Regulations of the People's Republic of China on Import and Export Duties (Revised in 2017)

Order of the State Council of the People's Republic of China No.676

March 1, 2017

(Promulgated by the Order of the State Council of the People's Republic of China No. 392 on November 23, 2003; revised for the first time in accordance with the Decision of the State Council on Repealing and Amending Certain Administrative Regulations on January 8, 2011; revised for the second time according to Decision of the State Council on Revising Some Administrative Regulations on December 7, 2013; and revised for the third time in accordance with the Decision of the State Council on Revising Certain Administrative Regulations on February 6, 2016)

Chapter I General Provisions

Article 1 With a view to implementing the policy of opening up to the outside world, promoting the development of foreign economic relations and trade as well as the national economy, these Regulations are formulated in accordance with the Customs Law of the People's Republic of China (hereinafter referred to as the Customs Law).

Article 2 All goods permitted to be imported into or exported out of and all articles allowed to enter into the People's Republic of China shall, unless otherwise provided for by the State Council, be subject to payment of customs duties on imports or exports according to these Regulations.

Article 3 The tariff items, tariff heading numbers and tariff rates as prescribed in the Customs Import and Export Tariffs of the People's Republic of China (hereinafter referred to as the "Tariffs ") and the Import Tariff Rates of the People's Republic of China for Entry Articles (hereinafter referred to as the "Import Tariff Rates for Entry Articles")‚ which are formulated by the State Council shall form an integral part of these Regulations.

Article 4 The Customs Tariff Commission shall be established by the State Council. The Customs Tariff Commission shall be responsible for the adjustment and interpretation of tariff items, tariff heading numbers and tariff rates in the Tariffs and the Import Tariff Rates for Entry Articles, which shall take effect upon the approval of the State Council; it makes decisions on the goods subject to temporary tariff rates, the tariff rates and time limits; decisions on the rate of tariff quota, the imposition of anti-dumping duties, countervailing duties, tariffs under safeguard measures, retaliatory duties; decisions on the implementation of other measures in relation to customs duties and the application of tariff rates under special circumstances, and exercises other functions as provided for by the State Council.

Article 5 The consignees of imported goods, the consignors of exported goods and the owners of entry articles are obligatory customs duty payers.

Article 6 The customs and the working personnel thereof shall, according to the statutory powers and legal procedures, exercise their functions of collecting customs duties, safeguarding the interests of the State, protecting the legitimate rights and interests of the obligatory customs duty payers, and accepting supervision pursuant to law.

Article 7 Any obligatory customs duty payer shall have the right to request the customs to keep its commercial secrets confidential, and the customs shall do so pursuant to law.

Article 8 The customs shall, according to the relevant provisions, award the units and individuals that disclose or help to discover the acts in violation of these Regulations.

Chapter II Establishment and Application of Tariff Rates for Import and Export Goods

Article 9 Import tariffs cover the most-favored-nation tariff rate, conventional tariff rate, preferential tariff rate, general tariff rate and quota tariff rate, etc. Temporary tariff rates may apply to import goods within a certain time period.
Export tariff rates are set up in export duties. Provisional tariff rates may apply to export goods within a certain time period.

Article 10 The most-favored-nation tariff rate shall apply to the import goods whose place of origin is a member of the World Trade Organization, to whom the clause of the most-favored-nation is commonly applied, and the import goods whose place of origin is a country or region that has established a bilateral trade agreement with the People's Republic of China that contains clauses reciprocal to most-favored-nation treatment, and the import goods whose place of origin is within the territory of the People's Republic of China.
The conventional tariff rate shall apply to the import goods whose place of origin is a country or region that has concluded with the People's Republic of China a trade agreement that contains clauses of preferential duty.
The special tariff rate shall apply to the import goods whose place of origin is a country or region that has concluded with the People's Republic of China a trade agreement that contains clauses of special preferential duty.
The general tariff rate shall apply to the import goods except those as listed in Paragraphs 1 to 3 of this Article and the import goods whose place of origin is unknown.

Article 11 Where a temporary tariff rate is set up for import goods, to which the most-favored-nation tariff rate applies, the temporary tariff rate shall prevail. With regard to import goods to which the conventional tariff rate or the preferential tariff rate apply, the lower one shall prevail. As for import goods to which the general tariff rate applies, the temporary tariff rate shall not apply.
Where a temporary tariff rate is set up for export goods, to which the export tariff rate applies, the temporary tariff rate shall prevail.

Article 12 As for the import goods subject to tariff quota management according to the provisions of the state, for those within the tariff quota, the quota tariff rate shall apply; and for those beyond the tariff quota, the applicable tariff rates shall be implemented in accordance with Articles 10 and 11 hereof.

Article 13 As for import goods, against which anti-dumping, countervailing or safeguard measures are taken according to the relevant laws and administrative regulations, the applicable rates shall be implemented in accordance with the Anti-Dumping Regulations of the People's Republic of China, the Countervailing Regulations of the People's Republic of China and the Regulations on Safeguard Measures of the People's Republic of China.

Article 14 As for a country or region that prohibits, limits, imposes additional duties or takes any other measures that affect normal trade with the People's Republic of China in violation of the trade agreement or the relevant convention concluded with the People's Republic of China or to which both parties have joined, a retaliatory duty may be imposed on the import goods whose place of origin is such country or region, and the retaliatory duty rate shall apply.
The goods, applicable countries or regions, duty rates, time limits and collection measures shall be determined and announced by the Customs Tariff Commission.

Article 15 As for import and export goods, the valid tariff rate of the date when the customs receives the import declaration or export declaration shall apply.
Where an import declaration is filed before the import goods arrive upon the approval of the customs, the valid tariff rate of the date when an entry declaration is filed for the means of transportation that carries the goods shall apply.
The date of the application of tariff rate for transit goods shall be separately provided by the General Administration of Customs.

Article 16 When it is required to pay duties under any of the following circumstances, the tariff rate of the date when the customs receives the declaration and handles the formalities for the payment of duties shall apply:
1. Where, upon approval, the bonded goods are not to be re-carried out of China;
2. Where the goods that enjoy exemption or reduction of duties are transferred to others or whose purpose of use is changed upon approval;
3. Where, upon approval, the goods that enter into China temporarily are not to be re-carried out of China and where, upon approval, the goods that exit China temporarily are not to be re-carried into China;
4. Where the import goods are leased and the duties are paid by installments.

Article 17 The applicable tariff rates for the makeup or refund of import or export duties shall be determined according to Article 15 or Article 16 hereof.
Where an obligatory duty payer is required to pay a duty due to violation of provisions, the tariff rate of the date when the violation occurs shall apply. If the exact day when the violation arose cannot be determined, the tariff rate of the date when the customs discovers the violation shall apply.

Chapter III Determination of Dutiable Value for Import and Export Goods

Article 18 The dutiable value for import goods shall be examined and determined by the customs on the basis of the transaction value in accordance with the requirements as prescribed in the Paragraph 3 of this Article, and the freight, the associated expenses and the insurance premiums incurred prior to the arrival and unloading of the goods at the destination within the territory of the People's Republic of China.
The term "transaction value of import goods" means the total amount of the price, covering direct payments and indirect payments, which is actually paid or payable by the buyer to the seller in the course of selling such goods within the territory of the People's Republic of China after re-adjustments have been made according to Articles 19 and 20 hereof.
A transaction value of import goods shall meet the following conditions:
1. There is no limitation on the disposal and use of the buyer except for the limitations as prescribed in laws and administrative regulations, the geographic limitation on the resale of goods and those without substantive impact on the price of goods;
2. The transaction value of the goods can be determined regardless of bundled sale or other factors;
3. The seller shall not directly or indirectly get any revenues from the resale, disposal or use of the goods after import, or the seller may have some revenues, but adjustments may be made according to Article 19 or 20 hereof.
4. There is no special relationship between the buyer and the seller, or despite so, it does not affect the transaction value.

Article 19 The following expenses of import goods shall be included in the dutiable value:
1. The commission and brokerage fee other than the commission on the purchase of goods that shall be paid by the buyer;
2. The expenses that shall be paid by the buyer for the containers that are considered as an integrated part of the goods when the dutiable value is examined and determined;
3. The expenses for packaging materials and packaging labor shall be paid by the buyer;
4. The value of the materials, tools, moulds, consumable materials and like goods that are related to the production of the goods and sale within the territory of the People's Republic of China are provided by the buyer gratuitously or at a price lower than the costs and may be apportioned at a reasonable ratio, and the expenses of the relevant services such as development and design outside China, etc.;
5. The franchise royalties in relation to the goods that shall be paid by the buyer as a precondition for the sale of goods within the territory of the People's Republic of China;
6. The revenues directly or indirectly obtained by the seller from the resale, disposal or use of the goods after import.

Article 20 The following duties, taxes, and expenses specified in the price of the goods in the course of import shall not be included in the dutiable value of such goods:
1. The expenses of construction, installation, assembly, maintenance and technical services after importing such goods as workshops, machinery, and equipment, etc.;
2. The freight and related expenses and insurance premiums after the arrival and unloading of the import goods at the destination within the territory of the People's Republic of China;
3. Import duties and domestic taxes.

Article 21 Where the transaction value of the import goods doesn't meet the requirements as prescribed in Paragraph 3 of Article 18 of the present Regulations, or the transaction value is unable to be determined, Customs shall assess the dutiable value of the goods according to the following values arranged in descending order of precedence after it has learnt of relevant information and negotiated with the obligatory duty payer about the price:
1. The transaction price of the identical goods sold to a buyer within the territory of the People's Republic of China at the same time or nearly at the same time;
2. The transaction price of similar goods sold to a buyer within the territory of the People's Republic of China at the same time or nearly at the same time;
3. At the same time or nearly at the same time when the goods are imported, the unit price of the import goods and/or the identical or alike import goods in the maximal quantity sold to the buyer without special relationship in the first link of distribution, in which the items as listed in Article 22 of the present Regulations shall be deducted;
4. The price calculated according to the summation of the items, including the costs of the materials in producing the goods, and the processing expenses, the general profit and the general expenses in selling goods of the same grade or alike goods to a buyer within the territory of the People's Republic of China, the freight, the associated expenses and the insurance premiums incurred prior to the arrival and unloading of the goods at the destination within the territory of the People's Republic of China;
5. The price assessed by any other reasonable methods.
After the obligatory duty payer has submitted relevant materials to Customs, it may apply to Customs for reversing the applicable order of precedence between Items 3 and 4 of the preceding paragraph.

Article 22 With regard to the dutiable value assessed in accordance with Item 3 of Paragraph 1 of Article 21 of the present Regulations, the items that shall be deducted refer to:
1. The general profit, expenses and commission of the first link of distribution of the goods of identical grade or similar goods sold to the buyers within the territory of the People's Republic of China;
2. The freight, the associated expenses and the insurance premiums after the arrival and unloading of the import goods at the destination within the territory of the People's Republic of China;
3. Import duties and domestic taxes.

Article 23 As for the goods imported by means of lease, the rent of the goods as verified and determined by Customs shall be the dutiable value.
The obligatory duty payer, who requests to pay the duty in a lump sum, may choose to have the dutiable value assessed according to Article 21 of the present Regulations or to deem the total amount of rent as verified and determined by Customs as the dutiable value.

Article 24 As for the goods carried abroad for processing, in case they are declared to customs and re-carried into China within the time limit as specified by customs, the dutiable value shall be verified and determined on the basis of the overseas processing fees, the costs of the spare parts and raw materials used, and the freight, the associated expenses and the insurance premiums for carrying the goods back into China.

Article 25 As for the machines, tools, means of transportation or any other goods carried abroad for maintenance, in case they are declared to Customs and re-carried into China within the time limit as specified by Customs, the dutiable value shall be verified and determined on the basis of the overseas maintenance fees and the costs of the spare parts and raw materials used.

Article 26 The dutiable value of export goods shall be examined and determined by customs on the basis of the transaction value of the goods, and the freight, the associated fees and insurance premiums incurred prior to the arrival and unloading of the goods at the destination within the territory of the People's Republic of China.
The transaction value of export goods refers to the total amount of the price that shall be directly or indirectly paid by the buyer to the seller for the export goods.
Export duties shall not be included into the dutiable value.

Article 27 Where the transaction value of the export goods is unable to be determined, Customs shall assess the dutiable value of the goods according to the following prices arranged in descending of precedence after it has learnt of relevant information and negotiated with the obligatory duty payer about the price:
1. The transaction price of the identical goods exported to the same country or region at the same time or nearly at the same time;
2. The transaction price of the similar goods exported to the same country or region at the same time or nearly at the same time;
3. The price calculated in accordance with the summation of the items, including the domestic costs of the materials in producing the identical or similar goods and the processing expenses, the general profit and the general expenses, and the freight, associated expenses and insurance premiums incurred within China;
4. The price assessed by any other reasonable methods.

Article 28 The costs, expenses, duties and taxes that are included into or excluded from the dutiable value according to the present Regulations shall be based on objective and quantifiable data.

Chapter IV Collection of Import and Export Duties

Article 29 An obligatory duty payer of import goods shall, within 14 days as of the day when the means of carriage declares for entry, submit a declaration to the customs office of the place of entry. An obligatory duty payer of export goods shall, unless approved otherwise by the customs office, submit a declaration to the customs office of the place of exit after the goods arrive at the administrative area of customs but 24 hours prior to the loading of goods. With regard to the transit of import and export goods, the regulations of the General Administration of Customs shall be implemented.
Prior to the arrival of the import goods, the obligatory duty payer may submit a declaration in advance upon approval of customs. The specific measures shall be separately formulated by the General Administration of Customs.

Article 30 An obligatory duty payer shall, according to the law, faithfully file a declaration to customs and provide the materials required for determining the dutiable value, classifying the commodities, determining the place of origin and taking antidumping, countervailing or safeguard measures. If necessary, customs may demand the obligatory duty payer to make supplementary declarations.

Article 31 An obligatory duty payer shall, according to the table of contents, stipulations, the general principles of classification, category notes, chapter notes, subheading notes and any other classification notes, classify the import or export goods that it declares, and put them under the corresponding tariff nomenclature heading numbers. Customs shall examine and determine the commodity classification of the goods pursuant to law.

Article 32 Customs may demand an obligatory duty payer to offer relevant materials required for determining the classification of the commodities. If necessary, Customs may organize laboratory tests and inspections, and take the results of test and inspection as the basis of determining the classification of the commodities.

Article 33 For the purpose of examining the authenticity and exactness of the declared value, customs may inquire into and copy the contracts, invoices, account books, evidences of settlement and payment vouchers, instruments, business letters and telephones, audio-visual products and other materials reflecting the relationship between the buyer and seller and the transactions involved.
Where customs is doubtful about the declared value of an obligatory duty payer and if the amount of the duty involved is quite large, customs may, upon the approval of the director of customs directly under the General Administration of Customs or of the authorized director of its subordinate customs, inquire into the fund flow reflected in the accounts opened by the obligatory duty payer in the banks or any other financial institutions on the strength of the assistance inquiry account notice in a uniform format of the General Administration of Customs and the employees' cards of the relevant functionaries, and shall inform the banking regulatory institutions of the relevant information.

Article 34 The customs office, that is doubtful about the price declared by an obligatory duty payer, shall notify the obligatory duty payer the reasons in writing, and demand it to make written explanations or provide relevant materials within a prescribed time limit.
In case the obligatory duty payer fails to make any explanation or provide relevant materials within the specified time limit, or it is still reasonable for customs to be doubtful about the authenticity and exactness of the declared value, customs may refuse to accept the value as declared by the obligatory duty payer, and may assess the dutiable value according to Chapter III of the present Regulations.

Article 35 After customs has examined and determined the dutiable value of the import or export goods, the obligatory duty payer may request customs, in writing, to make written explanations about how to determine the dutiable value of the import or export goods. Customs shall make explanations in writing to the obligatory duty payer.

Article 36 The import and export duties may be collected by ad valorem or by quantity or by any other means as provided by the State.
If collected by ad valorem, the formula is: Payable Duties = Dutiable Value * Tariff Rate
If collected by quantity, the formula is: Payable Duties = Quantity of Goods * Unit Duty Value

Article 37 An obligatory duty payer shall pay the duties in the designated bank within 15 days as of the day when customs fills in and issues a duty payment form. In the case that it fails to pay the duties within the time limit, it shall pay a late fee of 0.05% of the amount of the defaulted duties per day as of the day when the duties are in default.
Customs may make an announcement about the information of the obligatory duty payers who default the duties.
Customs shall issue receipts when collecting customs duties and late fees. The formats of the receipts shall be formulated by the General Administration of Customs.

Article 38 Customs duties and late fees shall be calculated and collected in terms of CNY.
Where the transaction value of import or export goods and the associated expenses are calculated in terms of a foreign currency, the dutiable value shall be calculated by converting the transaction value and the associated expenses into CNY in accordance with the basic exchange rate announced by the People's Bank of China. Where the transaction value of import or export goods and the associated expenses are calculated in terms of a foreign currency beyond the scope of foreign currencies of basic exchange rate, the dutiable value shall be calculated by converting them into CNY according to relevant regulation of the State. The date of the applicable exchange rate shall be provided by the General Administration of Customs.

Article 39 Where an obligatory duty payer fails to pay the duties because of force majeure or the change of duty policies of the State, it may, subject to provision of security for taxes pursuant to the law, extend the time limit for the payment of the duties, but the extended period shall not exceed 6 months.

Article 40 Where any clear evidence shows that an obligatory duty payer of import or export goods transfers or conceals the dutiable goods or other properties during the time period for paying duties, customs may charge the obligatory duty payer to provide a guaranty. Where the obligatory duty payer fails to provide a guaranty, customs may take duty preservation measures according to Article 61 of the Customs Law of the People's Republic of China.
In case the obligatory duty payer or the guarantor still fails to pay the duties within 3 months after the expiration of time limit for paying the duties, customs may take mandatory measures according to Article 60 of the Customs Law of the People's Republic of China.

Article 41 As for the materials imported for processing trade, if they are imported under the provisions of the State on bonded imports, and in cases that the finished products or the import materials fail to be exported within the specified time limit, customs shall collect import duties according to relevant provisions.
Where import duties are paid for the materials imported for processing trade when they enter into the territory of China according to the provisions of the State, and the finished products or the import materials are exported within the specified time limit, customs shall refund the duties collected on entry.

Article 42 Any of the following goods enter or exit China temporarily, in a case that the obligatory duty payer shall pay the customs office a sum of precaution payment equivalent to the value of the duties payable or provides other guaranty, it may be allowed not to pay the duties for the time being, but shall re-carry the goods into or out of China within 6 months of the day of entry or exit. Where it is necessary to extend the time limit for re-carrying the goods out of or into China, the obligatory duty payer shall go through the extension formalities with the Customs in accordance with the provisions of the General Administration of Customs.
1. The goods exhibited or used in exhibitions, trade fairs, meetings and other similar activities;
2. The articles used in performances or competitions in cultural or sports exchange activities;
3. The instruments, equipment and articles used in making news reports or in producing films or TV programs;
4. The instruments, equipment and articles used in scientific research, teaching or medical activities;
5. The means of transport and special vehicles used in the activities as listed in Paragraphs 1 - 4 of this Article;
6. The samples of goods;
7. The instruments and tools used in installing, trial running and testing equipment;
8. The containers of the goods; and
9. Other goods used for non-commercial purposes.
Where the goods enter China temporarily as listed in Paragraph 1 aren't re-carried out of China within the specified time limit, or the goods exit China temporarily aren't re-carried into China within the specified time limit, customs shall collect duties pursuant to law.
As for other goods enter China temporarily which are beyond the scope of good exempted from customs duties for the time being as listed in Paragraph 1, the duties on the goods shall be calculated and collected in accordance with the dutiable value and the ratio between the time when the goods stay in China and the depreciation time. The specific measures shall be formulated by the General Administration of Customs.

Article 43 Where, because of quality or specifications reasons, any of the export goods are re-carried into China in their original form within 1 year of the day when they were exported, it is not subject to import duties.
Where, because of quality or specifications reasons, any of the export goods are re-carried out of China in their original form within 1 year as of the day when they were imported, they are not subject to export duties.

Article 44 As for the goods compensated without further charge or the identical goods gratuitously replaced by the consigner of the import or export goods and/or the carrier or the insurance company, because of damage, shortage, poor quality or incompatible specifications, no duty shall be collected when they are imported or exported. With regard to the gratuitously replaced original import goods that are not to be re-carried outside China or the original export goods that are not to be re-carried into China, Customs shall impose duties on the original import or export goods in accordance with the relevant provisions.

Article 45 The following import and export goods are duty-free:
1. Where the customs duty of goods under a single invoice is not more than CNY50;
2. The articles that are for advertising purposes or to be used as samples and therefore of no commercial value;
3. The materials gratuitously donated by foreign governments or international organizations;
4. The goods damaged prior to the customs clearance;
5. The fuel, materials, food and drinks necessary for the journey and carried by the means of transport that enter into or exit China.
As for the goods damaged prior to the customs clearance, the duties may be reduced on the basis of the seriousness of the damages as determined by customs.
As for other goods exempt from duties or at reduced duties as provided for in law, Customs shall exempt them from duties or reduce the duties according to relevant provisions.

Article 46 As for the reduction or exemption of duties and the temporary reduction or temporary exemption of duties on the import goods or export goods of special areas, special enterprises or specified purposes, the relevant provisions of the State Council shall be implemented.

Article 47 As for the reduction or the exemption of import link taxes levied by customs on the import goods, the provisions of relevant laws and administrative regulations shall be implemented.

Article 48 As for the import or export goods exempt from duties or at reduced duties, the obligatory duty payer shall, unless otherwise provided for, handle the duty exemption or reduction formalities for examination and approval at customs on the relevancy of documents according to the provisions before the goods are imported or exported.

Article 49 As for the duty-exempted or duty-reduced import goods whose use is subject to the supervision of Customs, if they are transferred or if their purposes of use are changed within the term of supervision and thus it is necessary to remedy the duties, customs shall depreciate and assess the duties in accordance with the import time, and remedy the import tariffs.
The term of supervision for the special duty-exempted or duty-reduced import goods shall be provided by the General Administration of Customs.

Article 50 Under any of the following circumstances, an obligatory duty payer may apply for the refund of customs duties within 1 year as of the day when it pays the duties, and shall present the reasons to Customs in written form and provide the original receipt of the payment of duties and other relevant materials.
1. The duty-paid import goods that are re-carried out of China in their original forms because of quality or specifications reasons;
2. The export-duty-paid export goods that are re-carried into China in their original forms because of quality or specifications reasons and have already repaid the domestic link export rebates;
3. The export-duty-paid goods that fail to be loaded and exported for any reason, for which an application is filed for canceling the declaration.
Customs shall, within 30 days as of the day when it receives an application for the refund of duties, verify the information and notify the obligatory duty payer of the refund formalities. The obligatory duty payer shall go through the relevant refund formalities within 3 months as of the day when it receives the notice.
As for other customs duties that shall be refunded according to any law or administrative regulation, Customs shall refund them according to the law or administrative regulation.

Article 51 Where customs discovers duties underpaid or missed after the clearance of the import or export goods, it shall, within 1 year as of the day when the duties are paid or when the customs clearance is made, demand the obligatory duty payer to make up the duties. But under the circumstance that the duties are underpaid or missed because of the obligatory duty payer' violation of relevant provisions, Customs may demand the obligatory duty payer to make up the underpaid or missed duties within 3 years as of the day when the duties are paid or when the customs clearance is made, and charge a late fee of 0.05% of the amount of the underpaid or missed duties per day as of the day when the duties are paid or when the customs clearance is made.
Where customs finds that the duties on the goods under its supervision are underpaid or missed because of the obligatory duty payer's violation of relevant provisions, it shall demand the obligatory duty payer to make up the duties within 3 years as of the payable day of the duties, and shall charge a late fee of 0.05% of the amount of the underpaid or missed duties per day from the payable day.

Article 52 Where customs finds any overpaid duties, it shall inform the obligatory duty payer to go through duty refund formalities immediately.
Where an obligatory duty payer discovers any overpaid duties, it may, within 1 year of the day when the duties were paid, request customs to refund the overpaid duties and pay the current deposit interest for the same period11 in written form. Customs shall verify the information and notify the obligatory duty payer of the refund formalities within 30 days of the day when it receives the application.
The obligatory duty payer shall go through the refund formalities within 3 months of the day when it receives the notice.

Article 53 Where any duties and interest to be refunded, according to Articles 50 and 52 of the present Regulations, involve the refund from the state treasury, the provisions of the relevant laws and administrative regulations on state treasury shall be implemented.

Article 54 Where a customs declaration enterprise accepts the entrustment of an obligatory duty payer and handles the formalities for customs declaration and duty payment in its own name, it and the obligatory duty payer shall take joint and multiple liabilities for the payment of duties.
Where a customs declaration enterprise accepts the entrustment of an obligatory duty payer and goes through the customs declaration and duty payment formalities in the name of the customs declaration enterprise, the customs declaration and obligatory duty payer shall take joint and multiple liabilities.
Where any goods subject to the supervision of Customs are damaged or lost within the term when they are under the supervision of Customs, unless they are damaged or lost as a result of force majeure, the persons who are obligatory to keep the goods shall be responsible for paying the corresponding duties.

Article 55 Where an obligatory duty payer who owes duties is to be merged or divided, it shall, prior to the merger or division, report to Customs and pay off the duties according to the law. Where the obligatory duty payer fails to pay off the duties when it is merged, the post-merger legal entity or other organization shall keep on performing the obligation of paying the duties that should have been paid. Where the obligatory duty payer fails to pay off the duties when it is divided, the post-division legal entity or other organization shall bear the joint liabilities of paying the duties that should have been paid.
As for the duty-exempted goods or duty-reduced goods or bonded goods, in cases when the obligatory duty payer is merged, divided or under any other asset restructure circumstances within the term of supervision, it shall report to the customs office concerned. If it is necessary to pay duties according to relevant provisions, it shall pay off the duties in accordance with the law. If it may continue to enjoy the duty exemption or reduction or bonded enterprise treatments according to relevant provisions, it shall handle the formalities for altering the obligatory duty payer at customs.
Where an obligatory duty payer owes duties, or is cancelled, dissolved, bankrupt or terminated in any other lawful circumstances within the supervision term of the duty-exempted or duty-reduced goods or the bonded goods, it shall report to the customs office concerned prior to liquidation. Customs shall, in accordance with the law, check the payable duties of the obligatory duty payer and allow them to be paid off.

Chapter V The Collection of Import Tariffs on Entry Articles

Article 56 The customs duties and import link taxes collected by customs instead of others are consolidated as import tariffs, which shall be collected by customs.

Article 57 Where any of the entry articles is for the personal-use of an individual and is within the scope of reasonable quantity as provided for by the General Administration of Customs, the obligatory duty payer of the articles shall pay the import tariffs before the articles are permitted to enter into China.
As for the entry goods for personal-use purposes that exceed the quota as prescribed by the General Administration of Customs but remain within a reasonable scope of quantity, the import duties shall be paid by the obligatory duty payer of the entry goods prior to the release of the goods in accordance with relevant provisions.
As for the entry articles exceeding the reasonable and personal-use quantities, the relevant formalities shall be handled by referring to the import goods in accordance with the law.
As for the entry articles subject to payment of duties of goods as specified by the Customs Tariff Commission of the State Council, the duties shall be collected according to Chapters 2 - 4 of the present Regulations.

Article 58 An obligatory duty payer of the articles on entry refers to the person who carries the articles on entry, the consignee of the posted articles on entry or any other consignee of the articles on entry by other means.

Article 59 An obligatory duty payer of the entry articles may handle the formalities for paying the duties by himself, or may entrust any other person to do it as well. The person who accepts such an entrustment shall comply with all the provisions on the obligatory duty payer in this Chapter.

Article 60 The import tariffs shall be levied on the basis of ad valorem.
The calculation formula for import tariffs is: Amount of Import Tariffs = Dutiable Value * Import Tariff rate

Article 61 Customs shall classify the entry articles into different categories and determine the dutiable value and the applicable tariff rate according to the Form of Import Tariff Rates for Entry Articles, and the People's Republic of China - the Form of the Dutiable Values of Articles on Entry formulated by the General Administration of Customs.

Article 62 The tariff rate and the dutiable value implemented on the day when the tariff payment form is filled in shall be applied to the entry articles.

Article 63 The relevant provisions on the collection of import tariffs on goods in the present Regulations shall be implement in the reduction, exemption, makeup, demand of payment and refund of import tariffs, and the collection of import tariffs on the articles that are temporarily permitted to enter China.

Chapter VI Supplementary Provisions

Article 64 Where an obligatory customs duty payer or a guarantor raises an objection to Customs' determination of the obligatory customs duty payer, the price after paying the duty, the category of goods, the place of origin, the applicable tariff rate or exchange rate, the reduced or exempted amount of duty, the makeup of duty, the refund of duty, the collection of default fees, the way of calculation and collection of duty or the place of duty payment, it (he) shall pay the duty, and may file a reconsideration application to the customs of a higher level in accordance with the law. Where it (he) refuses to accept the decision of reconsideration, it (he) may file a lawsuit in the people's court in accordance with the law.

Article 65 The provisions on the management of the collection of duties shall be applied to the management of the collection of import link tax by customs.

Article 66 Whoever violates any of the present Regulations shall be punished pursuant to the Customs Law of the People's Republic of China, the Implementing Regulations of the People's Republic of China on Customs Administrative Penalties and other relevant laws and administrative regulations.

Article 67 The present Regulations shall come into force as of January 1, 2004 and the Regulations of the People's Republic of China on Import and Export Duties amended and promulgated by the State Council on March 18, 1992 shall be repealed simultaneously.