control of processing trade commodities and other dynamic data meeting the needs of the customs supervision and administration.

Article 10 The competent customs record system is carried out for outward-processing of a cyber-enterprise. A processing trade enterprise shall, before outward processing, register for record in the competent customs the name of the enterprise undertaking the outward-processing, name of the commodities and turnover quantity.

Article 11 The customs may check the cyber-enterprise by data verification and spot check in the factory. The check in the factory shall include special check and stock-taking check.

Article 12 With the approval of the competent customs, a cyber-enterprise may handle duty repayment for domestic sales monthly. A cyber-enterprise shall handle duty repayment for domestic sales in the same month after selling processing trade commodities in domestic market.

Article 13 A cyber-enterprise shall pay the interests of delayed payment of duties to the customs in accordance with rules after selling the processing trade commodities in domestic market.

The starting date for paying the interests of delayed payment of duties shall be set according to following measures:

1. For the enterprise conducting electronic handbook administration, the starting date shall be the date of the import of the first lot of materials under the processing trade contract that the materials or finished products for domestic sales are corresponding to;

2. For the enterprise conducting electronic account book administration, the starting date shall be the latest date for cancellation after verification of the electronic account book that the materials or finished products for domestic sales are corresponding to. If the date for cancellation after verification is not available, the starting date shall be the date of the import of the first lot of materials in the electronic account book that the materials or finished products for domestic sales are corresponding to.

The ending date for paying the interests of delayed payment of duties shall be the date that the customs issues the duty payment book.

Article 14 A cyber-enterprise shall apply for verification within 30 days from the ending date for cancellation after verification set by the customs. If the application for verification could not be submitted with proper reasons within the time limit, the period may be prolonged with the approval of the competent customs, but the extension may not exceed 60 days.

Article 15 A cyber-enterprise shall inform the customs before conducting stock-taking. The customs may, integrating with the enterprise's stock-taking, carry out verification and cancellation.

The customs shall, while integrating the stock-taking to carry out the verification and cancellation, compare the calculation of the electronic account with the real stock of the cyber-enterprise and handle separately as follows:

1. If the real stock is more than the calculation of the electronic account, the customs shall adjust current balance of the electronic account according to real stock;

2. If the real stock is less than the calculation of the electronic account and the cyber-enterprise may give proper reasons, to the shortage, the customs shall order the cyber-enterprise to apply for domestic dales;

3. If the real stock is less than the calculation of the electronic account and the cyber-enterprise could not give proper reasons, to the shortage, besides ordering the cyber-enterprise to apply for domestic sales, the customs may punish it according to Implementation Regulations of the General Administration of Customs of PRC for Administrative Punishment.

Article 16 The customs may ask for providing margin or bank's Letter of Guarantee as guarantee if a cyber-enterprise is in one of following circumstances:

1. The administration classification of an enterprise is adjusted to a lower grade;

2. Do not submit the data to the customs according to the facts;

3. Refuse to provide corresponding account book, bills and certificates and data while the customs is carrying out the verification and cancellation;

4. Do not apply for the verification to the customs within the time limit;

5. Do not establish an account book according to the request of the customs, account management is in chaos or accounts are not in order.

Article 17 Whoever violates these measures and commits a crime of smuggling or violates the customs' rules on supervision and administration shall be handled by the customs according to relative provisions of Customs Law of the People's Republic of China and Implementation Regulations of the General Administration of Customs of PRC for Administrative Punishment. Whoever commits a crime shall be ascertained criminal responsibilities.

Article 18 The implication of following words in terms of these measures:

"Electronic account" refers to the electronic data base established by the customs for a cyber-enterprise according to its application for noting down the information of processing trade record, import and export, verification and cancellation and etc.

"Special check" refers to the verification carried out by the customs to a cyber-enterprise on one or more contents in light of the needs of verification and administration.

"Stock-taking check" refers to a mode of verification and administration that the customs carries out material objects verification and data check to part of bonded commodities within a certain period while a cyber-enterprise is conducting stock-taking.

Article 19 The interpretation of the said measures shall be vested in the General Administration of Customs.

Article 20 The said measures shall be implemented on August 1, 2006. Measures of the General Administration of Customs for Cyber-Supervision and Administration of the Processing Trade Enterprises promulgated by the General Administration of Customs in its No 100 Decree on March 19, 2003 shall be abolished simultaneously.

Departmental Rules by GACC | Measures of the General Administration of Customs for Cyber-Supervision and Administration of the Processing Trade Enterprises

Measures of the General Administration of Customs for Cyber-Supervision and Administration of the Processing Trade Enterprises