State Council, PRC Import and Export Customs Duty Regulations

Promulgated: November 23 2003
Effective: January 1 2004

Main contents: As compared to the repealed 1992 Regulations, the new Regulations set forth the criteria that transaction prices of imported goods must fulfil (Article 18). For instance there should be no restrictions on the buyer's disposal and use of the goods except for the restrictions set by laws and administrative regulations, geographical restrictions on re-sale and other restrictions that do not have substantial influence on the prices of the goods. Article 19 of the new Regulations lists fees that should be included in the dutiable value of imported goods. Such fees include commissions and broker's fees apart from the commissions borne by the buyer on purchase of the goods, expenses on materials and labour used for packaging borne by the buyer as well as proceeds derived from the re-sale, disposal or use of the goods after import obtained by the seller directly or indirectly from the buyer. Article 20 lists the taxes and fees, such as customs duties and domestic taxes, which should not be included in the dutiable value of imported goods. The new Regulations set forth new guidelines for assessment, in consultation with the taxpayer, of the dutiable value of imported goods where the transaction price does not comply with relevant provisions or cannot be ascertained (Article 21). The dutiable value shall first be assessed according to the transaction price of identical goods sold at the same time or about the same time to the PRC. Article 26 stipulates that the dutiable value of exported goods shall be examined and determined by customs based on the transaction price, and the transportation fees, transportation-related fees and insurance premiums before loading of the goods when they are transported to the place of shipment within the territory of the PRC.
  Part Four of the new Regulations deals with the levy and collection of import and export customs duties and allows customs duties to be calculated according to price or quantity. Article 55 details how unpaid tax payments are handled in the case of merger, division, closure, dissolution and bankruptcy.
  The new Regulations also state that imported goods that are subject to customs duties and quotas shall follow tax rates on customs duty and quota administration (Article 12). For imported goods on which anti-dumping, anti-subsidy or safeguard measures are applied, their tax rates shall follow the relevant provisions of the PRC Anti-dumping Regulations, PRC Anti-subsidy Regulations and PRC Safeguard Measures Regulations.
Related legislation: PRC Customs Law (Revised), Jul 8 2000, CLP 2000 No.7 p10; PRC Import and Export Taxes Rules; PRC Import and Export Tax Rates Chart; PRC Anti-dumping Regulations, Nov 26 2001, CLP 2002 No.1 p66; PRC Anti-subsidy Regulations, Nov 26 2001, CLP 2002 No.1 p19 and PRC Safeguard Measures Regulations, Nov 26 2001, CLP 2002 No.1 p20
Repealed legislation: PRC Import and Export Customs Duty Regulations (2nd Revision), Mar 18 1992, CLP 1992 No.4 p4